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Best Execution
Regulation and technology solutions for global securities trading
Curated by Ian Rycott
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Announcement : OpenFin appoints Mark Yallop

Announcement : OpenFin appoints Mark Yallop | Best Execution | Scoop.it
OPENFIN APPOINTS MARK YALLOP, BANK OF ENGLAND PRUDENTIAL REGULATION COMMITTEE MEMBER AND CHAIR OF THE FICC MARKETS STANDARDS BOARD, AS NON-EXEC BOARD DIREC
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Trading firms ramp up response to Mifid II

Trading firms ramp up response to Mifid II | Best Execution | Scoop.it
FIX Trading Community drafts in leading finance figures to run working groups looking at key implementation issues
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Murex Partners with DTCC's Omgeo to Enhance Post-Trade Operations Offering - Business Wire (press release)

Murex Partners with DTCC's Omgeo to Enhance Post-Trade Operations Offering - Business Wire (press release) | Best Execution | Scoop.it
Murex, the leading provider of integrated trading, risk, collateral and processing solutions, announced today a strategic partnership with Omgeo, a wh
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Peter Randall resurfaces with post-trade blockchain startup. - Finextra (press release)

Finextra: Peter Randall, the former CEO and founder of Chi-X, is once again looking to upset established market mechanisms with the launch of an institutional payment and settlement system based on blockchain technology.
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The end of commission payments for research. Source: TABB Group

The end of commission payments for research. Source: TABB Group | Best Execution | Scoop.it

FACING UP TO THE ELEPHANT IN THE ROOM - THE END OF COMMISSION PAYMENTS FOR RESEARCH

 

The FCA outlined its plan to ensure the UK asset management industry is fair, transparent and competitive, including a rigorous review of the use of client commissions. How research is provided by the sell side, quantified by the industry and paid...

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Dodd urges patience on Dodd-Frank implementation

Dodd urges patience on Dodd-Frank implementation | Best Execution | Scoop.it
Former Sen. Chris Dodd says he hopes that by the end of the year, the Dodd-Frank Act, which he co-sponsored, will be fully implemented, but he urged patience as new regulations come online and are tested.
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News: New dark pool transparency rules introduced in Australia. Source: Financial Standard

NEWS > REGULATORY New dark pool transparency rules introducedTuesday, 6 August 2013 12:10pmBy Mark Smith  |  In Regulatory 

New rules affecting dark pools and high frequency trading (HFT) have been introduced in a bid to improve transparency.

Minister Assisting for Financial Services and Superannuation David Bradbury announced a package of market integrity rules just prior to parliament being pro-rogued that directed at better protecting investors and the stability of Australia's financial markets.

Bradbury said the announcement came in response to issues identified by the Australian Securities and Investments Commission (ASIC)'s dark pools and high frequency trading taskforces.

"These rules provide improved investor protection in dark pools by requiring dark pool operators to improve transparency of their market's operation and restricting preferential treatment for some investors. The rules also improve market integrity by harmonising market manipulation rules across licensed markets," he said.

"The Government is acting to ensure that investors have continued confidence in Australia's financial markets. These new rules address investor concerns while also ensuring the benefits continue, such as investor choice and competition to lit markets from dark pools, and liquidity benefits from high frequency trading."

The new rules were refined after industry consultation by ASIC.

The rules, which were refined following industry consultation by the regulator, include public disclosure of information so that market users can understand how their orders may be handled and executed.

They require details on the operation of the dark pool to be disclosed to clients and for dark pools to operate under a common set of procedures which do not unfairly discriminate between users.

Investor must also be given the choice to opt-out of trading in the dark pool, existing rules surrounding automated processing of orders have been extended and rules to manage conflict of interests have also been introduced. Negative commissions as payment for order flows have also been banned.

These rules will come into force in stages over a nine month period. ASIC will also issue guidance to clarify the new rules and expectations of market operators and participants.

A complete list of the new rules will be available on ASIC's website once they have been registered.

The rules build upon those approved in November 2012 to improve investor protection and market stability.

"We are already seeing benefits from those rules. For example the meaningful price improvement rule approved last year has resulted in a 40% drop in below block size trading in dark pools in its first month of operation," Bradbury said.

