Andy Haldane
speaker
76 appearances
3 recordings
1 series
first heard Dec 2010
last heard Aug 2012
Andy Haldane’s voice in public audio — every appearance, attributed to the second.
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Appearances
Another feature of the high-frequency trading community is that they send into the trading systems loads and loads and loads of messages, many of which they subsequently then cancel.
This sending of multiple messages can have really negative side effects for the performance of these systems.
It clogs them up.
So the equivalent of a congestion charge for financial markets might help
lower volumes and make this a freer highway for everyone to trade on.
This would be trying to rule out the situations where a high-frequency trader sends in a message and then cancels it before they ever execute.
This is different than a transactions tax.
It's a non-transactions tax.
It's a non-transactions tax, exactly, exactly.
And the third thing?
In the United States, in 2010, during this so-called flash crash,
High frequency market makers proved to be rather fair weather friends.
In other words, they stopped making markets when the going got tough.
There's a question about whether we ought not to put stricter obligations on people to make two-way markets all of the time, not just in the fair weather, but in the foul weather as well.
I'm Andy Haldane, the Bank of England's Executive Director for Financial Stability.
The fact is that in most crises, both this and previous ones, the taxpayer is typically paid back.
But I would argue that's a potentially significant understatement of the true costs of this time's crisis to the wider economy.
So let me give you two alternative ways of thinking about the costs of crisis.
One measure would be how much implicit support
has been provided by the government to the banking system over the course of the crisis.
Showing 41–60 of 76 · page 3 of 4
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