Electronic Trading

The Bond Market Association sent a comment letter to the Securities and Exchange Commission stating that regulators should focus on keeping fixed-income markets open during times of emergency, rather than seeking authority to close markets. This is in reaction to the Municipal Securities Rulemaking Board (MSRB) filing a proposal with the SEC, requesting regulatory authority to halt trading in the municipal bond market during emergencies. "The MSRB has simply not made the case as to why this authority is needed," states TBMA President Micah Green in the comment letter.

To comply with guidance issued by the Securities and Exchange Commission (SEC), Northwestern Mutual is the most recent firm to license the ITG Fair Value Model from Investment Technology Group, Inc. (ITG) Putnam Investments was the first licensee of ITG's Fair Value product. The model provides mutual funds with international holdings with a method to help in the valuing of foreign securities when significant events occur that impact securities prices after the foreign market closes, according to ITG. The SEC has issued guidance indicating that mutual fund companies are responsible for ensuing that security prices reflect significant events occurring after closing prices are set, but before net asset value is calculated.

Dundee Securities, a Canadian full-service brokerage-investment dealer, reports that Syntegra completed a project to provide scalable voice-trading technology to its new Toronto trading room. Trading in the new facility began in September 2002. The voice-trading technology includes: Release 13 operating and administrative, 30 IP-ready ITS pV405Hi turrets, ITS p47 telephony-switching platform, ITSprofile management tools, as well as integration with existing voice recording from NICE and Nortel Meridian PABX. Syntegra, a consulting and systems-integration business and wholly owned subsidiary of BT Group, worked closely with its local distributor, Cygnal Technologies Corporation, which is responsible for new customer sales, installation and service in Canada.

BNY Brokerage, a subsidiary of The Bank of New York, signed a definitive agreement to acquire certain assets and liabilities of Capital Resource Financial Services, LLC. (CRFS), a Chicago-based provider of commission recapture, transition management and third-party-services to plan sponsors and investment managers. Terms of the agreement were not disclosed. Regulatory approvals are pending.

MarketAxess--a major multi-dealer platform for trading credit products-- named Iain Baillie, former managing director for Schroder Salomon Smith Barney (SSSB) to head its European operations. Baillie, who had a 15-year tenure with SSB, most recently served as managing director and head of investment grade secondary trading for SSSB in Europe.