News and Events
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Artificial Intelligence and its Discontents
Published on May 31st, 2023
The application of artificial intelligence to financial markets has been making the headlines in recent weeks.
Published on April 5th, 2023
SEC market structure reform: ill-fitting solution for a non-existent problem
A recent decision from the European Parliament to ban the practice could influence regulators across the pond
Published on February 14th, 2023
Detractors accuse the regulator of devoting unnecessary resources to a well-functioning system that benefits retail investors
Retail auctions kill competition, market-makers say
Published on January 31st, 2023
A proposal from the SEC to process retail orders through auctions could significantly harm competition, putting investors at risk of poor execution
Why Wall Street Is Clashing Over the SEC’s Stock-Trading Overhaul
Published on December 15th, 2022
A planned overhaul of US stock-trading rules was greeted with skepticism by some financial firms that said, essentially, “If it ain’t broke don’t fix it.”
Published on November 21st, 2022
Payment for Order Flow (PFOF) schemes are falling under increasing regulatory scrutiny for a very simple reason.
Published on November 11th, 2022
The absence of a ban on payment for order flow is in contradiction with chair Gensler’s original plans.
Published on September 28th, 2022
As the financial industry digests the SEC's long-awaited decision on Payment-for-Order-Flow – and Netflix's treatment of the GameStop saga that brought about the intense scrutiny of the controversial policy - we spoke to the CEO of a professional trading firm with an unusual degree of familiarity with the world of financial regulation.
Published on August 5th, 2022
As Payment-for-Order-Flow (PFOF) is coming under increased scrutiny in both the US and EU, professional trading chiefs propose a unique solution of their own.
Published on April 26th, 2022
The trading of Twitter shares over the past couple of weeks has been at an all-time high for retail investors. In April so far, trades in the stock have been 11x higher than the monthly average since 2020, the Wall Street Journal reports.
Published on January 21st, 2022
Daniel Schlaepfer recently spoke to Forbes about trends in professional trading, Payment-for-Order-Flow, the increasing costs of regulation, his recent lawsuit against ASIC, and why he'd cut off your tie if you wore one to the office.
Published on November 9th, 2021
As more people engage in trading activity, we talked to Daniel Schlaepfer, President and CEO of global market-making firm Select Vantage Inc. (SVI) to discuss the exponential growth of day trading and the regulatory measures that need to be taken to ensure fair trading.
Published on October 26th, 2021
Last week's long-awaited release of the SEC's report on January's GameStop saga highlighted the role of payment-for-order-flow (PFOF) in the 'gamification' of day trading, but stopped short of banning the practice outright.
Published on September 22nd, 2021
The Ontario Securities Commission (OSC) announced today the membership of the Market Structure Advisory Committee (MSAC) for the 2021–2023 term.
Established in 2011, the MSAC serves as a forum to discuss issues associated with market structure and marketplace operations. The MSAC also acts as a source of input and feedback for OSC staff to help facilitate the development of policy and rule-making initiatives that promote investor protection, fair and efficient capital markets, and confidence in those markets.
Published on July 2nd, 2021
"Mr. Schlaepfer is pleased that ASIC’s truth defence has been struck down, rejecting the finding that Select Vantage Inc. (SVI) traders had engaged in market manipulation."
Published on: The Globe And Mail - January 29, 2021
"The bull, it seems, has gone berserk. What had been a relentless but mostly orderly rise in stock prices since last spring has given way to a riotous new phase of the bull market, fuelled by frenzied trading among the growing ranks of small investors and rookie day traders."
Read more on The Globe And Mail.
Published on: The Globe And Mail - January 28, 2021
"The unprecedented battle between small investors and big-money pros took a sharp turn Thursday, as Wall Street hit back"
Read more on The Globe And Mail.
The rise of day trading should be celebrated
Published on: The Parliament Magazine - October 16, 2020
“There has been considerable coverage of the rise of day trading since the onset of the pandemic. With many more people stuck at home, on furlough or unemployed, there has naturally been increased interest in trying to make a living from the markets.” says Daniel Schlaepfer, the CEO of Day Trade the World (DTTW), a company that offers anyone the opportunity to start their own day trading office.
Read more on The Parliament Magazine.
