The US Securities and Exchange Commission (SEC) has approved the Fixed Income Clearing Corporation’s (FICC) rule filings linked to access models and segregated accounts and margin.In relation to segregated accounts and margin, FICC’s proposed rule changes seek to address the Commission’s new requirements and the conditions for including margin in the broker-dealer reserve formulas.The proposed rule change would provide for the separate and independent calculation, collection, and holding of margin for proprietary transactions of a netting member from margin submitted to FICC by a netting member to support the transactions of an indirect participant.In addition, the rule change would establish segregated accounts for direct and indirect participants, including establishing a minimum $1 million cash margin requirement for each segregated indirect participant.Elsewhere, the rule change seeks to consolidate the methodology for calculating the margin requirements.Meanwhile, in relation to access models, FICC proposes to re-name, consolidate, and adopt additional provisions governing GSD’s existing correspondent clearing/prime broker services.As part of the proposals, moving forward, the correspondent clearing/prime broker services would be referred to as the “Agent Clearing Service,” submitting members would be referred to as “Agent Clearing Members,” and executing firms would be referred to as “Executing Firm Customers.”In a filing, FICC stated that it designed the proposed changes to the Agent Clearing Service to highlight the similarities between the Agent Clearing Service and other agent clearing models.“We are pleased that the SEC took action to approve FICC’s rule filings related to access models and segregated accounts and margin. With these approvals, we are now ready to advance our implementation efforts with the industry, in preparation for next year’s deadlines,” DTCC said in a statement.“We’re also appreciative of all of the comments and perspectives that the industry has shared with us on a range of matters, including default management, done away and porting. Additional work remains as we get ready for implementation, and we are committed to ensuring we deliver the best solutions with the best value for the industry.“The expansion of US Treasury clearing is a significant industry-wide effort that promises to deliver critical benefits to the industry, including increased transparency and reduced risk.  We will continue to work closely with our clients and key stakeholders on ensuring safe, smooth and successful implementations in 2025 and 2026.”The post SEC approves FICC access models and segregated accounts and margin rule filings appeared first on The TRADE.

Cboe Global Markets has announced plans to launch the first cash-settled index options related to the price of spot Bitcoin.The product will be available beginning 2 December and exclusively listed and traded on Cboe Options Exchange.The options will be SEC-regulated and based on the new Cboe Bitcoin US ETF Index.“Our new suite of options on the Cboe Bitcoin US ETF Index offers a timely and compelling solution for traders to efficiently gain exposure to spot Bitcoin,” said Rob Hocking, global head of product innovation at Cboe.“We expect the unique benefits of cash-settlement, combined with the availability of various index sizes and FLEX options, will give customers more flexibility in their trading strategies. Our index options offer a unique value proposition that we believe will appeal to both institutional participants and retail traders alike, who are looking to capitalise on or hedge against Bitcoin’s price movements without directly holding the asset.”Options on the Cboe Bitcoin US ETF Index means that users gain exposure to spot Bitcoin ETFs – and indirectly to Bitcoin itself.As well as cash settlement, these index options will offer European-style exercise, exercisable only on the expiration date and eliminating the risks of early assignment.Cboe also plans to offer Cboe Mini Bitcoin US ETF Index options, as well as cash-settled FLEX options on both the Cboe Bitcoin US ETF Index and the Cboe Mini Bitcoin US ETF Index.Adam Inzirillo, global head of data and access solutions at Cboe, said: “This latest initiative showcases the strength of Cboe’s exchange ecosystem – from listing and trading spot Bitcoin ETFs on our US equities exchange, to generating data that drives index creation, and now launching innovative tradable products like Cboe Bitcoin US ETF Index Options.“Our ability to leverage the full breadth of our platform to continually bring new solutions to market is a key differentiator for Cboe and a major benefit to our customers.”The post Cboe set to launch first cash-settled options product for spot Bitcoin appeared first on The TRADE.

