News

Heavyweight Data Management…

…I am very concerned that I have previously missed an important requirement for data management solutions – a heavweight one judging by this great discussion on one of the Microsoft forums.…

Regulatory moves and moods

Seems that the latest EU and Basel Committee proposals on banking regulation cannot make everyone happy (now there’s a surprise…). Whilst many seem very happy at the incremental nature of the proposals to increase capital requirements for securitisations and proprietary trading, some of those in the Glass-Stiegal/banking utility camp are less than impressed.…

Debt hides volatility from Taleb

Nassim Nicholas Taleb and one of his colleagues are back in the FT today with an article on the “evils” of debt and why the only solution to the economic system’s woes is (start the fanfare, this is scary stuff!) the “immediate, forcible and systematic conversion of debt to equity“.…

Tick Size Harmony…

…in a rare show of co-operation (I wonder what is the carrot or (regulatory) stick here to motivate this?) European exchanges and MTFs seem to have agreed on standardising tick sizes (or at least to have two standards rather than twenty five!).…

Das’s Dazzling Derivatives

Satyajit Das adds an interesting contribution the debate on OTC derivatives and the drive towards CCP in his article in the FT today (see earlier post for background). The opening paragraph sets the tone:

‘US and European Union proposals for over-the-counter derivative regulations are consistent with H.L.…

Lessons for Risk Management – Wilmott and Rowe

Great event organised by PRMIA and IAFE last night at Goldman’s London offices with a long title:

 “A Little Thought Goes A Long Way and Lessons for Risk Management from the Current Crisis“.

The event was moderated by Giovanni Bellossi of FGS Capital, and featured speaking slots by Paul Wilmott and David Rowe of Sungard.…

Best execution 2009 – July 1st 2009

A few summary points I took from the Best Execution Europe 2009 event courtesy of Incisive Media that I attended yesterday morning.

The event started with a presentation by Michael Fridrich, Legal and Policy Affairs Officer of the European Commission:

From what Michael was saying then in my view, it seems that the EU is using the G20 declaration on financial stability in April as a remit to regulate in many areas (not all of which related to the current crisis, see last paragraph in this post) He said that the EU is currently working on removing national options/discretions with respect to financial markets in order to create a single EU rule book and combining this with stronger powers for supervisors including much harsher sanctions against offending institutions They are also reviewing the necessary information provided to investors in OTCs, even if the investors qualify as “professional investors” under Mifid.…

Over The Counter Arguments

George Soros has waded back into the current saga concerning OTC derivatives in his article last week in the FT. The main part of the article focusses on financial markets reform, but ends with a vehement attack on derivatives, building upon some of his earlier ideas (see post) and seemingly going much further:

“Finally, I have strong views on the regulation of derivatives.…

Risk in the Hands of the Holder?

Given the ongoing debate about "too big to fail" and whether we should head back to the days of the Glass-Steagal Act, then here is a slightly different slant on the problem of systematic risk put forward in an article by Avinash D.…