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TowerGroup Update: Impact of Exchange Activities

May 31, 2007 @ 06:04 PM By Cristina McEachern,

The continued consolidation and globalization drive among exchanges will have “medium to high impact” on securities institutions, according to Dushyant Shahrawat, research director for TowerGroup's Security & Capital Markets service.

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FX Electronic Trading to Reach 60% by 2010

May 31, 2007 @ 05:51 PM By Kerry Massaro,

Electronic trading in FX will exceed 60% by 2010, says Tom Price ,TowerGroup senior analyst, at the research firm’s annual Financial Services Conference and Exhibition in Boston. In Price’s seminar, “Foreign Exchange: Old World and New World Market Growth”, he describes how FX trading has changed and how it will continue to evolve into a highly automated marketplace similar to the equities market. He notes that FX average daily volume will exceed $3 trillion in 2007, with more than 45% of trading being done electronically by end of this year.

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ITG Appoints New Business Development Head

May 30, 2007 @ 11:20 AM By Cristina McEachern,

Investment Technology Group has named Richard Herr to the new position of senior vice president, strategic and business development. Herr will be charged with oversight of strategic partnership opportunities and acquisitions at the company.

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Trading Private Paper: Are New Dark Pools On the Horizon?

May 29, 2007 @ 11:17 AM By Ivy Schmerken,

Given the buy-side's interest in finding liquidity under the radar, here's a new twist on 'dark pools..'

On Friday the Wall Street Journal reported that Goldman Sachs is creating its own private system to trade the stocks of companies that want to avoid the glare of U.S. regulation. The new system —GS TRuE— short for Goldman Sachs Tradable Unregistered Equity, made its debut last week with the sale of a 15 percent stake in Oaktree Capital Management LLC, an alternative asset manager.

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The Latest from BATS' Dave Cummings

May 25, 2007 @ 08:48 AM By Kerry Massaro,

Here is the latest of the notorious emails from Dave Cummings, CEO, of BATS Trading. Looks like BATS won't be doing any deals with the regional exchanges, its working on exchange status and the market center has gained some "inspriation" from Nasdaq. Check it out:

Dear Trading Community,

"The Deal'n is Now Done"
BATS is happy to announce we have closed our funding round and raised an additional $45 million from new and existing investors. The new investor will be announced shortly in a separate press release.

We also have decided to stop talking about mergers with the regionals and remain independent.

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Barclays Capital Enhances FX Algo Offering

May 24, 2007 @ 02:38 PM By Kerry Massaro,

Barclays Capital, the investment banking arm of Barclays Bank, has enhanced its recently launched algorithmic trading tool for FX trading. The tool is called PowerFill Orders, and is available on the firm’s BARX execution and post-trade platform.

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Pulse Trading Launches Dark Book

May 23, 2007 @ 04:34 PM By Kerry Massaro,

And now there are 41…Pulse Trading has entered the fray of dark pool trading with the launch BlockCross, which had its first day of trading today (May 23). I talked to Mark Enriquez, managing partner of Pulse a few weeks ago and he told me a little about the system. He was hesitant to say too much because it had not yet launched. What he did tell me is that the system is open to both buy and sell side traders and they can determine with whom they want to cross. The system is geared toward block trades and is for US equity trading only. It will compete directly with Liquidnet and Pipeline, as well as some of the other dark pools in the market.

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Instinet and Credit Suisse Link Dark Pools in Japan

May 23, 2007 @ 10:58 AM By Cristina McEachern,

Instinet and Credit Suisse announced an agreement to link their respective dark liquidity pools in Japan. Through an algorithm, customers of Instinet’s CBX for Japanese Securities and Credit Suisse’s CrossFinder will have access to each other’s dark pools of liquidity.

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New Independent Research Platform Targets Buy Side

May 23, 2007 @ 10:54 AM By Ivy Schmerken,

With the buy-side increasingly looking to separate trading decisions from where it purchases research, a new platform offering independent research is marketing analysts directly to the buy-side.

