Connectivity Providers Pile into Equinix LD4 to Offer Access to CBOE Futures Exchange

The Chicago Board Options Exchange (CBOE) is opening the CBOE Futures Exchange (CFE) to European trading markets through exchange hosting and low-latency connectivity solutions at the Equinix LD4 co-location data centre situated to the west of London.

via Pocket June 29, 2013 at 02:04PM

Overview of Aequitas Innovations (Exchange) and proposition paper

Overview of Aequitas Innovations (Exchange)

Proposition Papaer


Mission Statement

To create an exchange in Canada that provides an innovative and cost-efficient marketplace, which protects the interests of all investors and reflects the fundamental purpose of markets: the efficient allocation of capital between issuer and investor as a central force driving the Canadian economy.

Founding Vision

We believe differentiated marketplace competition will enhance confidence in Canada’s capital markets.  More of the same won’t help address the issues that exist.  Today there is untapped opportunity to innovate using technology to promote liquidity, fairness, cost savings and growth.

Aequitas Mandate

Our founding investors have given us a clear mandate: to serve the collective interests of investors, issuers and intermediaries and, as a result, the public at large.

We will deliver on our mandate by meeting four key objectives:

  1. Always put the investor and issuer first, as directed by our balanced, broad and open ownership structure.
  2. Ensure quality markets and allow for sustainable market making.
  3. Introduce innovative and affordable services that foster meaningful competition, reduce costs and improve market efficiency.
  4. Provide all types of issuers with solutions to access the capital they need to grow.

Who is behind the new Canadian Aequitas Innovations Exchange proposing to take on the TSX?

Who is behind the new Canadian Aequitas Exchange proposing to take on the TSX?

Aequitas Exchange is a proposed stock exchange to challenge the Toronto Stock Exchange. Ther is

Aequitas is a joint venture between several domestic and international financial services companies:

The new exchange is offering lower fees and fairness of smaller investors

A recent article provides more detail;

In a direct jab at the Toronto Stock Exchange, RBC, Barclays and others are creating a new exchange that does not permit any high-frequency trading. Will it work

Canada’s dominant stock exchange operator – the TMX Group – has some new competition with a twist. The Royal Bank of Canada, Barclays and Investment Technology Group (ITG) and others have joined forces to form Aequitas Innovations, a new stock exchange that will limit the role of high frequency trading.

Slated to start trading in 2014, the Aequitas exchange aims to be a refuge for investors who have been short-changed by the high frequency traders, according to managers behind the new venture.

“I would call it a grassroots reaction from some key market stakeholders saying we need choice, more choice in the marketplace,” says Jos Schmitt, chief executive officer of Aequitas. According to news reports, Schmitt previously ran Alpha Group before it was taken over by TMX Group, which runs the Toronto Stock Exchange. TMX handles an estimated 80 percent of equity trading in Canada.

“Through Aequitas, we have a compelling opportunity to create a level playing field for both retail and institutional investors by challenging certain predatory high frequency trading strategies which have impacted the quality of existing equity markets,” says Greg Mills, chairman of Aequitas, and co-head, global equities, RBC Capital Markets.

Canadian mutual fund managers CI Financial Corp and IGM Financial Inc, pension fund PSP Public Markets are also behind the new exchange.

So why eschew HFT now? What is the allure of a go-slow exchange? HFT has been the punching bag for several critics of high-speed trading. While HFT firms and traders claim that they create much needed liquidity, critics charge that their practices create nothing more than market volatility and unneeded fear for ordinary investors. Also, more and more government regulators are looking at HFT and its impact on the market. While the outrage might be as loud as it was in the days after the collapse of Lehman Brothers and Bear Stearns, the steady drumbeat against HFT has not quieted down. Clearly some regulations in the US markets are forthcoming.

