Thomson Reuters Introduces Next Generation Elektron Consolidated Feed


Thomson Reuters Introduces Next Generation Elektron Consolidated Feed

http://www.financialit.net/news/view/thomson-reuters-introduces-next-generation-elektron-consolidated-feed/20969

Published on Sep 23, 2013

Thomson Reuters announced that it has introduced its next-generation consolidated feed, Elektron Real Time, to new locations in Asia. Launched this month in Sydney, Hong Kong and Singapore, Elektron Real Time will provide customers with full-tick, depth-of-market data from multiple venues around the world. The next generation feed has already been deployed in London, New York, Chicago, Tokyo and Frankfurt and is testimony to the company’s plans to roll out the new high-performance feed worldwide.

 

The rise of automated trading strategies coupled with the growing requirement for differentiated content has made it more important than ever to connect participants and marketplaces to a technology that offers them a real competitive advantage. As interest in global capital markets from Asian investors grows, the demand for data feeds that can offer enhanced quality of service, lower latency and in-depth coverage has been increasing rapidly in the region.

 “Hong Kong, Singapore and Sydney are at the heart of Asia’s financial centers with sophisticated automated trading requirements fuelling demand for market transparency. This, coupled with the impact of liquidity fragmentation across Australia is promoting demand across the region for greater depth of content coverage and lower latency data delivery,” said Ralf Roth, global head of Equities Feeds and Platform at Thomson Reuters. “The launch of Elektron Real Time in these centers empowers customers to respond to these challenges. The service provides coverage of more than 400 OTC and exchange traded markets – with full-tick, depth-of-market coverage. This ensures customers get the right data at the right time.”

Thomson Reuters Elektron is a suite of trading and data propositions that power the enterprise and connect global markets. Elektron delivers low latency feeds from more than 400 exchange-traded and OTC markets, along with analytics, distribution platform and transactional connectivity to support any financial workflow application. Elektron also powers the most innovative desktop and mobile application in the world, Thomson Reuters Eikon, bringing our global infrastructure to the fingertips of financial professionals, wherever they are and whatever their role. All of those capabilities can be deployed at a customer location or delivered as a fully managed service from any one of our co-location and proximity hosting sites around the globe.

KCG Futures to leverage Getco tech in new offering


KCG Futures to leverage Getco tech in new offering

http://thetradenews.com/news/Asset_Classes/Derivatives/KCG_Futures_to_leverage_Getco_tech_in_new_offering.aspx

Knight Capital Group’s (KCG) futures division plans to utilise Getco technology to enhance its offering and focus on high-frequency trading (HFT) and hedge fund business.

Following the merger of Knight Capital and Getco, which formally completed at the end of June, futures commission merchant (FCM) KCG Futures said the business’ direction would be a mix of continuity and change, as it seeks to maintain service levels while also leveraging the advantages of being a combined group.

Carl Gilmore, managing director of KCG Futures, said: “Maintaining continuity in the services we provide is important, but we also want to integrate our offering into the larger group, such as bringing our services to customers in other parts of our business.

“But one of the biggest benefits of the merger with Getco is the strength of the technology that KCG can now offer. There’s a real need in the futures space right now for better technology and this will be a key part of where we anticipate the business will go.”

Listed derivatives volumes, including futures, have suffered in the wake of the financial crisis, and figures from the Futures Industry Association (FIA) show a fall of 15.3% between 2011 and 2012 to 21.17 billion contracts traded worldwide. According to the FIA, a decline in interest rate futures due to the 0% interest rate environment that has prevailed in the wake of Lehman Brothers collapse is largely responsible for depressed volumes.

However, Gilmore believes there is reason for optimism: “I think we’re now on an upswing after five difficult years for FCMs. We think there’s a real opportunity now to push into highly customised offerings, which is what many clients are now demanding in the futures space.”

He also notes that market participants are starting to return to the futures market and improving economic conditions in the US, particularly the tapering of the Federal Reserve’s quantitative easing program, bode well for the asset class.

KCG Futures is also keen to exploit opportunities with HFT and hedge funds by heavily focusing on its automation.

