Entries by Tayloe Draughon

JPMS Fined $800,000 for Failure to Supervise and Pre-Trade Controls

A Case for At-Trade Risk Management JPM accepted a fine for $800,000 because they “failed to establish, document, and maintain a system of risk management controls and supervisory procedures, including written supervisory procedures and an adequate system of follow-up and review, reasonably designed to manage the financial, regulatory, and other risks of its market access […]

The Algorithm Behind Algorithmic Trading: Why It Makes Sense

The Algorithm Behind Algorithmic Trading: Why It Makes Sense excerpt from The Market Mogel July 6, 2017 Man vs. Machine The most prominent development facilitating the change in behaviour is derived from powerful computing, high connectivity speeds and real-time intraday information. The following ingredients gave rise to high-frequency trading. Its dominance is being manifested by increasing […]

RenTech is pushing back on CFTC

Renaissance Technologies, the $65 billion hedge fund, is pushing back against federal regulators’ interest in highly-technical trading software out of concern that their source code wouldn’t be secure in the government’s hands, The Post has learned. The Commodity Futures Trading Commission is interested in digging into the software at so-called “quant” funds, which use highly-secretive […]

Japan Tightens Regulations on High Frequency Trading

Japan’s FSA (Financial Services Agency) is looking to implement tighter regulations on Japan HFT (High Frequency Trading) as soon as 2018. Reuters states that “The growing presence of HFT on the Tokyo Stock Exchange (TSE) has raised concerns high-speed trading could destabilise markets and leave retail investors at a disadvantage.”* This is an interesting point […]