A Case Study in Regulatory Arbitrage and Information Asymmetry

2018 ◽  
pp. 28-60
Author(s):  
Haim Bodek
Keyword(s):  
Information Asymmetry ◽  
High Frequency ◽  
Algorithmic Trading ◽  
Regulatory Arbitrage ◽  
The Public ◽  
Market Participants ◽  
Order Types ◽  
Exchange Markets ◽  
Special Order

While much of the public debate surrounding high frequency trading (HFT) and algorithmic trading has centred on speed, less has been said about the circumvention of regulation via special order types—complex and often non-transparent ways for high frequency traders to interact with exchange markets and other trading venues, allowing them to achieve a favourable execution position at the expense of other market participants. This chapter documents the special order types used by high frequency traders, the absence of adequate disclosure by exchanges, and the problematic interaction between order types designed to accommodate HFT strategies and the order types typically employed by public investors and agency brokers.

Multivariate Hawkes process model of market participants behavior in the high frequency world

2021 ◽  
Vol 08 (01) ◽  
pp. 2050054
Author(s):  
Sugato Chakravarty ◽  
Kiseop Lee ◽  
Yang Xi
Keyword(s):  
Public Sector ◽  
High Frequency ◽  
Process Model ◽  
Hawkes Process ◽  
Transaction Data ◽  
The Public ◽  
Market Participants ◽  
Public Sector Banks ◽  
Average Return ◽  
Causality Relationship

We propose a multivariate Hawkes process to model the interaction between the non-high frequency traders (NHFTs) behavior (Buy and sell) and high frequency traders (HFTs) behavior (Buy and sell). We apply our model to the intraday transaction data of the public sector banks stock in India, which is sampled from March 2012 to June 2012. We find that the mutually-exciting NHFT and HFT behaviors benefit the stocks, which have better average return above the average return of the public sector bank index. We further identify the granger causality relationship for mutually exciting dominating stocks that HFTs activities cause the activities of NHFTs. In other words, NHFTs are market followers in those stocks.

scholarly journals Sustaining Public–Private Partnerships for Public Service Provision Through Democratically Accountable Practices

2021 ◽  
pp. 009539972110305
Author(s):  
Moses Onyoin ◽  
Christopher H. Bovis
Keyword(s):  
Information Asymmetry ◽  
Public Service ◽  
Service Provision ◽  
Democratic Accountability ◽  
Private Partnership ◽  
The Public ◽  
Multiple Stakeholder ◽  
Public Service Provision ◽  
Sustainability Challenges

Despite the multiple stakeholder-centered complexities involved, the public–private partnership (PPP) modality is increasingly the vehicle of choice for the provision of public services in the developing world. This article asks how PPPs might overcome sustainability challenges in a meaningful way while examining which stakeholder-centered interventions are effective in facilitating rather than undermining the continuity of the partnership operations. We draw on the notion of democratic accountability and an in-depth qualitative sector-level case study in Uganda. The findings underscore the primacy of practices that help to reduce stakeholder information asymmetry, increase partnerships’ procedural legitimacy, and improve the understanding of substantive partnership outcomes.

A Taxonomy of Financial Market Manipulations: Establishing Trust and Market Integrity in the Financialized Economy through Automated Fraud Detection

2017 ◽  
Vol 32 (3) ◽  
pp. 251-269 ◽  
Author(s):  
Michael Siering ◽  
Benjamin Clapham ◽  
Oliver Engel ◽  
Peter Gomber
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
High Frequency ◽  
Fraud Detection ◽  
Vast Number ◽  
Market Surveillance ◽  
Market Abuse ◽  
Market Participants ◽  
Speculative Trading

Financial market manipulations represent a major threat to trust and market integrity in capital markets. Manipulations contribute to mispricing, market imperfections and an increase in transaction costs for market participants and in costs of capital for issuers. Manipulations are facilitated by increased transaction velocity, speculative trading and abusive usage of new trading technologies, i.e., they are directly linked to financial sector changes that drive financialization. Research at the intersection of financialization and IS might support regulatory authorities and market operators in improving market surveillance and helping to detect fraudulent activities. However, confusing terminology is prevalent on financial markets with respect to different manipulation techniques and their characteristics, which hampers efficient fraud detection. Furthermore, recognizing manipulations is challenging given the large number of information sources and the vast number of trades occurring not least because of high-frequency traders. Therefore, automated market surveillance tools require a comprehensive taxonomy of financial market manipulations as a basis for appropriate configuration. Based on a cluster analysis of SEC litigation releases, a review of the latest market abuse regulation and academic studies, we develop a taxonomy of manipulations that structures and details existing manipulation techniques and reveals how these techniques differ along several dimensions. In a case study, we show how the taxonomy can be utilized to guide the development of appropriate decision support systems for fraud detection.