“We really want to be the go-to destination for highly sophisticated investors, and for them it is all about how you use your technology to operate efficiently, so our goal is to offer our services to clients in as automated a way as possible.”

KCG Futures is formed primarily of Knight Capital’s futures division, which itself was created when Knight bought the futures business of trading services group Penson Worldwide in May 2012.

Nasdaq OMX’s European derivatives subsidiary eyes new products


Nasdaq OMX’s European derivatives subsidiary eyes new products

http://www.efinancialnews.com/story/2013-08-23/nasdaq-omx-nlx-third-party-listings?omref=email_TradingTechnology

23 Aug 2013 Updated at 12:40 GMT

 

As Nasdaq OMX’s US securities market deals with the fallout from a three-hour outage on its platform yesterday, across the Atlantic its new European derivatives subsidiary is looking for ways to build its business, potentially through the listing of new third-party contracts.

NLX, which launched in June and offers trading in popular long and short-term interest rate derivatives, said it would be willing to consider listing instruments developed by external providers.

Charlotte Crosswell, chief executive of NLX, told Financial News earlier this week: “At NLX, we have the infrastructure, vendors and route to clearing already in place. It’s relatively easy for us to list new products quickly. This gives us the flexibility in how we approach listing new types of products. You might have a new product that works well, but then you need to have the industry backing and bring it to market at the right time – it can be challenging.”

The move comes as US-based Eris Exchange is considering ways to bring its interest rate contracts to Europe and as GMEX Group, a new derivatives venture run by former Chi-X Europe chief operating officer Hirander Misra, is looking at creating new methodologies for developing products across multiple asset classes.

The emerging regulatory environment for swaps trading is presenting opportunities for firms to develop new types of derivatives that offer alternatives to over-the-counter derivatives.

The rules will push OTC derivatives that can be standardised onto electronic trading platforms and through clearing houses. This has led some to look to products that replicate OTC exposures through an exchange-traded contract.

Under the Dodd-Frank Act, the obligation to clear swaps has already kicked in for most US market participants. Exchanges including Eris and CME Group have launched swap futures that mimic interest rate swap contracts in an exchange-traded environment. Mandated trading of OTC derivatives contracts on trading platforms known as swap execution facilities will start in the US from October 2.

The swap futures from Eris and CME are still gaining traction, say market participants.

Nasdaq-listed stocks were halted for almost three hours on Thursday because of a problem with the Securities Information Processor, a system that consolidates and disseminates prices to US markets, according to a statement from Nasdaq OMX.

The glitch impacted the data feed that distributes pricing information for securities listed on Nasdaq and is not believed to be linked to the exchange’s core technology. The bourse said it had resolved the issue within 30 minutes and spent the remainder of the time coordinating with other market participants and regulators to ensure the orderly resumption of trading.

NLX runs on Genium Inet technology, which incorporates the platform that Nasdaq acquired when it purchased the OMX Group of Nordic exchanges in 2007. Nasdaq’s US markets run on Inet, which it bought from agency broker Instinet in 2005.

–write to anish.puaar@dowjones.com and follow on Twitter @anishpuaar

CloudMargin launches cloud-based collateral management tech


CloudMargin launches cloud-based collateral management tech

http://www.finextra.com/News/Announcement.aspx?pressreleaseid=51271

Source: CloudMargin Limited

CloudMargin Limited, a London-based specialist collateral management software developer, has today launched a new, cost-effective approach to OTC derivatives collateral management for the buy-side.

“Until now, much of the buy-side had been priced out of having a dedicated collateral management platform and had no viable alternative to spreadsheets,” commented Andy Davies, co-founder and CEO of CloudMargin. “I am thrilled that CloudMargin’s innovative approach and use of the latest cloud-computing technology means we can offer a full featured, full-cycle collateral and margin management platform that’s well within the reach of even the smallest buy-side firm.”

CloudMargin supports the full process of collateral and margin management, from storing CSA parameters through calculating and issuing margin calls to handling disputes, selecting eligible collateral and instructing market movements. Real-time reporting and a unique dashboard bring a new level of oversight. Furthermore, CloudMargin cleverly supports the drive towards CCP mandated by Dodd-Frank and EMIR, giving a harmonized view of bilateral and cleared derivatives and a simple yet controlled process.

