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In response to the market disruption of 6 May, the SEC and the Financial Industry Regulatory Authority (FINRA) are proposing new rules under which they would pause trading in certain individual stocks if the price moves 10 per cent or more in a five-minute period.
The SEC is seeking comment on the proposed rules. The US stock exchanges are proposing these rules in consultation with FINRA and staff of the SEC to provide for uniform market-wide standards for individual securities in the S&P 500® Index that experience a rapid price movement.
These rules reflect a consensus that was achieved among
The US Commodity Futures Trading Commission has charged Jeffrey Shalhoub of Staten Island, New York, and his company, Jeff Shalhoub Investments of Long Island City, New York, with operating a commodity futures Ponzi scheme.
According to the CFTC complaint, filed on 17 May 2010, in the US District Court for the Eastern District of New York, Shalhoub solicited approximately USD300,000 from at least 12 of his ex-wife’s friends and family to trade futures.
The complaint further charges that Shalhoub and JSI commingled customer money with Shalhoub’s personal funds and that Shalhoub misappropriated at least USD154,500 of customer funds for his
The Alternative Investment Management Association says it is concerned that many of the proposals in the texts of the Alternative Investment Fund Managers Directive discussed by the European Parliament’s Economic and Monetary Affairs Committee and European finance ministers at the Ecofin meeting are impractical and unworkable.
Andrew Baker, chief executive of Aima, says it seems that the process of negotiation in Econ was so highly-politicised that it took little note of the legal and practical feasibility of the compromise amendments put forward.
For example, Article 35a now prohibits investors from investing in third country funds unless the jurisdiction of the
Cash trading in molybdenum and cobalt began on the London Metal Exchange on Wednesday, ahead of the first prompt date of 21 May.
Futures contracts were introduced to the market on 22 February this year, bringing regulated exchange pricing, risk management and clearing to these two metals which are used in a wide range of applications.
Since launch, 1,560 lots of cobalt have been traded, equivalent to 1,560 tonnes with a notional value of USD65.3m, while 119 lots of molybdenum have been traded, equivalent to 714 tonnes and USD27.6m.
Nine brands of cobalt and six brands of molybdenum have been
The average price for assets on the secondary hedge fund market has risen again to 91 per cent of net asset value, according to Hedgebay’s April index, continuing the volatile trend seen since the start of the year.
The last year of trading on Hedgebay has been characterised by fluctuating average prices, with successive price rises seen only twice since May last year.
As the market slowly recovers, investors have divided their priorities between buying sought after assets and clearing unwanted assets from their portfolio. This trading, occurring at the top and bottom of the secondary market, has created
Andrew Baker, AIMA CEO, says the association has concerns over the ‘impractical and unworkable’ proposals in the EU’s Alternative Investment Fund Managers Directive (AIFMD).
AIMA, as the global hedge fund association, fully supports the regulatory goals of the EU’s Alternative Investment Fund Managers Directive (AIFMD). It is desirable both to increase transparency and to improve systemic risk assessment in the interests of financial stability.
However, we are concerned that many of the proposals in the texts of the Directive discussed by the European Parliament’s Economic and Monetary Affairs Committee (ECON) and European finance ministers at the ECOFIN meeting are impractical
John Moulton (pictured) will feature amongst the panellists discussing the future of the funds industry at the Guernsey Funds Forum on 26th May in London. The event will bring together industry experts to examine the current issues relating to transparency, distribution and alternatives.
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The Australian Securities and Investments Commission says it will vigorously defend the constitutional challenge that accounting firm KPMG has initiated in the High Court of Australia against the Commonwealth of Australia and ASIC.
KPMG is seeking a declaration that section 50 of the ASIC Act is unconstitutional.
It contends that, insofar as section 50 empowers ASIC to begin and carry on a proceeding in the name of a company, it affects an acquisition of property otherwise than on just terms contrary to the provisions of section 51 (xxxi) of the Constitution, and is accordingly invalid.
The effect of the declaration
As much as 22 per cent of total European equity volume is now executed through alternative trading systems, most of which are registered as multilateral trading facilities.
The data from research consultancies Tabb Group and Aite Group is contained in a white paper by ITG titled “Alternative Trading Systems in Europe: Trading Performance by European Venues Post-MiFID”.
The Markets in Financial Instruments Directive is credited with breaking down the market power traditionally held by national exchanges.
By analysing a sample of trading activity in Europe (5.6 million trades), ITG has determined that alternative trading markets, and dark pools in particular,
NYSE Euronext has welcomed the Securities and Exchange Commission’s move to gain the agreement of exchanges and trading venues on the implementation of industry-wide single-stock circuit breakers.
The adoption of this market-wide mechanism will promote investor protection and is designed to help prevent the events of 6 May from taking place in the future.
“We remain committed to working collectively with regulators and all market participants to fully address the causes of the May 6 market plunge and strengthen the national market system going forward,” NYSE Euronext said in a statement.
In addition to adhering to the agreed-upon single-stock circuit
