John Lothian Newsletter: US options exchanges craft rules to fend off turmoil; ABN to shift retail options trades from Euronext to rival Tom; CME injects USD10m into European exchange

Sep 2, 2014

First Read

Jeromee Johnson, VP & Head of BATS Options, BATS Global Markets – Exchanges, Dark Pools and Other Market Places
JohnLothianNews.com

“You can absolutely gain as much and learn as much from those failures as you can from the things that work.”

Jeromee Johnson, vice president and head of BATS Options for BATS Global Markets, gives an overview on exchanges and marketplaces. He discusses how certain regulatory factors affect some but not all markets, as well as an exchange’s overall goal of bringing buyers and sellers together. Johnson also details the process of creating a new exchange gives an in-depth look at how the regulatory environment could potentially affect a fledgling exchange.

Watch the video »

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The ALS Ice Bucket Challenge Compilation from John Lothian News
When John Lothian was nominated by colleague Doug Ashburn to take the ALS Ice Bucket Challenge, he graciously accepted, then issued his challenge to the readership of the John Lothian Newsletter. Here is an assortment of the videos we have received.
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***** You will enjoy this. Thank you to Patrick Lothian for putting this together.

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FIA Europe Appoints New Director Of Regulation
FIA Europe is pleased to announce the appointment of Corinna Schempp as Director of Regulation. Corinna joins from LCH.Clearnet Limited where she was a Senior Regulatory Advisor in the Compliance team.
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***** Being the DOR is better than being the Director of Administration.

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Allston Accused by HFT Rival of Manipulating CME Prices
Matthew Leising and Saijel Kishan – Bloomberg
High-frequency trading firm Allston Trading LLC was accused by a competitor of manipulating prices on CME Group Inc.‘s exchange, three people with knowledge of the proceeding said. HTG Capital Partners LLC filed an arbitration case against Allston with CME, saying it detected a pattern of canceled bids and offers meant to mislead other traders into moving prices favorably for Allston, according to the people, who asked not to be identified because the case is private.
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***** Here is Allston’s complete statement on this case: “Allston is committed to the highest standards of integrity and compliance. The allegations made by a competitor are based on incomplete and inaccurate information, and the firm believes that the matter will ultimately be resolved in its favor. Allston has a comprehensive compliance program designed to ensure adherence with the evolving laws and exchange rules and is confident that its approach represents best practices in the industry. The firm believes that its trading strategies are in full compliance with applicable laws and exchange rules. The firm uses self-match prevention tools to prevent self-trading, not for any other purposes.”

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Can the New York Stock Exchange Be Saved?
Bradley Hope – WSJ
The day after Jeffrey Sprecher, the chairman and chief executive of Atlanta’s Intercontinental Exchange Inc., took control of the New York Stock Exchange, he sent trusted lieutenant Thomas Farley to size up the 222-year-old icon of capitalism. On a crisp November morning, the 38-year-old Mr. Farley arrived alone at the corner of Wall and Broad streets in lower Manhattan.
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***** This is a gut check for NYSE. If you are at NYSE with all the gutting going on, you better check to see if your guts were still there.

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S.E.C. Commissioner Rebukes His Colleagues
PETER EAVIS – Dealbook – NY Times
The Securities and Exchange Commission is the regulator that is supposed to crack down on executives who put misleading and fraudulent numbers into their financial filings. But Luis A. Aguilar, a commissioner at the S.E.C., said on Thursday that he was concerned that the agency’s stance in such cases might be weakening.
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***** A weak SEC is redundant.

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Elizabeth M. Fowler, Financial Reporter for The Times, Dies at 95
PAUL VITELLO – NY Times
Elizabeth M. Fowler, an author and financial reporter for The New York Times who was one of the first women to cover the Wall Street beat for a daily newspaper, died on Aug. 11 at her home in Chatham, N.J. She was 95.
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***** This is a nice story about a trailblazing woman reporter.

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Futures broker R.J. O’Brien survives industry fallout – In Other News
Lynne Marek – Crain’s Chicago Business
Chicago’s biggest futures broker, R.J. O’Brien & Associates LLC, has weathered tough markets since 1914, but the latest rough patch may be the worst.
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***** Lynne Marek must be losing her edge, this was a nice story about RJO and Gerry Corcoran.

