Jan-Mar 2008, Issue 15

In the present trading environment, where the need for speed is paramount, how can market participants ensure a sound risk management infrastructure? Matthew Carr, managing director, head of International Equity Sales and Alexandra Foster, Global Execution Services Sales, BNP Paribas outline the bank’s approach.

The approach to best execution under Reg NMS and MiFID is radically different. That difference has major implications for market structure, says Tony Mackay, chairman, Instinet Europe Ltd.

Q1 2008 will see the launch of NYFIX Euro Millennium, a neutral dark pool for European market participants. Chris Smith, head of business development for Euro Millennium and director of NYFIX International, explains the lssons learned from both the US and Europe that helped shape the new service.

Sell-side firms will need to be quick to pass on the benefits of market changes to their clients, says Jerry Lees, head of alternative execution, Cheuvreux.

Traders should not have to forgo the liquidity available on a regulated exchange while hunting for size, says Andrew Brenner, managing director and head, ISE Stock Exchange.

The best algorithms include parameters that allow the trader to gain explicit control of the strategies deployed, says Andrew Morgan, head of autobahn Equity Europe, Deutsche Bank.

Chris Martins, principal product marketing manager, Progress Apama, Progress Software Corp, explains how smart order routing can help traders who are seeking best execution adapt to what is effectively a moving target.

MiFID may have turned the exchange model on its head, but if the incumbent exchanges can embrace innovation, combining dark and light liquidity, there is no reason why they can’t continue to flourish, argues Lee Hodgkinson, CEO of SWX Europe.

Back-office costs have been largely overlooked as the market focuses on ‘best execution’ and transaction cost analysis (TCA). But that is set to change, according to Jarod Winters, managing director, sales at Electronic Securities Processing (ESP) and Scott Kurland, head of product development, ESP Technologies Corp, as buyside firms that trade equities address the massive rise in trade deliveries and end-settlements.

How can buy-side traders discover in which dark pool to meet a natural counterpart? Don White, head of US Equity Product Development, Bloomberg Tradebook, explains the function of the buy-side IOI.

It is now a year since exchanges in the US have had to connect to their peers under the Trade Through Rule of Reg NMS to enable best execution. Why then have brokers been committing resources to their own connectivity projects and how does the buy-side stand to gain? Jarrod Yuster, managing director, Global Portfolio & Electronic Trading, Merrill Lynch, explains.

As fragmentation comes to the European arena, there are lessons that can be learned from the US experience in how to access disparate liquidity. But as George Andreadis, head of AES Liquidity Strategy, Europe, Credit Suisse, explains, US trading practices are not automatically transferable.

Exchanges have long benefited from the spread of FIX, albeit indirectly, as volumes have climbed steadily, supported by the growth of FIX-based electronic trading. Today, in the competitive post-MiFID world, where innovation is essential to success, the impact of FIX on exchanges will be felt far more acutely, argues Tom O’Brien, product manager – FIX Gateway at the London Stock Exchange.

David J. Csiki, managing director, INDATA, explores how industry dynamics, operational and organizational considerations can be factored into a buy-side firm’s needs assessment.

Today RTS is a leading provider of high-performance trading solutions including state-of-the-art execution capabilities and worldwide data centre facilities.

Citi Match, the anonymous crossing network, combines the institutional liquidity of Citi with the retail flow of Smith Barney and newly acquired IT trading specialist Automated Trading Desk to create one of the deepest pools of non-displayed liquidity available to traders in the US. With plans to take Citi Match global in 2008, Toby Bayliss, head of electronic execution sales – Europe at Citi, examines how the system tackles the buy-side’s twin desire to achieve fill rates without impacting market price.

Magazine Archive

Oct-Dec, 2007, Issue 14	THE TRADE Asia	Jul-Sep 2007, Issue 13
Apr-Jun 2007, Issue 12	Jan - Mar 2007, Issue 11	Oct-Dec 2006, Issue 10