"In addition to these new rules, the Government is continuing to consider the appropriate regulation of dark pools and whether they should become licensed financial markets as part of Treasury's ongoing Australian market licence review."

This page was found at: http://www.financialstandard.com.au/news/view/33756140

 

 

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News | State Street report says buyside firms not ready for OTC regs | MarketWatch

Buy-side firms are unprepared for new trading mechanisms, costs and increased complexity and should partner with established providers to adapt to an evolved OTC derivatives marketplace, according to research commissioned by State Street Corporation (NYSE: STT).

 

The new research paper, "From Readiness to Revolution: The Implementation and Impact of Derivatives Clearing Regulatory Reform," provides insight into preparations for swap execution facilities (SEFs), central clearing, collateral management and reporting.

State Street, which operates as a futures clearing merchant (FCM) and a SEF, commissioned the research with Aite group which surveyed buy-side firms that collectively represent more than $6 trillion in assets under management. The research highlights developments across the entire trade life-cycle and includes a roadmap to readiness for Category III firms - those firms that have yet to complete the Commodity Futures Trading Commission's (CFTC) phased implementation of derivatives clearing.

"The days of the excel spreadsheet are gone, collateral management has moved to the front office and phones have been traded in for exchanges," said Jeff Conway, executive vice president and head of State Street Global Exchange.

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News | Range-bound volatility forcing buyside options traders to be more precise, says TABB Benchmark Study. Source: Business Wire

Range-Bound Volatility Forcing Buy-Side Options Traders to Be More Precise, Says TABB Benchmark StudyAnnual Benchmark Research Shows Technology Supporting Faster Analytics and Electronic Market Access in 2013 Gains in Importance

 

NEW YORK & LONDON--(BUSINESS WIRE)--Range-bound volatility creates challenging market conditions for US options traders, forcing them into a more aggressive stance in a search for returns, says TABB Group in its seventh annual benchmark options trading study. This is driving traders to refine their strategies by using options with more precise strike prices, looking for new opportunities and adjusting expectations to encompass a new environment with lower returns.

 

“It has become more difficult to find a profitable edge in options markets” Andy Nybo, TABB Group.

 

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Fidessa's Grob talks Dodd-Frank, buyside business models. Source: SmartBlogs

Steve Grob, Director of Group Strategy, Fidessa Steve Grob is the Director of Group Strategy for Fidessa, where he is also the brains behind the Fidess (Fidessa’s Grob talks Dodd-Frank, buyside business models.

 

How will regulatory reform efforts like Dodd-Frank affect the derivatives market and is the market ready?

What is becoming increasingly evident is that slowly but surely people are starting to understand the enormity of the changes that are going to hit the derivatives industry.

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Goldman Sachs offers top clients automated block trading - Economic Times

Goldman Sachs offers top clients automated block trading - Economic Times | Best Execution | Scoop.it
Economic Times Goldman Sachs offers top clients automated block trading Economic Times While robot-like machines now rule many aspects of equities trading they have not displaced humans in block trading because some clients still prefer talking to...
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Banks must adapt to the growth of Fixed Income Electronic Trading - FX-MM

Banks must adapt to the growth of Fixed Income Electronic Trading - FX-MM | Best Execution | Scoop.it
Banks must adapt to the growth of Fixed Income Electronic Trading FX-MM A new piece of research from GreySpark Partners, a London-based capital markets consultancy, published today examines the state of electronic trading in fixed income markets...

Via Shigeru Matsumiya
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Dodd-Frank, EMIR and other regs drive buy-side to explore new tech options at TSAM Europe - bobsguide.com

Dodd-Frank, EMIR and other regs drive buy-side to explore new tech options at TSAM Europe - bobsguide.com | Best Execution | Scoop.it
A third of hedge funds, investment banks, broker-dealers and exchanges have said they are not yet ready to deal with a raft of new incoming regulations, such as the requirement to clear over-the-counter (OTC) trades via clearing houses, according...
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SEC Issues Guidance Clarifying Anti-Retaliation Provision of Dodd-Frank Act | JD Supra