CloudMargin will be bringing this new approach to a broad spectrum of buy-side firms, from hedge-funds and asset managers, pension fund managers and insurance companies through to corporate treasury departments and energy firms. All of these are seeing collateral volumes rocket and operational complexity soar while at the same time internal and external scrutiny over the collateral process has never been higher.

Even for firms below the threshold for central clearing, regulatory changes under Dodd-Frank and EMIR are stretching manual processes and the use of spreadsheets to breaking point.

CloudMargin gives the buy-side an alternative to spreadsheets so they can finally have a secure, controlled, efficient and cost-effective collateral management operation. 

Derivatives top agenda for ASX chief (from efinancialnews.com)


http://www.efinancialnews.com/story/2013-08-22/asx-results-june-2013?omref=email_TopStories

Derivatives top agenda for ASX chief

Michelle Price in Hong Kong

22 Aug 2013

The chief executive of the Australian Securities Exchange has said the company will focus on expanding its derivatives business over the next 12 months, as regulatory efforts to overhaul the global swaps market gather pace in Asia Pacific.

Derivatives top agenda for ASX chief

During the exchange’s annual results presentation this morning, ASX managing director and chief executive Elmer Funke Kupper said derivatives is “the business where the vast majority of our energy is going in 2014”. The exchange is looking to exploit new rules that will see over-the-counter trades pushed onto exchanges and through clearing houses.

Funke Kupper added: “In 2014 we will be focusing on the implications of the international regulations…International regulations create new business opportunities and they affect our clients as regulators demand that some products that are presently traded OTC are cleared. We are investing in new services that we are bringing to market to help our clients.”

His comments came as the ASX reported net profits of A$348 million ($313 million) for the 12 months to June 30, up 3% on the year-ago period. Revenues came in at A$617 million, up 1.1% on the preceding period.

The first six months of the year acted as a drag on ASX’s full-year performance as subdued trading activity and increased competition in the cash equities market resulted in lower fees from trading and information services. Revenues across both businesses fell 8% for the 12 months to June 30 on the year-ago period.

 

These declines were offset by a strong performance in ASX’s listings, technical services, and the derivatives franchises, revenues for which grew 5%, 10% and 5% respectively in the 12 months to the end of June, compared with the previous year.

The ASX is one of several bourses in the Asia-Pacific region ̶ including the Japan Exchange Group and the Singapore Exchange ̶ making a play for the region’s $42.6 trillion OTC derivatives market. The company has been building out its OTC clearing house and in July it completed a A$553 million capital-raise that will bring ASX Clear in line with international standards on capital levels at OTC clearing houses.

Funke Kupper described the capital raise as the “most important” development for ASX during the past 12 months and added that the ASX’s new interest rate swap clearing service would begin to clear its first interdealer swaps in coming weeks. The launch of client clearing will take place during the latter half of the year.

The exchange expanded its listed futures business with the launch of new electricity futures contracts in May and is set to launch new volatility futures contracts based on the VIX index, also known as the “fear” index, in October. It is also expanding into collateral services to help meet growing client demand for liquid assets.

 

–write to michelle.price@dowjones.com and follow on Twitter @michelleprice36

Reuters – Swaps clients plan US bank exodus


http://www.reuters.com/article/2013/08/12/markets-credit-idUSL2N0GD1JA20130812

 

NEW YORK, Aug 12 (IFR) – US banks are at risk of losing overseas swaps market share as European clients have begun making every effort to avoid getting caught up in costly cross-border derivatives rules that were finalised by the CFTC last month, and come into effect this October.

European hedge fund and asset managers are threatening to transfer their swaps trading activities away from branches of US banks and towards European competitor houses to ensure they avoid the reaches of Dodd-Frank, which mandates an array of costly compliance measures, including the central clearing of standardised over-the-counter derivatives.

Many European clients would rather ditch their US bank relationships than bear that cost – just one of the unintended consequences of bad rule-writing according to dealers.

“It’s the one rule that risks the most competitive disadvantage,” said a lawyer at a US dealer. “There’s no way these clients are going to clear with us at this stage.”

