Most Clicked FIA SmartBrief Stories

1. Analysis: Spoofing charge highlights fine line in trading

FIA SmartBrief | Apr 28, 2015

Navinder Singh Sarao has been accused of spoofing in a case that is shining a light on minor differences between illegal and savvy trading. Whether Sarao actually committed fraud is key to a U.S. effort to extradite him from the U.K. New York Times (tiered subscription model), The (04/27)

2. Missed details said to thwart "flash-crash" investigation

FIA SmartBrief | Apr 27, 2015

Investigators took five years to detect manipulation that contributed to the 2010 "flash crash" after overlooking evidence available hours after the wild gyrations in the U.S. futures market, according to a committee that oversaw the inquiry. Investigators failed to look closely into a set of data and missed details on spoofing allegedly pursued by trader Navinder Sarao. Wall Street Journal (tiered subscription model), The (04/26)

3. FIA Global recommends ways to manage clearinghouse risks

FIA SmartBrief | Apr 29, 2015

FIA Global has released a position paper offering recommendations for assessing and managing central counterparty risks from the perspective of clearing members. "Clearing members are uniquely positioned to assess central counterparty risk and recommend improvements in risk management," said FIA Global President and CEO Walt Lukken. "In addition to allowing market participants to hedge risks through central clearing, our members also play an important role as a backstop in the event of a default. Our goal is to ensure that the risks of central clearing are both transparent and effectively managed." (04/29) Financial Times (tiered subscription model) (04/28)

4. 2 futures traders face CME suspension

FIA SmartBrief | May 01, 2015

CME Group said it has suspended two gold and silver traders accused of engaging in manipulative trading, specifically "layering," in which a trader places an order but has no intention to follow through. Heet Khara and Nasim Salim are barred from trading on CME markets for 60 days. Bloomberg (04/30) Reuters (05/01)

5. MiFID II draft aims to define HFT

FIA SmartBrief | Apr 28, 2015

European regulators drafting the revised Markets in Financial Instruments Directive are attempting to define high-frequency trading. The draft considers HFT "the submission on average of at least 4 messages per second with respect to all instruments traded on a trading venue or at least 2 messages per second with respect to any single instrument traded on a trading venue." International Financing Review (free content) (04/24)

6. FINRA chief: Nature of spoofing makes detection difficult

FIA SmartBrief | Apr 27, 2015

Richard Ketchum, head of the Financial Industry Regulatory Authority, said it is difficult to detect the type of market manipulation allegedly used by the U.K. trader accused of contributing to the 2010 "flash crash." However, Ketchum said that because Navinder Singh Sarao's behavior was identified in 2009, the allegations are "somewhat surprising." Reuters (04/24)

7. BGC puts recently acquired Trayport up for sale

FIA SmartBrief | Apr 30, 2015

BGC Partners plans to sell Trayport, an electronic trading venue that the broker-dealer inherited with its recent takeover of GFI Group. "We expect numerous parties to be interested in acquiring this business at a valuation that reflects its high margins, growth rate, leading technology, and strategic importance in the global energy and commodities markets," said BGC CEO Howard Lutnick. FOW magazine online (subscription required) (04/29) Financial Times (tiered subscription model) (04/29) (free content) (04/29)

8. Commentaries: U.K. trader's arrest raises more questions

FIA SmartBrief | Apr 27, 2015

The arrest last week of U.K. futures trader Navinder Singh Sarao on charges that he contributed to the May 2010 "flash crash" has raised questions about regulators, market infrastructure and possible future consequences. Many commentators have speculated that regulators are using Sarao as a scapegoat. Guardian (London), The (04/25) FOW magazine online (subscription required) (04/24) Financial Times (tiered subscription model) (04/24) Bloomberg (04/26)

9. Nomura mulls future of OTC clearing business in U.S., Europe

FIA SmartBrief | Apr 27, 2015

Nomura Holdings is reviewing whether to continue its U.S. and European over-the-counter client clearing business, a representative confirmed. Royal Bank of Scotland and State Street left the business last year and BNY Mellon shut its U.S. swaps clearing unit in 2012. Some regulators are calling for banking rule changes to ease pressure on futures commission merchants. (subscription required) (04/24)

10. Exchanges win dismissal of U.S. HFT lawsuits

FIA SmartBrief | Apr 30, 2015

U.S. District Judge Katherine Forrest dismissed lawsuits against the New York Stock Exchange, BATS Exchange, the Nasdaq Stock Market and other exchanges that accused them of selling high-frequency traders early access to market data. The judge said the Securities and Exchange Commission must first review the claims. Reuters (04/29) Wall Street Journal (tiered subscription model), The (04/29)

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