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February 6, 2013
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News on the capital markets, securities and financial industry

  Morning Bell 
  • FINRA delays start of price bands and circuit breakers
    The Financial Industry Regulatory Authority has postponed the implementation of volatility controls, including circuit breakers, to April 8. In addition, the introduction of limit up/limit down on individual equities is scheduled to be completed by Sept. 30. The controls are part of a response to the May 2010 "flash crash." Traders Magazine Online (2/5) LinkedInFacebookTwitterEmail this Story
  Industry News 
  • Decades of low returns await investors, report says
    For the next 20 to 30 years, annualized worldwide returns on equities will reach 3% to 4% and less than 1% on bonds, according to a report by London Business School and Credit Suisse. Since 1980, real returns on equities and bonds have exceeded 6%, but those days are over, the report says. Many institutions still assume "unrealistic" returns of 6 to 8 percentage points higher than inflation, the report says. Pensions & Investments (free registration) (2/5) LinkedInFacebookTwitterEmail this Story
  • Study predicts an uptick in revenue from high-frequency trading
    An industry study of U.S. equity markets predicts higher volume that will lead to a better year for high-frequency trading. HFT has been in a slump since its peak in 2009. The combination of investors returning to the market and the possibility of short periods of volatility is the perfect environment for HFT, the report says. Bloomberg (2/5) LinkedInFacebookTwitterEmail this Story
  • Analysis: U.S. lawsuit poses risks beyond S&P
    The Justice Department's lawsuit against Standard & Poor's could affect the industry for years, Lauren Tara LaCapra and Karen Freifeld write. "This is a very serious challenge. It resurrects all the legacy concerns about ratings agencies," said Edward Atorino of The Benchmark Company. While S&P plans to defend itself in court, experts say there is a risk that other ratings agencies will be damaged as well. Meanwhile, some Democratic lawmakers voiced support for the lawsuit. Reuters (2/5), The Wall Street Journal/Washington Wire blog (2/5) LinkedInFacebookTwitterEmail this Story
  Washington Roundup 
  • Politicians call for quantitative-impact study of Basel III
    Some politicians are taking up the cry for a U.S.-based quantitative-impact study to be carried out before the Basel Committee for Banking Supervision's regulations are implemented domestically. That study, however, would take a significant amount of time and risks, substantially delaying Basel III. "We don't want to be the ones that give everyone else the excuse to slow down or abandon the project entirely. That's why a U.S. QIS would be disappointing," said Sheila Bair, former chairwoman of the Federal Deposit Insurance Corp. Learn more at SIFMA's Basel III Resource Center. (subscription required) (2/5) LinkedInFacebookTwitterEmail this Story
  • Nasdaq and SEC discuss Facebook IPO settlement
    Nasdaq OMX Group reportedly is looking at settling with the Securities and Exchange Commission, which would include a $5 million penalty relating to technical errors during Facebook's initial public offering. Nasdaq has already offered more than $60 million in compensation to firms possibly harmed by the errors. Reuters (2/5), Bloomberg (2/5) LinkedInFacebookTwitterEmail this Story
  Operations Update 
  • SEC roundtable focuses on 1-cent trading increments
    The Securities and Exchange Commission is holding a meeting today to discuss the idea of conducting a pilot study of increasing quoting increments from 1 cent in an effort to improve liquidity. "A test would tell you if there's a benefit or not," said Jim Maguire, a former New York Stock Exchange specialist. "I assume there would be. The 1-cent spread has been a toxic element in trading." Traders Magazine Online/Bloomberg (2/5) LinkedInFacebookTwitterEmail this Story
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  Asset/Wealth Management Report 
  • Analysis: Retirement saving trends prompt rethink
    Research shows that lower-earning Americans are more likely to withdraw funds from their 401(k) retirement plans early, while many workers are forgoing workplace plans altogether. These trends, along with other economic shifts, are prompting concerns about retirement savings and the need to consider changing current policies. Reuters (2/5) LinkedInFacebookTwitterEmail this Story
  SIFMA News 
  • SIFMA AML Workshops & Conference -- New York City -- Feb. 26-27
    SIFMA's 13th Annual Anti-Money Laundering and Financial Crimes Workshops and Conference are the securities industry's premier events for anti-money laundering compliance and practices. Join us on Feb. 26 and 27 in New York City and hear exclusive presentations from newly appointed FinCEN Director Jennifer Shasky Calvery and OFAC Director Adam Szubin on their agendas for the upcoming year. Half-day workshops complement the main conference by providing practical guidance to financial services industry AML compliance requirements. Complete program now online! LinkedInFacebookTwitterEmail this Story
  • SIFMA's Muni Bond School -- first of 10 sessions -- Feb. 12 -- New York City
    Stay ahead of the competition by attending the MUNI Bond School, presented by the Municipal Bond Club of New York and SIFMA. Attend in person at 120 Broadway in New York City or enroll via webinar. In 10 evening sessions, learn everything you need to know covering topics such as the issuers' perspective, ratings, finance, underwriting, market strategy, trading and much more. Senior-level lecturers include Jim Lebenthal of Lebenthal & Co. and municipal securities experts from Morgan Stanley, Assured Guaranty, Standard & Poor's and more. On the final evening you will have the opportunity to network with your fellow muni professionals. LinkedInFacebookTwitterEmail this Story
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--Maya Angelou,
American author and poet

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