Some banks are switching responsibility for cyberrisk from IT departments to their operational risk departments and have begun to approach cyberrisk the same way they model market, liquidity and operational risks.
Parametric Portfolio Associates' strategy favoring listed options over other types of derivatives has allowed the firm more access to liquidity and less exposure to counterparty risk. By using bank quotes and liquidity displayed on screens, the company "[mixes] it up to make sure that we're getting the best possible execution for our clients," says Larry Berman, managing director for trading and operations.
ICE Clear Europe has asked the US Commodity Futures Trading Commission to allow it to amend some of its intraday margining policies to better manage risks, mainly affecting cleared futures and options energy contracts. The proposed changes include extending intraday margining hours and implementing additional buffer margin requirements.
Two new blockchain-based commodity trading platforms due to launch this year have received backing from some of the largest energy traders and banks.
Apple and Amazon have encountered headwinds, but technical analyst Chris Vermeulen contends both might be bottoming and are due for an upturn. Apple is at about $218 and could ascend in coming days, while Amazon could approach a high of more than $2,000 attained in August, Vermeulen writes.
Nasdaq Clearing says the default of electricity derivatives trader Einar Aas, after losses of more than €100 million, is a one-off event and not a sign of serious trouble in the market. However, Nasdaq Clearing has ordered a review of events leading up to the default, which comes as experts question the adequacy of clearing practices on the 10th anniversary of the Lehman Brothers collapse.
Female investors are more likely than male investors to react calmly to market turbulence, according to a study by investing app Stash. Although men and women have a similar risk appetite, men tend to react to adverse events by selling investments, whereas women adopt a sustainable strategy, the study finds.
Securities and Exchange Commission member Robert Jackson Jr. urges the agency to take firmer action on anti-competitive practices at stock exchanges, saying they harm investor interests. The SEC has "stood on the sidelines" as exchanges exploit their monopoly to increase fees and profit, Jackson says.
Cryptocurrency exchanges, including the three that help price CME Group's bitcoin futures, are open to manipulation since they have no formal policies in place to prevent abuse, a New York attorney general's office report finds. "The industry has yet to implement serious market surveillance capacities, akin to those of traditional trading venues, to detect and punish suspicious trading activity," the report notes.