After the recent spike in volatility and sudden plunge in exchange traded funds, market observers, regulators and traders are trying to make heads or tails of the mini flash crash. Financial advisors who would like more insight into ETF liquidity and how they behave may attend the annual ETF Boot Camp to hear from the biggest group of experts to address the issue.
In New York on Thursday, September 24 through Friday, September 25, the ETF Boot Camp will host a number of experts who will discuss the major angles that financial advisors should understand when investing in ETFs.
For instance, the Assembling the Piece of the Regulatory Puzzle panel will provide insights from the regulatory and financial law perspective, with speakers like Kathleen H. Moriarty of Kaye Scholer, Michael Mundt of Stradley Ronon Stevens & Young and John McGuire of Morgan Lewis.
The Securities and Exchange Commission will be scrutinizing its rule book after the bout of volatility triggered a mini flash crash in ETFs during the height of the market selling last Monday. Diminished transparency at the start of the trading day and a slew of automated trade orders may have contributed to the steep plunge in ETFs last Monday morning before moving back in line once market makers stepped back in. [ETF Mini Flash Crash Causes SEC To Rethink New Rules]
Speaking of market makers, liquidity providers and other Authorized Participants, like Andrew McOrmond of WallachBeth Capital, Damon Walvoord of Susquehanna International Group, Chris Hempstead of KCG and Haddon Kirk of UBS Securities, will delve into the challenges of achieving the best ETF trades on the Liquidity: Breathing Life Into an ETF panel. The panels of market makers will help shed light into how the recent Black Monday stock market volatility impeded the ability to efficiently price ETF trades. [What Happened with ETFs on Monday’s Mini ‘Flash Crash’]
Additionally, advisors will also hear from the exchanges and their measures to promote transparency and liquidity in ETF trades, along with innovation in the ETF space through customized benchmarks. On the panel Not Your Grandfather’s Exchange: How Listing Agents Have Contributed to ETF Innovation, Brian King of BATS Exchange, Phil Bak of NYSE and Jeffrey McCarthy of NASDAQ will be able to cover important steps an ETF provider can take for a successful new launch and all the required management to maintain strong trading and liquidity. Most importantly, they will also address trading on August 24 and how their exchanges tackled challenges that day.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.