What should be the priority for Europe as it seeks to increase retail trading across the region?I think it comes down to offering better products that are in the interest of the end customer.   In many instances, the way our industry is set up makes it very difficult for customers to actually make money trading certain products. The market has a bloated old infrastructure where lots of different people have to be fed – whether it’s the brokers, the exchanges, the clearing houses, the product issuers, they all need to get paid every year and typically have a vast array of people. But ultimately, when you break all of that down, where’s the rub, how are participants making money and how much value is being added?  At One Trading what we want is to stop customers getting ripped off because they don’t understand the whole picture. We care about their interests, giving them the confidence and making it fair. In a nutshell transparency - where there’s no hiding it, you can see all the prices and where the liquidity is and who’s trading and see the entire picture.Are traditional trading practices being affected by the presence of digital assets?It’s a very interesting question and you need to look at what traditional is really focused on, which is basically tokenization. Most people like tokenization in large part because it’s an easy thing for people to conceptually get their head around.  But I think that the bigger innovation is going be the perpetual of everything, which allows people to easily go long or short on any asset, whether it is a digital asset, or an equity, a bond or commodity. Once you move to more perpetual markets you solve for a lot of settlement issues, capital efficiency and reduce overall complexity. People are taking note of how innovations in the digital assets space can be translated and learnt from for even more efficient processes. We can then have more infrastructure based impacts. For example, CME recently announced that they’re setting up a broker. I think that’s a really interesting development, because in essence it’s a cut and paste crypto model: they’ve clearly assessed ‘if we’ve got the clearing element and we’ve got the trading element, why don’t we own the broker piece as well and compete more directly with their end clients’?  And that’s been proven to be successful in the digital asset world already. They’re repositioning themselves – to some outcry from their customers – but that’s how innovation works. How can these two worlds work together for mutual benefit? In the traditional finance world you have customer protections through regulation and mass institutional adoption. In the digital asset world there’s huge amounts of product innovation, new retail adoption and market efficiency that has been driven by lack of regulation and controls.   The line between innovation and control is where I see the two worlds colliding – and where indeed we’ve positioned ourselves. The mutual benefit has to come from driving innovation on the regulatory landscape and also driving innovation in technology and product offerings. We have worked with regulators for over three years to build a completely new way of trading, settlement and risk management, that can be appealing for both retail and institutional customers but provide all of the necessary protections. In doing so we have developed cutting edge technology which is 10,000 times more scalable than anything that the traditional world has right now and built simple products where you can go long or short anything.  There are going to be winners and losers across the board in terms of who is leveraging those things most effectively and actually bringing the two sides together. Unregulated venues will increasingly disappear and regulated traditional venues will innovate more on products and structures. We are in the consolidation phase.  What will be the biggest trend over the next 12 months when it comes to digital assets [digital asset exchanges]? A big topic right now is Trump’s putting Bitcoin back in the world again and so we’re probably going to be seeing a lot more global treasury being allocated which is interesting. That’s one trend that I expect to be dominating global news, certainly the first six months of the new President’s office. That’s one piece and then of course is the world of perpetuals where everything is coming to fruition – that’s the other big one.The post Fireside Friday with… One Trading’s Joshua Barraclough appeared first on The TRADE.

Broadridge has moved to expand its structure product trading offering to support trading desks in their execution.Named Tbricks, Broadridge’s multi-asset trading and market making solution will now offer traders the opportunity to quote a greater number of structured products across markets and distribution channels.“The enhancements to the platform have enabled us to better serve our clients with our Marex-issued structured products in a dynamic market condition,” said Mehdi Mlaiki, head of trading, Marex Solutions.The firm said the move evidenced its commitment to providing infrastructure across the trading lifecycle.“Banks and broker/dealers have long struggled with the complexity and scale of structured product quotations, which span multiple markets and various quoting modes,” stated Konstantin Romanov, global head of principal trading products, Broadridge Trading and Connectivity Solutions.“Tbricks directly addresses this critical issue, empowering banks and broker/dealers globally to quote at unprecedented scales and unlock new efficiencies through an intuitive, consolidated user interface.”The post Broadridge expands structured product offering appeared first on The TRADE.