scholarly journals Prudential supervisory disclosure (PSD) with supervisory technology (SupTech): lessons from a FinTech crisis

2021 ◽  
Author(s):  
Stefan Zeranski ◽  
Ibrahim E. Sancak
Keyword(s):  
Financial Markets ◽  
High Frequency ◽  
Market Value ◽  
Financial Supervision ◽  
Algorithmic Trading ◽  
Rapid Decline ◽  
Flash Crash ◽  
Market Participants ◽  
History Of ◽  
Financial Supervisors

AbstractThe U.S. financial markets faced an unprecedented rapid decline and recovery on May 6, 2010, known as the May 6 flash crash. Roughly one trillion $ market value in less than thirty minutes vanished with the biggest one-day point decline in the history of the DJIA at the time. Since the market events took place in electronic markets, and algorithmic trading and high-frequency trading, parts of FinTech, played significant roles, we handle the May 6 flash crash from the FinTech, SupTech, and financial supervision perspectives. With the flashback method, we analyzed the reactions of market participants, media, and two financial supervisors, the SEC, and the CFTC, to the market crash. We find that the technological imbalance between financial markets or institutions and their supervisors drove the markets in uncertainty, hence in a fear and panic environment. Since the imbalance has not diminished yet, the same risks still exist. As a remedy, we introduce a new concept and model with a well-functioning SupTech system to cope with the May 6 type FinTech crises.

scholarly journals Liquidity, price impact and trade informativeness: Evidence from the London stock exchange

2011 ◽  
Vol 56 (188) ◽  
pp. 91-123 ◽  
Author(s):  
Natasa Teodorovic
Keyword(s):  
Information Asymmetry ◽  
Stock Exchange ◽  
Rapid Development ◽  
Price Impact ◽  
Algorithmic Trading ◽  
Electronic Systems ◽  
Electronic Trading ◽  
London Stock Exchange ◽  
Efficient Price ◽  
Exchange Markets

The rapid development of electronic trading has significantly changed stock exchange markets. Electronic systems providing trading processes have defined a new stock market environment. Such a new environment requires trading process redefinition (generally defined as algorithmic trading), as well as redefinition of well known microstructure hypotheses. This paper conducts standard Hasbrouck?s (1991a, 1991b) market microstructure time series analysis to examine adverse selection and information asymmetry issues on diverse liquidity leveled stocks listed on the London Stock Exchange, which is a market with a significant algorithmic trading share. Based on the results obtained from the considered sample, this paper suggests that the contribution of unexpected trade in the volatility of the efficient price is larger for intensively traded stocks, arguing that Hasbrouck?s (1991a, 1991b) model recognizes algorithmic trading as an unexpected trade, i.e. as a trade caused by superior information.

Efektivitas Layanan Darurat Jakarta Siaga 112 dalam Penanganan Kebakaran oleh UPT. Pusat Data & Informasi Kebencanaan BPBD Provinsi DKI Jakarta

2020 ◽  
Vol 16 (1) ◽  
Author(s):  
Musa Musa
Keyword(s):  
Emergency Service ◽  
Fire Management ◽  
Emergency Services ◽  
The Public ◽  
Information Center ◽  
Disaster Data ◽  
In Fire ◽  
Document Review

This research was conducted to determine the Effectiveness of Jakarta Siaga 112 Emergency Services in Fire Management by UPT. Disaster Data & Information Center of BPBD DKI Jakarta Province by paying attention to aspects contained in the Effectiveness of the Jakarta Siaga Emergency Service Program 112. The research method was carried out with a case study method with data collection techniques using interview methods and document review. Interviews were conducted on 10 (ten) key informants, document review focused on documents related to the Jakarta Emergency Alert Service 112 Effectiveness research in Fire Management. The results showed that the Effectiveness of Jakarta Siaga 112 Emergency Services in Fire Management by UPT. The Center for Disaster Data & Information BPBD DKI Jakarta Province Its effectiveness is still low, due to the Implementation of Emergency Services Jakarta Standby 112 in Fire Management implemented by UPT. Disaster Data & Information Center of BPBD DKI Jakarta Province in terms of the Target Group Understanding of the Program, the Achievement of the Program Objectives aspects, and the Program Follow-up aspects. It is recommended to continue to disseminate this Emergency Service to the public, it is necessary to increase the firm commitment of the Head of 8 SKPD related to fire management so that all units play a role in accordance with the Standard Operating Procedures (SOPs) for Fire Management and the evaluation and follow-up of program services that are held periodically 3 once a month.Keywords: Effectiveness, Emergency Services, Fire Handling

