Trading

You are currently browsing the archive for the Trading category.

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.

Tags: , , ,

It’s only a matter of time before more investors move away from foreign-exchange (FX) swaps to FX futures, according to the latest research from Kevin McPartland, head of market structure and technology advisory service at analyst firm Greenwich and friend of the blog.

He attributes the coming migration due FX swap’s higher regulatory and margin costs, even though regulators exempted them from many swap requirements, and the lack of need by financial users for custom FX swap products compared to their corporate counterparts.

Check out his blog for more opinions and analysis on the OTC derivatives marketplace.

 

 

Tags: , , ,

It’s an early Saturday afternoon before the first full week of January, which means escaping family conversations is sitting watching reruns until the your programs start up again in a week or so.

You might want to take this time to check out BTFDtv, a new online video network for traders by traders.

Don’t expect a highly polished production value like from CNBC or Fox Business and the online network is the first to admit it on its homepage: “BTFDtv has no producers, writers, editors or on air rules.”

It’s more like a Skype session than a television program, but its backers are betting viewers are more interested in the content than its delivery.

Oh, the initials? I am told that it stands for Buy the Friendly Dip. This is a family friendly blog after all.

Tags: , ,

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.

Tags: , , ,

Since today is the US quasi-holiday Columbus Day and Thanksgiving Day for our northern neighbor, I do not feel really bad about sharing my thoughts about the Investment Company Institute‘s Capital Markets Conference held on October 10.

I have to admit that the conference had a pretty impressive line up. Commodity Futures Trading Commissioner Scott O’Malia started the conference by providing some interesting volume data for OTC swaps since some swap execution facilities (SEFs) went live on October 2.

Of the approximately 6,500 OTC swaps trade executed during this period, only 50 or so elected to do the electronically via request for quotes (RFQs) or using a best bid and offer (BBO) platforms, or that 99.23% of the trades were voice traded.

I have to admit, I was scribbling my notes while handling a minor IT issue at the time, so please take the figures with a truckload of salt. I’ve seen other coverage that claims that the figure is closer to 50%, which sounds a bit high since not a single SEF operator has submitted a list of contracts it would they would like to make “available to trade,” according to a trusted source.

Until that happens, all transactions fall into the “permitted trades” bucket that let’s investors decide how to execute their centrally cleared trades.

Commissioner O’Malia also discussed his concern that each SEF should provide pre-trade certainty for every transactions. If SEFs do not have it place soon, he would be calling the CFTC’s Technology Advisory Committee (TAC) into session in early November to seek a technology solution to the issue. Read the rest of this entry »

Tags: , , , ,

« Older entries