What is an algorithm? Financial regulation in the era of high-frequency trading

Abstract

In response to the flash crashes and market manipulations blamed on high-frequency trading (HFT), algorithms have been brought inside the regulatory perimeter. This paper focuses on the most ambitious regulation directed at the practice: the algorithm-tagging rule in the German High-Frequency Trading Act. Fifteen interviews with stakeholders in the Act’s implementation serve to reconstruct how regulators defined an algorithm and help pose the question of to what extent regulatory definitions and data need accurately to represent financial practices to be useful. Although tentative in its findings, the research suggests that the algorithm-tagging rule may be providing valuable signals in the noise to trade surveillance officers and having virtuous effects on the cultures of trading firms. The conclusion argues that sociologists of finance should adopt a more balanced approach when evaluating regulatory technologies and heed MacKenzie’s 2005 call to open up their black boxes.     

Organized interests and administrative rulemaking: the state of Wisconsin's lobbyists and coalitions

This study examines interest groups undertaking lobbying activity focused on administrative rulemaking. The analysis utilizes a dataset composed of observations made during the 2009–2010 Wisconsin Legislative Session, including the entire population of groups lobbying during this time period. This research examines the participants, efforts, and coalitions utilized when groups engaged in lobbying activity related to rulemaking. Although scholars have examined interest group activity focused on rulemaking at the federal level, little work has focused on this behavior in the states. This study aims to further the understanding of this activity. Copyright © 2015 John Wiley & Sons, Ltd.     

Identifying Predictors for Children Witnessing Intimate Partner Violence

Research has shown that intimate partner violence (IPV) prevalence and severity is higher and IPV duration is longer among couples that have children. Women frequently report that their children are the reason why they stay, leave, or return to an IPV relationship. Our study used results from a two-wave telephone survey to determine what IPV-associated factors were significant predictors of respondents’ children witnessing IPV, as well as estimating prevalence of children’s exposure to violence. We found that an increase in respondents’ age was significantly associated with increased odds of a child being exposed to violence. We also found that children witnessing violence were almost twice as likely to have mothers who reported leaving abusers. We hypothesize that increasing age corresponds to improved confidence in help-seeking behaviors. Our findings represent an important first step for future research on understanding how children influence IPV victims’ decision-making in seeking out service providers for help.     

Prospects for Local Co-Governance

British local authorities and their partners are increasingly developing new ways of working together with local communities. The nature of this co-working, however, is complex, multi-faceted and little understood. This article argues for greater clarity of thinking on the topic, by analysing this co-working as a form of political co-governance, and drawing attention in particular to issues of scale and democracy. Using evidence from a study of 43 local authority areas, 16 authorities are identified where co-governance is practised, following three main types of approach: service-influencing, service-delivering and parish council developing. It is concluded that strengthening political co-governance is essential for a healthy democracy.