Machine trading is only going to grow over time, says Scott Kerson, head of systematic strategies at Gresham Investment Management. "The more commoditised the activity, the more likely it'll be taken over by machines," Kerson says.
The White House says President Donald Trump plans to nominate Heath Tarbert, assistant secretary for international markets at the Treasury Department, to replace J. Christopher Giancarlo as chairman of the Commodity Futures Trading Commission. Giancarlo's term ends in April, though when he will exit has not been determined.
Intercontinental Exchange wants recognition from national regulators in a few EU states to keep its futures and options markets in London if a no-deal Brexit occurs, a source says. The recognition would let firms in those states continue trading Brent crude oil contracts out of London.
The Commodity Futures Trading Commission is launching a 60-day consultation on how ether and the ethereum network differ from bitcoin and whether ether should be regarded as a commodity. The agency is also asking what risk challenges could stem from trading ether as a derivative.
A report from the Australian Securities and Investments Commission concludes that while high-frequency trading is becoming faster because of better technology, trading profits have stagnated as firms spend more on technology to beat the competition. High-frequency traders are "no longer getting the same bang for their buck," ASIC business-intelligence manager Joe Barbara says.
Intercontinental Exchange has seen a 70% increase in Dutch Title Transfer Facility gas volume after breaking four monthly records during the past year because of traders' hedging of northwest European liquefied natural gas cargo.
Despite expectation of flaws with contracts, Shanghai's crude oil futures have taken a spot market share of about 6%, cutting into market share for Brent and West Texas Intermediate crude. "If a new exchange achieves 6% market share [versus] the two incumbents within the first year of trading, that's fairly impressive," said John Driscoll, director of JTD Energy Services.
Mick Mulvaney, in his last days as acting director of the Consumer Financial Protection Bureau, proposed new measures to relax enforcement in financial services. He moved to make it easier for companies to obtain no-action letters, and he proposed a "product sandbox" as a safe harbor in which companies can create and test products and services.
John Hancock's annual Financial Stress Survey found that 69% of more than 1,350 retirement plan participants were stressed about their finances, with more than 75% saying a lack of retirement savings was the leading reason. The survey report said the stress could lead to behaviors that cost employers about $2,000 in excess labor costs per employee.
Federal Deposit Insurance Corp. Chairman Jelena McWilliams says consideration of brokered deposits and the streamlining of regulations are on her agenda in 2019. The FDIC will also look at outdated rules and the supervision of small banks.