When proprietary equities trading firm Trillium Management LLC first began building a market monitoring tool several years ago, the goal was to spot illegal practices like the "layering" that several of its traders had been charged with engaging in back in 2010. But with the growth of high-frequency trading in U.S. equities markets, the firm found the tools could also provide a detailed look at how other market players can use sophisticated routing technology to jump ahead of orders.
The cyberattack against JPMorgan Chase & Co. that came to light last week is looking less likely to be part of a broader politically motivated attack against the banking industry. Initial reports...
The FBI and the Secret Service are investigating cyberattacks against several American financial institutions, including JPMorgan Chase & Co. Reports vary on many of the details, but the attacks were first discovered earlier this month and may have resulted in the theft of gigabytes of sensitive data.
The Securities and Exchange Commission held a round table March 26 to examine cyber security threats to the industry. The following month, the SEC's Office of Compliance Inspections and Examinations issued a risk alert, essentially warning the finance community about the importance of cybersecurity preparedness and outlining the agency's plans to assess the industry's preparedness.
Back in 2010, the Financial Industry Regulatory Authority informed Trillium Management LLC that it had uncovered trading patterns among some of the firm's traders that were consistent with "layering," or creating a false appearance of trading activity in order to drive a stock price. After agreeing to fines and sanctions for the employees involved in the deceptive practices, Trillium also agreed to implement a system for better control and monitoring of market manipulation.
The list of proposed changes to prevent manipulation of foreign exchange benchmarks received backing this week from the Global Financial Markets Association, an international trade association whose members represent 90 percent of the foreign exchange market. Industry participants had until Aug. 12 to comment on 15 proposed measures such as widening the fixing window and increasing the number of sources of transaction data during the fixing window.
A former Citadel quantitative engineer has pleaded guilty to stealing high-frequency trading signals from Citadel and to a similar theft from a previous employer in New Jersey.
The European Central Bank announced that its Web site has been hacked and personal contact information including email addresses and some addresses and phone number has been stolen. The ECB only found out about the hack when it received an anonymous email seeking financial compensation for the stolen data.
Back in 2010, a piece of malware that investigators characterized as a digital weapon was discovered in Nasdaq. The malware was detected by both Nasdaq and the FBI before it detonated, but a new detailed investigative article by Bloomberg Businessweek sheds light on the multiagency investigation into the sophisticated hack and the motives behind it.
The Financial Stability Board, a global regulator, has published proposed changes to the way top currency benchmarks are calculated in response to allegations of benchmark manipulation. Widening the amount of time it takes to calculate the benchmark and adopting alternative forms of benchmark calculation are among the top suggestions the global regulator has proposed for public comment.