European regulators have ended a year of speculation around whether penalties for settlement fails would increase substantially or their calculation be altered by maintaining the current system and only recommending a moderate increase of the rates.Both the idea of an increase in the penalty rates and a change in design of the mechanism were in play – with the latter potentially including progressive rates – under changes to the Central Securities Depositories Regulation (CSDR).However, the European Securities and Markets Authority (ESMA) said this week that in light of market feedback it would not recommend fundamental changes to the methods for calculating penalties, in its final report on the Technical Advice for the European Commission.ESMA said it recognised that a significant increase of penalty rates may divert resources from expected investments and costs for the industry in the context of the move to T+1.Instead, a moderate increase has been recommended, which ESMA said was “in full alignment with the current types of settlement fails and targeting most asset classes.” While the highest rate would remain one basis for settlement fails due to lack of liquid shares, there could now be an increase by 50% to 0.75 basis points if the reason is a lack of illiquid shares, bonds other than sovereign bonds and all other financial instruments including ETFs.ESMA also raised the floor for settlement fail due to a lack of cash.In addition, the EU watchdog’s technical advice included that, in the absence of an overnight interest credit rate due to the monetary policy of the central bank issuing the settlement currency, other comparable interest rates of the ECB and the relevant central bank could be used to calculate a proxy which a CSD can use to calculate the cash penalties due to lack of cash. In order to prevent the accumulation of reference data over time and to ensure the efficient operation of securities settlement systems, ESMA has recommended to amend the relevant Level 2 provisions to allow CSDs to use the oldest available reference price for the calculation of the related cash penalties, where settlement instructions have been matched after the intended settlement date, and that intended settlement date is beyond 40 business days in the past from the matching date.The post ESMA will not recommend overhaul of penalty mechanism for settlement fails under CSDR appeared first on The TRADE.

Low-latency connectivity and workflow services provider TransFICC has announced intentions to bid to be a consolidated tape provider (CTP) for fixed income.In the next few weeks, the Financial Conduct Authority (FCA) is expected to begin its tender process and criteria for the UK CTP, while ESMA intends to begin the process for the EU CTP in January next year.Confirmation and authorisation of the new CTPs is expected to be in Q4 2025, with go live dates expected in 2026.CTPs are anticipated to deliver improved transparency for all subscribers, with valuable insights provided to fixed income across multiple use cases.ESMA and the FCA have both emphasised that CTPs should provide a low-cost, resilient and high-quality service, with quick implementation, connecting to all trading venues and APAs across the UK and EU, and distributing data to users.“TransFICC has been running a CTP pilot for nearly two years and during that time clients have tested it for performance, resilience, and ease of integration,” said Steve Toland, co-founder of TransFICC.“The buy-side, sell-side, market data firms and venues have successfully tested data contribution and data output, the results of which have given us significant insight into how to develop and support a CTP in production.”TransFICC offers trading technology for fixed income, seeking to resolve market fragmentation and to deliver workflow efficiencies to banks and asset managers globally.The firm provides connectivity to multiple trading venues while supporting a range of workflows across asset classes.“By using key components from our existing technology, we are able to deliver a low-cost tape in terms of initial build and ongoing running costs. In addition, quality and latency will not be compromised, which includes the tape being able to support the real time publication of trades and potentially price streaming and pre-trade market data in the future,” added Toland.“Finally, using our existing technology allows us to roll out a CTP quickly and efficiently.”The post TransFICC to bid for fixed income consolidated tapes appeared first on The TRADE.

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Global head of equity trading at Janus Henderson, Dan Royal, accepted a Lifetime Achievement Award from The TRADE last night at the first ever Leaders in Trading New York awards ceremony.Surrounded by colleagues and friends from across the industry, Royal took to the stage at Chelsea Piers to accept his award.After almost 40 years in the industry, Royal is set to retire at the end of December, handing the reins to his successor Hugh Spencer.Royal needs little introduction. Beginning his career in 1984 as an FX trading manager at Cargill, based in Chicago, his career spans four decades. After 10 years in his first role, Royal moved to SJO Asset Management where he spent two years as a senior global trader based in Geneva. He then headed to John W. Henry & Company where he spent four years in the same role based out of Florida. It was in 2001 that Royal first joined Janus Henderson. After a five year stint at the firm in a senior equity and foreign exchange trading role he left for a brief interlude at Artisan Partners where he spent just under two years as director of global equity trading and operations. He re-joined Janus Henderson in 2008 and, as they say, the rest is history. Royal has been global head of equity trading for Janus Henderson Investors since 2017 and despite his now-lofty title as global head he continues to trade both US securities and foreign exchange for the firm.This ethos is something that he has instilled in his traders, including his now successor, Spencer.Alongside his extensive history serving on the buy-side, Royal has remained committed to contributing to various industry associations throughout his career. He is currently a member of the National Organisation of Investment Professions and of the IEX Buy-Side Trading Advisory Committee. He has also previously spent periods of his career serving on the NYSE/ICE and NASDAQ Institutional Trader Advisory Committees, the FINRA Market Regulation Committee and the National and Denver Security Traders Association.The TRADE would like to extend a hearty congratulations to Royal and wish him a happy retirement.The post Dan Royal accepts Lifetime Achievement Award at Leaders in Trading New York 2024 appeared first on The TRADE.

