Deja Vu for Bond Exchanges
With Archipelago announcing in October that it's going to trade listed corporate bonds on its electronic trading system, electronic bond trading systems providers might be a little nervous.
Has the Fixed-Income OMS Finally Arrived?
2005 saw explosive growth in the adoption of third-party, fixed-income OMS applications, which leads to the obvious question: Have these products finally arrived? The answer is, "sort of."
The Great Migration
With all the technology and market-structure changes altering the industry, sell-side traders are finding greener employment pastures on the buy side.
2006's Innovative Algorithms
The onslaught of new algorithms can leave traders wondering which end is up. Advanced Trading gets the latest from several algorithm providers.
Algorithms a la Carte
Broker-dealers are offering the buy side the ability to customize their own algorithms, but does the buy side want to be bothered?
Reg NMS: Unintended Consequences
Every new regulation has unintended consequences, but it's difficult to know what they will be until the regulation is implemented.
Gasser Elevated to NYFIX CEO
Bob Gasser, most recently CEO of NYFIX Millennium and president of NYFIX Transaction Services, has been named CEO of parent company NYFIX Inc.
Guiding Advanced Trading
Advanced Trading has created a Reader Advisory Board composed of CIOs and buy- and sell-side traders to help steer the direction of the publication.
Who Doesn't wish they had a crystal ball? As we enter the new year facing so many uncertainties, Wall Street is taking its best guess as to what the future of the exchanges will be, and everyone is trying to plan accordingly.
10 Reasons to Get to Work
No one ever said life on the Street would be easy. But after years of trying to do more with less, financial firms began to renew their focus on growth in 2005, and 2006 promises even more opportunity for innovative players. WS&T presents 10 challenges that will shape CIO's agendas in the coming year.
NYSE and AMEX Receive Extension to Sub-Penny Pricing Rule
Due to legacy systems at both the New York Stock Exchange and the American Stock Exchange, the Securities and Exchange Commission has given both exchanges more time to comply with the sub-penny pricing rule under Regulation NMS, according to a brokerage industry source and a Nasdaq announcement.
According to the brokerage source, the SEC has decided that the sub-penny pricing rule will go into effect as planned next Tuesday, Jan. 31, but that any NYSE-listed or Amex-listed securities would not
Data: The Final Frontier
It's like that adage, "Water, water everywhere but not a drop to drink" -- we are surrounded by data, but the overwhelming volume, speed and complexity of the data make it impossible to understand what it all means.
Temple Joins Bank of New York
As part of its business expansion, Bank of New York hired Ken Temple as senior vice president of the BNY Global Transition Management unit.
Stratacache Scales Data Delivery
Stratacache (Dayton, Ohio) launched version 3.0 of its OmniCast platform, which distributes data, software and video files simultaneously to branch-level facilities, says the company.
DTN Goes Mobile
DTN (Omaha, Neb.) launched a real-time market information service for cell phones and PDAs.
Developments on the Horizon
Aging baby boomers, SOA, DMA, Reg NMS, algorithmic trading, Web-based automation and finding liquidity are a few trends to watch in 2006.
Wed, 16 Apr 2008 19:51:06 -0500
While Wall Street lives by the quarterly earnings call, executives are starving for a long-term vision, according to the soon-to-be-released "Financial Markets 2015" report (available April 1) from the IBM Institute for Business Value. Daniel Latimore, executive director, and Suzanne Dence, a senior consultant at the institute, share some of the report's findings with WS&T.
Firms Eye Tech Acquisitions
Bolstered by record profits in 2005, the securities industry may see an increase in consolidation activity in 2006, according to Robert Hegarty, managing director in TowerGroup's securities and investments practice. Both smaller financial firms and innovative industry-specific technology providers will be on the menu for many bulge-bracket firms in the coming year, he says.
Raising the Security Bar
According to Richard Rzasa, CIO at TD Waterhouse, in 2006, executives in the financial services industry have a decision to make: either tighten their own security, work closely with lawmakers and educate the public to increase online security, or risk having consumers move away from using the Internet for financial transactions and self-service.
Reg NMS: Hurry Up and Wait
Currently, financial services companies are scrambling to ready systems and processes for Reg NMS and the NYSE's planned hybrid exchange structure. However, Joe Gawronski, COO at Rosenblatt Securities, says that while it's important to be prepared, don't be surprised if implementation of both Reg NMS and the NYSE's hybrid model are delayed.
Don't Reinvent the Wheel
Philippe Bibi, senior managing director and CTO at Boston-based Putnam Investments, plans to focus on adding business value in 2006 (instead of spending a lot of time focused solely on regulatory compliance) by developing technology that can automate derivatives transactions and replacing parts of Putnam's legacy systems with off-the-shelf solutions.
In Their Own Words
As the securities and investments industry prepares for the implementation of possibly the most dramatic series of changes we will see in our lifetime -- namely Reg NMS and the NYSE's plan to implement a hybrid exchange model -- no number of editorials or articles seems to be able to do the topics justice. In the following pages, you will find a few more viewpoints and prognostications from five of your peers.
Flush Firms Eye Acquisitions
After posting record profits in 2005, many financial services firms are looking to acquire smaller players with unique business lines and/or financial products, or to bolster their technology. Consequently, consolidation may reach record levels in 2006.
As baby boomers age, 76 million Americans will reach retirement in the next two decades. Many will move their money from institutional retirement investment tools into retail accounts, signaling a shift in the financial advice and asset management industry.
Hard Times for Soft Dollars
Soft dollars are a means of paying brokerage firms for their services through trade commission revenue. To cover fees for research, for example, buy-side firms direct order flow to the sell-side service provider, which charges inflated trade commissions.
Turning the Tide
As ECNs and other alternative trading systems have emerged, fragmentation in the capital markets has increased. But with the acquisitions of Archipelago by the New York Stock Exchange and of the Brut and INET ECNs by Nasdaq, the tide may be turning.
The Buy Side Buys In
In 2006, it will be impossible to ignore the enhanced productivity gained from algorithmic trading systems. As the buy side takes control of its own trading processes, automated trading frees up humans to focus on more-complex trading decisions.
A New View of Risk
IT security historically was a low priority. Only now are firms approaching the risk associated with their technology infrastructures as a business-critical initiative with substantial bottom-line implications and devoting greater resources to their maintenance.
Fighting ID Theft and Fraud
As criminals dream up new and more-sophisticated schemes to steal and profit from personal data, consumer confidence in e-commerce, including online financial services, is taking a hit. Be prepared: Online users expect the financial industry to take action.
Holding the Spending Line
Finding ways to control compliance costs has become a high priority for Wall Street CIOs as they realize that more IT dollars diverted toward compliance means fewer IT dollars devoted to clients' needs and company growth.
Trading Gets Exotic
As the search for higher returns and diversification has sparked a surge in alternative investments, firms are working to establish a technology infrastructure capable of managing an acceptable balance between risk and reward.
10 Reasons to Get to Work
No one ever said life on the Street would be easy. But after years of trying to do more with less, financial firms began to renew their focus on growth in 2005, and 2006 promises even more opportunity for innovative players.