BIDS gains footing — BIDS dark liquidity pool backed by 12 investment banks to bypass equity trading on major exchanges has made a big step forward after three Wall Street firms connected up their electronic trading platforms to the network – Goldman’s RediPlus, JP Morgan’s Neovest, and Morgan Stanley’s Passport. BIDS claim four more links imminently, and two others being worked on. So the sponsored buyside on these platforms can now trade blocks in the dark on BIDS.
August 26, 2007
August 24, 2007
Go get your free trial to Euromoney … then read up on their view of the coming revolution in fixed income e-trading. Nothing earth shatteringly dramatic in there, but a ‘nice’ summary of the e swaps landscape
Seeking to repeat the success of its January fee special, only this time focusing on New York Stock Exchange-listed shares by dangling an even larger carrot, BATS Trading will institute an inverted fee schedule paying liquidity providers a full $0.0034 per share.
That compares to a $0.003 per-share rebate in January, which the fast-growing electronic communications network (ECN) coupled with a $0.002 per-share fee for taking liquidity or routing to another liquidity center. The September special will maintain the current $0.0024 per share to take liquidity and $0.0026 per share for routing trades to other liquidity centers.
The rebate is $0.0012 higher than the current $0.0022. BATS limited the first special until either the end of January or until cumulative trade volume reached 5 billion shares, a target it reached with a day or two to spare. At a loss of $0.001 per share, the special ended up costing the Kansas City-based operation $5 million.
August 23, 2007
I’ve been thinking out loud via mostly for just over a year now and you lot (yes you, dear readers) have sifted through enough crap to know that there are nuggets if you look hard enough (i’m sure you have your own view about the crap:nugget ratio). So in return for the thought-provoking enlightenment ™ you’ve received over the past year, maybe you can help with an answer to a question i have…
A while ago wordpress removed the feed stats counter so the only measure of how many people drop in on mostly is web hits. What the chart confirms is that from an average per day in the 250-300 range (with big post on big subject doubling that for a few days after post), it’s gone to an average under 200 after 23/7. I expected a drop, as i changed the site to allow the syndicated feeds to access the entire post- so you dont have to click and go to the site in order to see more than the first few lines. While in terms of usability this suits my style of reading other blogs (netvibes to see the initial post, sometimes click through to see particular comments in context of a site), and from the drop in hits i assume many other readers have similar methods, this leaves me a bit in the dark re how many feed-takers of mostly there are out there. I’ve already got other stats things such as Clustrmaps and Sitemeter, which are great, but these are also about visits and page views, not feeds.
So the question is ; can anyone recommend a good plugin/widget for wordpress blogs that gives a reasonable measure of what is being syndicated to how many readers?
The grabs in this post were done with SnagIT which if you ever need to grab bits of screen (and then markup with comments etc) is a really great utility. Hey, maybe that’s the nugget for you in this particular post..
Well, it’s easy to remember anyway…. i dont reckon they’re that bad really.
August 22, 2007
Heavy trading volumes on Aug 10th particularly in credit derivatives and credit default swaps have exposed weaknesses in the systems used by some investment banks for clearing these complex products, leading to backlogs of trades awaiting confirmation, and many working the weekend to start clearing the backlog.
One provider of derivatives technology said “Electronic confirmation rates are higher than they used to be but what the banks aren’t saying is how much manual work goes on behind the scenes getting the trades ready for matching”, and also “Electronic confirmation rates may be 80% to 90% but how long after trade execution is that happening? If it’s a week or more, the risk is great, whether the trade is being confirmed electronically or otherwise.”
Most CDS trades are executed over the phone between dealers and their brokers, meaning trade data is manually keyed into bank’s internal systems, leading to errors, one banker estimating that 20% of electronic confirmations fail because the trade data has not been entered correctly – the problem being compounded by the dealing room culture which regards data entry and operational efficiency as a back-office problem.