The TRADE is delighted to announce the winners of our inaugural Leaders in Trading New York awards, with the recipients honoured at a ceremony held last night at Chelsea Piers, New York.More than 150 industry participants joined The TRADE to recognise the year’s leading individuals and firms within the industry, with awards handed out honouring the buy-side, sell-side, service providers, technology firms and venues.The highly anticipated award for Trader of the Year – Long Only went to Chris Fiorito of River Road Asset Management. Meanwhile, the award for Trader of the Year – Hedge Fund was given to David Alfred of Conversant Capital.Elsewhere within the buy-side category, Balyasny Asset Management took home the award for Trading Desk of the Year, while T. Rowe Price was awarded Fixed Income Trading Desk of the Year.Rounding up the buy-side awards, Glenmede Investment Management’s Melissa Hinmon, was honoured with the Buy-Side Market Structure Expert of the Year award.This year’s prestigious Lifetime Achievement award was handed to Janus Henderson’s global head of equity trading, Dan Royal, in recognition of his contributions to the industry, with a career spanning four decades.The Editors’ Choice categories are always highly competitive, and the first year in the US proved no exception. Across the 11 awards, this year’s winners – as judged by The TRADE’s editorial panel – were all worthy given their achievements over the last year.In the trading venues arena, MarketAxess and Miami International Securities Exchange (MIAX) each took home Outstanding Trading Venue awards, while Nasdaq was crowned overall Outstanding Exchange Group.BMLL claimed the award for Outstanding Market Data Services Provider – Equities, while Bloomberg took home the same award but for Fixed Income. Elsewhere, Charles River collected the Outstanding Trading Technology Provider award.Within the Algorithmic Trading and EMS categories – which are based on the results of The TRADE’s annual surveys – RBC Capital Markets and Liquidnet took home multiple awards.RBC Capital Markets took home the Algorithmic Trading awards for both Best Price Improvement Capabilities and Best Provider, while Liquidnet bagged the awards for Best Dark Pool Capabilities and Best Provider – Large Clients.Meanwhile in the EMS category, Virtu Triton was another double award winner, taking home the awards for Best Market Access and Best Product Adaptability. Also in the category, Instinet Newport took home the award for Best Provider – Large Clients.This year, The TRADE celebrated 10 years of the Rising Stars of Trading and Execution initiative in Europe – a celebration of up-and-coming talent on the buy-side – and we were delighted to be extending the initiative to North America for the very first time!Last night, our inaugural New York Rising Stars of Trading and Execution list consisted of:Eric Brown, FX trader, T. Rowe PriceAlan Clymer, trader, Balyasny Asset ManagementZachary Goodwin, equity trader, BlackRockSarah Lambert, senior trader, Fidelity InvestmentsNowara Munir, FX trader and strategist, MFS InvestmentsCongratulations to all of this year’s winners. We look forward to future years!Algorithmic Trading AwardsWinnerBest Trading PerformanceBerenbergBest Price Improvement CapabilitiesRBC Capital MarketsBest Customer Support & ConsultingInstinetBest Dark Pool CapabilitiesLiquidnetBest Provider – Large ClientsLiquidnetBest Provider – Multi-User ClientsUBSBest ProviderRBC Capital MarketsEMS AwardsWinnerBest Market AccessVirtu TritonBest Platform ReliabilityInstinet NewportBest User ExperienceNeovestBest Product AdaptabilityVirtu TritonBest Multi-Asset CapabilitiesBloomberg EMSBest Provider – Large ClientsInstinet NewportOutsourced Trading AwardsWinnerProvider of the YearStoneXCoverageJonesTradingExecutionMarexOperations and Post-TradeState StreetClient Service and Relationship ManagementStoneXEditors’ Choice AwardsWinnerOutstanding Exchange GroupNasdaqOutstanding Fixed Income Trading VenueMarketAxessOutstanding Futures and Options Trading VenueMiami International Securities Exchange (MIAX)Crossing Network of the YearOneChronosOutstanding Post-Trade Services ProviderThe Depository Trust & Clearing Corporation (DTCC)TCA Provider of the YearAbel Noser SolutionsOutstanding Market Data Services Provider – EquitiesBMLLOutstanding Market Data Services Provider – Fixed IncomeBloombergOutstanding Innovation in Fixed IncomeTrumidOutstanding Trading Technology ProviderCharles RiverSell-side Market Structure ExcellenceSapna Patel, Morgan StanleyAgency Broker of the YearRedburn AtlanticInnovation AwardsWinnerInnovation in Pre- & Post-Trade Ops SolutionsSaphyreBuy-side AwardsWinnerTrader of the Year – Long OnlyChris Fiorito, River Road Asset ManagementTrader of the Year – Hedge FundDavid Alfred, Conversant CapitalTrading Desk of the YearBalyasny Asset ManagementFixed Income Trading Desk of the YearT. Rowe PriceBuy-Side Market Structure Expert of the YearMelissa Hinmon, Glenmede Investment ManagementLifetime Achievement Dan Royal, global head of equity trading, Janus Henderson    The post The TRADE announces Leaders in Trading New York 2024 award winners appeared first on The TRADE.

OneChronos has raised $32 million in a recent funding round as it seeks to enhance its offering.The capital is set to “optimise growth and expand trading opportunities” as the company looks to bolster its core business segments and grow in new markets “where current trading mechanisms leave significant value untapped”. Specifically, OneChronos is planning to launch new Smart Markets for other asset classes and geographies in addition to equities. “This funding validates our team’s progress in traditional capital markets and will help us achieve our vision of leveraging advances in market design and AI to find trade efficiencies that grow the global economy,” said Kelly Littlepage, chief executive and co-founder of OneChronos. “We’ve demonstrated how Smart Markets can transform trading in equities. Now we’re ready to bring these same innovations to other markets where traditional trading mechanisms leave significant value on the table.” To date, OneChronos has facilitated more than $500 billion in institutional securities transactions.The business also continues to see strong month-over-month volume growth according to recent statistics.The post OneChronos raises $32 million in funding round appeared first on The TRADE.

With ever-increasing expectations to achieve best execution, the buy-side has highlighted multi-dealer platforms (MDPs) as a means to achieving this goal.A new report from Coalition Greenwich found that buy-side comments with respect to MDPs reflect that the ability to access dealer quotes while keeping them in competition, helps optimise trading.The growing use of MDPs from the buy-side is driving electronic trading overall and supports their growing focus on best execution.Over the next year, 34% of respondents stated that their use of MDPs would increase, while conversely, only 5% thought there would be a reduction.Comparatively, only 16% stated they would increase their use of single-dealer platforms, with 24% stating they would reduce their use of SDPs.The usage of manual forms of trading, such as chat and voice, are also anticipated to decline, with 23% expecting to decrease their use of chat and 31% decreasing their use of voice in the next year.“Using electronic execution methods provides value beyond a single trade execution. For example, it is easier to store and capture data about the bids received from dealers when receiving them electronically,” said Coalition Greenwich in its report.“This ultimately helps a buy-side firm evaluate a broker, whether they executed a particular trade or not.”When evaluating a firm’s panel of dealers, a buy-side desk may take into consideration various reasons why it may redirect its flow from one to another. Coalition Greenwich found that there were two key reasons why a trader may reduce flow to a dealer: namely, pricing and quality of institutional coverage.When asked why the buy-side might redirect trade flow, just over 40% of respondents noted pricing as a key consideration. This comes as no surprise with growing concerns from the buy-side about best execution and investments in tools such as TCA to help evaluate their counterparties.The quality of sales and relationship management was the second highest reason noted by respondents, with 22% citing it as an important element.The common thread connecting the FX discussion on dealers and MDPs is competition. End users want their dealers in competition with each other to both receive favourable pricing on individual trades and reduce dependence on an individual counterparty, noted Coalition Greenwich.Elsewhere in the report, Coalition Greenwich found that single-dealer platforms (SDPs) will continue to play a role in the FX trading ecosystem, particularly for complex trades and structures.However, it was noted that MDPs are likely to remain the preferred choice for routine trades and spot execution.“MDPs offer a range of benefits, including ease of use, workflow integration and best execution,” said Stephen Bruel, senior analyst on the Market Structure and Technology team at Coalition Greenwich.“They are an attractive option for buy-side traders who want to optimise their trading and achieve best execution.”The post Usage of multi-dealer platforms expected to increase as FX traders seek best execution appeared first on The TRADE.

