25 Jul 2017

Goldman Sachs is scaling back market-making for exchange-traded funds

This will not make it easier to maintain orderly markets if and when the tide turns and markets enter a bear market. Markets move faster on the downside and panic is never far away then, even more so now that global markets are linked by ultra-fast communication and the crowd/herd effect can accerate trends.
Goldman Sachs is scaling back its role as a lead market maker for exchange-traded funds

Goldman Sachs is scaling back trading exchange-traded funds

This will not make it easier to maintain orderly markets if and when the tide turns and markets enter a bear market. Markets move faster on the downside and panic is never far away then, even more so now that global markets are linked by ultra-fast communication and the crowd/herd effect is easily generated.

Goldman Sachs is scaling back its role as a lead market maker for exchange-traded funds

13 Jul 2017

Impressions from Paris - Europlace Conference

This year more than in other years this annual event was to be interesting given the fact that Brexit is in full swing (or not if you listen to Remainers and assorted moaners). So the lack of a strong attendance by non-French visitors was a surprise. Naturally the locals did their best to put Paris in a good light. Not so sure about the 'City of Love' as some panelists did not forget to mention. But then why has prostitution then be made illegal in 2016? Cannot be so good for love!
On a more serious note one has to accept that Paris was a large financial centre before Brexit. How much it will be able to add now is not so clear. Most market professionals may speak English so incoming staff may be able to fit in, but their private lives may not be so easy. Nice property is as expensive as in London, and finding a house with garden will be a struggle. And giving preferential tax treatment to financial staff - and only the heavy hitters among the foreigners - may not go all too well with 'Fraternite' as it is a blatantly discriminatory law (do the EU and the ECJ dare to intervene?)
Dublin, Frankfurt are already busy nibbling on London's cake and only time will tell how much they can grab. Will financial firms be more efficient if they spread themselves thin all over Europe? Communication is cheap, but lack of face-to-face interaction will do little to improve either the work climate or coordination.

7 Jul 2017

EU Regulators Take Aim At London's Asset-Management Industry

No surprise there, EU is basically a protectionist racket, dominated by socialist parties and lobbies, where even pseudo right wing parties are praying from the same hymn sheet and embrace big government. Also means that the UK has to negotiate harder, I suggested a while ago that if local production would be required for asset management services then the same rule should be applied to manufactured goods. So come on BMW, Daimler, start producing in the UK. And someone has to tell the Eurocracy: keep your MIFID and Financial Transaction Tax nonsense!
EU Regulators Take Aim At London's Asset-Management Industry