So to add these ingredients to waratahs recent muse on whether ‘e’ cds was coming; shouldn’t the platforms with CDS ‘etrading’ offerings now be positioning this offering entirely as a workflow solution (a-la swapswire). So this isn’t that scary electronic trading with click and trade real time pricing and credit checking requirements, its just a route to enable your customers to negotiate then capture the terms of the trade, then communicate this via whatever api links and pipes to all parties who need to know thereafter. If the problem is again that the platforms aren’t flexible or generic enough to support all the products and variations required, why not just offer the transaction building blocks to allow dealers to arrange these as required to service their clients? Spend your development ££ on this rather than bells and whistles in the gui that nobody will ever see because they cant use the platform.
The people nominated for the board of Project Turquoise. Still looking for their Chief Exec….
- CITI – Richard Evans, global head of electronic execution
- CITI – Pinar Thorwirth from its clearing business
- Credit Suisse – Nichola Dobinson, managing director of equities
- Credit Suisse – Naseer Al-Khudairi, head of its algorithmic trading service AES
- Goldman Sachs – Phillip Hylander, joint head of global equity trading and an outspoken supporter of the project
- Goldman Sachs – Bryan Koplin, director of electronic trading
- Merrill Lynch – Niki Beattie, head of market activities for Europe, Middle East and Africa
- Merrill Lynch – Brent Clapacs, head of European equities trading
- Morgan Stanley – Simon Hogan, European chief operating officer for equities
- Morgan Stanley – David Russell, Head of Trading
- UBS – Nick Holtby, head of European trading
- UBS – Duncan Higgins, director
- Deutsche – Garth Ritchie, European head of trading within global markets,
- Deutsche also say Stephen McGoldrick, a technology specialist, will join the board.
August 14, 2007
The Direct Edge ECN just took a step closer to independence by bringing in Goldman Sachs in as a co-owner, after announcing in Jul that Citadel Investment Group’s derivatives unit was its first outside, minority partner.
August 13, 2007
Will this be the final score??? At the same time Boat is claiming to be head of schedule, looks like Turquoise-rival Instinet is set to sell stakes in its new equity trading platform to its largest investment banking customers, including seven who have committed to Turquoise …. as reported here
In late July, a perpetrator with privileged information hacked into a stock exchange’s computers, made false deposits, then ran off with what appears to be the equivalent of $10,000, disappearing into thin air. It was the World Stock Exchange in Second Life, and this is now prompting discussion of whether this market needs to be regulated and if so then who should do it.Full story in business week
Original Second Life post here
August 11, 2007
In another update (following on from previous derivatives post) we learn that pension funds’ use of derivatives to hedge liabilities has trebled as managers become more adventurous in their attempts to reduce risk, according to two reports quoted by EFN
In terms of numbers, the Investment Management Association’s asset management survey showed the proportion of pension funds using derivatives or liability-driven investment strategies has tripled from 2.3% in 2005 to 6.1% last year, and a separate survey of FTSE 350 companies found the number of pension schemes using derivatives to hedge liabilities has trebled over the last year; interest rate hedging used by 18% of the survey’s respondents, and 17% using inflation hedging.
August 10, 2007
EFN revealing (?) that Managers are suffering as quant similarities are revealed….A quantitative manager said: “The falls are across the quant management board and that shows that, although the equity models may be superficially different, really they are variations on the same theme. Everyone has been taking long positions on value stocks and short positions on growth stocks, and now they are all making losses.”
so are the really smart cookies finding alternate venues and products in which to prove and capitalise on their investment/trading/positioning skills?
August 6, 2007
EFN has the scoop – Turquoise launch is delayed with aim now to go live before start of April next year.
August 1, 2007
It’s official – bloody big trading floors are back in fashion and despite rumblings a few years ago that the large-scale trading floor would become obsolete, the growth of etrading in practice means most trading floors actually are retaining their footprints or increasing in size; as its now critical to have support teams on the floor immediately accessible to traders. An example being the equity group on UBS’ floor, the largest trading floor in the world, is comprised of 600 people, but only 110 of those are traders.