Profile of Ivy SchmerkenEditor at Large
Member Since: 5/8/2014
Blog Posts: 2629
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad number of topics including high frequency trading, algorithmic trading strategies, market structure, electronic trading in fixed income , colocation in data centers, Dodd-Frank regulation and the new derivatives landscape. Ivy meets with software companies and other innovators and writes about cloud computing, OMS/EMSs and other financial technologies.
Articles by Ivy Schmerken
posted in September 2007
With the credit crisis battering fixed-income desks and quantitative hedge funds, Wall Street traders are going to see their bonuses shrink in 2007 as sell-side firms recover from the turmoil and position their desks for 2008.
There is more intrigue behind Nasdaq's three-way transaction with the Borse Dubai to control OMX and dispose of its stake in the London Stock Exchange. One leading UK newspaper reported that Nasdaq has plotted an alliance with Dubai to ultimately bring the LSE into a global exchange network.
Capital Institutional Services (CAPIS), the global agency brokerage firm based in Dallas, said it's moving to the Fidessa trading platform as a replacement for its proprietary order management system.
"Technology wise it's probably the most important decision we made in our 30-year old firm," says Jim Morrow, COO at CAPIS in an interview on Friday.
As the battle for liquidity heats up among the major U.S. equity block trading platforms, BIDS Trading appears to be making rapid inroads with its open access, utility pricing model. In a sign that its model is catching on, yesterday, the BIDS alternative trading system, announced it has traded one billion shares since its formal launch this past April, only six months ago.
As the adoption of the FIX fuels electronic trading in foreign exchange and expands into new areas such as FX options, banks are demanding integration with back office and risk management technology. Today, FX Bridge, an Atlanta-based FX dealing system, which specializes in FX options, announced that it's partnering with New York-based FIX Flyer to integrate the FIX messaging standard into its solution.
Eyeing the regulatory changes in European equity markets with MiFID, Rosenblatt Securities hired Tom Sanders, formerly of Bank of America International, to build an international trading desk for the New York-based institutional agency only broker.
As black box trading takes off, Audentes Technology LLC, a small Chicago-based proprietary trading firm, has deployed Orc Liquidator from Orc Software as its derivatives algorithmic trading platform.
Audentes declined to comment, in a statement, Libby Christy, operations manager for Audentes Technology, said the firm was impressed by Orc Liquidator's fast time-to-market, low latency, and connectivity to a large number of markets."
Yesterday, Chicago-based InfoReach launched Brokereach, a completely free Web-based trading application that allows the buy-side to route orders to multiple brokers and see their positions update in real-time. Traders can route orders in single name stocks baskets and to algorithms of brokers that are on the network. As of this week, brokers using Brokereach include Credit Suisse, UBS, ITG, Jefferies, Lehman Brothers and TradeTrek Securities.
Hedge funds with highly leveraged bets in CDOs and sub-prime mortgages created a storm that could push the U.S. economy into recession.
Rating agencies gave AAA ratings to CDO structures filled with junk paper but they didn't hold up under rising sub-prime defaults.
Hedge funds with exposure to CDOs and sub-prime paper aren't the only ones facing turmoil. The credit crisis is spreading to other asset classes and shaking up the global markets.
Hedge funds that suffered heavy losses in debt securities tied to sub-prime mortgages, missed the fundamentals but they could also blame their credit models for not detecting the impact of late payments and delinquencies. It's not surprising that there are shortcomings to modeling credit risk of illiquid debt instruments, according to Peter Cotton, CEO ofJulius Finance, a private research firm and development shop in New York.
The Boston Equity Exchange, an automated trading facility is shuttering its trading operations today, according to an announcement by the Boston Stock Exchange. The news came suddenly and suggests there could be a shakeout among the e-trading ventures formed to compete under Regulation NMS.