Regulatory Reform - A Global Concern

I will be at the Rosenblatt Securities Exchange CEO Conference all day Wednesday at the Waldorf Astoria in New York.

This is one of the largest gatherings of stock exchange CEOs globally and all the trading platforms.

Hot topics:

1) Exchange CEOs from the NYSE, London Stock Exchange, NASDAQ and others talking about the global economy. They are in constant contact with CEOs of their listed companies, talking to them about how their businesses are going..

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They are also highly involved in the ongoing debate over financial regulatory reform globally, and will be talking about everything from the clearing and exchange trading of OTC derivatives to the controversy over high-frequency trading, flash orders and dark pools.

Mergers and acquisitions will also be a hot topic. There have been recent rumors about Deutsche Borse merging with NYSE Euronext, Deutsche Borse acquiring Intercontinental Exchange and London Stock Exchange buying Turquoise, a European alternative trading system owned by the bulge-bracket brokerage firms.

2) High frequency trading. The big names will be here, including Richard Gorelick, CEO of RGM Advisers, a big high-frequency firm based in Austin, TX; Joe Ratterman, CEO of BATS Exchange, Bill O’Brien, CEO of Direct Edge, and Rick Ketchum, CEO of FINRA, who will be speaking as the regulator of most of the people present. How much regulation will there be? I am looking for a lot of defensive posturing.

3) Dark Pools. Seth Merrin from Liquidnet and Tim Mahoney from dark pool BIDS Trading will both be speaking. Rosenblatt says these dark pools now executive 9 percent of all U.S. stock-market volume.

4) Systemic Risk and OTC Derivatives. There is talk that we need to bring OTC derivatives onto exchanges and other electronic trading plantforms, and into clearinghouses that will pool the risk of counterparties defaulting. This is a huge potential revenue maker for exchanges. Don Donahue, CEO of DTCC, the biggest clearinghouse in the U.S., will be speaking, along with Andreas Preuss of Deutsche Borse/Eurex.

I’ll have interviews with Seth Merrin (10:40 ET), Joe Ratterman (1:45 ET), Tom Joyce from Knight Capital (2:40 ET), and Rick Ketchum (4:15 ET), and will do posts for this blog throughout the day.

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