While You Were Working - April 23 - SmartBrief

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While You Were Working – April 23

US-Mexico tensions set to spike, Wells Fargo has a leaker, Main Street preps for LIBOR changes, and is better regulation needed for ETFs?

2 min read

Modern Money

Border Wall

US-Mexico trade tensions set to spike. (Mandel Ngan/AFP/Getty Images)

Growing pains for ETFs

The market volatility from February 5 of this year laid bare some of the glaringly obvious faults with the arbitrage mechanism certain exchange-traded funds use. Of course, that doesn’t mean too many market participants have called for increased regulations in the ETF space. But that hasn’t stop a couple of academics from doing just that.

At $5 trillion, the ETF market is worthy of specialized oversight. And unlike markets for more complex investments or derivatives, the ETF market is swimming in cash from retail investors – just the kind of investor who might need the more regulatory protection.

What could possibly go wrong?

It looks like America’s populist president is going to have another populist moving in next door. If you thought the chest-thumping tough talk about a US-Mexico trade war was already bad … Aún no has visto nada.

A leak at Wells Fargo

News that Wells Fargo employees are unhappy about the $17.6 million CEO Tim Sloan earned in 2017 is not really a surprise. No, the really interesting nugget from this story is that someone, presumably a Wells Fargo employee, is leaking the contents of the firm’s internal communications website to Reuters.

But how much will the HFT firms pay?

Sure, it is great that the London Metal Exchange is no longer giving free access to its markets to high-frequency trading firms. Although I would be much more keen to learn how much the LME pans to charge the speed traders, because if it is only a nominal fee, well… then.

Wright Thompson did it again

One of the best writers alive traveled to Juventus last weekend to pen a piece about what might be the dying days of a golden domestic era for the soccer club. Read it and enjoy it. Please Mr. Thompson, get on another plane and head to FC Barcelona for a similar piece about the last days of the golden era of La Masia.

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