Latest Blog Posts

Reasons Why You Cannot Ignore Asia’s Equity Auctions Anymore

Gary Stone, Bloomberg Trading Solutions

Jul 10, 2015
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Below is an abstract recap from Bloomberg Tradebook’s June 3, 2015 Trader Forum Asia Education Session. By Gary Stone, Tom Kingsley & Gabriel Kan   OVERVIEW Spreads and Liquidity continue to be two challenges that the APAC region has faced for at least the past 20 years. Thus, the education session Tradebook hosted at Trader Forum Asia focused on the regular and significant role that opening and closing auctions play as Liquidity Events. The recap below has been divided into three parts: Why Auctions are important liquidity events that can no longer be ignored The composition of the auctions “Rule of Thumb” for participation in auctions   PART 1: THE IMPORTANCE OF AUCTIONS Average Daily Volume for auctions has grown significantly, and as per 2015 data, the opening auction represents 2. read more

When it comes to investment, the web is going to waste

Emmett Kilduff, Eagle Alpha

Jul 09, 2015
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The drive to make better use of renewable energy is understandable. We are surrounded by enormously energetic natural processes, but the vast bulk of it goes down the proverbial drain. In the last hour and a half, more energy hit the Earth’s surface via sunlight than the total amount consumed worldwide since the dawn of the millennium. Yet we largely rely on fossil fuels – a tiny, ancient portion of this energy. Hence the push to do more: no one likes waste. There is an analogy to be drawn here regarding how the investment community uses data. read more

Advanced Trading Analytics: A Look at TradeMap Execution Strategy Designer

FlexTrade

Jul 07, 2015
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When a buy-side trader turns on the execution management system in the morning, the blotter could have a large number of orders clamoring for attention.  Determining a path for each order can be time consuming. Each order has different characteristics and can be traded in different ways. Now traders can visually design strategies in an efficient and systematic way without writing code. Mapping Your Trades To capture the trader’s decision making process, FlexTrade has developed TradeMap, an Execution Strategy Designer. read more

Ranks of cross-border issues swell

Christian Voigt, Fidessa

Jul 01, 2015
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Payment for research and unbundling has been on the European regulatory agenda for some time. It has now escalated to a cross-border issue after concerns were raised with the US SEC by a senior US politician worried about the impact on US growth industries. The recent past gives us plenty of examples of cross-border issues from both sides of the Atlantic – the US person under Dodd-Frank, the proposed QMTF for European firms, the recognition of US CCPs under EMIR, or the question of whether the “exemption from the exemption” implies that all DMA users across the globe fall within the scope of MiFID II. read more

Catch that second: Temporal Shifts and System Stability

Mark Brennan, ITRS Group

Jun 30, 2015
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Tonight’s addition of a single second to system clocks will no doubt underwhelm the world, much as Y2K did – systems will probably not fail (although the last time a leap second was added – in 2012 – there were in fact system outages).  But this fascinating phenomenon, whereby “Coordinated Universal Time” (UTC) is tweaked so that it more closely matches mean solar time (so-called “UT1”) – based on the earth’s rotation – potentially disrupts the rational determinism of global computer systems. read more

Liquidity and Fixed Income Trading — Trends to Keep in Mind (Part 2)

Ivy Schmerken, FlexTrade

Jun 29, 2015
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Corporate Bonds Electronic bond trading is in the spotlight as traders and investors focus on a potential liquidity crunch in the U.S. corporate bond market, setting the stage for an influx of fixed income trading platforms to match buyers and sellers. As dealers have pulled back from risk-taking, market participants are looking to electronic platforms for alternative sources of liquidity. But why is this trend grabbing so much attention and headlines?   The reason is quite simple – uncertainty. read more

Liquidity and Fixed Income Trading — Trends to Keep in Mind (Part 1)

Ivy Schmerken, FlexTrade

Jun 23, 2015
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  US Treasuries While media headlines have obsessed over a lack of liquidity in corporate bonds, some market experts appear to be more nervous about U.S. Treasuries, which is the largest and most liquid asset class in fixed income. Electronic trading has grown in U.S. Treasury bonds just as it has in equities and foreign exchange, but recent price volatility and worries about liquidity disruptions are sending jitters through the ecosystem. Choppy markets and extreme price swings have unnerved traders and asset managers in U. read more

MiFID II Implementation: Don’t Hit the Panic Button … Yet

Gary Stone, Bloomberg Trading Solutions

Jun 22, 2015
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On May 14, the European Commission (EC) and the European Securities and Markets Authority (ESMA) agreed to a 3-month extension of their own deadlines to submit MiFID II technical draft standards. Level 2 drafts will now be published in September 2015. As many have noted, it is probably beneficial that the EC and the ESMA agreed to the extension—as it gives the ESMA and national regulators as well as the EC more time to issue guidance. The hard implementation date, however, is still January 1, 2017. read more