November 1, 2010 Issue Abstract

European Market Monitor: Center of Gravity for Securities Regulation Is Shifting to Paris as Europe Tackles Tough Trading Challenges. The January 2011 launch of European Securities and Markets Authority (ESMA) as a new Paris-based regulator with rule-making powers may galvanize market competition and lead the way to pan-European governance and market structure.

Industry Alert: IOSCO Forms Task Force on OTC Derivatives Regulation. The task force will be led by the US Securities and Exchange Commission (SEC), the US Commodities Futures Trading Commission (CFTC), the UK’s Financial Services Authority, and the Securities and Exchange Board of India (SEBI).

Editor’s Comment: Trading’s Magnum Mysterium. What does Wall Street not want you to know about high-frequency trading?

Spotlight: When Milliseconds Mattered for a Trading Data Audit, Regulators May Have Studied Smoothed-Out Seconds. Eric Scott Hunsader, Chief Executive Officer and software developer at Nanex LLC, shares insights on the many data discrepancies that have been ignored in the scrutiny of the May 6, 2010 ‘Flash Crash.’

Hedge Funds: Crisis Fallout Continues to Challenge Hedge Funds. Greenwich Associates surveys funds in the US, Europe and Asia-Pacific and reports that almost half the managers say one or more of their funds remain below their “high water” marks.

Business Strategies: ITG Launches POSIT in Australia, Research in the US. Following the March 2010 Launch of its POSIT Marketplace in Hong Kong, ITG now bites into equities down under and buys Majestic Research Corp. in the US.