William Goodbody headshot

Bill Goodbody,
BATS Global Markets

Since completing its acquisition of Hotspot institutional foreign-exchange (FX) market earlier this month, BATS Global Markets officials have not let the grass grow under their feet.

The global exchange operator plans to deploy an instance of its Hotspot matching engine in its Slough facilities later this year.

“We plan to move swiftly with this project to meet the demand from European customers,” said Bill Goodbody, senior vice president, foreign exchange at BATS.

The new matching engine will target the currencies that dominate trading during European and Asian market hours while the original matching engine, which is based in northern New Jersey, will continue to support the North American FX market.

BATS has no immediate plans to deploy a third instance of the Hotspot matching engine specifically for the Asian markets.

“We’re focussing on getting Europe really motoring, and then we’ll look to other regions,” said a BATS spokesperson.

BATS first announced its planned $365 million acquisition of Hotspot from KCG Holdings on January 28 and completed the deal on March 13.

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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.

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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.

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

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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.


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