Blockchain in Supply Chain: Case Study of Lottemart Ciputat

2019 ◽  
Vol 5 (1) ◽  
pp. 38-49 ◽  
Author(s):  
B. K. Handoyo ◽  
M. R. Mashudi ◽  
H. P. Ipung
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Information Asymmetry ◽  
New Technology ◽  
Business Case ◽  
Analysis Method ◽  
Chain Management ◽  
Production Processes

Current supply chain methods are having difficulties in resolving problems arising from the lack of trust in supply chains. The root reason lies in two challenges brought to the traditional mechanism: self-interests of supply chain members and information asymmetry in production processes. Blockchain is a promising technology to address these problems. The key objective of this paper is to present qualitative analysis for blockchain in supply chain as the decision-making framework to implement this new technology. The analysis method used Val IT business case framework, validated by the expert judgements. The further study needs to be elaborated by either the existing organization that use blockchain or assessment by the organization that will use blockchain to improve their supply chain management.

International Conference "Ecology. Human. Society"

2017 ◽  
Author(s):  
Daniel Benatov
Keyword(s):  
Educational Process ◽  
Direct Access ◽  
Human Society ◽  
Public Authorities ◽  
State Institutions ◽  
The Public ◽  
Market Participants ◽  
New Information ◽  
Training Courses ◽  
Process Element

Our conference is the first project of Student Science Association, which was restored in our University in 1998. The main peculiarity of the conference is the student organizing committee. The conference was attended by representatives of Russia, Belarus, Sweden, Poland, Bulgaria, Armenia, Azerbaijan, Czech Republic, Lithuania, Latvia, Georgia, Iran, not mentioning hundreds of Ukrainian participants. We’re happy with the fact that our conference allows students to discover new information, which they wouldn’t find in training courses manuals; contrariwise businesses and organizations can get direct access to young and qualified staff. We believe that events like our conference are useful for the young scientists and also for the public authorities and businesses. Conference "Ecology. Human. Society "is a part of feedback between universities and market participants. The conference has overgrown limits of being simple educational process element. Today, it is a serious recruiting resource for state institutions and businesses - an important part of a mutually beneficial dialogue.

STRATEGI MENINGKATKAN LOYALITAS KONSUMEN MAKANAN KHAS KOTA CURUP KABUPATEN REJANG LEBONG

2019 ◽  
Author(s):  
Onsardi Onsardi
Keyword(s):  
Swot Analysis ◽  
Raw Materials ◽  
External Factors ◽  
Consumer Loyalty ◽  
Internal Factors ◽  
The Public ◽  
Typical Food ◽  
Internal And External Factors

The title of this study is the Strategy of Increasing Consumer Food Loyalty in CurupCity, Rejang Lebong Regency (Case Study in "Henvian" Typical Food Industry). Thisresearch is based on the importance of strategies in increasing business and consumerloyalty to products sold.Strategies to increase business and consumer loyalty can bedone with a SWOT analysis. Place of this research is the "Henvian" shop that sellstypical Rejang lebong food. The method used in this study is descriptive qualitative.Informants in this study were people who were considered to know for certain about theHENVIAN Specialty Food Store in Curup City, Rejang Lebong Regency. The dataanalysis technique used in this study is a SWOT analysis to determine the strengths,weaknesses, opportunities and threats in a typical Rejang Lebong food business.By using SWOT analysis techniques that consist of strengths (weakness), weaknesses(weakness), opportunities (opportnity) and threats (threath). The results of this studycan be concluded that the internal factors that are the strength of the marketing strategyare the quality of the product that is good at a price affordable to the public andtourists, service that is friendly and responsive to consumer needs, as well astechnological advancements that facilitate the promotion of business. Internal factorsthat are a weakness are often lack of stock, there are some products that do not meet thestandard packaging, the product shelf life is short, employees do not use uniforms.External factors that become opportunities are a fairly high economic community,abundant raw materials while external factors that are a threat are the manycompetitors, an unstable economy, the price of basic needs increases. Based on theresults of the SWOT analysis of internal and external factors, the strategy used is toimprove product quality by improving the appearance of packaging and quality ofcontent and quality of service by providing uniforms to employees and providingstandards of service to consumers. .Keywords: Strategy, Consumer Loyalty, SWOT

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