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Global Liquidity Partners Selects Catalys to Power Algo Execution & Routing Services

Aug 26, 2015

CameronTec Group, the global standard in financial messaging infrastructure and tools for the Capital Markets industry, today announced Red Bank, NJ based trading technology firm Global Liquidity Partners has selected the Catalys FIX gateway to power its proprietary algorithmic execution and routing services to customers.

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Velocimetrics releases latest range of TipOff appliances delivering up to 6-fold increase in storage capacity

Aug 25, 2015

Velocimetrics, the provider of real-time business flow performance monitoring and analysis solutions, today announces the availability of a new range of high performance appliances, all of which offer significantly increased storage capacity. The range includes the exceptionally high capacity V205 appliance, enabling TipOff® to retain up to 24TB (terabytes) of raw captured trading data or 160TB of compressed captured trading data on a single 2U appliance. In doing so, offering more than 6 times the storage capacity of previous TipOff appliances.

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Orc extends connectivity to Borsa İstanbul

Aug 25, 2015

Orc, the global market leader in electronic trading technology for listed derivatives, today announced certified connectivity to Borsa İstanbul. This new high-speed interface enables quoting and trading on Borsa İstanbul for all Orc clients using the Execution Bricks or the Orc Trading Bricks platforms. Since its formation in 2013, Borsa İstanbul brings together all the exchanges operating in the Turkish capital markets under one roof.

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Latest Blog Posts

All together now…

Anne Plested, Fidessa

Aug 28, 2015
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A common approach will be key to minimising the fallout of MiFID II implementation, particularly around the extra data required for record keeping and transaction reporting and for algo identification. I’m hopeful that the ‘final’ Technical Standards due next month will have at least dropped requirements to include static data. Do we really need multiple systems storing and passing around redundant static instrument, client and trader data? ESMA only defines content and format at the point of report submission, recognising in December’s draft RTS 34 that “prescribing a specific format in which the records should be maintained might result in operational difficulties for trading venues.” With MiFID II touching every corner of financial services, limiting change to only those systems that actually require the imposed extra attributes seems eminently sensible to me and should help to contain its impact. The sooner there is clarity on the technical standards the better, and though I have my reservations about the finality of the version expected at the end of September, it will become the new song sheet for us all.
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Get serious about this blockchain thing

Chris Skinner

Aug 27, 2015
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Having noted that most bankers are now saying bitcoin bad, blockchain good, here’s a nice set of quotes I’ve been gathering of what banks are actually saying: “At its core, Bitcoin is a decentralized protocol that enables exchange of value among parties around the world, giving it the potential to alter the financial services landscape,” Jay Reinemann, BBVA Ventures executive director;  The Bitcoin blockchain “is an opportunity for Wall Street to streamline some operations that are pretty antiquated”, Duncan Niederauer, former CEO of NYSE Euronext “Money at its core is simply a ledger for keeping track of debts and Bitcoin is truly the best iteration of a universal ledger we’ve ever seen.” John Reed, former Chairman and CEO of Citibank “Blockchain is a really disruptive development and banks have a lot of fear concerning this technology because, in the pure theory of blockchain, a lot of processes within a traditional bank would be obsolete”, Thomas F Dapp, Research Analyst, Deutsche Bank “Blockchain technology will not only change the way we do payments but it will change the whole trading and settlement topic”, Oliver Bussmann, CIO, UBS “Blockchain technology continues to redefine not only how the exchange sector operates, but the global financial economy as a whole,” Bob Greifeld, CEO, Nasdaq “In time, distributed ledgers will support smart contracts – computer protocols that verify or enforce contracts. This will lead to a wide variety of potential uses in securities, syndicated lending, trade finance, swaps, derivatives or wherever counterparty risk arises.”  Santander Innoventures Then Let’s Talk Payments published an excellent list of what banks are doing on the blockchain.  I've combined their list with mine and you can see that 2015 is the year of the blockchain: Fidor Bank was the first bank to experiment with virtual currencies and the blockchain. They partnered with Kraken (in October 2013) to create a digital currency exchange in Europe, working with bitcoin Deutschland GmbH in Germany. This was followed by a partnership with Ripple Labs to use its payment protocol to provide customers money transfer services in multiple currencies at a lower cost (May 2014). In February 2015, they partnered with bitcoin.de, a P2P bitcoin trading platform. LHV Bank are working on a new project with blockchain technology (June 2014) and developed Cuber Wallet, an app based on “Colored Coins” blockchain technology (June 2015). They also partnered with Coinbase (September 2014) and CoinFloor (July 2015). CBW Bank and Cross River Bank announced partnerships with Ripple Labs to work on building a risk management system, and to provide low-cost cross-border payments transaction (September 2014). USAA, Nasdaq, BBVA invest in Coinbase, January 2015  Goldman Sachs participated as a lead investor in $50 million funding for Bitcoin startup Circle Internet Financial Ltd. (April 2015). UBS creates a research lab in London focused on blockchain (April 2015). BNY Mellon have created their own currency called “BK Coins” as a corporate recognition program which can be redeemed for gifts and other rewards (April 2015). DBS Bank run a blockchain hackathon in Singapore in May 2015  in partnership with StartupBootcamp FinTech and CoinRepublic. Nasdaq launches an enterprise-wide blockchain technology initiative, May 2015 CBA partner with Ripple Labs to implement blockchain ledger system for payment settlements between its subsidiaries (May 2015). ANZ Bank partnered with Ripple to explore potential use cases of blockchain (June 2015). Westpac partner with Ripple and are testing a proof of concept with its staff for making low-value cross-border payments (June 2015). Barclays Bank announce that they are working with a range of start-up companies, including Safello, to explore how blockchain technologies could be harnessed in the financial services sector (June 2015).  Santander announces 20-25 use cases that would save £12 billion ($19 billion) in bank infrastructure costs by switching to the blockchain (June 2015). BNP Paribas are experimenting at making transactions faster by using blockchain (July 2015). Societe Generale are running a training program to give employees bitcoin, blockchain and cryptocurrency expertise (July 2015). Citibank have set up three separate systems within Citi that deploy blockchain-based distributed technologies. They developed an equivalent to bitcoin called “Citicoin” which is being used internally to understand the digital currency trading system better (July 2015). Deutsche Bank release a white paper  stating that “it is entirely conceivable that banks could, for instance, set up a new digital booking and clearing system amongst themselves enabling them to offer client transactions featuring the benefits of the blockchain, such as speed, efficiency, internationality and cost savings.” (July 2015). The Bank of England announces that central banks are looking at ways to implement "hybrid systems" involving distributed ledger technology of the type currently used to record bitcoin transactions, July 2015 . US Ripple users are now able to make deposits to their Ripple accounts from banks Wells Fargo, Bank of America, Capital One, Capital One 360, USAA, TD Bank, US Bank, PNC or Chase from August 2015.  Here's a timeline of these announcements: I could keep the list going but the bottom line is that you need to take the blockchain seriously now.  
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Nasdaq’s TRF Disruption Didn’t Just Hobble Dark Pools… It Did Much More Than That

