02 August 2014

Fidessa Fragmentation Index

Steve Grob - Fidessa

95 | posts 290,564 | views 3 | comments

The Watchman's Rattle - financial regulation in 2014

22 January 2014  |  1202 views  |  0

In her excellent book, ‘The Watchman’s Rattle’, Rebecca Costa explains the tendency to substitute belief for science when problems become too complicated. The first sign of this is a cognitive threshold, or gridlock, where problems are just passed down from one generation to another with an increasing emphasis on treating short-term symptoms rather than underlying root causes. Whilst the book is not aimed at the global finance industry, it certainly could be. 2014 will see no let-up in the waves of regulation that are rolling across the industry as national regulators battle the extraterritorial ambitions of their neighbours and the consequences of their own and previous incumbents’ earlier efforts. Little wonder, then, that beliefs such as “lit is better than dark”, “preference retail outcomes over institutional ones” and “HFT is bad for markets” have slowly but surely crept into their lexicon and policy-making.

As a result, all that the current regulation seems to do is generate yet more regulation. Maybe a new approach is required that looks at the core of financial markets and what is really wrong (and right) with them. The inescapable truth is that financial markets, rather than being separate from the “real” economy are, in fact, at its epicentre. Any past and current failings of financial markets, then, are actually a reflection of society as a whole and perhaps this is where the regulators should be focusing their attention.

TagsTrade executionRisk & regulation

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Steve

Build vs Buy becomes Rent vs Collaborate

12 June 2014  |  1759 views  |  0  |  Recommends 0 TagsTrade executionPost-trade & ops

Maybe markets are unfair, but are they rigged?

02 April 2014  |  1481 views  |  3  |  Recommends 0 TagsTrade execution

The Twilight Zone

05 February 2014  |  1854 views  |  1  |  Recommends 0 TagsTrade executionRisk & regulation

The Watchman's Rattle - financial regulation in 2014

22 January 2014  |  1202 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation

Ready, SEF, go

14 January 2014  |  1580 views  |  0  |  Recommends 0 TagsTrade executionRisk & regulation
name

Steve Grob

job title

Director of Group Strategy

company name

Fidessa

member since

2009

location

London

Summary profile See full profile »
I am responsible for strategic development at Fidessa. This includes the development of new geogr...

Steve's expertise

What Steve reads
Steve writes about

Who is commenting on Steve's posts

Ketharaman Swaminathan
Tom Saar
Peter Fredriksson
Erik Bogaerts