Swaps executed by a European client with the foreign branch of a US bank will be required to clear through a central counterparty starting on October 9 – the date that an exemption from compliance with the CFTC’s recently finalised cross-border guidance will expire.

US banks say the deadline is unreasonable and compliance will be near-impossible. And at least one of the CFTC commissioners sympathises.

“My frustration has consistently been with the Commission establishing arbitrary dates that we pluck out of thin air to establish compliance without asking, ‘is this possible?'” said CFTC commissioner Scott O’Malia.

“The cross-border guidance should have required notice and a comment period to find out if the time periods for compliance are adequate. We claim to be having a comment period but I suspect that anyone who does so will have their comments completely ignored.”

Conversely, the October clearing deadline comes two months before the CFTC forces US branches to comply with the rest of the agency’s transaction-level requirements, such as trade execution, documentation, and real-time public reporting.

“The CFTC is asking us to pull a rabbit out of a hat,” said an executive at the London branch of a US bank. “They have offered ‘substituted compliance’ but the European rules are not even done yet. Nobody in their right mind thinks we can demonstrate substituted compliance by the deadline.”

 

AFFILIATED ALTERNATIVE

For end-user clients, mandatory clearing can be a costly business. Clients must negotiate and document relationships with clearing houses and clearing member banks, and are required to post initial margin against all swaps that are passed through the system.

The CFTC guidance provides that foreign branches of US banks could apply to substitute their home country compliance for US rules in cases such as these if the rules were considered “comparable and comprehensive”.

It is likely to be the longer-term answer for most European branches of US houses, but the European rules for clearing are not yet finalised, leaving nothing concrete for comparison.

Some banks are moving to plan B, which involves transferring all client relationships from their foreign branches to affiliates – a separate legal entity that would protect European funds from the clearing mandate.

But that would not be easy, considering that firms such as JP Morgan have more than 10,000 clients booked through their UK branches.

“There are a number of impediments; it’s very difficult to move clients to another legal entity. Plus, many of those affiliates have regulators of their own who will raise concerns about wholesale transfers of clients,” said the lawyer.

 

NO-ACTION REQUEST

US banks say they have sent the Commission requests for an extension to the deadline, by way of no-action relief or some other format. Given the Commission’s penchant for issuing no-action relief – the agency has issued more than 100 in connection with Dodd-Frank to date, a pushback of the compliance date seems possible – if not likely.

If history is anything to go by, the CFTC is likely to keep the industry in suspense until the eleventh hour.

“There’s no rhyme or reason for how the no-actions are issued,” said O’Malia. “It creates a confusing ad hoc process that leaves a lot of people trying to understand a lot of moving parts when we are not following the Administrative Procedure Act. We’re using and abusing the no-action relief system.”

The development represents another trough in the often tumultuous process of aligning cross-border implementation of new rules for the OTC derivatives market between Europe and the US.

For the past two years, US banks have been warning that the CFTC’s hurried pace in implementing the rules of Dodd-Frank would put US dealers at a competitive disadvantage.

Just over a year ago, the agency issued proposals that would have forced branches of US banks to comply with all transaction-level requirements in July of this year.

But European entities and US lawmakers levied heavy criticism of CFTC chairman Gary Gensler’s approach to international harmonisation of derivatives rules.

In response, Gensler pledged closer co-ordination with European regulators in a joint statement with the EC’s internal market and services commissioner Michel Barnier just before the original proposals were due to take effect.

The scaled-back proposal reduced the CFTC’s powers in determining whether foreign regulations could be substituted for US rules and issued no-action relief for most requirements until European regulators could catch up.

But the proposal may still have over-reached, according to banks. Whether the US banks are able to move their clients over to affiliates in time or the agency issues a no-action relief remains to be seen, but for the moment banks are facing a significant cross-border dislocation.