SEC Issues Guidance Clarifying Anti-Retaliation Provision of Dodd-Frank Act | JD Supra | Best Execution | Scoop.it
On August 4, the U.S. Securities and Exchange Commission (SEC or “the Commission”) issued guidance that further clarifies the Dodd-Frank Act’s anti-retaliation provision. According to...
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Post-trade realities hit home on the buy-side - FOW magazine

Risk concerns have upped firms’ scrutiny of third-party outsourcing relationships
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100th Buy-Side Firm Signs on to Algomi's Honeycomb Network - Business Wire (press release)

100th Buy-Side Firm Signs on to Algomi's Honeycomb Network - Business Wire (press release) | Best Execution | Scoop.it
Algomi today announced its 100th buy-side firm has committed to its Honeycomb network globally.
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T2S - transforming the European post-trade landscape

Alan Cameron, Head of relationship management for international banks and brokers, talks through the implications of market change with the launch of T2S.
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SEF approvals continue whilst US regulator scrutinizes OTC firm. Source: Forex Magnates

SEF approvals continue whilst US regulator scrutinizes OTC firm. Source: Forex Magnates | Best Execution | Scoop.it

In keeping with the requirement stipulated by the Dodd-Frank Act, institutional trading firms are continuing to apply to the US Commodity Futures Trading Commission (CFTC) for registration as a Swap Execution Facility (SEF).

As yesterday’s business day drew to a close in North America, the CFTC announced that it has approved the applications of two further entities to register as SEFs.

The organizations concerned are DW SEF LLC and TW SEF LLC, both of which are second and third entities for which the CFTC has issued temporary registrations as a SEF.

The applications of the companies, both of which are Delaware limited liability corporations, and are wholly-owned subsidiaries of Tradeweb Global were approved on September 6, by the CFTC’s Division of Market Oversight as part of the Dodd-Frank Act’s provision that firms must provide greater pre-trade and post-trade transparency to the swaps market.

Bloomberg SEF LLC was previously granted temporary registration as a SEF on July 30, 2013, rendering it the first company to obtain such registration.

In order to obtain and maintain permanent registration,

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Announcement: Leading credit market participants support ICE’s CDS execution facility. Source: Daily Markets

Citi, Morgan Stanley, Societe Generale, and UBS To Support ICE Swap Trade Platform

ATLANTA, Aug. 5, 2013 /PRNewswire/ – IntercontinentalExchange (NYSE:ICE), a leading operator of global markets and clearing houses, announced that several leading market participants will support the development of markets on ICE Swap Trade, ICE’s credit default swap (CDS) execution facility that is expected to be introduced in the third quarter of 2013.

Citi, Morgan Stanley, Societe Generale and UBS plan to provide firm pricing on a platform that continues to foster a transparent marketplace and satisfies U.S. and European regulatory requirements. ICE Swap Trade will offer index and single name CDS across North American and European corporates and sovereigns with a choice of trading cleared and bilateral contracts. Functionality will include request for quote (RFQ) and central limit order book.

“As the OTC market structure evolves, ICE is developing trading solutions that will evolve with these changes,” said Thomas Farley, ICE Senior Vice President of Financial Markets. “Participants are looking for deep liquidity, efficient execution, and a sponsored access platform. ICE Swap Trade will continue to work with participants to deliver on all fronts.”

ICE Swap Trade expects to register as a swap execution facility (SEF) with the Commodities Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) once final rules are implemented, and as a multilateral trading facility (MTF) in Europe. As part of that process, ICE submitted its SEF application for credit markets with the CFTC on August 2. Combined with a leading post-trade service via ICE Link and transparent execution protocols, ICE Swap Trade is designed to offer operating efficiencies and workflow enhancements.  

“Connectivity with a range of participants will help position ICE Swap Trade to launch with robust liquidity and reduce the risks of fragmentation,” said Paul Hamill, Managing Director, Fixed Income Trading at UBS. “Providing our clients with seamless access to ICE Swap Trade as part of our agency and liquidity aggregation strategy will deliver incremental benefits without requiring them to alter their current workflows.”

“We are excited to partner with ICE and other market participants to deliver ICE Swap Trade to clients as a flexible platform with transparent protocols that satisfy regulatory requirements,” said Brian Archer, Head, Global Credit Trading at Citi.