ASIC drops investigation into Canadian day trader
Published on: The Australian Financial Review - October 8, 2020
Daniel Schlaepfer has been suing the regulator while it investigated his day trading business. One of the sides has laid down arms. And no, it isn't him.
Read more on The Australian Financial Review
Select Vantage INC. (SVI) Statement on Completion of ASIC Investigation
Published on: PR Newswire - October 7, 2020
Select Vantage Inc. is pleased to have been informed by the Australian Securities and Investments Commission (ASIC) that its investigation into suspected contraventions of the Corporation Act in relation to trading in various securities has been completed, and that ASIC has decided it will not take any enforcement action.
Select Vantage looks forward to continuing to provide liquidity to Australian equity markets, as it does in 29 other countries around the world.
Read more on PR Newswire
Pragmatism not posturing should drive Brexit talks
Published on: The Financial Times - May 19, 2020
“The stability of the global market depends on the international flow of liquidity. These flows have already been tempered by Covid-19.” says Daniel Schlaepfer, the CEO of Day Trade the World (DTTW), a company that offers anyone the opportunity to start their own day trading office.
Read more on The Financial Times.
Day trading is becoming increasingly prevalent across emerging Europe
Published on: Emerging Europe - May 19, 2020
“Market conditions during times like these make day trading a perfect opportunity for those looking for a resilient way to make money,” says Daniel Schlaepfer, the CEO of Day Trade the World (DTTW), a company that offers anyone the opportunity to start their own day trading office.
Read more on Emerging Europe.
Revenge of the robots: What is driving the market’s wild swings
Published on: The Globe and Mail - March 28, 2020
Think of last week’s stock market as a Terminator movie. As an individual investor, you were an all-too-human Sarah Connor, up against thousands of computer-based traders (that’d be the nefarious Skynet artificial neural network). If you’ve seen the film – any of them, really – you’ll know how the showdown ended: You survived, but you got beat up pretty good.
Read more on The Globe and Mail.
Letter: Program Trading Magnifies Black Swan Disturbances
Published on: WSJ - March 27, 2020
One of the most important inputs in the preset algorithms used to make computerized trades is volatility itself. This means that when true volatility hits the market, the computers exacerbate problems.
Read more on WSJ.
High-Frequency Traders Feast on Volatile Market
Published on: WSJ - March 27, 2020
Some quick-draw traders that don’t use complex algorithms are also benefiting from the market’s swings. Daniel Schlaepfer, CEO of Select Vantage, which has more than 2,000 day traders world-wide, said his firm’s top 10 record days have occurred this month. Daily trading volumes across the firm have doubled since markets began their slide, he said.
Read more on WSJ.
U.S. Should Avoid EU-Style Financial Regulations
Published on: U.S. News & World Report - November 11, 2019
The SEC’s recent reprieve to Wall Street from European regulations is simply kicking the can down the road. We need wholesale regulatory reform.
Congress has ordered a review of the implications of adopting European Union-style policies in U.S. capital markets – and rightfully so. Many U.S. firms shadow European rules as they try to operate on either side of the Atlantic, and pressure is growing on the Securities and Exchange Commission to adopt many of the rules formulated in Brussels.
Read more on U.S. News & World Report.
Select Vantage: Keeping trading a people-centred business
Published on: Emerging Europe - October 8, 2019
The Ontario Securities Commission (OSC) has announced today that SVI President and CEO Daniel Schlaepfer will be joining its Market Structure Advisory Committee (MSAC) for the 2019-2021 term.
When Daniel Schlaepfer established Select Vantage Inc (SVI) in 2011, he conceived of a next generation proprietary day trading firm powered by the potential of human insight over algorithms. Built from the ashes of another company, Daniel salvaged components that showed huge promise – technology, infrastructure and talent – and combined it with a new focus on sophisticated compliance and surveillance tools. He instilled a new managerial culture that prioritised the development of razor-sharp analytical skills in his traders.
Read more on Emerging Europe.
Select Vantage CEO appointed to Ontario Securities Commission (OSC) Advisory Committee
Published on: Ontario Securities Commission - September 2, 2019
The Ontario Securities Commission (OSC) has announced today that SVI President and CEO Daniel Schlaepfer will be joining its Market Structure Advisory Committee (MSAC) for the 2019-2021 term.
