Latest Blog Posts

The 3 Pillars of MiFID II – Establishing a New Model for Global Regulation?

Gary Stone, Bloomberg Trading Solutions

Oct 01, 2015
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MiFID I harmonized the European marketplace by creating EU-wide passport concepts. It also provided regulators with reports that enabled them to assess how the markets worked. Nearly eight years after implementation of MiFID I, MiFID II is about to arrive on our door step. Guidance will probably be delivered in phases so that the organizations impacted by the regulation can start to put processes and procedures in place to comply with the mandate by the January 2017 deadline, which is rapidly approaching. read more

Adjusting For Size

Jim Cochrane, ITG

Oct 01, 2015

As the next advance in FX TCA reporting, our clients in the investment community have requested size-adjusted spread (SAS) benchmarks that account for risk and liquidity on a pre-trade and a post-trade basis. However, one of the more frustrating aspects of over-the-counter trading is the lack of transparency around these spreads. An accurate size-adjusted spread based on aggregated electronic foreign exchange quotes would replace the old method of supplying expected spreads: manually-filled matrices for each trading region with spreads for given currency pairs and sizes. read more

What’s missing from ESMA’s report?

Christian Voigt, Fidessa

Sep 29, 2015

Yesterday saw the publication of ESMA’s long-awaited report on the technical standards for MiFID II / MiFIR. As well as reviewing every single word of this impressive tome – 1,532 pages spread across three documents – we should consider the wider scope and take note of what the report does not cover too. Comparing the drafts from December 2014 and February 2015 with yesterday’s texts, it suggests that ESMA still needs to publish details on some parts of investor protection, commodity position reporting and indirect clearing. read more

Buy-Side Options Trading: Covering the Spread in Complex Order Books with Multi-Leg Strategies


Sep 24, 2015

As multi-leg options strategies gain traction on the buy- and sell-side, sophisticated front-end tools are essential for accessing complex order books at US options exchanges. Multi-leg orders have been around a long time, but in recent years they have moved from the trading floors to electronic systems. A complex order (or spread trade) allows an options trader to simultaneously buy and/or sell a number of different options that in the past would have required placing separate electronic orders. read more

What to expect when you’re expecting ESMA

Vicky Sanders, RSRCHXchange

Sep 23, 2015
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As we eagerly await  the final verdict on unbundling under MiFID II, here is a list of 10 things we can expect for research while we’re expecting ESMA’s much-anticipated release.   1. January 2017 is here to stay The delay of the final text from the original June deadline, was the subject of much attention earlier this summer. This particular postponement, however, is no reason to speculate that the January 2017 implementation date can be pushed back. The date was agreed by a European Parliament vote and therefore can’t be changed by ESMA or the EC independently. read more

Fidessa on: Equities - Episode 3

James Blackburn, Fidessa

Sep 23, 2015
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Financial market participants are under more pressure than ever before to prove their value and relevance in today's highly competitive markets. Whilst the role that technology can play is widely recognised, the bar is set high for compliance, risk, information security and vendor viability.   In the latest episode of our equities video series we showcase our new Partnership Program. We created this initiative in order to curate the many innovative fintech firms in our industry providing highly relevant technologies and to accelerate access for our customers to a range of fully integrated services that deliver real value directly through the business workflow. read more

A second chance for the SI?

Christian Voigt, Fidessa

Sep 18, 2015

Looking back at MiFID I, the Systematic Internaliser (SI) didn’t really take off, resulting in a meagre 1-2% market share in the FTSE 100 today. Many EU countries had different models to execute or internalise order flow, leaving the SI model on the shelf like a dented can of beans. Under MiFID II, Brussels will take a stricter approach by introducing quantitative SI thresholds and having a double volume cap for equities dark trading. This leads to the question: what will markets look like in 2017 if more firms opt for the SI route? It mostly depends on whether firms will truly embrace the SI regime and start to compete on the attractiveness of their quotes, or whether they see the publication of quotes as a regulatory burden that provides no business value. read more

If you go down to the woods today…

Lewis Richardson, Fidessa

Sep 17, 2015
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The derivatives markets of Asia are the destination of choice for firms across the derivatives spectrum. But bear traps remain for the unwary. Lewis Richardson, Derivatives Business Development Manager at Fidessa, looks at how to choose the safest path through the jungle of this asset class in Asia. Derivatives markets in Asia are basking in global attention, with exchanges, clearing houses, brokers, international investors and vendors all piling in to local markets. Between August 2014 and August 2015 trading in SGX China A50 futures more than doubled. read more