Remember to download and subscribe to In the FICC of It at the Apple iTunes store and this week you can enjoy Colin Lambert and Galen Stops stepping into tricky territory by discussing actual economic things! As always seems to be the case Lambert is mystified by a US government decision, while Stops suddenly has […]
Tag: speed bumps
Have we finally hit the wall in terms of our willingness, as a broad financial markets industry, to accept the continued race to cut a few microseconds off the speed of trading? I suspect we may have, for as P&L editor Galen Stops’ articles on speed bumps in the listed derivative world have highlighted, this […]
Galen Stops takes a closer look at the new latency mechanism being introduced to FX and certain equity options products by Eurex, in a bid to improve the order book. Speed bumps seem to be the topic de jour in the listed derivatives markets just now, with the Intercontinental Exchange (ICE) winning approval to implement […]
The Futures Industry Association’s Principle Traders Group (PTG) has slammed the decision by the Commodity Futures Trading Commission (CFTC) to allow ICE to self-certify its Passive Order Protection mechanism, more commonly known as a speed bump. The PTG was joined in its criticism of the decision, which has already caused significant controversy in futures circles, […]
As part of what it terms a continuing effort to foster a productive, data-driven discussion about the nature of liquidity and liquidity provision, FIA PTG has released a white paper entitled Liquidity in Today’s Markets that seeks to promote principles that it says are fundamental to building healthy, liquid markets.
The paper includes recommendations detailing what the association believes to be the general parameters necessary to promote liquidity, thereby establishing a basis for further discussion between market participants and regulators.
This week’s Bundesbank paper on HFT in bund and equity markets caused a stir – as anything on this subject does of course – and it highlights to me again, how FX is in front of other markets in being inclusive and functional. It is significant that while some regulators want FX to be equities-like in market structure, more are looking to an FX solution – the speed bump – to save equity market problems.
I am not sure we should be talking about speed bumps for the real issue is the dysfunctional liquidity stream.