Markets News 

Goldman Sachs says computerized trading may make next ‘flash crash’ worse

“Goldman Sachs is cautioning its clients that computerized trading may exacerbate the volatility of the next big market sell-off” writes unknown author for cnbc.com. “One theory that has been proposed for why market fragility could be higher today is that because HFTs [high-frequency trading] supply liquidity without taking into account fundamental information, they are forced to withdraw liquidity during periods of market stress to avoid being adversely selected,” Charles Himmelberg, co-head of global markets research at Goldman, said in a report Tuesday.”In our view, this at least raises the risk…

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Markets News Stocks 

Goldman warns machines will ugly up the next selloff — but here’s your silver lining

“The danger is once HFTs start pulling liquidity out of the market, others follow, and then it gets ugly” writes Markets Reporter for marketwatch.com. Not a bad time, then, to take a look at whether the market’s itchy finger is jerked by emotion or machines.And as Goldman points out, it’s not clear who will step into provide liquidity when the market needs it most. (Certainly, central banks seem less keen, these days.) Is there a silver lining?.  Source: marketwatch.com Share This:

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News 

TrueUSD Team Addresses Liquidity Concerns Prior…

“More specifically, it requires bank wire transfers to increase the TUSD supply” writes Jp Buntinx for livebitcoinnews.com. To clarify a few things, the company confirms the demand might exceed supply during major exchange listings.This difficult situation will remain in place until traders purchase more TrueUSD and sold it into the supply on exchanges. Source: livebitcoinnews.com Share This:

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Crypto Markets News Stocks 

JP Morgan’s Wall Street chief talks China and bitcoin and is preparing for a big downturn in stocks

“An Argentinean who spent much of his early career in volatile emerging markets, Pinto, 55, began at J.P. Morgan Chase in 1983 as a currency trader in Buenos Aires” writes Simon Dawson for cnbc.com. In 2014, he was named head of the firm’s corporate and investment bank, the world’s biggest by revenue. Source: cnbc.com Share This:

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Brokers News 

Prime of prime firms tempted to look toward high net worth direct business are upping their minimum deposit amount as fear sets in

“Retail brokerages have never had so much choice with regard to order processing, liquidity management and trade execution methodology” reports financefeeds.com. This week has been a very eventful one in terms of outing what FinanceFeeds has long considered to be the disguised face of institutional non-bank liquidity.The difficulty is that with commercial and professional traders wanting an ever more direct access to bank liquidity, a significant demand for prime of prime relationships with traders rather than brokers has emerged.Hardly surprising, of course, as London is the global centre for Tier…

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News 

Former customers of FXCM insist slippage matters are serious

“In fact, according to the plaintiffs, Effex existed separately from FXCM to allow FXCM to exploit its customers” reports financefeeds.com. And although Effex further asserts that FXCM’s customers waive all claims for slippage unless raised within two days, there is no such provision in the Customer Agreements.Effex used both of these abusive practices to harm FXCM’s customers. Source: financefeeds.com Share This:

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News 

Exclusive: Sucden FX mainstays Michael Bleys and David Fowler leave the company

“In this particular exit, Sucden Financial eFX Account Manager David Fowler joins Mr Bleys, with Mr Fowler having accepted a position at electronic trading technology and liquidity provider Edgwater Markets in London” reports financefeeds.com. Sucden Financial, one of the world’s oldest electronic FX liquidity providers, has waved goodbye to Michael Bleys and David Fowler, both of whom cleared their desk at 30 Fenchurch Street for the last time on Friday last week.The company also promoted long standing FX industry expert Michael Davies to Head of eFX Sales for the EMEA…

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News Regulators 

Fed’s bank regulator to pitch Congress on stress test, liquidity changes

“WASHINGTON (Reuters) – U.S. President Donald Trump’s top banking regulator will tell lawmakers on Tuesday that he wants more industry input into stress tests and to ease liquidity requirements for large, non-global lenders” writes Midwest Communications Inc for 95kqds.com. The so-called stress tests that analyze how a bank would cope with market shocks should be put out to public comment, Quarles will say.”We are mindful that, just as there is a strong public interest in the safety and soundness of the financial system, there is a strong public interest in…

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