A recent study (the "Study") by VU University of Amsterdam professors Vincent van Kervel and Albert J. Menkveld explored how high-frequency trading firms ("HFTs") interact with large institutional orders. The Study examined a sample of order executions by four large institutional investors for Swedish stocks in 2011-2013. It found that, although HFTs trade initially in the opposite direction of large institutional investors, if an institutional investor takes longer than a few hours to execute its order, the HFTs will turn around and trade in the same direction as the large institutional

The CFTC Division of Market Oversight issued an updated guidebook and a separate set of appendices for Part 20 Reports. The updates include, among other changes, a number of technical corrections and improved FpML and FIXML reporting formats. The updated Part 20 Guidebook now includes reporting formats and record layout examples for submitting position reports and 102S filings, a data dictionary for mapping reportable data elements to a record layout, and multiple examples of the conversion of swaps into futures equivalent units as required under Part 20. Additionally, the appendices to the

The Australian Parliament passed Investment Manager Regime ("IMR") legislation. According to the Alternative Investment Management Association ("AIMA"), this will allow Australia to become a destination for foreign capital and fund trading operations. The Bill to implement Element 3 of the IMR was introduced on May 27, 2015 and passed by the Senate on June 17, 2015. It now awaits Royal Assent. General Manager of AIMA Australia Michael Gallagher explained that IMR is designed to ensure the fair treatment of all investment segments, including Australia's "young and growing" hedge fund community

Five federal regulatory agencies approved a joint final rule modifying regulations that apply to loans secured by properties located in special flood hazard areas. The rule, which was approved by the Board of Governors of the Federal Reserve System, the Farm Credit Administration, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency, implements provisions of the Homeowner Flood Insurance Affordability Act of 2014 that relate to the escrowing of flood insurance payments. The final rule also implements provisions in

The CFTC Division of Market Oversight announced that it will hold a public roundtable on July 15, 2015 to discuss the CEA's trade execution requirement and the process of reaching made-available-to-trade ("MAT") determinations. Specifically, the roundtable will discuss (i) approaches to mandatory exchange trading in certain jurisdictions, (ii) academic perspectives on, and data-based assessment of, MAT and (iii) industry analyses of the MAT process. Lofchie Comment: Holding the roundtable seems to be a reaction to Commissioner Giancarlo's White Paper on the CFTC Swaps Trading Rules. It is