Aquis Exchange To Offer Access Via BT Radianz Cloud


Aquis Exchange To Offer Access Via BT Radianz Cloud

http://www.mondovisione.com/media-and-resources/news/aquis-exchange-to-offer-access-via-bt-radianz-cloud/

Date 29/07/2013
BT given preferred supplier status
Aquis Exchange Members will benefit from subscription pricing
Allows quick and cost-effective access to Aquis Exchange
Enables straight through processing
Aquis Exchange Limited, the proposed pan-European stock exchange*, today announced a new agreement with BT that allows its Members to access its trading platform via the BT Radianz Cloud.
The BT Radianz Cloud — the largest secure networked financial community in the world — helps financial market participants globally to exchange market information, trade with each other and clear and settle transactions.
Under the new agreement, BT will not only be Aquis Exchange’s preferred cloud connectivity supplier, but the Exchange’s services will now be accessible to the thousands of members of the BT Radianz Cloud community globally.
In addition, Aquis Exchange Members can use the BT Radianz infrastructure to connect with Aquis Exchange’s clearing partners using one resilient access point. This allows the full trade cycle to be conducted seamlessly and helps institutions achieve straight through processing (STP).
Commenting on the agreement, Alasdair Haynes, CEO of Aquis Exchange said:
“The opening of our doors to the BT Radianz Cloud community to access Aquis Exchange is important for us. It provides us with an opportunity to gain rapid access to an unrivalled community of market participants, which is why we have selected them as our preferred cloud connectivity supplier. We believe in having the widest possible range of users to strengthen the ecology of our marketplace and extend the benefits of our subscription pricing model to all professional investors.”
Robin Farnan, Managing Director, Financial Technology Services, BT, said:
“We are delighted to have been selected as Aquis Exchange’s preferred cloud connectivity provider. Aquis Exchange now joins over 100 trading venues that are already part of the BT Radianz Cloud community and benefits from reduced time-to-market and cost of technology infrastructure. The availability of Aquis Exchange to the BT Radianz Cloud community is a great example of how technology can accelerate innovation and efficiencies in the financial sector.”
Aquis Exchange’s subscription pricing works on a similar model to that of the telecoms industry and is designed to encourage participation from all categories of professional trading firm. Users will be charged according to the message traffic they generate, rather than a percentage of the value of each stock that they trade. There will be different pricing bands to accommodate varying degrees of usage. There will be a very low usage band for small firms, that are traditionally disadvantaged by the pricing structure of the incumbent exchanges and, at the other end of the pricing structure, will be the top category where usage is unlimited (subject to a fair usage policy).
For Aquis Exchange Members that are not part of the BT Radianz Cloud, access is available in a number of other ways, including via direct line connection or co-location into Equinix’ LD4 data centre in Slough (Berkshire, UK)

Singapore exchange to trade RMB shares


Singapore exchange to trade RMB shares

http://www.efinancialnews.com/story/2013-07-25/singapore-exchange-to-begin-trading-first-rmb-shares?omref=email_TradingTechnology

The Singapore Exchange will begin trading its first renminbi-denominated shares next month, in a boon for the Asian exchange which is looking to become an offshore hub for the Chinese currency.

Singapore exchange to trade RMB shares

The exchange said today that Yangzijiang Shipbuilding, China’s second-largest shipbuilder, will begin trading its shares in renminbi on August 5 on SGX‘s dual currency platform. Investors will continue to be able to trade Yangzijiang Shipbuilding, which listed on SGX’s main board in 2007, in Singapore dollars.

In a statement issued Thursday morning, Magnus Böcker, chief executive of SGX, said: “This is an exciting and positive development for Singapore as an offshore RMB centre. It also demonstrates how SGX is contributing to the infrastructure and capabilities required for issuers and investors to tap on opportunities offered by China.”

In the same statement, Ren Yuanlin, executive chairman of Yangzijiang, whose operations are largely based in China, said: “We always want our existing and potential investors to have more freedom and flexibility to buy our shares and with this dual currency trading, SGX has given the necessary platform needed for that.”

The SGX dual currency platform allows a listed security to be traded in two different currencies and for the shares to be consolidated within one settlement depository. The service, launched in March 2012, makes it more efficient for foreign investors wishing to trade a Singapore-listed stock by allowing them to do so in their local currency. SGX offers dual currency trading in Singapore dollars, US dollars, Hong Kong dollars, Australian dollars and renminbi for company listings and exchange-traded funds.

