News

Addition of T-bill trading to eSpeed signals further expansion

Nasdaq's eSpeed has added U.S. Treasury bills to its electronic government bond trading platform and reports that it is already seeing notional average daily volume exceeding $4 billion and daily highs exceeding $10 billion. ESpeed says the introduction of T-bill trading is part of a larger plan to "ultimately complete the entire Treasury complex," and the move also signals Nasdaq's efforts to further diversify into fixed income, currency and commodities.

Bank of England investigates glitch that caused 10-hour crash of key payments systems

Bank of England Governor Mark Carney promised a "thorough, independent review" this week after a 10-hour failure of a payment system whose daily payments processing volumes total 277 billion British pounds.

 

MSCI says 'Expected Shortfall' risk calculations can be backtested

Since the financial crisis, the Basel Committee on Banking Supervision has encouraged the financial industry to replace the Value-at-Risk (VaR) method of calculating risk, an industry standard, with Expected Shortfall, a method the committee believes will better capture potential extreme losses during market crisis periods. MSCI now says the chief problem preventing Expected Shortfall, the fact that backtesting it was too difficult, is now solved.

Credit Suisse puts its HOLT Company Analyzer application on Bloomberg app portal

Credit Suisse has made its HOLT Company Analyzer application available to Bloomberg users by adding it to the Bloomberg App Portal. The move marks the first time that entry-level access to Credit Suisse's proprietary company analyzer has been made available on demand to a wider audience.

El-Erian joins P2P firm that seeks to shake up traditional lending

Scott Saunders, the founder of peer-to-peer lender Payoff says that much of traditional lending is "aimed at keeping borrowers in a perpetual state of debt." He is looking to shake up...

Wall Street says audits, crisis response plan needed to combat cybercrime

In the wake of this summer's cyberattack on JPMorgan, a Wall Street trade group representing hundreds of securities firms, banks and asset managers is speaking up on how the securities industry's cybersecurity should be managed. Detailed audits that are customized to individual firms' business models and an industry crisis response plan will be required to safeguard the industry, the Securities Industry Financial Markets Association said in an 11-page paper released last week.

UBS and trueEX are first to stream much-anticipated MAC swaps

UBS Neo and trueEX have launched live order book trading of market-agreed coupon or MAC swaps, the standardized futures-like swaps that quant funds have long-anticipated could lend themselves to live streaming prices. MAC swaps have never before been listed as live actionable prices.

ICE outlines plans for shoring up Libor against abuse

The new administrator of the London Interbank Offered Rate, or Libor, has unveiled its proposed plans for basing calculation of the Libor rate on actual transactions, instead of estimates, to make it less susceptible to manipulation.

Turquoise block order service launches with seven brokers

Turquoise, the European dark pool owned by the London Stock Exchange, has launched a service for trading large block orders, with liquidity provided by seven brokers out of the gate.

 

Wells Fargo closes its dark pool due to weak demand

Wells Fargo shut its alternative trading system or dark pool on Friday due to weak demand in a crowded market that includes dozens of alternative trading venues.

JPMorgan seeks to build $6.5 billion corporate campus on Manhattan's West Side

JPMorgan Chase and Co. is seeking incentives to build two towers on Manhattan's West Side, with the total space reportedly being equal to two Empire State Buildings. The buildings would be...

Assessing a crowded mobile payments landscape

Looking at the number and variety of entrants in the mobile payments space, it's clear that a wide cross-section of businesses and industries see it as a market with abundant potential. Yet no single product has a dominant hold on the market, and views differ on the technology, functionality and framework of an eventual solution, making it difficult to define just where the industry is in its evolution.

Finra leverages cloud and Hadoop in its consolidated audit trail proposal

The Financial Industry Regulatory Authority has seen positive results from the work it has done so far in migrating toward big data analytics and cloud-based technology for market surveillance. As a result, it is leveraging those same technologies in its bid to build and run the Securities and Exchange Commission's Consolidated Audit Trail (CAT).

 

CME to 'refocus on growth,' cut 5 percent of global workforce mostly in tech

CME Group announced this week that it will cut 150 jobs representing 5 percent of its workforce, in response to what it called "changing market dynamics." The majority of the job cuts will be in the technology area, with some cuts in corporate and administrative functions as well.

 

Bloomberg Tradebook launches RFQ trading of ETFs

Bloomberg Tradebook announced a new exchange-traded fund trading service this week that it says is the first anonymous electronic request-for-quote (RFQ) service for ETFs. The service enables investors to anonymously access block liquidity from buy-side ETF liquidity providers in the U.S. and Europe.

ITG debuts algorithm for dark pool optimization

Independent execution and research broker ITG is launching a dark pool algorithm that is says will help buy side investors increase fill rates in non-displayed venues while filtering out "toxic" liquidity.

 

High volume day prompted dark pools to send some orders away

Wednesday's high volatility was apparently more excitement than some trading venues are used to. Bloomberg reported that three large dark pools--those run by Goldman Sachs, Credit Suisse, and...

JPMorgan will double cybersecurity spending but many other companies may cut costs

On the heels of news that the cyberbreach at JPMorgan Chase & Co may have affected as many as 76 million customers, chairman and CEO Jamie Dimon announced last week that the firm will double its $250 million annual computer security budget over the next five years.

 

Deutsche Bank says clampdown on 'disruptive' behavior is prompting departures

As firms face ongoing investigations into the involvement of their traders in the FX and Libor rate rigging scandals, Deutsche Bank has implemented a new personnel policy that puts more weight on compliance with firm policies, procedures and values when calculating employee bonuses. Some employees who don't like it, have already begun leaving, the firm says.

 

Banks agree to pause swaps terminations when one party defaults

Eighteen banks have agreed to temporarily withhold from terminating swaps contracts when a counterparty defaults and is in danger of failing. The rule is intended to give regulators time to reorganize a troubled bank and prevent a repeat of derivatives terminations like the ones that may have hastened Lehman Brothers' demise.