High-Frequency Trading Comes to Cryptocurrency

By | April 24, 2019

Courtesy of Marissa Cantu and Lee Reiners Amidst last December’s stock market volatility, Treasury Secretary Steve Mnuchin argued “high-frequency traders combined with the Volcker Rule” were to blame.  Secretary Mnuchin then announced he intended to ask the Financial Stability Oversight Council to review how market structure, in conjunction with high-frequency trading, contributes to stock market… Read More »

Cybersecurity for American Families: A 10-Step Data Security Guide for the People You Love

By | April 15, 2019

Courtesy of Mary Wang For the past several months, I have been working on an interdisciplinary team of students and faculty at Duke that explored the ways in which data breaches and the misappropriation of personal information can harm ordinary consumers. This issue matters because recent breaches have affected nearly every American, many of whom have had… Read More »

The Pros and Cons of Big Tech Banking

By | April 10, 2019

Courtesy of Miguel de la Mano and Jorge Padilla The entry of Big Tech players, such as Google, Facebook and Amazon, into online banking will fundamentally alter retail banking’s competitive landscape. Big Tech platforms have large, installed customer bases, established reputations, powerful brands, considerable earnings and unfettered access to capital markets. They can leverage superior… Read More »

A New Era for Mexico’s Payment System

By | March 27, 2019

In September 2017, the Mexican financial authorities, led by the Ministry of Finance, began drafting the Law to Regulate Financial Technology Institutions (Fintech Law). After several months of discussion, the Mexican congress enacted the Fintech Law in March 2018 by unanimous vote. Along with the Fintech Law, new secondary legislation was enforced, including the General… Read More »

Mortgage Servicers Have Monopoly Power: Do Financial Regulators Understand This?

By | March 12, 2019

Courtesy of James E. McNulty Americans have always distrusted monopolies – over a century ago, Teddy Roosevelt gained widespread public approval battling the trusts. Monopolies that continue to exist, like public utilities[1], are subject to stringent regulation on both the price and quality of their services. Mortgage servicing is one monopolistic industry that has avoided… Read More »

The Network Effects of International Financial Regulation

By | March 4, 2019

Courtesy of Hadar Yoana Jabotinsky & Barak Yarkoni* In our globalized financial markets, the actions of a market participant or regulator in one jurisdiction can have a ripple effect in other jurisdictions, thus making international regulatory cooperation a necessity. International harmonization of financial regulation produces three different kinds of network effects, which we identify and… Read More »

Credit Ratings: Can’t Live with Them, Can’t Live Without Them

By | March 1, 2019

Courtesy of Stefano Lugo Credit ratings assigned by Credit Rating Agencies (CRAs) like Moody’s and Standard & Poor’s have long been relied on by investors and regulators alike. This gives CRAs significant influence over our financial markets. Ratings too severe can lead to a credit crunch, and ratings too generous can lead to a credit… Read More »