The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Flash Crash Panel tries a few technical back stops | Advantage zyaada

Mary Schapiro

Image via Wikipedia

In an utter lack of creativity and the continued unsigned big letters advertising for ” We don’t verify much, we just do it” the Flash Crash Panel including one lady from Cornell who got to the media wasted the exchanges time and money on a dozen new technical rules and a fistful of money as they decided to go with the systemic recommendations they saw fit without due respect to cross currents of regulations, forcing friends such as Mary Schapiro at the SEC to wonder aloud what to do with the recommendations.

While fees is to be charged from high frequency traders if implemented, some Order routing ideas such as a trade at limit and the limit up/down are basic hygiene elements that have not been seen fit to be adopted by us in the industry yet, with paucity of time, fighting such petty wars and flowing with the bigger currents in the ocean like the dark pools and the water boarding in play in each of the major stocks on NASDAQ since the May 2010 showdown worth 700 points.

While a trifle unexpectedly and in a truly unrepublican manner the first two reforms of the CFPRA and even Frank Dodd got thru well above the radar and “were mostly in good taste”, the real technology corrections for the exchanges are being avoided now as after Basel 3 any other reforms are pretty much too hot to handle for the bigg guys and all of us would be surprised to check and assert again that we still need reforms that work not technical change requests which whether outsourced or insourced thru regulation would not change the playing field much. While 33% of the securities trading is now done thru dark pools and other off floor activity, where price discovery may be easier as i can trade with my friends anonymously, the other 67% is pretty much as unregulated as it always will be even with a more homogenous circuit breaker pause or the limit range for up and down ticks. Remember these checks and balances are pretty much after the deed is done, esp the circuit breakers and freezing trades is the exact disruption we want rid of.

What we must remember is that the more we expose our tiny little tantrums to the industry “being” regulated, the easier it will be for the industry’s small fry to ignore the regulatory noise and the more difficult for anyone to commit to an implementation Also seemingly NYSE still has a bid from Nasdaq, a revised price or the withdrawal of the offer as the $10 bln bid from Deutsche Borse remains on the table, do read through “Having a stock exchange of your own series at your leisure and write back with feedback and comments

NASDAQ in Times Square, New York City, USA.

Image via Wikipedia

One comment on “Flash Crash Panel tries a few technical back stops | Advantage zyaada

  1. Pingback: Tweets that mention Flash Crash Panel tries a few technical back stops | Advantage zyaada | The Banking and Strategy Initiative -- Topsy.com

Comments are closed.

Archives

%d bloggers like this: