In this episode I talk to Tom Lin. Tom is a Professor of Law at Temple University’s Beasley School of Law. His research and teaching expertise are in the areas of corporations, securities regulation, financial technology, financial regulation, and compliance. Professor Lin and his research has been published and cited by numerous leading law journals, and featured in The Wall Street Journal, Bloomberg News, and The Financial Times, among other media outlets. We talk about the rise of ‘cyborg finance’ (Cy-Fi) and the regulatory challenges it poses.
- 0:00 – Introduction
- 1:30 – What is cyborg finance?
- 5:57 – What explains the rise of cyborg finance? Innovation, Regulation and Competition
- 9:00 – The problem of systemic risk in the financial system
- 15:05 – “Too Linked to Fail” – The first systemic risk of cyborg finance
- 19:30 – “Too fast to save” – the second systemic risk of cyborg finance
- 23:00 – The problem of short-term thinking in the financial system
- 27:15 – Does cyborg finance undermine the idea of the ‘reasonable investor’?
- 34:57 – The problem of cybernetic market manipulation
- 37:44 – Are these genuinely novel threats or old threats in a new guise?
- 41:11 – Regulatory principles and values for the age of cyborg finance
- Tom’s faculty webpage
- Tom’s SSRN page
- “The New Investor” by Tom Lin
- “The New Financial Industry” by Tom Lin
- “The New Market Manipulation” by Tom Lin
- Episode #22 – Wellman and Rajan on Automated Trading
- Episode #25 – McNamara on Fairness, Utility and High Frequency Trading