Dead exchanges voting in an election, last minute horse trading and ignoring government voting guidelines. Sound like Chicago politics? It is, but this vote is taking place for control of a key piece of stock market plumbing known as the “SIP.” As a second vote earlier this week was deadlocked 9-6, with the same positions hardening, a number of behind the scenes maneuvers are taking place to facilitate a negotiated settlement. Bloomberg reported yesterday that six votes cast for Tradeworx were from Bats, which controlled four votes because it operates that many stock exchanges, as well as CHX Holdings Inc.’s…
SIP Vote Looks Like Good Old Fashioned Chicago Politics
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