Why Canada? Because of the country’s stellar standing after the credit collapse of 2008 thanks to its tight risk rules, an exchange that bars the door to HFT might win favors with lawmakers and auditors. Canadian firms have a different definition of risk compared to the cowboys in the US so the idea of an easy-trading oasis might be what investors – those who want to trade at normal levels – ordered.

It will be interesting to see how TMX responds. Perhaps they will counter with even faster feeds and trading rates.

After all, human beings love speed

EEX: NCG Futures to be migrated onto PEGAS on 27 June

EEX: NCG Futures to be migrated onto PEGAS on 27 June

The European Energy Exchange (EEX) continues to migrate its natural gas products onto PEGAS, the EEX and Powernext common exchange platform.
From 27 June 2013 onwards, the EEX 10 MW Gas Futures products for physical delivery in the NetConnect Germany area (Months, Seasons, Quarters and Calendar Years) will be available for trading on the Trayport® Exchange Trading SystemSM. This will increase the range of tradeable spreads on PEGAS, allowing Market participants to trade locational spreads on Futures products between the market areas of GASPOOL, NCG, TTF and PEG Nord on integrated order books for each market area. Liquidity of the single products will then be combined and, for the first time, spreads cleared at European Commodity Clearing (ECC) will be tradable on an exchange without execution risk.
PEGAS was launched on 29 May 2013 with all existing Powernext gas products. On 4 June, EEX successfully migrated its Natural Gas Futures for the market area GASPOOL onto the platform. Following the migration of the NCG Gas Futures, EEX will also migrate the Spot Market products for the GASPOOL, NCG and TTF area onto PEGAS. EEX will announce the exact launch date in due time.
About PEGAS – Pan-European Gas Cooperation:
PEGAS is a cooperation between the European Energy Exchange (EEX) and Powernext. In the framework of this cooperation, both companies combine their natural gas market activities to create a pan-European gas offering. Members benefit from one common Trayport gas trading platform with access to all products offered on the exchanges: spot and derivatives products for the German, French and Dutch market areas. Furthermore, spread products between these market areas are tradable on the same trading platform. For more information:
About EEX:
The European Energy Exchange (EEX) develops, operates and connects secure, liquid and transparent markets for energy and related products on which power, natural gas, CO2 emission allowances and coal are traded. Clearing and settlement of all trading transactions are provided by the clearing house European Commodity Clearing AG (ECC). EEX is a member of Eurex Group. For more information:
About Powernext:
Powernext SA manages complementary, transparent and anonymous energy markets. Powernext Gas Spot and Powernext Gas Futures were launched on 26 November 2008 in order to hedge volume and price risks for natural gas in France and in the Netherlands. In 2011, GRTgaz and Powernext launched the first gas market coupling initiative in Europe between PEGs Nord and Sud. Powernext owns 50% in EPEX SPOT and 20% in EEX Power Derivatives. For more information:

NASDAQ OMX to Implement Corvil Operational Performance Monitoring Across U.S. Trading Platforms

NASDAQ OMX to Implement Corvil Operational Performance Monitoring Across U.S. Trading Platforms

Optimizes Electronic Trading Reliability and Transparency for the Most Efficient and Scalable Global Platform with a Big Data IT Environment

First Exchange Group to Deploy Independent Solution to Better Serve Regulatory Functions for Member Firms

New York, June 04, 2013 – The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) announced today plans to implement CorvilNet, an independent solution for operational performance monitoring that provides a new level of visibility, safeguards and protection for the exchange group’s U.S. trading platforms. CorvilNet is powered by Corvil, the leading provider of real-time operational performance monitoring for wire data.

NASDAQ OMX will leverage CovilNet to better serve member firms that contribute to the exchange group’s deeply liquid marketplaces. CorvilNet’s operational performance monitoring system provides the exchange group with the ability to simultaneously analyze activity at the network, application and trading layers. The comprehensive information that is captured will allow the exchange group to alert for anomalies in real time and improve technology systems performance. Advanced diagnostic tools may be used to track the full life cycle of a trade, enhancing NASDAQ OMX’s ability to respond effectively to member firm queries relating to technical issues, performance levels, or trading outcomes.

