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The Trading Mesh

January 2012

Tobin, or not Tobin – that is the question

January 31, 2012 Comments (0)           

By Steve Grob
Well at least it is in France, as reports seem to confirm that its finance minister is enthusiastically pushing ahead with a unilateral Tobin-style tax on equities, bonds and derivatives trading. It’s a shame that the proponents of such a tax don’t seem to have done even a basic amount of homework. The original idea introduced by Nobel Laureate economist James Tobin was conceived as a tax on all spot conversions of one currency into another. The idea was to discourage...

Size matters

January 18, 2012 Comments (0)           

An industry colleague pointed me towards an interesting YouTube video the other day that helps illustrate the importance of tick size in the global battle between primary and alternative trading venues. The video is from an alternative venue (or PTS) in Japan called SBI Japannext which, together with Chi-X Japan, is continuing to grow its market share of the Nikkei 225. The two combined now account for around 6% in this index.

The video shows end of day trading in Mizuho stock on...

The changing face of Asian markets

January 10, 2012 Comments (0)           

Episode 5 of FragVision is now available featuring a discussion with Stephen Edge, Principal of Asia Etrading, about the key issues affecting Asian markets.
As always, feel free to comment.

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Poachers turned gamekeepers

January 5, 2012 Comments (0)           

By Steve Grob
Interesting to read the venerable Leo Melamed’s open letter in the FT this week on HFT and regulators. The CME’s chairman emeritus certainly makes a good point when he says that trying to stifle innovation is both wrong and inevitably doomed to failure, but I am not sure he’s completely right in a couple of areas. First, whilst it’s true that algorithmic or HFT players have indeed had the effect of narrowing spreads, this is not always the best thing for...