GETCO AND KNIGHT COMBINE ON NYSE AS DESIGNATED MARKET MAKERS


About GETCOFounded in 1999, GETCO is a leading global market maker with over 400 Associates located in Chicago, New York, Palo Alto, London, Singapore and Hong Kong. The firm’s primary business involves both buying and selling securities to provide two-sided markets on exchanges around the world.

via Pocket http://www.nyse.com/press/1372416110357.html June 29, 2013 at 01:52PM

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Managers fret over loss of broker service


Managers fret over loss of broker service

http://www.efinancialnews.com/story/2013-06-18/us-buyside-wary-of-high-and-low-touch-convergence-woodbine?omref=email_NewsUpdate

The US buyside broadly favours the sellside’s increasingly holistic approach to serving their equity trading needs, but is concerned that the move to combine high and low-touch trading may compromise the service they receive.

Managers fret over loss of broker service

Although 85% of senior and head traders at US buyside firms prefer an integrated team of high and low-touch traders, such teams need to be carefully constructed, according to a survey of 41 senior and head traders by capital markets consultancy Woodbine Associates.

The combination of electronic – or low-touch – trading services, with relationship-driven – or high-touch – sales traders for equities is becoming increasingly common because brokers are under pressure to reduce costs as trading volumes have failed to recover to pre-crisis levels.

Goldman Sachs, US broker dealer Knight Capital – which is close to being acquired by electronic market making firm Getco – and Citi are among the firms that have sought closer ties between their high- and low-touch desks in recent months.

Speaking to Financial News, Matt Samelson, principal at Woodbine Associates and author of the report, said: “Although there has been pressure on the sellside to reduce headcount and coverage, US brokers are experimenting with how to best serve their buyside clients. All of the buyside firms we questioned wanted a service that offers them the broadest and most efficient access to liquidity, without wasting their time.”

 Mark Kuzminskas, head of equity trading at Robeco Investment Management, added: “The convergence of brokers’ high- and low-touch services may appear to be a more efficient coverage model, but the effectiveness of this transition depends on us clearly defining the parameters of our relationship with that broker. Any broker looking to offer us a value-added service in this way also needs to fully understand our trading methodology and coverage expectations.”

Around a third (32%) of those surveyed said there was room for improvement in how separate trading desks collaborated, but 44% believed closer ties between low- and high-touch desks “was a recipe for compromise and abuse”.

Concerns were even more prevalent when survey respondents were asked for their view on using a single point of contact at a broker to service both sales trading and electronic trading flows, with 84% saying it could have a negative impact on the service they receive.

Of the 84%, the primary worry was the risk of a diminished service by brokers – voted for by 47% of those questioned – followed by the potential to lose anonymity, cited by 37% of respondents.

 

Electronic trading allows buyside traders to send orders directly to the market, via a broker’s infrastructure, allowing their orders to stay anonymous and avoid market impact. If electronic flows are visible to sales traders, some buyside firms believe this anonymity could be compromised.

“There are definitely concerns on integrity. If buyside firms expose their orders to a wider range of trading desks, they need to be assured their information will not be abused,” said Samelson.

“It’s not a matter of haphazardly combining groups. The view among buyside firms is that the market is too complicated for one person to do all these specialised functions well. Brokers should be looking at ways to consolidate equity trading desks, but the resulting service needs to be client-specific,” he added.

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

 

TMX Atrium upgrades connectivity to Knight Hotspot FX


TMX Atrium upgrades connectivity to Knight Hotspot FX

 

In response to increasing demand from TMX Atrium FX community

 

LONDON, 18 June,  2013 – TMX Atrium, provider of smarter infrastructure solutions for the financial community, today announced that it has upgraded its connectivity to Knight Hotspot FX, in response to client demand. 

 

Since 2010, TMX Atrium has provided low latency connectivity to Knight Hotspot FX, one of the original Forex ECNs (electronic communications networks).  Connectivity to Hotspot is from the TMX Atrium hub at New York 4 and enables Hotspot participants to communicate and trade with TMX Atrium’s ever-growing number of buy and sell side participants trading across the full range of asset classes. 

Emmanuel Carjat, Managing Director, TMX Atrium, said, “We are delighted to further our relationship with Knight Hotspot FX.  Our network has been designed to scale with the growing demands of FX trading.  This capability complements the steady increase in demand for access to FX trading locations such as Hotspot.  Extending partnerships with firms such as Hotspot ensures that we continue to offer our clients a wide range of choice of trading venues.” 

 

John Miesner, Managing Director and Head of Global Sales, Knight Hotspot FX, added, “As demand for our FX capabilities increases we are confident that TMX Atrium provides the necessary bandwidth both now and in the future as FX volumes grow rapidly.  TMX Atrium’s infrastructure upgrades enable clients utilizing their services to access Knight Hotspot FX from North America, Europe and Russia and take advantage of our full range of products and services.”

 

Apex Launches Order and Portfolio Management Systems


Apex Fund Services (“Apex”), one of the world’s largest independent fund administration companies, confirms its intention to offer the most extensive range of fund services to asset managers globally.

via Pocket http://www.bobsguide.com//guide/news/2013/Feb/14/apex-launches-order-and-portfolio-management-systems.html February 17, 2013 at 12:40PM

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