Can the Market's Systems Keep Up With Electronic Trading?
Yesterday's steep stock market plunge of 416 points sent a warning of how vulnerable the market structure is to systems glitches and data backlogs when there are unexpected volume surges and rapid sell-offs in an electronic trading environment.
As most of us know, problems began around 2 p.m. when the Dow Jones Industrial Average was already down 200 points -- in part a reaction to the sell-off in Chinese stocks, translated into concerns about the U.S. economy. I was in the car at 2:30 p.m. wh
Northern Trust Reaches $10 Billion Mark in Cross-Border Pooling
Northern Trust is winning a great deal of pension business from multinational clients on the basis of its tax-transparent cross-border pooling. To enable international companies to pool the assets of their pension funds from many countries without running afoul of the IRS, the firm developed a tax-transparent cross-border pooling solution in September 2005. In fifteen months, assets in the product have grown from 0 to $10 billion and Northern Trust is seeking a patent on its methods of handling
Nasdaq-LSE: Is the Party Over?
Does the apparent death of the Nasdaq-LSE deal spell doom for the transatlantic duo? Are Nasdaq and the London Stock Exchange shark bait, or is this one more step in a chess match being staged on a global scale?
Nasdaq is Beginning to Consider a Future Without the London Stock Exchange
Nasdaq's pursuit of the LSE has received tremendous market and press coverage of late. However, the potential tie-up seemed to turn a strategic corner recently. The revelation, detailed below, that Nasdaq met with the Project Turquoise consortium a few weeks ago to potentially license the INET technology from its ECN platform takes Nasdaq's hostile pursuit of the London Stock Exchange (LSE) to another level. Whereas in the past the Nasdaq/LSE disagreement seemed to be over a fair price for th
Straight Talk About the Cost of Doing Nothing
What's the cost of disorganized data on Wall Street? A portion of our cover package this month on The Cost of Doing Nothing was inspired by former Tower Group analyst and current SVP of enterprise data management software company Golden Source, Tim Lind, who knows a thing or two about the state of data in major firms. He shared some insightful and irreverent thoughts wit
The Money's in MiFID
U.K. recruitment firm Joslin Rowe released a notice this week of what it is calling a "recruitment timebomb" for MiFID consultants. With just nine months to go before EU financial institutions are expected to be compliant with the Markets in Financial Instruments Directive, demand is soaring for experts who can help firms reach compliance.
UNX Provides Access to Liquidity Sweeping Tools Via Instant Messaging
Last week, IM TRADER, the instant messaging network for brokers and fund managers, began allowing institutions to sweep electronic pools for hidden and visible liquidity by integrating its network with UNX's algorithmic technology.
"We've helped integrate their algorithmic system out over the IMTRADER network to help investment professionals have the ability to communicate orders to a sophisticated platform using an AOL Instant Messenger window," explains Ed McDonnell, Pivot Solutions' SVP of S
RFA’s eHarbor Backs Up Hedge Fund E-Mail
New York-based hedge fund solutions specialist Richard Fleischman & Associates (RFA) released eHarbor, an e-mail data backup and restoration solution designed specifically with hedge funds in mind.
The Content Technology Solutions division of Dow Jones (New York) has launched a Wealth Manager Web site that aggregates news feeds and presents wealth managers with reasons for making contact with clients, the company says.
UNX Provides Access to Liquidity Sweeping Tools Via Instant Messaging
Buy-side traders that feel comfortable using instant messaging to communicate with and route order flow to the sell-side community can now use IM to sweep crossing networks and dark pools.
The cool technology comes as the result of a partnership between Pivot Solutions, the developer of IMTRADER and UNX, an agency brokerage specializing in direct-market access and algorithmic technology.
LatentZero Integrates EMS Functionality into Its Buy-Side OMS
With buy-side traders turning to faster execution management systems (EMSs) and installing them on the desktop next to their order management systems, the OMS vendors have been scrambling to provide EMS functionality.
