Author Khaled Aly argues that hardware-based decimal-floating-point arithmetic (DFPA) offerings deliver better FPGA performance for low-latency trading than native binary floating-point arithmetic or software-based DFPA.

Via EE Times.

Tags: , ,

Start-up electronic fixed-income trading venue operator Electronifie plans a novel way to bring liquidity to its order-driven market for US corporate bonds, which should launch sometime this quarter.

The vendor’s all-to-all platform consists of a displayed limit-order book and a separate non-displayed mid-point match venue for large-block trades in the 1,500 to 1,700 most liquid CUSIPs from the 300 largest distinct issuers, according to company officials.

Electronifie’s limit-order book will display live executable orders from un-named designated market makers ranging from the $200,000-minimum order size to more than $1 million, officials expect.

Of the three designated market markers already signed by the start-up, “one is bulge-bracket dealer; another has electronic-trading encoded in its DNA; and the third is boutique dealer,” says a spokesperson.

Read the rest of this entry »

Tags: , ,

Traders magazine has published a short piece on whether brokerages could meet the 50-millisecond drift window for their server clocks proposed by FINRA.

Tags: , , ,

This may be a poorly timed post since the Tabb Forum’s annual fixed-income conference is tomorrow, I’m pretty bearish on meaningful changes in corporate-bond market these days.

There’s been a lot of activity in the electronic-trading space for fixed income over the past year as agency brokerage ITG and Tradeweb launch their respective trading platforms for corporate bonds to compete against MarketAxess’s all-to-all trading model.

Even this week, we saw Lime Brokerage co-founder and former-CEO Alistair Brown announce the February launch of the first phase of OpenBondX, a new electronic fixed-income trading venue.

All of this activity and innovation is reminiscent of all the ECNs that sprung up after the US Securities and Exchange Commission (SEC) changed the order-handling rules in the 1990s and swap-execution -facility(SEF) explosion when the SEC and US Commodity Future Trading Commission (CFTC) began writing the new rules for over-the-counter (OTC) swaps trading mandated by Dodd-Frank.

BlackRock only added gasoline to this fire when it published its white paper calling for a reform of the corporate-bond market’s market structure in September 2014 asking for new and innovative trading models for the market.

However, maybe the buy side should start looking for change internally and not externally.

 

Read the rest of this entry »

Tags: , ,

The industry might have rung out 2014 discussing the “grand compromise” on the US equity market structure led by the Intercontinental Exchange that would lower access fees in exchange for a trade-at rule, but BATS Global Trading wasted no time in the new to offers its market-structure alternative.

In an open letter to the industry, exchange CEO Joe Ratterman and president Chris Concannon argue against the compromise as a bad deal for investors despite it being a win-win for exchange operators and broker-dealers.

“[I]nvestors will likely pay more both in the form of potentially wider spreads as well as fewer and inferior execution choices resulting from restrictions on competition,” they wrote.

The pair suggests that exchanges should determine their access fees, and associated rebates, using a tiered price model based on an issue’s liquidity. For example, the most liquid stocks could have a five cent per 100 share, or $0.0005 per share, and more illiquid a stock is, greater its access fee.

They also recommend that alternative trading system (ATS) operators be required to disclose the operation rules of their platforms, descriptions of available order types, transparent eligibility guidelines, participant pricing tiers, order routing logic, and eligible routing destinations as well as expanding Rule 605 and 606 reports to include execution quality on a dealer-by-dealer basis.

None of these ideas are a real departure from the industry’s ongoing market-transparency and market-structure conversations.

Read the rest of this entry »

Tags: ,

« Older entries § Newer entries »