The bankruptcy of Lehman Brothers has pushed counterparty risk back to the top of the buy-side trader’s agenda. According to Ian Yuill, a consultant at Investit, the fallout from the US Treasury Department’s refusal to bail out the US investment bank could haunt the financial markets for the next five years.
The time taken by buy-side traders to complete orders during recent volatile markets declined steeply compared to August, according to GSCS Information Services, a post-trade transaction cost analysis provider.
Hedge funds and traditional asset managers in North America will spend as much as $305 million on low-latency options trading infrastructures in 2011, up from $253m in 2008, according to estimates by Tabb Group, a research firm.
Investment banks will revert to the smaller and more conservative institutions of 20 years ago as a result of the global financial crisis, according to Larry Tabb, CEO and founder of research firm Tabb Group.
The Chicago Board Options Exchange (CBOE) and its subsidiary the CBOE Stock Exchange (CBSX) have launched a fully automated execution service for combined option and stock trades through a single electronic platform.
FXMarketSpace, a centrally-cleared, global foreign exchange market, formed by a joint venture of Thomson Reuters and the Chicago Mercantile Exchange (CME) is set to close.
BNY ConvergEx Group, an agency brokerage, has launched FBW Direct, a new options trading facility to give off-floor clients the ability to route options orders electronically to new exchange-based floor broker workstations (FBW).
J.P. Morgan has launched MorganDirect, a new proprietary foreign exchange trading platform that can be used from a client’s desktop or Blackberry 24 hours a day from any location.