The U.S. Securities and Exchange Commission is convening a group of financial industry veterans for the first time next month to consider stock market reforms, but one group will be conspicuously absent: retail brokerages.
Market participants are eagerly awaiting a solution to the liquidity conundrum plaguing the corporate bond market, says TABB Group principal, Anthony Perrotta, director of fixed income research, in just-issued commentary. Execution venues are all posturing to bring forth the next big idea but now that we finally have a competitive environment in the electronic trading space in credit, all we need next is proactive and collaborative thought leadership from the investment community.
It’s ironic that I’m writing this on the day the insurance study commissioned by the industry after the MF Global and PFG blow ups was released. Ironic because if implemented in some form, it would mean more costs and more rules for futures commission merchants (FCMs) and probably their customers.
After years of dealing with low interest rates, new regulations and rebuilding client confidence, futures commission merchants are ready to break out and start doing what they do best: Executing trades and hopefully making money.
The proposed acquisition of NYSE Euronext by ICE would be highly profitable for ICE, leading to a 10% plus increase in ICE stock according to a preliminary analysis by financial services firm Keefe, Bruyette & Woods.