Latest Blog Posts

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

Fitting RFQs under MiFID II

Christian Voigt, Fidessa

Jun 22, 2015
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With the extension of the MiFID II scope into non-equity asset classes and the tightening of transparency rules, firms relying on requests for quotes (RFQs) have to figure out how this fits under the new regime. Under MiFID I the regulator defined the market models that a trading venue can operate. With MiFID II this list has grown and now includes RFQs. Whether this venue-sponsored RFQ approach is helpful for the industry is questionable. Firstly, RFQ trading venues are required to publish all bids and offers, together with the volumes submitted by each responding entity. read more

Time to Count the Cost of Currency Trading

Yossi Brandes

Jun 22, 2015
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Auto-Auto-enrolment has triggered a chain reaction in the UK pensions space. The policy led to a study from the Office of Fair Trading to ensure investors were Auto-enrolment has triggered a chain reaction in the UK pensions space. The policy led to a study from the Office of Fair Trading to ensure investors were protected from unfair charges. The OFT study prompted a call for evidence from the Financial Conduct Authority and Department for Work and Pensions to improve transparency in transaction costs. read more

A practical approach to mitigate the lack of liquidity in Fixed-income trading

Fabien Orève

Jun 22, 2015
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A few years back, we realised that Transaction Cost Analysis (TCA) was a sine qua non of efficient trading across all asset classes, especially Fixed-income. However, one pressing problem was the absence of post-negotiation public data for most European bonds, and the realisation that a reporting process for bond transactions at industry level would not be immediately implementable. We noticed, too, that, for equities (irrespective of their liquidity level), pre- and post-trade information was easily retrievable via different channels; although we were not always able to access brokers’ indications of interest (IOIs), we could at least see their ranking by volume of transactions over any given period of time. read more