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The Trading Mesh

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Return of the concentration rule

February 4, 2015 by Regulation Matters (Fidessa)   Comments (0)           

By Christian Voigt
A long time ago in a galaxy far, far away…
It is a period of calm, with primary exchanges enjoying relatively little competition thanks to concentration rules enforced in many EU countries requiring all equity business to be conducted on exchange. The arrival of a new disruptor, in the form of MiFID I, is about to turn their lives upside down forever. The blanket ban on concentration rules will allow many newcomers to start competing for business, introducing a...

The Evolution of Customised Pricing

January 26, 2015 by Software AG   Comments (0)           

By Eddie McDaid
One business area that is becoming increasingly challenging for banks operating single-dealer platforms (SDPs) in the FX and Money Market space, is that of customised pricing. Banks continue to grapple with the problem of offering tailored prices to specific customers under specific circumstances.  The challenge of doing this increases considerably as customer numbers rise and as speed becomes ever more important. 

In days of old, when SDPs were first used by banks...

The future of TCA for the buy-side: The quest for the Holy Grail

January 22, 2015 by Peter van Wely   Comments (0)           

Transaction cost analysis (TCA) has become increasingly important to help firms measure performance and cost of execution. What are the ingredients for a good TCA and is there a Holy Grail?
TCA can be split into 3 groups: pre-trade analysis, intraday or at-trade analysis, and post-trade analysis.
Pre-Trade helps traders determine the optimal trading horizon as a function of cost impact and price change over time based on a number of variables, including amongst others average volume, spreads,...

Fixing fixed income: taking a leaf out of social media’s playbook

December 12, 2014 by The Trading Mesh   Comments (0)           

In this article, Mike O’Hara, publisher of The Trading Mesh, talks to Paul Reynolds of Bondcube, Peter Fredriksson of Baymarkets, Stu Taylor of Algomi and Andrew Bowley of Nomura to discuss ways the financial industry can work with the buy side to address some of the structural problems that have led to chronic illiquidity in the fixed income market. Also, from the buy-side perspective, Gianluca Minieri of Pioneer Investments spoke with Mike about the issues buy-side firms face in...

Avoiding Prying Eyes? Facing Down Regulatory Arbitrage

December 8, 2014 by Software AG   Comments (0)           

This article originally appeared on TabbFORUM at http://tabbforum.com/opinions/avoiding-prying-eyes-facing-down-regulatory-arbitrage and is reproduced here with the author's permission
By Theo Hildyard
As the US and Europe scramble to enact rules to rein in risk in the capital markets, there remain parts of the world where regulation is still nascent. This can offer irresistible attraction to banks wanting to do business without the Big Brothers of the financial markets looking over...

The gift that keeps on giving

November 25, 2014 by Fidessa   Comments (0)           

This article was originally published at the Fidessa blog, and is reproduced here with permission. By Steve Grob

Since Thomson Reuters announced the withdrawal of its market share reporter, the phones have been ringing red hot with enquiries asking if we could build a replacement using our existing free-to-view Frag website. This prompted a fierce debate here at Fidessa Towers as to whether we should commercialise this opportunity and, if so, what new features we would...

Fixed Income Robot Wars & the Rise of the Machines

November 18, 2014 by HIRANDER MISRA   Comments (0)           

Continuing global regulatory reform, is leading to significant change in financial markets across all asset classes. Change causes disruption and disruption presents opportunity with winners and losers.
Winners will be new entrants or existing players who adapt – succeeding at the detriment of those who remain attached to the old ways of doing things. No one knows who they will be but one thing is apparent, with an accelerated timeline, the financial markets landscape will change...

Combine your forces. Align your stars

November 11, 2014 by Stefan Hendrickx   Comments (0)           

By Stefan Hendrickx, Founder & Executive Director, Ancoa
Market surveillance and market abuse continue to be pushed higher up the regulatory agenda. Given the avalanche of news about large regulatory fines, this comes as no surprise. ‘Protect and enhance the integrity of the UK financial system’ is, after all, one of the Financial Conduct Authority’s overriding objectives and market surveillance plays a vital role in this. It is also fair to say that the end-investor is...

Factoring Capital Adequacy into FX Liquidity Provision

November 3, 2014 by Software AG   Comments (0)           

By Theo Hildyard
Continuing on the theme of my previous blog post, which looked at how firms are starting to use in-memory data management technology to perform complex calculations on large data sets ‘on the fly’ – such as real-time credit valuation adjustments (CVA) and pre-trade capital adequacy calculations – let’s now take a look at how banks can use this ability to their advantage in the FX markets.
 
But first, let’s take a step back. A...

Banking, Bitcoin & Innovation: Time to remove the Catch 22

November 3, 2014 by Simon Hamblin   Comments (0)           

By Simon Hamblin, CEO, Netagio
“Bitcoin is better than currency in that you don’t have to be physically in the same place,” so said Bill Gates, the richest man in the world at Sibos, the conference dedicated to the financial services industry.  This year’s event had a surprising number of speakers on the subject of virtual currencies, considering the reputation that cryptocurrencies have as disrupters of the banking industry.
Conversations surrounding Bitcoin have...