Established in 2011, the MSAC serves as a forum to discuss issues associated with market structure and marketplace operations. It also acts as a source of input and feedback for OSC staff to help facilitate the development of policy and rule-making initiatives that promote investor protection, fair and efficient capital markets and confidence in the capital markets.
Members are selected for their extensive knowledge of the Canadian capital markets and market structure, and their strong knowledge of the regulatory requirements in Canadian securities legislation.
Schlaepfer said: “It is an honour to have been invited to sit on the MSAC. Open and frank dialogue between market participants and regulators is vital for effective regulation, and I look forward to contributing my own experience towards the committee’s discussions on market structure and operations.”
For further information please contact Anna Bailey: anna.bailey@selectvantage.com
Read more here.
Read more on Traders Magazine.
Published on: FN London - September 2, 2019
For Schlaepfer, the issue is that much remains outside of the trader's control. He said: "The market itself is the most important part, more than the trader. If the market doesn't give you the opportunities to trade, you can't make money."
Read more here.
Published on: Markets Media - August 29, 2019
SAs Congress orders a study into the possible effects of MiFID II-style policies in the US, the SEC would be better off building bridges with their European counterparts to achieve equivalence than following the EU’s lead, argues Daniel Schlaepfer.
Read more here.
Published on: BNN Bloomberg - June 26, 2019
Select Vantage President and CEO Daniel Schlaepfer was thrilled to be named in the prestigious list of Canada’s Top 40 Under 40 today.
Announced today in the nationwide daily National Post, the listing celebrates Daniel’s significant accomplishments as President and CEO of Select Vantage. It also highlights national recognition of his charitable work and thought leadership in Canada’s finance and asset management sector.
Read more here.
Published on: Concordia.ca - June 14, 2019
Select Vantage President and CEO Daniel Schlaepfer has today been named in Concordia University’s prestigious 50 under 50 Shaping Business.
Daniel received an MBA from the John Molson School of Business, Goodman Institute of Investment Management at Concordia University. This was after he received a Bachelor in Commerce from the Rotman School of Management at the University of Toronto. Daniel is also a CFA charter holder and passed the FINRA series 7 and 24 exams as well as CSI courses, CSC and PDO.
Concordia University is one of the largest in Canada, and the John Molson School of Business is consistently ranked within the top 10 of Canada’s business schools, and within the top 100 worldwide.
Daniel receives special recognition in the ‘alumni in finance and asset management’ category.
Read more here:
Published on: FT Adviser - June 14, 2019
The effects of the European Union’s Second Markets in Financial Instruments Directive (‘Mifid II’) are “rippling” around the world and may cause other regulators – such as those in the US and Canada - to adopt the same approach.
This was the key message shared by Daniel Schlaepfer, President and CEO of Select Vantage, when he joined the Financial Times Adviser team for their regular podcast in London recently.
Mifid II, which came into effect in January 2018, includes rules which mean banks and brokers must ‘unbundle’ investment research from day-to-day trades, and charge for them separately.
Daniel said: "What happens in North America is people do not want to maintain two sets of infrastructures and two sets of plans so they are trying to see what will apply in the US, what will not apply in the US, what will apply in Canada.”
"These are all global businesses now so if the participants that operate in Europe have to make significant changes and they don’t want to have two sets of systems and two sets of policies and procedures, they may pressure US regulators to give them some kind of exemptions or to make the rules more in line in certain processes."
Daniel also said brokers in the US and Canada were reporting higher costs and lower revenues, largely because of the transatlantic uncertainties driven by Mifid II.
You can listen to the full podcast here.
Published on: FT Adviser - February 18, 2019
The Markets in Financial Instruments Directive (Mifid) rules have caused a "shakeout" of small and independent research providers in the investment industry, the CFA Institute has warned.
The unbundling of...
Published on: FT Adviser - January 11, 2019
A year ago, I was optimistic about the potential of the European Union’s second Markets in Financial Instruments Directive, which brought sweeping regulatory reform to financial markets in the EU.
January marks its first...
Published on: FT Adviser - January 10, 2019
The Markets in Financial Instruments Directive (Mifid) rules may have already done permanent damage to investment markets, traders have warned. The unbundling of research costs was a...