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IPXI president brings trade solution to intellectual property problem
Jane Cooper – The Banker
Licensing intellectual property has traditionally been inefficient, opaque, expensive and inclined to legal action, but the chief executive of Intellectual Property Exchange International believes he has the answer.
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***** This is intellectual property he wants to share.

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Bridging the Weeks: Mortgage Securities Gone Bad; AML; Disruptive Trades; Shakespeare
Gary DeWaal – Katten Muchin Rosenman
It’s been two weeks since the last edition of Bridging the Week, and summer is, if not officially, now unofficially over. It’s time to get back to work! That being said, there were a number of high-level enforcement matters in the financial services industry during the waning days of August, including two CFTC settlements and two anti-money laundering cases, both brought by a New York state agency, that touched upon very topical compliance themes: the importance of (1) having robust monitoring systems to detect potential issues and (2) not untowardly pressuring persons obligated to detect potential issues from accurately reporting on such problems. Also, the CME Group announced a new rule and issued new FAQs related to certain prohibited trade practices.
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Lead Stories

US options exchanges craft rules to fend off turmoil
John McCrank – Reuters
A year after Goldman Sachs bungled a software upgrade and lost tens of millions of dollars from unintended trades, the 12 U.S. stock options exchanges have crafted new rules for dealing with erroneous transactions, according to draft documents seen by Reuters.
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ABN to shift retail options trades from Euronext to rival Tom
Philip Stafford – Financial Times
ABN Amro is set to further shake-up the Dutch options market by diverting the options trades it executes for retail customers from Euronext to The Order Machine (Tom), an emerging trading venue.
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CME injects $10m into European exchange
Anish Puaar – Financial News
Chicago-based derivatives exchange CME Group has injected another $10 million into its fledgling European derivatives exchange, taking its total spend on the new venture to over $35 million.
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CureCoin: A cryptocurrency aiming to beat cancer
Farah Khalique – Euromoney Magazine
The CureCoin Forum has teamed up with Stanford University to launch a new ethical cryptocurrency that aims to find cures for common, life-threatening illnesses, such as cancer and Alzheimer’s, by bringing together science and the craze for cryptocurrencies.
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Former NYSE Traders Look Back on the Old Days
Daniel Huang – WSJ
For almost 25 years, Robert Cunningham worked on the floor of the New York Stock Exchange among thousands of traders who shouted prices and gauged supply and demand for their customers. “The place was magic,” he says. “I saw incredible things happen, business being just one of them.”
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Robot risk managers excite swap market-makers
Lukas Becker – Risk.net
Foreign exchange options and government bonds are hedged by robots, and dealers hope to apply the same technique to rates products as the market becomes more electronic. But it needs other pieces of the puzzle to fall into place first
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Eurex opts for Goldman’s swap future patent
Anish Puaar – Financial News
Eurex has become the second major derivatives exchange to launch a new swap futures contract underpinned by patents from Goldman Sachs.
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Several Swiss banks pull out of US tax programme – paper
Reuters
At least 10 Swiss banks have withdrawn from a U.S. programme aimed at settling a tax dispute between them and the United States, Swiss newspaper NZZ am Sonntag said on Sunday, quoting unnamed sources.
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Public Pension Funds Stay Mum on Corporate Expats
ANDREW ROSS SORKIN – Dealbook – NY Times
In the outcry about the recent merger mania to take advantage of the tax avoidance transactions known as inversions, certain key players have been notably silent: public pension funds.
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Wall Street Woos Young Workers as Business Picks Up
Lindsay Gellman, Sara Jerving and Daniel Huang – MoneyBeat – WSJ
Bank of America Corp. hired about 40% more full-time analysts and associates this year than last, according to a person familiar with the bank’s hiring practices.
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Regulatory

