The tax-free municipal bond market has rallied in recent months after a sell-off in fall and winter. The market has regained at least half of what it lost. Peter Hayes of BlackRock explains the sell-off and subsequent rally, and discusses the market outlook.
Deutsche Bank's Autobahn equity operation recently launched Stealth, a liquidity-seeking algorithm for the buy side to help battle strategies of high-frequency traders. "This tool is designed to let them exploit high-frequency trading and low-latency trading techniques," said Jose Marques of Deutsche Bank.
Ari Burstein, senior counsel in the securities regulation/capital markets group at Investment Company Institute, an advocacy group for the buy side, explains the sector's concerns about high-frequency trading. "We have nothing against high-frequency traders, per se," Burstein said. "We are concerned about some of the practices associated with high-frequency traders or proliferated by high-frequency traders. Specifically, these are canceled orders and liquidity rebates, as well as the value of the liquidity they provide."