Published on: Traders Magazine - November 5, 2018
Sparks flew at the recent Securities and Exchange Commission (SEC) roundtable in Washington DC as regulators attempted to drag exchanges and market makers to a compromise over the long-running controversy of market data fees. The SEC recently...
Published on: FT Adviser - August 30, 2018
the cost of complying with the European Union’s (EU's) gargantuan Markets in Financial Instruments Directive II (Mifid II) is not just forcing smaller independent financial advisory firms to revise their charging models, as IFA research group Platforum recently reported. The 1.4 million paragraphs...
Letters
Letter: Pragmatism not posturing should drive Brexit talks (FT)
Letter: Program Trading Magnifies Black Swan Disturbances (WSJ)
Letter: Regulators must get in the sandbox with AI innovators
SEC Comment Letter on Promoting Liquidity in Thinly Traded Securities
Published on: Mirror - August 10, 2018
A huge increase in financial red tape risks sending smaller firms to the wall, a top trader has warned. With reams of regulation getting rolled out year-on-year, the notion of ‘too big to fail’ has been...
Published on: Independent - August 10, 2018
This follows the implementation of the EU’s regulatory reform 'MiFID II' which contains over 1.4 million paragraphs of rules. A huge increase in financial red tape risks...
Published on: The Sun - August 10, 2018
SMALLER firms risk being sent to the wall as the EU massively increases financial red tape, a top trader has warned. With reams of regulation getting rolled out year-on-year, the notion of "too big to fail" has been replaced with...
A decade on, there are four things AI regulators can learn from the crash (hint: it involves ethics)
Published on: E!Sharp - July 6, 2018
Should artificial intelligence (AI) be regulated? And how? This is the questions on everyone’s lips. The European Union...
Published on: New Europe - July 2, 2018
On June 25, New Europe hosted its second panel discussion on the future of financial regulation. The discussion was...
Published on: New Europe, TabbForum - June 25, 2018
Financial regulation should be designed to make markets more efficient. Attempts to ensure...
Published on: Select Vantage Blog - May 4, 2018
Banks and financial institutions are implementing systems which replace human trading with trading through artificial intelligence.
These systems promise to...
Technology has revolutionised the financial industry, but we’re long overdue a revolution in the way we think about its future role and the policies that should govern it, write Daniel Schlaepfer and Hugo Kruyne.
We have argued that...
Published on: New Europe, TabbForum - March 19, 2018
As with any other time in the history of financial markets, there is much contention surrounding the extent to which the market should be regulated. One way of...
Published on: Select Vantage Blog - February 9, 2018
The annual meeting of the World Economic Forum at Davos in Switzerland never fails to attract the financial world’s leading thinkers, and January 2018’s gathering was no different. We’ve recently...
Published on: New Europe, TabbForum - January 15, 2018
MiFID II is a piece of European legislation aimed at European financial markets. While this suggests its authority is geographically limited, the reality is that its impact is far-reaching.
Not only...
Published on: Select Vantage Blog - January 3, 2018
Today marks the date of implementation of MiFID II, the most sweeping legislative package ever undertaken by the European Union, or indeed ever applied to the global financial services industry. The real...
Published on: Select Vantage Blog - November 29, 2017
When it comes to judging implementation vs. intent in the world of financial regulation, there is perhaps no post-crisis legislation so significant to financial services – and relevant to trading in particular – as the Volcker Rule.
Part of...
Published on: Select Vantage Blog - November 20, 2017
Only through continual comparison of implementation & impact against intent will regulatory change achieve its original goals. Just...
Published on: New Europe, TabbForum - November 6, 2017
The principal intention of MiFID II is to increase transparency in trading by moving much of it out of the dark and onto regulated marketplaces. Whether...
Published on: New Europe, TabbForum - October 23, 2017
The new regulation highlights the increased risks associated with firms engaging in capital markets in an algorithmic/automated fashion versus those who prioritize human capital to drive trading decisions. The whole...
Published on: Select Vantage Blog - October 11, 2017
We seek to profit from our understanding of markets. In return, it is important that what we do is intelligible to anyone wishing to understand us. The way...