In addition, the independently developed tool will strengthen NASDAQ OMX’s ability to ensure compliance in a fragmented marketplace with heightened focus on transparency. The exchange group will use CorvilNet to support regulatory functions such as tracking all outbound data feeds to member firms and the Securities Information Processors. With an enhanced view into its system, NASDAQ OMX will continue to optimize its core INET trading engine, which powers 1 in 10 of the world’s security transactions.

“Our adoption of Corvil’s operational performance monitoring technology demonstrates our commitment to better serve our member firms,” said Eric Noll, Executive Vice President of Transaction Services U.S. and U.K. at NASDAQ OMX. “The CorvilNet solution monitors and enhances the trading experience, detects complex anomalous behavior, achieves an additional level of visibility into trading events and intelligently alerts our information technology systems and staff.”

“We believe the rest of the industry will adopt sophisticated technology solutions as a means to reduce risk exposure in a constantly evolving electronic marketplace. There is a need for greater visibility to deal with competitive and regulatory forces that shape operations,” Mr. Noll added.

Intellectual Property Exchange International, Inc. (IPXI) is the world’s first financial exchange that facilitates non-exclusive licensing and trading of intellectual property (IP) rights

Intellectual Property Exchange International, Inc. (IPXI) is the world’s first financial exchange that facilitates non-exclusive licensing and trading of intellectual property (IP) rights

The Exchange

Intellectual Property Exchange International, Inc. (IPXI) is the world’s first financial exchange that facilitates non-exclusive licensing and trading of intellectual property (IP) rights with market-based pricing and standardized terms. The result is an exchange that operates under two core principles: transparency and efficiency. The initial product traded on IPXI is a Unit License Right (ULR) contract. For more information, visit the ULR Contracts page. The process starts with analysis designed to give the marketplace confidence in the quality of all patents listed as ULR contracts. Then, tapping a wealth of capital markets experience, IPXI undertakes the licensing process in a manner similar to a public equity offering for a corporation by utilizing a detailed Offering Memorandum and a Roadshow, including potential purchaser one-on-one meetings. Once an Initial Offering has been priced, IPXI maintains a Secondary Market which provides ULR purchasers and sellers an opportunity to realize liquidity through resale and trading.

IPXI makes the IP licensing process more transparent through:

Analysis – IPXI performs internal and external analyses of the quality of every ULR candidate submission. This process is designed to create a comfort level for potential purchasers regarding the quality of the offerings.
Price Discovery and Standardized Terms – Market-based pricing and the terms of all ULR Offerings are published and available to all potential purchasers.
Consumption Reporting – ULR Purchasers must submit periodic consumption reports to the Exchange, which relays aggregate consumption information to Exchange members and the public. This information and the ULR contract price are key indicators of the acceptance of the technology in the market, allowing corporate decision-makers in R&D and intellectual property asset management to make better decisions regarding resource allocation.
IPXI makes the IP licensing process more efficient through:

A Central Marketplace – IPXI is a central marketplace for transacting IP licenses, providing a platform for licensors and licensees to transfer technology on standardized terms.
Easy Access to Technology – IPXI provides easy access to technology for small and large companies. ULR contracts can be acquired on an as-needed basis with minimal legal cost.
Outsourcing of Licensing Transaction Costs – IPXI identifies, evaluates, markets and audits high-quality IP licensing transactions through its ULR model.

INTL FCStone Inc. to Acquire Control of Cleartrade Exchange


via Pocket May 15, 2013 at 07:24PM

Tradehill Exchange Adds Dark Pools Of Bitcoin Liquidity

This week the bitcoin exchange Tradehill launches dark liquidity, or dark pools, for client institutions and individuals that do not want to reveal their trading size and identity.

via Pocket April 20, 2013 at 03:28PM

Saxo Capital Markets enhanced offering includes new pricing structure–structure

First Published Monday, 15th April 2013 from Automated Trader : Automated Trading News

Target spreads for all FX spot pairs to be reduced, intended to be particularly attractive on EURUSD.

