Hofstra’s Master of Science in Finance program is ranked 43rd nationally by The Financial Engineer. One of the more successful tracks of Zarb’s MS Finance program is its Risk Management concentration. Dr. Karagozoglu hopes that this success will encourage financial regulators – the SEC, CFTC, OCC, FINRA and the Fed- as well as the exchanges to hire top ranked risk management degree holders from Hofstra University’s Zarb School of Business.
FINRA addressing market risks: HFT, Algo’s, CARDS, CAT & dark pools*
In Lexelogy.com*, Thomas K. Potter, III of Burr & Forman LLP discusses Carlo DiFlorio’s, FINRA’s Chief Risk Officer and Head of Strategy, remarkes at “the annual meeting of the National Society of Compliance Professionals Monday that FINRA is emphasizing efforts to mitigate market risks, even as it regards US capital-market integrity as at its strongest historically.
HFT & Algorithmic Trading: DiFlorio addressed thee initiatives. First, FINRA examiners are focusing on firms’ supervision of HFT and algorithmic trading, including pre-implementation testing and firm-wide “kill switch” procedures when something goes awry. Second, FINRA’s Board decided at its September meeting to propose a rule requiring FINRA registration by those who develop, design or significantly modify trading algorithms. The Staff is drafting a proposed rule for comment. Third, FINRA is working on additional guidance on existing supervisory obligations for algorithmic trading. Market Surveillance & Big Data: FINRA also is working to boost its market-surveillance capabilities. FINRA’s surveillance systems monitor for 29 cross-market patterns attuned to 55 threat scenarios. When current initiatives are complete, FINRA surveillance will cover 90% of markets. Second, FINRA is one of final bidders under consideration by the SEC for a new Consolidated Audit Trail (“CAT”) processor to improve “data mining” of information across markets. Third, FINRA is working to increase transparency of dark-pool and other alternative markets, including expanding FINRA’s disclosure of Alternative Trading System (“ATS”) volume data. Fourth, FINRA’s second CARDS (comprehensive automated risk data system) proposal is out for comment until December 1. The proposed Rule would standardize and automate a broad range of securities account and transaction data from clearing (and later fully disclosed introducing) firms. It is another effort to assemble more easily mined “big data” for industry-wide surveillance and compliance.”
By Jessica Meek | 22 May 2014 | Risk.net Operational Risk & Regulation
Technology getting out of control is the biggest concern with high-frequency trading (HFT), the US Financial Industry Regulatory Authority’s (Finra) chief information officer told delegates at the North American Financial Information Summit in New York on May 21, 2014.
SEC Chair Mary Jo White chimes in on HFT. Text of SEC Chair’s June 5 speech
Futures Magazine, June 6, 2014 By Mary Jo White
Enhancing Our Equity Market Structure
SEC Chair Mary Jo White speaking at the Sandler O’Neill & Partners, L.P. Global Exchange and Brokerage Conference in New York, N.Y.