It really is sad to watch the once venerable New York Stock Exchange continue to stoop to new lows in order to protect their fragmented and conflicted business model.  Earlier this week, NYSE President Stacey Cunningham was on Fox Business complaining about how unfair the transaction fee pilot was for the NYSE. She claimed the pilot would hurt investors and issuers since they would be “ending up in a worse price”. However, she did concede that the complexity of the market “hurts investor confidence” but complained the SEC was only focusing on the lit market and not the off-exchange markets. In (more…)

Last November, we warned that bitcoin futures should not be approved.  The CFTC decided, however, to go ahead and allow the CME and Cboe to begin trading bitcoin futures due to the fact that the exchanges “self-certified” the contracts.   Our warning was based on our suspicion that bitcoin futures prices were reliant on prices generated from the underlying cryptocurrency exchanges which are unregulated.  Last November, we wrote:  “We think that the CME knows that the underlying market for bitcoin is very suspect.  We think they know that the bitcoin exchanges have been subject to numerous cases of fraud and theft over the (more…)