The Elephant in the Room

From past UBS executives being grilled, mercilessly at points, by the UK Parliament over perceived failures in control and compliance, to the mooted resignations at RBS, the issue looks set to run and run. Banks are at fault, of course, or at least, a significant subset of people involved in Libor, but it's important to also note the regulatory failure here. Yes, UBS may not have detected any wrongdoing despite two audits, as it claims, but the Financial Services Authority (FSA) also categorically failed in its duty and responsibility to provide effective oversight.
If Libor was a wholesale farce, as seems to be emerging, then the regulators need to take a long look at themselves. Yes, UBS, RBS, Barclays and whoever else are being pursued should have had better systems in place, but so too should the FSA. Then, perhaps, this problem wouldn't have spiralled out of control into as dismal a situation as it has.
Shorting Sentiment
A year ago, sentiment analysis was all the rage. We've published several features on it in Waters and run a number of stories, but it seemed to fizzle out when Derwent Capital Markets, the so-called 'Twitter Hedge Fund', quietly shuttered after a few months. We spoke to founder Paul Hawtin about that several months ago, and the reason why, but Derwent is back. Now known as DCM Capital, they released their new trading platform for retail investors today, based on the proprietary technology used in the fund and developed on the back of academic research into the matter.
Most people seem to be using sentiment as another stock research factor rather than a buy or sell indicator, but it'll be interesting to see the returns that day traders can make from it. As always, if you'd like to talk about this or anything else, give me a shout.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Europe is counting its vendors—and souring on US tech
Under DORA, every financial company with business in the EU must report use of their critical vendors. Deadlines vary, but the message doesn’t: The EU is taking stock of technology dependencies, especially upon US providers.
Regulators can’t dodge DOGE, but can they still get by?
The Waters Wrap: With Trump and DOGE nipping at regulators’ heels, what might become of the CAT, the FDTA, or vendor-operated SEFs?
CFTC takes red pen to swaps rules, but don’t call it a rollback
Lawyers and ex-regs say agency is fine-tuning and clarifying regulations, not eliminating them.
The European T+1 effect on Asia
T+1 is coming in Europe, and Asian firms should assess impacts and begin preparations now, says the DTCC’s Val Wotton.
FCA sets up shop in US, asset managers collab, M&A heats up, and more
The Waters Cooler: Nasdaq and Bruce ATS partner for overnight market data, Osttra gets sold to KKR, and the SEC takes on DOGE in this week’s news roundup.
Waters Wavelength Ep. 312: Jibber-jabber
Tony, Reb, and Nyela talk about tariffs (not really), journalism (sorta), and pop culture (mostly).
Experts say HKEX’s plan for T+1 in 2025 is ‘sensible’
The exchange will continue providing core post-trade processing through CCASS but will engage with market participants on the service’s future as HKEX rolls out new OCP features.
No, no, no, and no: Overnight trading fails in SIP votes
The CTA and UTP operating committees voted yesterday on proposals from US exchanges to expand their trading hours and could not reach unanimous consensus.