“The credit derivative marketplace is undergoing a significant regulatory evolution, and ICE Swap Trade will provide an efficient and transparent point of execution for our clients,” said Steve Zamsky, Managing Director at Morgan Stanley.

“Societe Generale believes ICE Swap Trade will combine superior functionality and connectivity with liquidity that participants demand,” said Olivier Gazzolo, Global Head of Credit at of Societe Generale. “This will distinguish it in the new environment.”

 

 

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Comment | Buyside firms are next to feel regulatory pressure for market surveillance |Source: Martin Porter / Investment Europe

Buy-side firms are next to feel regulatory pressure for market surveillance, says b-next's Martin Porter

  

Martin Porter, global sales director at b-next, says that buy side firms need to consider the implications of increasing regulatory scrutiny of markets.

Due to increasing pressure from regulators, financial market participants have a duty to ensure that their investment and trading divisions operate within the rules set out by national and EU wide regulation. Ensuring that anyone within the firm or its clients are not committing market abuse either through price manipulation in the market or insider dealing, is of paramount importance.

Traditional market abuse surveillance and monitoring has been carried out by sell-side firms for many years using either automated systems built in-house or supplied by vendors like b-next. Buy-side firms have typically not followed this trend believing that market abuse surveillance should be carried out elsewhere in the trading process. As buy-side trading has become increasingly sophisticated over recent years, with ever more complex asset classes and the use of algo and HFT trading, this trend looks to change.

High profile market abuse and insider dealing cases involving the buy-side have recently hit the headlines. Perhaps the most famous case...

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Announcement | Fidessa opens up the world of post-trade processing | PressReleasePoint

http://t.co/a8g2NDrQFs Fidessa opens up the world of post-trade processing

 

London, 1st August 2013 – Fidessa group plc (LSE: FDSA) has today announced the availability of its open Post-trade Confirmation Hub which allows buy-side and sell-side firms to confirm trades between themselves via FIX. Key to the initiative is that firms can certify once to the hub and then be part of Fidessa’s global trading community of 3,600 buy-sides and 775 brokers.

Ian Rycott's insight:

<a href="http://www.pressreleasepoint.com/fidessa-opens-world-post-trade-processing"; class="active">Fidessa opens up the world of post-trade processing</a>

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Comment | A European Consolidated Tape: How Much Longer Must We Wait? Source: TabbForum

Comment | A European Consolidated Tape: How Much Longer Must We Wait? Source: TabbForum | Best Execution | Scoop.it
The original MiFID Directive achieved its objective of creating competition among trading and clearing venues, but it failed to provide the transparency that market participants need. This transparency is vital if buy-side firms are to take proper advantage of the new competitive landscape, and the need for a consolidated tape remains paramount.
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Citigroup Profit Beats Estimates as Stock Trading Gains - Bloomberg

Citigroup Profit Beats Estimates as Stock Trading Gains - Bloomberg | Best Execution | Scoop.it

 

"Citigroup Profit Beats Estimates as Stock Trading Gains

Citigroup Inc. (C), the third-biggest U.S. bank by assets, posted a 42 percent increase in second-quarter profit that beat analysts’ estimates as stock-trading revenue surged and losses on unwanted assets declined.

Net income climbed to $4.18 billion, or $1.34 a share, from $2.95 billion, or 95 cents, a year earlier, the New York-based bank said today in a statement. Excluding an accounting adjustment, earnings were $1.25 a share, beating the $1.18 average estimate of 27 analysts surveyed by Bloomberg...

 

Source:  Bloomberg. Donal Griffin - Jul 15, 2013 3:11 PM GMT+0100

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Death of the Dark

Death of the Dark | Best Execution | Scoop.it
Regulators are preparing to drive a stake in European cash markets by proposing a volume cap on dark trading. Without the sanctity of the dark, achieving effective execution will require increased technology, leading to a two-tier system open to o...
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Nomura moves traders to combined floor - Financial Times

Nomura moves traders to combined floor - Financial Times | Best Execution | Scoop.it
Nomura moves traders to combined floor
Financial Times
Mr Ashley said he was also assessing the prospect of merging Nomura's fixed-income electronic trading platform with Instinet, its electronic brokerage.

Via Hayden Richards
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