Saxo Capital Markets UK, the multi-asset online trading and investment specialist, has enhanced its offering witht the launch of a new pricing structure.

The new pricing structure will mean that the target spreads for all FX spot pairs will be reduced. Some of the key crosses that will see lower target spreads are:

  • EURUSD 2.0 to 1.5
  • USDJPY 2.0 to 1.5
  • USDCAD 4.0 to 1.5
  • AUDUSD 3.0 to 1.6
  • EURJPY 3.5 to 1.9
  • GBPJPY 7.0 to 3.1

Torben Kaaber, CEO of Saxo Capital Markets UK comments: “Two-thirds of our clients trade three or more asset classes using their own specific choice of market access. Whether via FX spot, forwards, futures, contract options, ETFs or CFDs; Saxo Capital Markets offers the choice to trade most asset classes over-the-counter or on exchange.”

He continued: “Saxo’s platform combines a reliable and flexible way to hedge and trade in a multi-asset environment with global market coverage. Since FX is still a major component of clients’ portfolios, we decided to lower target spreads for all FX spot spreads, including EURUSD and USDJPY, in order to further increase the competitiveness of our platform.”

The new lower spread is intended to be particularly attractive on EURUSD, as John Hardy, Head of FX Strategy, Saxo Bank explains, “It is expected that we will eventually head back to the 2012 lows near 1.2000 and possibly even lower, as Europe either pulls together with the help of huge ECB involvement or moves back into crisis mode in the wake of the German elections in September.”

Torben Kaaber, CEO, Saxo Capital Markets UK

Torben Kaaber, CEO, Saxo Capital Markets UK

“Saxo’s platform combines a reliable and flexible way to hedge and trade in a multi-asset environment with global market coverage.”

Overview of TrueEX

About trueEX

The world’s first CFTC-designated, Dodd-Frank compliant exchange for interest rate swaps

New York-based trueEX LLC operates the first swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM). The trueEX DCM was designed from the ground up as the first Dodd-Frank compliant swaps exchange. The Company will initially trade interest rate swaps, will add other liquid derivatives to its portfolio and is the first to provide back loading, termination, rebalancing and compaction services for the IRS (interest rate swaps) market.
trueEX was founded by its CEO, Sunil Hirani who also founded Creditex, the first electronic trading platform for credit default swaps (CDS). In 2008, Mr. Hirani sold Creditex to Intercontinental Exchange, where he subsequently led the initiative to acquire The Clearing Corporation (TCC) which allowed ICE to clear credit derivatives globally. Mr. Hirani and members of the trueEX management team also launched T-Zero (now ICE Link) and led the initiative to create Credit Event Fixings and Delta Neutral Auctions (DNA). For further information


trueEX LLC, a Commodity Futures Trading Commission (CFTC) Designated Contract Market (DCM), was approved as a DCM on September 25, 2012. Initially, trueEX will offer electronic execution of interest rate swaps via proprietary trading technology, and it will later expand its offerings to include additional liquid derivatives.

trueEX will offer a choice of clearing houses for clearing interest rate swaps, something that has not previously been available on any regulated exchange. Additionally, trueEX has contracted with National Futures Association (NFA) to provide regulatory services as part of its overall compliance function.

The CFTC is an independent agency established through an Act of Congress in 1974 with the mandate to regulate commodity futures and options markets in the U.S. Most recently, its responsibilities have been expanded by the Dodd-Frank Wall Street Reform and Consumer Protection Act to provide comprehensive regulation to the swaps marketplace. trueEX and its participants will operate under this new regulatory framework, which is intended to bring much needed transparency and price discovery to a previously unregulated segment of the derivatives market.


Click here to view a PDF of the trueEX Rulebook

Click to access trueex-rulebook-04-08-2013.pdf

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