US advisers must pay to be regulated
Chris Flood – Financial Times
A key official at the Securities and Exchange Commission has called for US financial advisers to pay an annual fee so that regulators can examine their businesses more regularly. It is feared that investors remain vulnerable to another Madoff Ponzi scheme.
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Banks say funding rules will make key equities trades more expensive
Sam Fleming – Financial Times
Banks are sounding the alarm about a proposed global rule aimed at forcing them to fund themselves more safely, warning that it could have “severe” knock-on effects on short selling and other important equities market transactions.
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European fund houses fear SEC’s reach
Steve Johnson – Financial Times
US regulators are stepping up their scrutiny of European fund managers amid concerns over the pricing of hard-to-value illiquid assets. The move appears to be part of a push by the Securities and Exchange Commission to increase oversight of fund groups that are registered to conduct business in the US, even if they are regulated elsewhere.
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Dodd-Frank: The law stuck in the re-election waiting room
John Dizard – Financial Times
The Washington political fixer-industrial complex is only now beginning to comprehend the opportunities offered by the 2010 Dodd-Frank Wall Street financial reform law. In the first couple of years after Dodd-Frank’s passage, their employers in financial companies hung on to the delusion that their particular problems could be managed with good lawyering, a few more layers of compliance staff and some discreetly legislated “technical” fixes.
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Financial reforms will make the next crisis even messier
John Plender – Financial Times
There is a time-honoured way of protecting taxpayers from picking up the bill for the failure of a systemically important financial institution. It involves central banks and finance ministries pressing a better capitalised bank to absorb the ailing business through an arranged merger. Yet it is becoming clear that this tool of crisis management can no longer be put to use, raising questions about the authorities’ ability to stabilise the financial system in a crisis.
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Martin Murphy, Examinations Director in SEC’s Los Angeles Office, to Retire After 36 Years of Public Service
The Securities and Exchange Commission today announced that Martin Murphy, the Associate Regional Director for Examinations in the agency’s Los Angeles office, is retiring today after more than 36 years of public service, including 24 years at the SEC.
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Fee Rate Advisory #1 for Fiscal Year 2015
The Securities and Exchange Commission today announced that in fiscal year 2015 the fees that public companies and other issuers pay to register their securities with the Commission will be set at $116.20 per million dollars.
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Exchanges & Trading Facilities

GFI Group Shareholder Sues to Block CME Group Acquisition
Chris Dolmetsch – Bloomberg
CME Group Inc. (CME)’s $580 million acquisition of GFI Group Inc. (GFIG) undervalues the trading company, a shareholder said in a lawsuit seeking to block the takeover.
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HKEx to consider listing rule change after Alibaba IPO loss
Reuters
Stung by the loss of the high-profile IPO of Chinese e-commerce firm Alibaba Group, the Hong Kong stock exchange on Friday took a first step towards potentially loosening its listing rules and allowing firms with dual-class share structures to list in the city.
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Rehearsal for Stock Connect foreshadows system’s crash points
Simon Osborne – The Trade
Market rehearsals for the Shanghai-Hong Kong Stock Connect took place over the weekend. The test practiced scenarios in which the Stock Connect will stop working because of its rules being breached.
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U.S. judge throws out aluminum price-fixing suit against banks
Jonathan Stempel – Reuters
A U.S. judge on Friday dismissed antitrust litigation accusing Wall Street banks and commodity merchants including Goldman Sachs Group Inc and Glencore Plc of conspiring to drive up aluminum prices by reducing supply.
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Charles Li Direct: At last! Kicking off a pre-qualifier on weighted voting rights
Last year I launched a discussion in this blog about weighted voting rights shares in Hong Kong. I tried to present a number of different positions and possibilities on these pages, and said that whether we decide to make changes to Hong Kong’s listing regime or maintain the status quo, it should be done proactively after a thorough and comprehensive debate in the market.
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Average Daily Volume Of 7.0 Million Contracts At Eurex Group In August
In August 2014, the international derivatives markets of Eurex Group recorded an average daily volume of 7.0 million contracts (August 2013: 6.6 million). Of those, 4.8 million were Eurex Exchange contracts (August 2013: 4.5 million), and 2.2 million contracts (August 2013: 2.1 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 100.4 million contracts were traded at Eurex Exchange and 45.4 million at ISE.
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Turnover At Deutsche Börse’s Cash Markets At 94.3 Billion Euros In August
Order book turnover on Xetra, the Frankfurt Stock Exchange and Tradegate stood at EUR94.3 billion in August (August 2013: EUR84.6 billion). Of the EUR94.3 billion, EUR87.0 billion were attributable to Xetra (August 2013: EUR76.8 billion). EUR3.8 billion were attributable to the Frankfurt Stock Exchange (August 2013: EUR4.0 billion). Order book turnover on Tradegate Exchange* totalled approximately EUR3.5 billion in August (August 2013: EUR3.7 billion).
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The Trading Volume On The Spanish Stock Exchange In August Reached EUR44.1 Bn., Up 22% – Monthly Trading Statements For BME Markets
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Osaka Exchange: Trading Overview in August 2014
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Tokyo Financial Exchange Trading Volume in August 2014
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Key figures for SIX Swiss Exchange and SIX Structured Products Exchange: August 2014
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NASDAQ OMX Nordic Trading Statistics – August 2014
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Moscow Exchange’s Turnover At RUB 37.7 Trln In August 2014
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TOM MTF Statistics Week 35, 2014
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Hedge Funds & Managed Futures

