In parallel announcements, Hotspot, the foreign exchange market owned by BATS Global Markets, and FXall, owned by Thomson Reuters, revealed that they will limit the FX process known as Last Look, which allows FX liquidity providers a certain amount of time to reject a trade, even after it has been hit.
Agency brokerage ITG is partnering with newly launched bond trading platform Bondcube to serve as an intermediary for buy side to buy side trades in the U.S. ITG, originally known as an operator of equity dark pools, just entered the bond trading space itself late last year with the introduction of Posit FI, the fixed-income version of its Posit equities platform.
The maker-taker model for exchange fees has long earned critics who say the model rewards high-frequency traders. In Canada those critics have scored a victory as TMX Group, the owner of the Toronto Stock Exchange, has announced plans for phased modifications to the model beginning June 1.
The Securities and Exchange Commission gave its approval late Tuesday for a long-anticipated pilot program to test whether trading stocks of small cap companies in wider increments would improve the markets for these stocks. The pilot program will start next May.
ICAP's EBS electronic FX business has gone live with a beta version of EBS Select, a non-disclosed, segmented bilateral liquidity pool. Thirty liquidity consumers and six liquidity providers are participating in the beta version, with the first trade completed March 24.
Trading through the Hong Kong-Shanghai Stock Connect exploded Wednesday, fully using up the quota for Chinese purchases of Hong Kong stocks for the first time. The growth in trading comes as a loosening of rules to allow domestic mutual funds to trade through Stock Connect went into effect.
The executive chairman of Royal Bank of Scotland's Corporate and Institutional Bank Rory Cullinan will leave the firm as it continues a drastic shrinking of its investment banking capabilities. Cullinan is no stranger to making cuts, having previously been charged with closing or divesting unwanted assets as head of RBS's "bad bank." His departure comes as a surprise, however, because he had only moved from the bad bank to head the corporate bank one month ago.
Virtu Financial Inc., which indefinitely postponed plans for its much-anticipated initial public offering last year amid the negative publicity the Michael Lewis bestseller "Flash Boys" brought to high-frequency trading, is now taking steps to reignite the process.
Electronic bond trading platform KCG BondPoint is expanding into the institutional space through integration with the Charles River Development's Investment Management Solution. The partnership is noteworthy as it represents a blending of different trade types at a time when shifting liquidity structures could force buy-side firms to look for new avenues through which to do business.
Nine asset managers led by Fidelity are reportedly about to launch a dark pool that will allow them to trade large blocks of stock among themselves without the involvement of sell-side firms or high-frequency traders.