Since the election, stock prices have risen sharply on hopes that a wave of pro-growth policies under Donald J. Trump will drive up equity prices even further. But Mr. Trump’s administration will soon face a trend that threatens to move the long-term benefits found in stock markets away from investors and toward exchanges. Continue reading …
Who Benefits From Market Speed Bumps? The Exchanges Read More »
This article was originally posted on TabbForum here By Holly A. Bell Former Secretary of Labor Robert Reich claims financial transaction taxes are simply sales taxes on Wall Street traders and won’t harm markets or cause capital to flee. Yet studies of FTTs in other countries show they harm Main Street and distort markets. Former …
My August Conversation with Mike Chmielewski on Alaska’s Budget Crisis on Radio Free Palmer. Listen Here http://www.radiofreepalmer.org/2016/08/19/matsu-college-professor-holly-bell-talks-about-budgets-8-10-2016/
By UCLA Professor Avanidhar Subrahmanyam and University of Alaska Professor Holly Bell Since IEX submitted an application last year to the SEC to become a public stock exchange, a big debate has erupted about a seemingly small time frame — 350 microseconds. IEX’s proposed exchange would implement an intentional delay of 350 microseconds to …
My latest on CNBC: Why the SEC should just say ‘no’ to IEX Read More »
As Alaska works to balance the state budget, one thing is certain: We will all have less money in our wallets. The scale of our deficit means we are likely to see both PFD reductions and new taxes. While the governor has proposed an income tax, a sales tax may a better alternative for Alaska. …
Well-structured sales tax does more for Alaska than income tax Read More »
Ill-considered regulation regarding algorithmic trading will adversely affect the ability of legitimate market participants to contribute to liquidity, price discovery, narrow spreads, and low trading costs. The CFTC shares with market participants a growing interest in algorithmic trading and its potential effects on the markets. Rather than working with market participants cooperatively, the Commission proposes …
My latest from Alaska Dispatch News: As our legislators gather in Juneau to consider Alaska’s budget and how to bridge the billions of dollars of shortfall between state income and spending, there are a few key points I would like them to keep in mind. I have twice listened to presentations on the various budget …
Occam’s razor can cut Alaska’s budget problems to the bone Read More »
Life is weird sometimes. I had a pretty great week last week. I got to go to Chicago early in the week to speak at a conference on high-frequency and algorithmic trading and meet a lot of interesting–and frighteningly smart–people. I always enjoy getting my nerd on with other academics and policy wonks especially when …
…and then one morning you wake up and you’re a reference on Wikipedia Read More »
What motivates countries to discourage HFT? “While there are several empirically demonstrated benefits of high-frequency trading, including improved liquidity and reduced transaction costs, the current arguments against HFT are largely qualitative in nature. With that in mind, what are the drivers behind global HFT regulation, and do they suggest a market failure attributable to HFT?” …
HFT Regulation Requires Attention to Motives and Consequences Read More »
Motivations, Market Failures, and Alternative Outcomes “Recent market events like the “flash crash” of 2010, algorithmic failures at Knight Capital, and the release of Michael Lewis’s book Flash Boys (2014)—with his claims that markets are “rigged”—have heightened scrutiny of high-frequency trading (HFT) and increased demands for more aggressive regulation. However, HFT has several empirically demonstrated benefits, and the …
