CTA Analysis Starting With Beta Performance Drivers
When analysis of a CTA begins, where is the appropriate place to start? This article makes the point that beta performance drivers are the logical starting point. This is important from a number of perspectives, including correlation and determination of [...]
HTF Regulatory Challenge: Define High Frequency Trading
How does one define a previously un-definable topic such as High Frequency Trading (HFT)? Sources close to the Commodity Futures Trading Commission (CFTC) indicate new thinking may be underway regarding the topic of High Frequency Trading (HFT). Speculation is this [...]
Can The Next Flash Crash Be Better Managed With a Volatility Interruption Algorithm? Does Eurex Exchange have the answer?
A significant issue with High Frequency Trading (HFT) has always been defining the activity and related behavior during times of crisis. “The issue is HFT impact on market stability,” noted Dr. Randolf Roth, Head of Market Structure for the Eurex [...]
What’s Missing in the Debate over Residual Interest Income: Monopolistic Control Over Futures Industry Brokerage
While it sounds mundane, the “Residual Interest Income” issue has the potential to literally change the face of the regulated derivatives industry. In just one line of a massive Dodd Frank bill with unnecessary complexity and obfuscation, large bank interests [...]
Hedge Fund Legend Stanley Druckenmiller Talks Debt Crisis Truth
Hedge fund legend Stanley Druckenmiller made a rare appearance on CNBC to discuss the debt crisis with Maria Bartiromo, who appeared to keep pace with him step for step. Mr. Druckenmiller has been talking the debt crisis about the debt crisis [...]
NFA Board Holds Off Lifetime Ban On Jon Corzine… For Now
The National Futures Association Board of Directors did not immediately act on a motion to ban former MF Global CEO Jon Corzine for life, but left open to possibility of the self regulator taking action after ongoing investigations currently underway [...]
Documenting the Journalistic Tone Regarding Financial Crimes & MF Global
It took 60 minutes (CBS) and Frontline (PBS) to publicly document what had been known to many inside the derivatives industry. In 2008 derivatives crime that cost the US economy $12.8 trillion were not prosecuted. But worse yet, these crimes were not [...]