Sport may not be the normal field of analysis for economists who spend most of their time looking at the macroeconomy. But economics is a social science which looks at how people make choices under varying degrees of uncertainty, and sport is increasingly used as a testing ground to assess various choice theories, particularly in the field of behavioural economics. In addition, as the ability to gather and process large amounts of data improves, so it has become an interesting field for data scientists who are able to dispel many of the irrational prejudices surrounding sport. But it is primarily the business of sport which interests us here, and we should be under no illusion as to the commercial nature of modern-day sport.
Sport has a lot of facets. Some people do it for recreation, some for a living. All of them usually have one thing in common – they try to beat their best times, to reach new records. Records are something investors are keen on as well – although maybe for a different reason. When stock markets are at record highs, investors start to ask when the rally will come to an end. The current bull market in US stock markets has another feature that makes this question quite pressing: it is the longest on record.1 So what are the risks of the current bull market, and what might signal that it is about to end?
In this month’s issue of ‘Thinking Ahead’, we look at one of the major milestones in the new MiFIR/MiFID II transparency regime – the first systematic internaliser threshold check. This check was designed to take a look at the market and to examine which firms were trading enough instruments away from trading venues for the market to be interested in the prices they are prepared to trade at. This month we look at the development of that systematic internaliser landscape and whether the September threshold check will have any impact on the market.
Financial news headlines were dominated by the ongoing trade war between the United States and various countries around the world. Canada and the US administration were still in negotiation of a new North American free trade agreement. China responded with its own tariffs after the US imposed additional tariffs. Political tensions between the US and Turkey continued with the introduction of sanctions on top Turkish government officials and Turkey’s possible retaliation of raising steel and aluminium tariffs as well as its boycott of US-made electronic devices.