This week, LatentZero a supplier of front-office systems for the buy-side, said it had integrated EMS functionality into its buy-side OMS. The company's OMS, Capstone Minerva, now has a fully integrated EMS trading module desig
LSE Begins MiFID Consultation
The London Stock Exchange (LSE) announced that it has begun consultation with member firms on the services it will offer to keep members in compliance with MiFID.
The exchange has built its services on the TradeElect platform, which will utilize preexisting connectivity and infrastructure to offer a familiar market model under MiFID. LSE will extend its marke
Fidelity Offers Investment Tracking Tool to Vista Users
Wasting no time reaching out to Microsoft Vista early adopters, Fidelity has released a Market Monitor gadget that Vista-using investors can use to keep an eye on their stocks. Gadgets are always-on mini-applications such as games, live webcams and traffic maps that can be downloaded free at www.gallery.live.com and sit in the miniature portal "Sidebar" section at the right of the Vista desktop screen. (Fidelity also offers its gadget at www.fidelity.com/beta.) The Fidelity gadget provides watc
Credit Suisse Outsources its Network Managers
As part of its ongoing effort to cut costs, Credit Suisse signed a deal today to outsource its entire voice and data network management infrastructure to BT and Swisscom. Under the $1.1 billion contract, 231 employees and 50 contractors will be transferred to BT. The contract has a minimum five-year term with the option of extending the term to seven years and encompasses Credit Suisse's enterprise and financial trading environments.
The Cost of Doing Nothing
As margins shrink in many business lines, forward-looking financial services firms increasingly are looking to shake up the status quo to find new ways to generate revenue while reducing costs.
Exchanges Lag in IT Spending
Despite the global reinvention of securities exchanges as for-profit companies, IT spending by exchanges will continue to lag behind that of brokers and asset managers, according to research from TowerGroup
Ask the Experts: Trading
Question: Will SIFMA's request to have the SEC examine the NYSE's new market-data fees have any impact on the future fee structure(s)? What are the concerns about the proposed new market-data fee structure?
Brokerages Start Providing BlackBerrys
Slowly but slowly, brokerage firms are starting to provide wireless services to their clients, according to a report from Corporate Insight, which monitors U.S. brokerage firms' online presence.
FX Market Fragmentation
New numbers out of TABB Group (Westborough, Mass.) indicate that the foreign exchange market is following the lead of equities and becoming increasingly fragmented.
Energy-Efficient Data Centers on the Horizon
The World Economic Forum seemed to be focused solely on global warming and climate change, if you relied on the news reports from columnists attending the event, including this magazine's own coverage.
Easing the Pain of Financial Reporting (Well, the Data Preparation and Publishing Part, Anyway)
At most Wall Street firms, the preparing of quarterly and annual reports is a tense, stressful time of Excel files being emailed back and forth and behind-closed-door meetings at which financial numbers are presented, reviewed and approved. Two products aim to help walk you through this process, automatically routing data to the right people and acquiring their approvals (using electronic signatures), providing the controls that Sarbanes-Oxley and accounting practices require, and producing stat
ITG POSIT Targets MiFID and Others Follow Suit
Ivy Schmerken, Advanced Trading
Crossing networks are staking out their turf in trading Pan European equities as a prelude to competing with traditional exchanges under the Markets In Financial Instruments Directive or MiFID.
This week, Investment Technology Group (ITG) said it plans to launch POSIT Now, a continuous intraday crossing system for equities - into Europe. POSIT was the first regulated ATS in Europe but as of November, it will become a
Connecting to Alternative Execution Venues
Ivy Schmerken, Wall Street & Technology
With the proliferation of alternative electronic execution venues lining up to compete with the New York Stock Exchange and The Nasdaq Stock Market, connectivity to these new liquidity pools is not a topic that gets discussed much. But this week two of the new electronic marketplaces - one an ECN, the other a stock exchange - revealed new partnerships with electronic trading platforms.