Day: 14 June 2018

SEC Official Clarifies Bitcoin, Ether Aren’t Securities

A Securities and Exchanges Commission (SEC) official explicitly stated today that he does not consider bitcoin and ether (the native cryptocurrency of the Ethereum network), to be securities.

Speaking at the Yahoo Finance All Markets Summit in San Francisco, William Hinman, the
Director of the Division of Corporation Finance at the SEC, gave a speech about whether digital assets should be considered as securities.

Hinman pointed out that the network upon which bitcoin functions has always been decentralised and therefore there is no central third party “whose efforts are a key determining factor in the enterprise”.

FCA Paper Claims to Throw New Light on Sterling Flash Crash

A new paper published by the UK’s Financial Conduct Authority (FCA) claims to throw new light on events surrounding the sterling flash crash of October 2016 by being the first paper to use trade reports to the FCA under EMIR to analyse how different market participants react in times of market stress and their impact on the liquidity dry-up in a flash crash.
The paper has, however, triggered some confusion amongst market participants thanks to ambiguous terminology, mainly the constant reference to “OTC derivatives”, without specifying exactly what products it is talking about.

A Data-Science Approach to Building Sustainable Trading Relationships

There is a changing dynamic afoot when it comes to relationships between service providers and clients in the foreign exchange industry, one driven partly by liquidity providers developing a better understanding of the value of their clients’ flow and partly by clients seeking to optimise their execution – specifically by reducing market impact. Colin Lambert talks to Roel Oomen, managing director, e-FX spot trading at Deutsche Bank, about his latest research paper that advances the study of optimal liquidity aggregation via a data driven analysis of price signatures.

And Another Thing…

Next Tuesday sees Mark Johnson’s bail application heard in New York and the documents filed by prosecution and defence are available online, which gives the wider world an opportunity to study both sides of the case through one prism. I’ve taken a look at both documents and, as someone with more than 40 years experience in this industry, it concerns me that a central plank of the prosecution’s case is backed up by an obvious and fundamental lack of understanding as to how the FX market handles large risk.