 

Yangzijiang Shipbuilding is the second company to begin trading on SGX in two currencies after container port business Hutchison Port Holdings Trust added Singapore dollars to its existing US dollar-denominated listing in March last year. Seven exchange-traded funds also trade on SGX in two currencies.

Today’s development is a boost for SGX which has aspirations to become an offshore hub for the renminbi after its attempt to merge with the Australian Securities Exchange was blocked by the Australian government in 2011. The bourse already offers investors access to China’s A-share market through index futures and began offering depository services for renminbi-denominated bonds in May.

SGX is the 10th largest of the 17 Asia-Pacific exchanges tracked by the World Federation of Exchanges when measured by domestic market capitalisation, at the end of June.

On Tuesday, the exchange reported a 43% rise in fourth-quarter net profit due to strong revenue growth in all its key businesses ̶ its best results since 2008.

 –write to michelle.price@dowjones.com and follow on Twitter @michelleprice36
 

New Role for Buy Side in Corporate Bond Market: Liquidity Providers


New Role for Buy Side in Corporate Bond Market: Liquidity Providers

http://tabbforum.com/opinions/new-role-for-buy-side-in-corporate-bond-market-liquidity-providers?utm_source=TabbFORUM+Alerts&utm_campaign=12c4c4b950-UA-12160392-1&utm_medium=email&utm_term=0_29f4b8f8f1-12c4c4b950-271568421

Full document at:-
http://www.scribd.com/mobile/doc/154736561

New Role for Buy Side in Corporate Bond Market: Liquidity Providers?
With the shift in the corporate bond market from voice to electronic trading, and from capital facilitation by dealers to agency facilitation, will the largest institutional investors commit their own capital to replace that which has been withdrawn by dealers?
Corporate bond markets are being radically changed by a confluence of factors: new Basel III capital and liquidity rules, the MiFID requirements on transparency in bond markets, and the availability of innovative new platforms based on equity and FX market technology. These factors have already led to a reduction in capital commitment by dealers, even prior to the regulatory implementation of Basel III.

[Related: “In Search of Liquidity: The Transformation of the Corporate Bond Market”]

The shift from voice to electronic trading and from capital facilitation by dealers to agency facilitation are well established trends, but RFQ mechanisms are likely to continue to be necessary due to the clear differences between equities and FX on the one hand and most corporate bonds on the other. A key question is whether the largest institutional investors themselves might now choose to commit capital to replace that which has been withdrawn by dealers and to do this by making prices through order-driven and RFQ platforms. This would enable them to buy at the bid and sell at the offer, thereby taking out the spread. An increasing number of platforms are now All-to-All, thus enabling the buy side to act as capital providers.

For more on the technological innovation in and transformation of the corporate bond market, see Professor Scott-Quinn’s complete research paper, “European Corporate Bond Trading – the role of the buy side in pricing and liquidity provision,” below.

Institutional large-in-scale (LIS) crossing networks for bonds, such as Liquidnet provides for equities, and the use of reference pricing should enable investment institutions to transact with each other without broker-dealer, MDP or SDP intermediation. However, under recent draft proposals for MiFIR, European regulators have introduced a volume cap mechanism that may have a dramatic effect on dark trading in Europe – whether in equities or, in the future, in bonds. Regulatory control will be based on a (low) cap on the percentage of trading that can go through mechanisms using a reference price. This would seem to be only the most recent of a number of retrograde steps taken by the EU in terms of its implications for market liquidity.

The combination of Basel and EU regulation certainly has the potential to counter all the efforts of individual governments and the G30 to encourage corporations to raise finance for economic expansion through bond markets rather than through fragile banking systems in order to reduce systemic risk. At this stage it is too early to say if higher costs and reduced position taking by broker- dealers in response to regulatory change will result in higher funding costs for issuers of corporate bonds in Europe or if the innovations we discuss in the paper below may be able to offset at least some of these additional regulatory costs. Certainly at the moment, there is little sign on this side of the Atlantic that regulators are heeding the sentiment of SEC Commissioner Daniel Gallagher, who hoped that “the Commission … will understand the differences and interplay amongst the equities, debt and credit markets so that we can be a more sophisticated regulator of those markets.”