Vanguard cuts fees across fund ranges
Emma Dunkley – Financial Times
Vanguard has reduced fees on a range of index-tracking funds as part of its “mission” to lower the overall cost of investing and compete with other asset managers.
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Private debt fund trio raise $73bn in five years
Henny Sender in New York – Financial Times
The top three private debt funds raised more than $73bn in the past five years, underlining the appetite for alternative credit at a time when banks are under pressure to shrink their balance sheets in the wake of the financial crisis.
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Europe arm of Pimco shells out bumper dividend
Vivek Ahuja – Financial News
The European arm of Pimco has shelled out £75 million in dividends since the start of this year – just the second time it has done so since the US bond giant’s 2000 acquisition by the German insurer Allianz – after net profits almost trebled to a record level in 2013.
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Passive funds an active threat for Europe’s fund managers
Simon Jessop and Nishant Kumar – Reuters
Warren Buffett built a fortune of nearly $60 billion from astute stock picking, but when the 83-year-old dies, the vast majority of the money he leaves his wife will be parked in a fund that simply moves in step with an index.
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Barings’ Stanion and Cole to join Pictet for multi-asset expansion
Dan Jones – Investment Week
Former Barings trio Percival Stanion, Andrew Cole and Shaniel Ramjee have joined Pictet Asset Management to lead a push into the multi-asset space.
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Indus adds discounted share class to Asia fund
Julia Rampen – Investment Week
Investors with more than $5m are now able to access a discounted institutional share class on the Indus Select Asia Pacific fund.
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First-time private equity vehicles look to stand out from the crowd
Becky Pritchard – Financial News
It is a brisk five-minute walk from Carlyle Group’s headquarters in London’s Berkeley Square to the new London office of first-time fund C5 Capital on the other side of Mayfair. But despite the short walk, for Nazo Moosa, who has made the leap from global buyout firm to private equity start-up, the two are worlds apart.
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Fund Manager Neil Woodford Sells HSBC Stake on Risk of Fines
CHAD BRAY – Dealbook – NY Times
Neil Woodford, an influential fund manager in Britain, said on Monday that he had sold his stake in the British bank HSBC over concerns about rapidly escalating fines by regulators in the banking industry.
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Jupiter chairman Dundas resigns
Julia Rampen – Investment Week
Jupiter’s non-executive chairman Jamie Dundas is to step down due to ill health. Dundas, who is also a director, will cease to be a member of the nomination and remuneration committees.
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Hedge Funds Cut Gold Bull Bets to Lowest Since June
Debarati Roy – Bloomberg
After gold’s rally in the first half of the year beat gains for commodities, equities and Treasuries, bullion is back to being out of favor with investors.
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Ditch the hokum on asset diversification
Pauline Skypala – Financial Times
Students of finance and investment management heading for the classroom this autumn will be taught the same mainstream theories as their predecessors. Those theories failed to anticipate the 2008 financial crisis, or earlier crashes, and probably will not spot the next one. How can they when the underlying assumption is that markets are in a state of equilibrium that can only be disturbed by unpredictable events unconnected to market operations?
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Banks & Brokers

