The advent of electronic trading brought an infatuation with for-profit exchanges, while Dodd-Frank brought hope of regulatory protection for the little guys. Neither delivered in 2013 — will 2014 be any different?
Equities have retreated slightly from their two-day rally. The S&P reached a high of 1845.75 yesterday, the highest of the year, but failed to put in new all-time highs against 1846.50, which was seen on Dec. 31.
A long time ago some big banks decided that it would be good to sell interest-rate derivatives. To do that they needed an interest rate on which to sell derivatives. Various possibilities presented themselves -- Treasury rates or whatever -- but the interest rates that the banks themselves paid on short-term borrowing had an especially obvious appeal as an index.
Joaquín Almunia, Commission Vice-President in charge of competition policy, said: “What is shocking about the LIBOR and EURIBOR scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks
At a meeting of New York City securities lawyers this week, Jed Rakoff did what he does best: challenge Establishment Thinking. "While the economy has slowly improved, there are still millions of Americans leading lives of quiet desperation -- without jobs, without resources, without hope." Then he asked: Who is to blame?
The quantitative easing program is based on the Fed’s assessment of the U.S. economic condition and that portends an assessment that the economy is not improving according to what they consider acceptable.
The odd thing is that a regulatory overhaul that began as a way to rein in the lawless world of over-the-counter trading and apply futures industry style regulation will, in the end, arguably have a greater impact on the already regulated futures world than the OTC space.