Tom joined Breakingviews’ New York office in 2016 from Institutional Investor, where he worked as international editor. Previously, he reported on European business and politics for the International Herald Tribune (now part of The New York Times) from London, Brussels and Paris. He has covered major stories from Europe, Asia and Latin America on economics, financial regulatory reform, trade, asset management and business strategy.
The U.S. securities regulator’s rejection of two increases won’t hurt NYSE and Nasdaq in the short run but it does challenge their business model. The fragmentation of equity trading has made data as valuable as execution or listings. Losing pricing power is a big risk.
Revenue growth slowed to a crawl as clients of the world’s largest money manager pulled large sums out of equities in favor of low-cost exchange-traded funds in the latest quarter. Tax cuts masked a 20 pct drop in performance fees. Choppy markets can rock even the biggest boats.
U.S. government debt issuance is rising while the Fed shrinks its balance sheet at a quickening pace. That’s bringing an end to an era of easy money that has lasted since the financial crisis. Along with trade tension, it’s a growing headwind for an economy at full employment.