Professor Brian Scott-Quinn is Chairman and Director of Banking Programmes at the ICMA Centre, Henley Business School, and a former practitioner in the eurobond secondary market. Deyber Cano, a research assistant to Professor Scott-Quinn at the ICMA Centre, contributed to the paper.

NYSE Technologies’ Robson Calls for Collaboration; Pushes Shared Infrastructure to Reduce Costs


NYSE Technologies’ Robson Calls for Collaboration; Pushes Shared Infrastructure to Reduce Costs

http://low-latency.com/blog/nyse-technologies-robson-calls-collaboration-pushes-shared-infrastructure-reduce-costs/?utm_source=weekly&utm_medium=email&utm_campaign=ll_13-07-18

blog | July 3, 2013 – 5:59am | By Pete Harris

Nine months after taking the reigns at NYSE Technologies, CEO Jon Robson has begun to articulate a renewed vision for NYSE Euronext’s IT services operation with “A Call for Collaboration” to the financial markets. Of course, in Robson’s mind, that collaboration hopefully means trading firms will embrace the cloud platform, global network and open sourced middleware APIs that it has rolled out in recent years.

Via an open letter and a video posted on NYSE Technologies’ new TechTalk website, Robson suggests that “The economics of the industry clearly don’t support the content and infrastructure models that we’ve been using for decades … Market participants now need to ask themselves hard questions, such as how do I simplify my architecture? Is there a way to take a cost, put it into a single entity and share that cost?”

Unsurprisingly, Robson has answers to the hard questions: “An exchange that aggregates capabilities and liquidity, runs a highly secure network, and undergoes regulatory scrutiny, is an ideal entity to open up its platform for a community to share its capabilities, content, and code creating a new model for doing business – and in essence, changing the way world works.”

In order to execute on the vision of the new model, Robson has organised NYSE Technologies into three business focuses – Liquidity Solutions, Infrastructure Solutions and Content Solutions – all of which report into COO Terry Roche, who worked for Robson during their previous lives at Thomson Reuters.

Liquidity Solutions – under the direction of Adam Mazur, formerly with Goldman Sachs – runs the exchange’s data centres in Mahwah, NJ in the U.S. and Basildon, near London, in the U.K., and is also responsible for software solutions for matching engines, FIX connectivity and market access gateways.

Infrastructure Solutions – headed by Varghese Thomas, who joined in May from Savvis – comprises the global SFTI communications network, the FIX Marketplace network, managed co-location and hosting services and the Community Platform cloud offering, which offers both pre-provisioned and on-demand compute, storage and connectivity to support trading and downstream applications.

Content Solutions – which Roche runs himself – owns various low-latency, real-time and historical data services, including the Superfeed consolidated (crowd sourced to some) data feed, data feed handlers for third party markets and information vendors, and the Data Fabric middleware. It also develops the open source OpenMAMA API, which is administered by the Linux Foundation and provided via a free open source licence.

In the realm of content, the TechTalk website is clearly picking up on both the hype and reality of big data, highlighting NYSE Technologies’ data centric capabilities and success stories grouped within a “Data Factory” section.

Given the investment in OpenMAMA, it’s not surprising that Open Source – and general open collaboration – is another key topic on TechTalk.  Daryan Dehghanpisheh, previously many years with Intel, is playing a key role in NYSE Technologies’ open source and standards business push.

While Robson and NYSE Technologies are pursuing some lofty game changing business models, it’s worth noting that the ‘game’ might change on them as well. Recent press reports suggest that the exchange group – itself being acquired by IntercontinentalExchange for nearly $10 billion – might sell off NYSE Technologies. Other speculation is that the unit could be spun out as an independent company. Certainly Robson’s background – founding Moneyline, acquiring former employer Telerate, and then selling to Reuters – gives him requisite experience for managing such a process.

About the Author

Pete Harris

Editor and Publisher, Low-Latency.com

Pete Harris is Editor and Publisher of Low-Latency.com.  He is also President, Americas and Editor-at-Large at A-Team Group, a publishing, research and events company focused on the deployment of information technologies in the global financial markets.  Low-Latency.com is a service of A-Team.

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