Eric Cantor to join investment bank Moelis
CNBC
Former U.S. House Majority Leader Eric Cantor will join investment bank Moelis & Co as vice chairman and managing director, the company said, adding that Cantor will also be elected to its board.
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Boot Camp for Bankers
KRISTINA SHEVORY – Dealbook – NY Times
Robert Vickers struggled not to grin, but the camouflage-clad drill sergeant caught him anyway. “Get down and beat your face. Start pushing!” Air Force Technical Sgt. Elbert Fish shouted, sweat beading on his chiseled face as the sound of combat — gunfire, incoming mortar shells, air sirens and helicopter rotors — punctuated the early morning air from speakers around a grassy field here.
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JPMorgan Operating Risk Rises With Past Seen as Prologue
Hugh Son, Michael J. Moore and Yalman Onaran – Bloomberg
JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon has pledged billions of dollars to improve compliance and cybersecurity. That’s not stopping regulators from treating the bank as if it were riskier than ever.
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New Tullett Prebon chief eyes electronic trading push
Philip Stafford – Financial Times
The new chief executive of Tullett Prebon has indicated he will push the UK-based interdealer broker further into electronic trading, and invest as the industry struggles with significant structural change.
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Brokers’ inefficiency costs clients £4.2bn
Sophia Grene – Financial Times
The UK asset management industry may be leaving as much as £4.2bn of client returns on the table by failing to monitor how efficiently its brokers are managing trades.
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New Asian e-trading products coming from BAML
Simon Osborne – The Trade
Bank of America Merrill Lynch (BAML) will be bringing in innovations in the near future to its Asian electronic trading product range as well as enhancements to its Hong Kong dark pool.
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Peer-to-peer funding offers alternative finance source
Nicolas Billeaud – Risk.net
Nicolas Billeaud, head of US equities peer-to-peer funding at Light Horse Market Solutions, says P2P provides an alternative funding source to the traditional prime broker route
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Clearing & Settlement

Euroclear and Clearstream ink collateral compromise
Rachael Singh – Financial News
Europe’s two largest settlement houses have been told there must be no more excuses after they proposed a rescue package for a deal to enhance their interoperability.
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LCH adds ex-Lloyds rates chief Bruce Kellaway in management reshuffle
Tim Cave – Financial News
LCH.Clearnet, the international clearing house owned by the London Stock Exchange, has added a new layer of management in the first major reshuffle under new chief executive Suneel Bakhshi.
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Indexes & Products

Agriculture ETPs Losing Investors on Record U.S. Harvests
Megan Durisin – Bloomberg
The investment binge in U.S. agriculture funds has ended as record crops and the promise of improving meat supplies send prices plunging. After taking in more money than precious metals or energy funds during the first five months of 2014, exchange-traded products backed by agriculture had a net outflow for the year of $57.7 million as of Aug. 29, down 2.9 percent, data compiled by Bloomberg show.
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Thomson Reuters Launches Corporate Responsibility Indices To Measure European ESG Performance
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Xetra/Börse Frankfurt: Four New Source ETFs Launched In The XTF Segment On Xetra – ETFs Offer Access To Strategies Of GLG Partners And MLP Energy Companies
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Technology

What’s in a name?
Trade Talk – Trading Technologies
Late last year, a group of us convened to tackle a formidable task: the naming of our next-generation professional trading platform, which we’re preparing to release later this year. We came armed with brainstorming supplies including a long list of names generated by an employee contest, ideas submitted from our agency partners, a thesaurus, many internet-connected devices and a bunch of exercises designed to spark creativity.
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Asset Control Finds its Feet in Singapore
Joanna Wright – WatersTechnology
Asset Control’s consolidation of its offices in the Asia-Pacific region is generating positive feedback from clients, according to Franck Peltier, MD of the New York-based data management technology and services provider.
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Barclays Plans Texas Tech Center
James Rundle – WatersTechnology
Barclays will open a technology campus located in McKinney, Texas, and aims to move in by fall 2014, the town’s development body has announced.
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OANDA Partners With MotiveWave Software To Add Professional FX Trading Analysis Tools
OANDA, a global provider of innovative forex trading services, is pleased to announce its partnership with Toronto-based MotiveWave Software, a developer of easy-to-use high-performance charting and trading software for the individual trader. MotiveWave is a full feature trading platform that provides advanced charting and market analysis.
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Enforcement

