Trading Tech Talk 19: Can Crazy Math Save the Exchanges?

Hot Topics in Tech: Fresh SEC crackdown on "flash crashes." Final approval of Reg SCI. "CFTC is so underfunded that it cannot evolve to handle Bitcoin and modern electronic markets," says Chairman Massad. Formal verification for trading algorithms to improve exchange reliability?Are we in a fintech bubble?

The Inbox: Listener questions and comments

• Question from Neal Dorman - Saw a stat yesterday that an alarming number of millenials do not see the need for a bank. What does that mean for Fintech startups as well as support for this sector going forward? Is this the new buggy whip?
• Question from Avo - Can you discuss the complex order books at the options exchanges and how they function?In particular how they do not talk to each other or route orders away to other books? Are there any changes or developments in the works to fix this? Thanks for the show.
• Question from Dataman - Hola Tech team! I work ing cloud infrastructure for a big hosting company many of your listener are probably familiar with. I enjoy the show but I have to wonder if there just too many obstacles for mainstream tech like the buzz-heavy cloud to ever be fully embraced by financial services companies. Finance firms are not retail merchants or widget makers. They have severe restriction on their technology and their compliance. May I am a cynic, but I do not know if I ever see those obstacles being overcome. At least not translating into a "cloud" that is similar to what is available in other industries.