SEC Exemption Expands NYSE Bonds' Universe

Ivy Schmerken, Wall Street & Technology

Days after announcing partnerships with Kestrel Technologies and Townsend Analytics (TAL) to provide access into NYSE Bonds, its new electronic fixed-income trading marketplace, NYSE Group received regulatory approval to vastly expands the number of debt securities it can trade through the revamped electronic fixed-income marketplace.On Friday afternoon, NYSE Group said it received exemptive relief from the Meanwhile, the NYSE's selection of TAL's Real Tick analytics and direct-access trading platform already sets the stage for the NYSE to offer electronic trading of NYSE corporate bonds multiple asset classes.

In the previous blog,"Kestral and TAL to Provide Access to NYSE Bonds," I mainly talk about Kestrel developing a Web-based front-end. In response, a spokewoman for TAL contacted me, pointing out that what Kestrel is developing is "strictly for bonds. Real Tick users will be able to electronically trade fixed income from NYSE right along with stocks, options and other asset classes -'all with a single point of entry, notes the TAL spokesperson.

While selected to provide electronic access to NYSE corporate bonds, "RealTick offers an immediate advantage for trades seeking hedging and arbitrage opportunities: simultaneous trading of equities, futures, options, fixed income and foreign exchange across multiple venues globally using a single platform," stated Tal's release last Monday.

John Holman, VP, Fixed Income Markets, NYSE Group, stated it best in the release when he said, "Now if you want to trade Ford bonds with Ford equity, you can ' all right here in one place."

In addition to institutional traders, the average investor can trade NYSE Bonds through Real Tick, notes the TAL spokesperson. The only requirement is that the broker dealer they use is an NYSE member. Investors can view a list of retail broker dealers on the RealTick site but one of the biggest ones is Chicago-based Terra Nova Trading, adds the TAL spokesperson. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio