Tagged: multi-asset-class trading

Follow the Line

“All this is not a product of nature.”

No I’m not referring to the display, as it were, by Miley Cyrus at the Video Music Awards. If the shortest distance between two points is a straight line, what do you call a stock market with 13 exchanges, forty broker-operated alternative systems, 4,300 FINRA-regulated brokers and dealers, 2,000 order types, a complex routing scheme for moving millions of quotes per second and all the associated messaging traffic at light speed (oh yeah, and hopefully some investing too)?

Well, not a straight line. The Wall Street Journal’s Holman Jenkins wrote a compelling opinion last weekend on the Nasdaq data outage Aug 22, which he titled “How to Think About the Nasdaq Freeze,” and from whence I borrowed today’s opening salvo. You should read it.

As you’ve heard – at length on CNBC – the Nasdaq halted trading for three hours last Thursday due to a connectivity issue that led to failure propagating the marketwide data stream providing consolidated quotes in Nasdaq securities.

The WSJ’s Jenkins argues that whatever the root cause of this latest in a long line of troubling market mishaps, “complexity breeds snafus.” The market where your investors compete to demonstrate belief in the story you deliver is a tangled web. (more…)

The heart of the IR job

I’m moderating the NIRI Virtual Chapter meeting on modern equity markets tomorrow 12/1 at noon ET. See nirivirtual.org for details.

As I move the midsection flab from a grand Thanksgiving holiday aside to get at the keyboard (a little humor there), the US equity markets are closing up again. IR folks and executives, what’s proving the most accurate indicator of market direction lately? And what’s it mean to your own market structure?

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