Two recent studies offer conflicting views of hedge fund industry performance. Rhodri Preece, CFA, examines the research and offers key takeaways for investors. Read more
About Rhodri Preece, CFA
Author Archives: Rhodri Preece, CFA
13 posts
Three Lessons from the Failed BATS IPO
BATS Global Markets recently pulled the plug on its IPO after a computer malfunction caused a mini “flash crash.” Such technological glitches are not new, but they are becoming increasingly common. Rhodri Preece, CFA, examines the lessons we can learn from these events. Read more
LIBOR Investigation: Investor Trust at Stake
The ripple effect of the potential mis-pricing of LIBOR is huge, ranging from complex swaps and derivatives traded among sophisticated investors to residential mortgages sold to ordinary households. Read more
Europe’s Fragmented Securities Settlement Landscape
Settlement is typically thought of as the dull, boring part of the financial system. Rhodri Preece, CFA, takes a look at the fragmented securities settlement landscape in Europe and finds that it’s anything but. Read more
Australian Equity Markets: Structural Reform Continues
The Australian Securities and Investments Commission (ASIC) recently closed its consultation on the Australian equity market structure. The Commission is now considering how best to tackle a range of market structure issues, such as algorithmic and high-frequency trading (HFT), dark pools, price transparency, and liquidity fragmentation. Read more
NYSE Retail Liquidity Program: If You Can’t Beat ’em, Join ’em …
That’s seemingly the thrust of the NYSE’s plans to establish a “retail liquidity program.” Frustrated with its loss of market share to broker/dealer internalizers and other non-displayed trading centers, the exchange seems to want to play the internalization game itself. … Read more
Bringing Transparency to the Bond Market
Recently, the European Commission commenced its overhaul of securities markets regulation with the publication of the eagerly-awaited revised Markets in Financial Instruments Directive, dubbed “MiFID 2”. Nearly a year in the making, the legislative package puts transparency at the forefront … Read more
Shining a Light on Europe’s “Dark Pools”
A trio of trading experts discuss structural changes in European equity markets and the impact of the Markets in Financial Instruments Directive (MiFID), which was amended two weeks ago after a year-long review process. Read more
Tackling the Dark Side in Canada …
In recent weeks, Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published their regulatory approach to dark liquidity (a.k.a. non-displayed orders) in Canadian equity markets. The announcement came off the back of an earlier consultation … Read more
High-Frequency Trading: Tame the Beast, or Will the Beast Devour Itself?
High-frequency trading has been back in the news and amongst the thoughts of policymakers over the past weeks, with the publication of a speech by Bank of England Executive Director Andrew Haldane on the ‘Race to Zero’ and the publication … Read more
Systemic Risk Oversight — Up and Running in the U.K.
This week marks the inaugural meeting of the U.K.’s interim Financial Policy Committee (FPC), a systemic risk oversight committee responsible for upholding the safety and soundness of the financial system. The FPC is charged with steering the conduct of macroprudential … Read more
Exchange Merger Mania
The frenzy of merger-related activity in the exchanges business shows no sign of abating. Last week, it was the turn of first BATS Global Markets and then NASDAQ/IntercontinentalExchange (ICE) to enter the fray — BATS with the announcement that it … Read more
Market Fragmentation: Even the Playing Field
Traditional exchange markets in Europe have been buffeted in recent years by regulatory changes and new advances in trading technology. Market fragmentation has been the result, in which trading concentrated on traditional exchanges has given way to a new landscape … Read more