New York-based StreetBrains, LLC is launching a third-party platform focusing on equity, alternative, derivatives and fixed income research analysts. “We’ve essentially cut out the middlemen,” says Lawrence Margolis, a founder and managing director at StreetBrains in New York. The public Web site went live on Tuesday afternoon.

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CME Raises Bid for CBOT, But will ICE Prevail Given Regulatory Concerns?

May 16, 2007 @ 03:10 PM By Ivy Schmerken,

With the Chicago Mercantile Exchange (CME) raising its bid to acquire the Chicago Board of Trade (CBOT) last week to break the Intercontinental’s Exchange’s chances of winning the bidding war, there is speculation as to whether the upstart electronic energy market and soft commodity exchange will up the ante, or allow the CME to prevail.
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Last Friday, the CME raised its offer by 16 percent from $7.9 billion to $9.2 billion, which is still below the ICE deal, which is valued at $10 billion.

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Rodriguez Leaves TradeTrek Securities

May 16, 2007 @ 01:28 PM By Ivy Schmerken,

George Rodriguez, a managing director at TradeTrek Securities LLC responsible for sales, left his position at the institutional brokerage firm last week.

Rodriguez, who was responsible for sales to traditional investment advisers and pension sponsors, left over a disagreement on the direction of the firm, according to Fred Graboyes, president of TradeTrek who is managing partner and runs the firm based in Newark, NJ. TradeTrek is an agency-only brokerage firm that specializes in quantitative execution services for institutional investors, offering algorithmic trading, pre-and post-trade analysis.

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Maxim Group Steps into Algorithmic Space via Fidessa BlueBox

May 9, 2007 @ 01:44 PM By Ivy Schmerken,

Moving into the algorithmic trading space while retaining control over its order flow, New York-based Maxim Group LLC, has gone live with Fidessa BlueBox, a suite of algorithmic trading strategies from Fidessa Group.

Maxim Group has been a sell-side client of Fidessa’s order management system since March of 2006 in offering OTC and listed trading to their clients, according to Martin Hakker, EVP marketing at Fidessa.

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Bear Stearns Asset Management Makes Strategic Hires

May 9, 2007 @ 12:50 PM By Cristina McEachern, Continue reading ... | Comment on this blog entry

Canadian Brokers Band Together to Form Alpha ATS

May 7, 2007 @ 10:27 AM By Ivy Schmerken,

With alternative trading systems (ATS) proliferating around the world, seven of Canada’s largest investment dealers are planning to establish a new ATS that will pool their internal flows and increase the country’s equity trading efficiencies, the group announced on Thursday.

“With these seven broker dealers banding together to launch a single ATS for internalization, it’s going to make broker internalization in Canada more efficient than ever,” says Jackie Chung, president, Competitive Metrics Inc., a strategic research and advisory firm focusing on the Canadian financial industry.

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Dark Pools Shine the Light on Record Volumes

May 2, 2007 @ 02:59 PM By Ivy Schmerken,

Dark books have gained notoriety in the media for anonymously crossing stock trades in non-displayed pools of liquidity, but now they are shining some light on their results as they achieve record volumes.

Today, NYFIX Millennium LLC, said it achieved a single-day record when more than 80 million shares matched in its Millennium alternative trading system (ATS). NYFIX reported that trades were matched in over 2,000 individual symbols.

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Will Geyer New President and COO at JonesTrading

May 2, 2007 @ 12:05 PM By Cristina McEachern,

Will Geyer joins JonesTrading as the agency brokerage's new president and COO. The appointment comes on the heels of a $50 million equity financing investment from Friedman Fleischer & Lowe.

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Eurex Bets Big on Options Growth with ISE Merger

May 2, 2007 @ 12:01 PM By Cristina McEachern,

Counting on continued growth in the options market, Eurex set to acquire the ISE in $2.8 billion deal

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R.G. Niederhoffer Capital Management (New York)
Roy Niederhoffer
President and Founder

You have to rotate your models more rapidly today than you used to. Models that used to work have stopped working with greater rapidity lately. I think that this probably represents the entrance of a large number of players into the hedge fund space in ... More >>