The issue of maker-taker pricing is one that has drawn strong opinions from both sides of the debate. Intercontinental Exchange CEO Jeffrey Sprecher, one of the practice's most vocal critics, has advocated banning maker-taker pricing altogether. In his view the pricing method "creates false liquidity by attracting people who are there solely to make rebates and not actually trade and hold risk," he says.
IntercontinentalExchange has completed the sale of Wombat Financial Software to SR Labs as part of its planned divestiture of the standalone technology businesses in its NYSE Technologies unit. Along with the Wombat purchase, SR Labs also acquired SuperFeed. The other individual technology businesses within NYSE Technologies--NYFIX and Metabit--are in the process of being sold to ULLINK.
Fidelity and Credit Suisse have formed a partnership that gives Fidelity's retail brokerage clients access to participate in initial public offerings and follow-on equity offering underwritten by Credit Suisse. The partnership opens up IPO investing for customers of Fidelity's registered investment advisor (RIA) network, its family office clients and its retail brokerage customers who qualify.
For years now, the purchase of large quantities of stock right before an event that makes the stock price rise--or the reverse, the sale or shorting of a stock right before a plunge--has triggered alarms among regulators and firms alike. While situations like those focus on a specific event, in the current regulatory environment, firms are increasingly casting a wider net.
An investor has filed suit against the three firms that set the price of silver, accusing them of manipulation. The lawsuit, filed in the US District Court in the Southern District of New York, is noteworthy because similar accusations have been levied in the gold market and the process by which commodities prices are set has increasingly come under scrutiny.
Credit Suisse announced it will move more of its foreign exchange and rates trading to its electronic platform as a way of trimming expenses. The firm also announced its plans to exit commodities as it posted a large quarterly loss, which was attributed mainly to its payment of the U.S. tax evasion settlement.
BATS Global Markets, the second largest exchange operator in the US, has announced that its president, William O'Brien, has left the company. CEO Joseph Ratterman will now take on the president's duties, returning to the dual role of president and CEO that he held before the BATS merger with Direct Edge earlier this year.
When multibillion dollar hedge fund Pequot Capital Management announced in 2009 it would close its doors at the end of that year, some senior members of the IT department were faced with decisions on the next step in their careers.
The European Central Bank announced that its Web site has been hacked and personal contact information including email addresses and some addresses and phone number has been stolen. The ECB only found out about the hack when it received an anonymous email seeking financial compensation for the stolen data.
Last week, the Commodity Futures Trading Commission's soon departing commissioner Scott O'Malia gave a frank assessment of the obstacles to robust liquidity that the newly electronic swaps market faces. Speaking to an audience of financial lawyers, he warned about fracturing of liquidity between US and non-US markets, and the lowered liquidity in some commodities markets that is making hedging costly.
JPMorgan Chase & Co. is reportedly assembling a 150-person electronic-trading team designed to advise its own internal traders as well as its clients on electronic-trading decisions. The new group, to be called JPMorgan Execution Services, will advise clients and internal traders across asset classes, including equities, fixed income, currencies, commodities and more, according to the Wall Street Journal, which first reported the story.
BlackRock plans to build a 31,000 square-foot data center in Amherst, N.Y., near Buffalo. The $80 million effort is one of the biggest development projects in the town, though other companies have built large data centers in nearby, western New York towns.
Back in 2010, a piece of malware that investigators characterized as a digital weapon was discovered in Nasdaq. The malware was detected by both Nasdaq and the FBI before it detonated, but a new detailed investigative article by Bloomberg Businessweek sheds light on the multiagency investigation into the sophisticated hack and the motives behind it.
Merrill Lynch introduced a new financial advisor training program Monday aimed at providing trainees with specialized skills and integrating them into financial advisory teams at the firm. The program is also intended to help with succession planning by enabling a new generation of advisors to work in concert with more senior team members.
The Financial Stability Board, a global regulator, has published proposed changes to the way top currency benchmarks are calculated in response to allegations of benchmark manipulation. Widening the amount of time it takes to calculate the benchmark and adopting alternative forms of benchmark calculation are among the top suggestions the global regulator has proposed for public comment.
Wall Street's main trade group set forth a proposal for reforming U.S. equity markets this week, focusing mainly on eliminating time advantages in data dissemination, reigning in the number of trading venues and eliminating or greatly reducing exchange fees that the group says are distorting pricing and executions.
ICAP, the world's largest interdealer broker, is trimming voice brokers to adapt to current market conditions that have included prolonged low volatility, low volumes and increased use of electronic trading.