Category: In the News

Trader's – High-Frequency Trading Is a Tough Game

The cost of the technology and infrastucture needed to support high-frequency trading is “tens of millions of dollars” per year, according to Kevin McPartland, a senior analyst at financial services research firm TABB Group. He moderated a panel sponsored by TABB Group and Switch and Data, a data center operator, last Thursday. This article is […]

The Economist – Over the Counter, Out of Sight

Indeed, commercial banks in America have pocketed $115 billion from cash and derivatives trading in the past ten years, according to the Office of the Comptroller of the Currency, a regulator. “Banks lump their trading revenue together but the significant majority of it comes from derivatives,” says Kevin McPartland of TABB Group, a research firm. […]

The Economist – The crucial details of derivatives reform remain elusive

The House plans exclude firms that are not “systemically important” or do not expose their counterparties to “significant credit losses”. But as Kevin McPartland of TABB Group, a research firm, points out: “A few years ago AIG would not have been considered systemically important.”

Bloomberg – Regulatory Budgets No Match for Banks in OTC Push, TABB Says

U.S. regulators will need budget increases “orders-of-magnitude larger” than current levels to police trades in the $592 trillion over-the-counter derivatives market, according to Tabb Group analyst Kevin McPartland. Full Article Here TABB Group Report Here

Waters – All Hail Innovation: Defending high-frequency trading

It used to be the market-makers and specialists who took the brunt of broker complaints that prices were fixed and the market was inefficient. Now, most of them are gone, so high-frequency trading firms are in the spotlight. Making markets is about gathering information quickly and making decisions based on that information faster than the […]

NPR – Obama Plan to Rein in Credit Default Swaps

Mr. MCPARTLAND: Reporting requirements will provide a lot more transparency to regulators as to who is doing what and who holds what positions. KESTENBAUM: Would this have stopped the AIG problem? Mr. MCPARTLAND: It very well might have with the data available, but also with the regulators in place to be routinely monitoring it, watching […]