After several months of posting on the tweeter I have come to the inevitable conclussion that 140 characters is nowhere near enough for thoughtful market structure commentary. So I am starting a blog to share my views and exercise my demons. You are all invited to join me on this ride.
A few things you should know from the start….
1 my real name is not Kevin Weldon. My boss enjoys my rants, and is kind enough to allow me to publish them as long as I don’t use my real name or mention my firms name. Only 3 people know my real identity and I plan to keep it that way.
2 what I can tell you is I work for a chicago based hedge fund running a volatility dispersion book. As such my experience is most focused in exchange traded equity and equity derivative markets, but my opinions are not limited to these asset classes
3 I believe the best markets are those that are Efficient, allow for fair competition amongst investors amongst dealers and amongst trading venues, have rules that are practical to adopt, are designed to enable matching of natural buyers and sellers rather than excessive intermediation and finally are transparent in rules and function but do not make transparent unexpressed investor intents.
I believe that the most transparent markets are also the most efficient but also garner the most criticism…I will delve into the reasons for this in the coming days, months, years and decades…often, repeatedly and without remorse. You are officially forewarned….starting right now.
Let’s start with my theory on Flashboys….told via a fictional story….
Michael Lewis walked into a dim sum restaurant one day and ordered some food. When the food arrived the Cha Siu Bao was mouldy, the Sui Ma was burnt, the Sakai was corked and the rice was slightly over seasoned. He left in a huff and wrote a book about the rice. It was easily the least offensive part of the meal, but it was also the only dish his readers could relate to. This is why Michael wrote about equity markets. Even he cannot write a book that explains the near criminal nature of the new issue market in a manner most people will give two shits about.
So welcome aboard. Let me know what you think, and feel free to send me topic ideas.