New York Set to Accuse Evans Bank of Redlining
JESSICA SILVER-GREENBERG – Dealbook – NY Times
Drawn in thick marker along the map of upstate New York, the line snaked down the Niagara River and zigzagged east to outline a swath of Buffalo and its surrounding neighborhoods. But one area of the city — neighborhoods in east Buffalo, where more than 75 percent of the city’s African-American population lives — was explicitly excluded, cut off from access to mortgage credit.
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Carlyle Group Agrees to Settle Collusion Suit for About $115 Million
Ryan Dezember – WSJ
Carlyle Group LP has reached an agreement to settle allegations made in a long-running case that it colluded with rivals to keep prices down on corporate buyouts, according to people familiar with the negotiations. The Washington, D.C., private-equity firm is the last of seven firms remaining in the 2007 case to reach a settlement agreement ahead of a Boston hearing that was set for next week.
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INSIGHT-Insider traders in US face longer prison terms, Reuters analysis shows
Nate Raymond – Reuters
U.S. judges are imposing increasingly long prison terms for insider trading, a Reuters analysis shows. The rise is at least partly driven by the bigger profits being earned through the illegal schemes, defense lawyers said.
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SEC Doles Out $300k Whistleblower Award to Compliance Officer – Law Blog
Rachel Louise Ensign – WSJ
The Securities and Exchange Commission handed out its first whistleblower award to a compliance staffer on Friday.
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CFTC Charges California Resident Ralph Metters with Forex Fraud
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Manuel L. Real of the U.S. District Court for the Central District of California entered on August 27, 2014 an emergency Order freezing and preserving assets under the control of Defendant Ralph Metters of Los Angeles, California. The court’s Order also prohibits Metters from destroying books and records and grants the CFTC immediate access to the Defendant’s records. Metters has never been registered with the CFTC.
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Asia-Pacific

Wealthy Chinese offer rich pickings
Chen Liang – Financial Times
BNY Mellon’s impending exit from its Chinese asset management joint venture after seven years marks another Sino-western marriage failure within the financial services sector.
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China Banks Boost Precious Metals Hoard Amid Lease Demand
Bloomberg
The value of precious metals held by China’s biggest lenders surged 66 percent from a year ago as banks lease more gold to customers because tighter borrowing rules make it harder to lend funds.
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Matthews Asia adds income fund to range
Alice Rigby – Investment Week
Matthews Asia has expanded its fund range with the launch of the Matthews Asia Strategic Income fund.
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KRX Adds Real-Time Price Banding
James Rundle – WatersTechnology
The Korea Exchange (KRX) has announced new safety measures for its derivatives market, introducing real-time price banding to prevent mass fluctuations.
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SGX proposes greater retail access to bonds
Singapore Exchange (SGX) is consulting the public on a proposal to give retail investors improved access to bonds currently offered only to institutional and accredited investors (“wholesale bonds”).
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China’s bad bank clean-up crew
Jamil Anderlini and Gabriel Wildau – Financial Times
The prospect of the first ever default in China’s rapidly expanding shadow banking sector sent shockwaves through financial markets this year. As word spread that a Rmb3bn trust product called “China Credit Equals Gold #1” was on the verge of defaulting, investors began to question the stability of China’s entire financial system.
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JCCH: Japanese Commodity Markets Summary for August 2014
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Taiwan Stock Exchange And London Stock Exchange Discuss Potential Cross-Border Trading Cooperation
Press Release
Mr. Lee Sush-der, Chairman of the Taiwan Stock Exchange (TWSE), led a delegation to London on 1 September 2014. During the visit, TWSE met with the London Stock Exchange (LSE) to discuss areas for potential cooperation, including the promotion of the Taiwan and London capital markets and cross-border trading mechanisms. The trip is part of TWSE’s investor outreach program which aims to attract more international investors to the Taiwan market.
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Dalian Commodity Exchange: Notice On Strengthening Risk Management During The Market Closure In The Mid-Autumn Festival Of 2014
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Frontier Markets

Bursa Malaysia’s Inaugural ETF-SBL Conference Brings Global Thought Leaders To Malaysia
Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) will be organising its inaugural Exchange Traded Funds (ETFs) and Securities Borrowing and Lending (SBL) Conference on Sept 10.
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Dubai Financial Market Performance – August 2014
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Malawi Stock Exchange Monthly Market Performance Report – August 2014
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Miscellaneous

Martin Wolf’s ‘The Shifts and the Shocks’
Review by Joseph Stiglitz – Financial Times
Martin Wolf has outdone himself. The FT’s chief economics commentator has written a book that not only explains the malaise in which we have been mired since 2008 but also – depressingly – provides a convincing analysis of why we are likely to remain so. Already, the crisis has spawned a plethora of titles examining what went wrong. The Shifts and the Shocks is among the first to address the absence of a robust recovery and it sets a high bar for those that will surely follow.
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