Gary Stone & Ray Tierney, Bloomberg Tradebook

Aug 27, 2015
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Recent press reports that the outage at the Nasdaq TRF on August 4th “hobbled” the dark pools is a simplistic meme that doesn’t address the wider impact the outage had on the equity market. The NASDAQ TRF does not just serve the dark pools, it serves all off-exchange OTC equity activity including wholesalers interacting with retail order flow and regional broker-dealers. Many of these regional broker-dealers use the Bloomberg Trading Solutions’ Sell Side Order Management System (SSEOMS) to manually cross stock “upstairs” from their market making inventory or sales-trading activities. The continued focus on off-exchange activity being “dark pool” activity is inaccurate. In fact SEC research (see the figure below) and the data show that it’s a minority of the activity that occurs off-exchange. Nevertheless, the media and the tick pilot ignore that inconvenient truth. FINRA, the Financial Industry Regulatory Authority, has the ability to get the data we need to understand off-exchange activity. In June 2014, it started to collect the data with Rule 4552, which provided transparency into dark pools. Now, FINRA should collect the remainder of the data from the other off-exchange segments so that we can understand what happens off-exchange.   We calculate that off-exchange trading represented approximately 35% of the average daily volume traded in Q1 2015. Using the FINRA ATS data, we calculate that the “dark pools” represented 14% of the average daily volume of NMS stocks that same quarter. So, 40% of the activity reported to the TRFs is from the dark pools. The vast majority, 60%, occurs from other activity. In 2012, Dr. Laura Tuttle at the SEC’s Division of Economic and Risk Analysis attempted to qualify the “other” non-ATS activity. Off-exchange activity does not appear to have changed much since Dr. Tuttle’s research in 2012. Her results (see above figure) suggested that the majority of the activity was connected to retail flows. FINRA could help us be both definitive and understand. Dr. Tuttle’s analysis and the “retail order flow” exemptions were what caused us to question the basic premise of the Trade-At provision in the SEC’s tick pilot in our December 2014 Bloomberg Tradebook Comment Letter: “From this chart [see above figure], the issue with the Participants’ Proposed Plan becomes clear – it only addresses a small segment of the Commission’s concern in off-exchange trading (because the volume in gray and black is exempt from the trade-at provision), calling into question the basic premise for including the trade-at provision in the pilot.” We asked why a complicated trade-at rule was necessary when it addressed such a small segment of the market, especially when everyone considers the markets are already too complex? Unfortunately, this question was not addressed.   The outage(s) on August 4 did force the dark pools out of the market. And just like the NYSE outage a month ago, the market functioned just fine. But the dark pools were not the only segment affected – the wholesalers executing retail flows were also impacted: if you can’t report your trade to the consolidated tape, you can’t print OTC off-exchange (executions). So, regional brokers, many of which specialize in providing liquidity in less-liquid stocks were unable to provide liquidity to their clients until they could report their trades. OTC equity trading has a long history in US equities. Many forget that Nasdaq was an OTC stock market – a communication system for more than 1,400 market makers – before it became a for-profit exchange with its IPO in 2002. In fact, the Exchange Act requires an OTC market for equities. But as Dr. Tuttle’s work has highlighted, what happens off-exchange is still largely not understood. FINRA has the ability to provide a clearer understanding of the entire off-exchange OTC equity market. Over a year ago, in June 2014, FINRA started an initiative under Rule 4552 that required ATSs reporting to a TRF to provide FINRA with detailed information so that it could understand what is happening in the dark pools. FINRA added a two-week delay to public release of the information to shine a “light” into the dark. Let’s go FINRA. Let’s get the data we need by expanding Rule 4552. Give the data to academics. Then we will get a clearer picture of the OTC equity market and prompt a data-driven market structure discussion that includes off-exchange trading, and payment for order flow and not simply focused on dark pools and maker-taker structures.  
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Interview

Stephane Meslet discusses how Misys is aiding the buy-side

Jun 01, 2015
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ATMonitor speaks with Stephane Meslet at TradeTech Paris 2015. Stephane discusses some of the main challenges currently facing the buy-side and how Misy's is aiding clients in implementing the right solutions.

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Avelacom's Aleksey Larichev talks to ATMonitor

May 11, 2015
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ATMonitor talks with Aleksey Larichev, Director of Business Development at Avelacom. Speaking from TradeTech Paris 2015, Aleksey discusses Avelacom's low latency solutions to markets across Europe, Asia and Russia.

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Linedata's Robin Strong discusses the regulatory issues in trading emerging markets

Apr 27, 2015
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With more buy-side firms looking at emerging markets, how can clients deal with the regulatory differences that they now must adhere to? ATMonitor talks with Linedata's Robin Strong at TradeTech Paris 2015.

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Survey

Execution Management Systems Survey 2015

Trading Survey THE TRADE invites you to participate in the EMS Survey for 2015, now in its third year running. If you are trading electronically, we would appreciate your input on the use of EMS systems, which features you consider important and how you rate their current capabilities. Submissions are reported in aggregated and anonymous format and to express our thanks, all participants are eligible for a free one-month online subscription to thetradenews.com

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Research

Optimized Trading - Empowering the trader in an automated world

Fidessa

Jul 28, 2015
Optimized Trading - Empowering the trader in an automated world

Today's equity markets continue to show great strength and resilience, but that strength masks a new challenging dynamic facing all market participants, regardless of size. Whilst turnover in the global equity markets continues to rise, there is little doubt that money managers have become far more discerning about their choice of sell-side counterparties. Those brokers that are able to clearly demonstrate their value and expertise will be the overachievers in this new, highly competitive marketplace. Those that can't will become increasingly marginalized. Here, Fidessa's Anthony Martinez explores the challenges ahead and looks at some of the essential measures brokers can take to ensure they stay ahead.

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Video showcase

Corvil working with RSJ

Corvil Watch Michal Sanak, CIO, RSJ Algorithmic Trading discuss working with Corvil. read more

Corvil working with Tradition

Corvil Watch Yann L'Huillier, CIO, Tradition and Alex Krovina, CTO, Tradition discuss working with Corvil. read more

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