Corruption has a new enforcement agency. The CFTC effectively delivered on its intention to enforce the FCPA. Vitol, the Swiss firm, was just fined $95m for bribery.
While economists and journalists pour into the 1,200+ pages of the Brexit treaty and its long-term impact, the financial services are already seen as the big missing part. The Square Mile is getting worried.
Goodhart’s Law: When a measure becomes a target, it ceases to be a good measure.
The Sharpe ratio has changed investor behavior. We chase the metric rather than the underlying quality it is trying to assess, and there are plenty of situations where the Sharpe is a poor metric of quality.
And there are unfortunately major losses, which keep on demonstrating the point – LTCM, AIG, Malachite…
Martin Hairer, an Austrian-British researcher at Imperial College London, is the winner of the 2021 Breakthrough prize for mathematics. A paper so good, it must have been ‘written by aliens’. A big step ahead in stochastic PDE.
A good piece on the history of ETNs, who are in period of lackluster growth / demotion / regulatory pressure, unlike ETFs.
ETNs’ complexity makes them interesting for professionals, but unfortunately extremely dangerous for most investors as well. No, XIV is not a company…
If you lose money in trading, your broker can and will go after your assets, including your personal assets. In fast markets, this happens even more often. A glitch at Interactive Brokers may be the rare exception.
Why was the price of the oil futures negative? The explanation is simple – delivery.