Streetwise Professor

April 14, 2017

SWP Climbs The Hill

Filed under: Derivatives,Economics,Exchanges,Regulation — The Professor @ 10:40 am

I have become a regular contributor to The Hill. My inaugural column on the regulation of spoofing is here. The argument in a nutshell is that: (a) spoofing involves large numbers of cancellations, but so do legitimate market making strategies, so there is a risk that aggressive policing of spoofing will wrongly penalize market makers, thereby raising the costs of supplying liquidity; (b) the price impacts of spoofing are very, very small, and transitory; (c) enforcement authorities sometimes fail to pursue manipulations that have far larger price impacts; therefore (d) a focus on spoofing is a misdirection of scarce enforcement resources.

My contributions will focus on finance and regulatory issues. So those looking for my trenchant political commentary will have to keep coming here 😉

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  1. Has Trump been captured by the American Establishment, or is he sly enough to outfox them?

    Comment by dearieme — April 14, 2017 @ 2:04 pm

  2. @dearieme
    If you disregard his rhetoric pre and post election and just consider his actions then a case to be made for establishment business as usual. If you consider the change in rhetoric alone then certainly business as usual. This is the quickest absolute about face in rhetoric in the history of US presidential politics but then rhetoric is not as important as actions.

    The Atlantic elites are well defended from his acts in comparison to various groups in the ME. Water flows downhill and politicians gravitate to the easiest course of action. His domestic initiatives thus far have certainly not come up trumps and so easier to proceed with the usual missile and drone strikes.

    Goldman Sachs and Jarrod and Ivanka aren’t an apparent triumvirate for change but not over unitl someone physically similar to Hillary sings.

    Comment by pahoben — April 16, 2017 @ 3:44 am

  3. @Professor
    Congrats on The Hill. But hope you will not follow the same path as Trump and start sucking up to the elites. Please don’t suddenly start supporting all types of government intervention in markets. 🙂

    Comment by pahoben — April 16, 2017 @ 5:30 am

  4. Great news Prof. A win for the good guys.


    Comment by Global Super-Regulator on Lunch Break — April 16, 2017 @ 10:50 am

  5. @pahoben–Don’t worry. This barbarian at the gates will remain unbridled and unreconstructed 😉

    The ProfessorComment by The Professor — April 16, 2017 @ 10:09 pm

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