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Sean Debotte has been named president and CEO of Canadian equities and fixed-income alternative trading system (ATS) operator Omega Securities, corporate officials announced today.

Debotte first joined Omega in 2011 as director of business development. He replaces Brian Crew, who departed in October 2012- the same month that Omega began opening its planned Lynx ATS to industry testing.

Officials expect that the new platform will go live on February 3, but are still waiting for the Ontario Securities Commission (OSC) to sign off on the market’s Dynamic Pricing Model that determines a maker/taker rebate for each security based on its previous month’s trading volume.

The new ATS will use the same order entry and market data protocols as the Omega ATS and will not charge market data, subscription or connectivity fees.

The only other difference, say officials, is that Lynx will use broker attribution as a default setting.

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The post-trade industry utility Omgeo announced a leadership change earlier today with the planned departure of CEO Marianne Brown in the second half of February.

This is the first major management change for the company since the Depository Trust & Clearing Corp. (DTCC) acquired Thomson Reuters’ half of the joint venture in October.

Brown joined Omgeo in 2006 after being the chief executive of the Securities Industry Automation Corp.(SIAC). Industry veteran Paula Suasville Arthus will take on the role of president and CEO of Omgeo and report to Andrew Gray, managing director and head of core business management at DTCC. Prior to her new appointment, Sausville Arthus has been managing director, chief of staff and head of enterprise planning at DTCC

I’ll be curious to see what direction the DTCC plans to take its wholly owned subsidiary now that Omgeo does not have to keep a for-profit parent owner and an industry utility parent owner simultaneously.

Will DTCC let Omgeo maintain some semblance of independence or will it become a DTCC brand, like what happened to financial-intranet provider Radianz when Thomson Reuters sold it to BT in 2005?

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According to comments made by US Securities and Exchange Commission (SEC) Chair Mary Jo White during today’s annual SIFMA meeting, the industry should not expect regulatory oversight easing any time soon.

White expects the regulator to continue its use of “aggressive tools” like wire taps and stings to discover evidence of fraud. However, budget restraints will be an ongoing restraint in their use.

When asked about the SAC Capital Advisors settlement, she said that although it happened before she came to the SEC, she believed it was the right. White declined to comment on the current regulatory issues faced by SAC’s Steven Cohen since she might be sitting in judgment of him in the future.

More to come.

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Javelin SEF is the first swaps execution facility (SEF) operator to submit a list of potential instruments that the electronic trading platform would like to “make available to trade” to the US Commodity Futures Trading Commission (CFTC), Bloomberg’s Silla Brush reported on October 19.

Greenwich Associates’ Kevin McPartland, who is quoted in the story, offers expanded analysis in a blog post of his own.

It’s not surprising that an all-electronic operation like Javelin was the first to break the surface tension with such a broad instrument list since it has no interest of keeping these transaction voice-based.

The CFTC has 90 days to decide whether to approve or reject Javelin SEF’s list. If it does not extend its decision deadline, traders will be required to execute trades for dollar-, sterling- and euro-denominated interest rate swaps on SEFs starting in mid-January 2014.

The regulator also started the clock ticking on a 30-day industry comment period for the SEF’s list that began on the filing date and, hopefully, will provide interesting opinions.

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The US Securities and Exchange Commission (SEC) announced today that Knight Capital Americas is the first broker-dealer it has fined for breaking market-access Rule 15c3-5 during its infamous rouge algo incident, which happened on August 1, 2012.

The singular honor will cost the firm $12 million on top of the $460 million that it lost during the trading fiasco.

SEC officials cited that the firm didn’t have adequate controls at a point immediately prior to its submission of orders to markets as well as for code deployment and testing for its equity order router.

Knight Capital also lacked adequate written description of its risk management controls and the company’s controls and written procedures to guide employees responding “significant technological and compliance incidents,” regulators added.

Additionally, The SEC charged the broker-dealer with violations of Regulation SHO’s Rule 200(g) and 203(b), which require broker-delaers to mark short-sale orders appropriately and locating shares to borrow for short sales respectively.

Not surprisingly, Knight consented to the SEC order without admitting or denying the regulator’s findings.

 

 

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