“When ‘Free Trading’ Isn’t Really Free,” The Wall Street Journal, November 10, 2018 B5. You can avoid commissions when trading stock by using an app. But if the price you pay or get paid for the stock is more or less, is the trade really free? It depends on how much price improvement is involved.
Interesting study of how the benefits and cost savings on high frequency trading are divided among the various parties. And who knows what.
Isn’t this type of “information imbalance” inherent in every transaction? Do we know how much a tomato or an iPad costs the store that sells it? Or whether the salesperson gets a commission? How do we manage that imbalance? Or do we just accept it, whatever it means?
“Alternative Data Is Valued on Wall Street,”The Wall Street Journal, November 2, 2018 B1. Companies mine different types of available information to help traders.
Is information is worth so much, won’t someone start a business to provide it? Apparently. What should you be monitoring to understand how your customers make their purchasing decisions, or what your competitors are doing?
Drones looking at parking lots and where are the iPhones coming from and going to and how many construction permits were issued? What’s your metric? How do you measure it?
“Market Cheats Get Caught More Often,” The Wall Street Journal, November 1, 2018 B10. Traders manipulating prices by spoofing real futures trades are getting caught and prosecuted for criminal violations. Exchanges cooperating with enforcement authorities.
If accurate information is worth X, what is inaccurate information worth? It depends, whether you are buying or selling based on it.
So, this is both Information (information includes both accurate and inaccurate information) and Governance (manipulating market trades with false information is a crime that the CFTC and DOJ prosecute).
Filed under Accuracy, Compliance, Compliance (General), Controls, Corporation, Data quality, Definition, Duty, Duty of Care, Employees, Governance, Information, Oversight
“FBI Probes Tesla Over Production Figures,” The Wall Street Journal, October 27, 2018 A1. FBI conducts a criminal investigation into whether Tesla knowingly overstated anticipated production figures and thereby misled investors.
What if Tesla knew at the time that it couldn’t and wouldn’t meet the production targets it was then continuously providing the market? When does mere puffery become criminal? What controls would you need to have to prevent this at your company?
Do you have them? Are they enforced?
Filed under Accuracy, Collect, Communicate, Communications, Compliance, Compliance, Compliance (General), Controls, Corporation, Culture, Data quality, Duty, Duty of Care, Governance, Internal controls, Investor relations, Management, Oversight, To report
This blog explores, from time to time, the outer reaches of the intersection(s) of Information, Governance, and Compliance.
Consider, for a moment, a fingerprint. Not what you normally consider “information.” And one seldom thinks of “managing” a fingerprint. Who owns your fingerprint? But consider the value of a fingerprint, and both the failure to “manage” or control where that fingerprint can be found and the ability to find that fingerprint and locate its owner. How much information governance is involved in this process?
“Fingerprint Leads to Arrest Of Bomb Suspect in Florida,” The Wall Street Journal, October 27, 2018 A1. Alleged mail bomber’s fingerprint in a package sent to a legislator leads to arrest of suspect.
Which leads me to the question,”What is there that isn’t information that is managed or controlled in our lives, or a least directly related to information that is managed?” I struggle to find an example of something that isn’t information, or directly related (perhaps somewhat remotely) to information that is managed or controlled.
Filed under Access, Accuracy, Analytics, Collect, Compliance, Controls, Data quality, Definition, Duty of Care, Governance, Information, Management, Oversight, Ownership, Records Management, Risk assessment, Use, Value
“SEC Keeps Study On Speed-Bump Trading Under Wraps,” The Wall Street Journal, October 25, 2018 B11. SEC has done a study of controls that slow down high-frequency traders, but hasn’t released that publicly.
The SEC is in charge of protecting the stock trading system. As such, it watches over how quickly information moves within that ecosystem, and whether access is available to all at the same time. But the SEC refuses to release the unredacted text of a study that it did on the impact on “controls” that limit the ability of high-speed traders to take unfair advantage of their access to information.
Curious as to why (and what) the government doesn’t want us to know. Who oversees the government? (Hint: a free press is one of them).
Filed under Access, Accuracy, Controls, Data quality, Duty, Governance, Government, Information, Interconnections, IT, Oversight, Technology, Third parties, To report, Value
How is the data in that report collected? What’s included and what’s not? Do you know?
“In Crime Data, FBI Has to Fill In Missing Pieces,” The Wall Street Journal, October 20, 2018 A2. To make unified national crime estimates, the FBI fills in some gaps in the data it receives from the states. Because it follows a method developed fifty years ago.
Discrepancies run from 2.8% to 68%, per state.