As the UK capital market seeks to modernise, collaboration between the buy- and sell-side as they adopt the relevant trading technology is paramount, according to a recent report by the IA. Galina DimitrovaSpecifically, the trade body is calling for cooperation on the automation of IPOs and block trades as the market seeks increasingly efficient and competitive processes through modernised infrastructure.The IA paper includes a call to action for both sides for a projected smooth and successful transition to automation.Galina Dimitrova, director, investment and capital markets at the IA, explained: “[…] IPO and secondary market placements remain one of the few areas in modern capital markets that are still reliant on manual processing to communicate demand. It’s high time that this process is modernised. We are therefore calling for buy- and sell-side collaboration to embrace technological advancements and automate the IPO process.“Streamlining the process with electric orders would enhance efficiency, reduce risk and provide greater transparency for end investors.” When it came to solutions, the IA pointed to both the buy- and sell-side moving away from in-house building of systems and more subscribing to service vendors that provide electronic new deals allocation platforms. The paper also highlighted the relevance of a unified approach, pinpointing the FIX Trading Community protocol specifically when it came to automation – providing a standardised communication system. Read more: Fireside Friday with… FIX Trading Community’s Jim KayeJim Kaye, Executive Director at the FIX Trading Community, added: “This is an area that is ripe for electronification – we welcome this initiative and stand ready to leverage the expertise of our member base. “Our history of designing standards to automate trading shows what’s possible and we believe automation of the IPO process is achievable when you have the right people behind it.”The post Buy- and sell-side cooperation on IPOs and block trades key to modernising UK capital market says Investment Association appeared first on The TRADE.

The wait is over. Tonight, and for the first time ever, The TRADE’s inaugural Leaders in Trading New York awards ceremony will take place.Team TRADE is delighted to be welcoming our shortlisted nominees and guests for the much anticipated Leaders in Trading New York ceremony.Almost 40 awards will be handed out this evening across our Algorithmic Trading, Execution Management Systems, Outsourced Trading, Editors’ Choice, Innovation, Rising Stars of Trading and Execution and flagship Buy-Side Awards categories.This year’s Leaders in Trading event is set to be particularly special as The TRADE is celebrating its twentieth anniversary!“The Leaders in Trading awards ceremony is the highlight of our year and to be able to bring the tradition to the spectacular city of New York is both a privilege and a pleasure,” said The TRADE’s editor Annabel Smith.“Each year we host this glittering awards ceremony at The Savoy Hotel in London to celebrate individuals and teams from across our industry who have gone above and beyond the call of duty to develop both themselves and their sphere. Our North American iteration will be no different.”For anyone that can’t attend, keep an eye out for the photos and a summary of the winners in tomorrow’s newsletter and we hope to see you next year!With special thanks to our sponsors: MarketAxess and XTX Markets, as well as our charity partner Help For Children. We look forward to welcoming you. See you soon!Tonight’s agenda:5:45pm: Registration opens for Leaders in Trading New York6:00pm: Leaders in Trading New York welcome drinks reception7:00pm: Leaders in Trading New York gala awards dinner9:00pm – Late: After-dinner cocktail receptionThe post Tonight is the night… Leaders in Trading New York takes place for the first time ever appeared first on The TRADE.

BMLL had added OPRA (Options Price Reporting Authority) options data to its coverage.Specifically, BMLL now offers its global participants access to six years of historical, nanosecond unconflated OPRA options data.Paul HumphreyThe expansion contributes to BMLL’s equities coverage which is at 98% of the MSCI All-Country World Index. Paul Humphrey, chief executive at BMLL, said: “Adding OPRA options data is another significant milestone in our data coverage expansion strategy. To date, we have built out our equities coverage to 98% of the MSCI All-Country World Index.“Including OPRA options in our data and analytics capabilities is a natural evolution for BMLL, driven by customer demand for a best-in-class product and very much in line with our multi-asset strategy.”OPRA consolidates and distributes options data which stems from every US equity options exchange – in a unified feed. The new data is available via BMLL Data Lab and BMLL Data Feed, via AWS S3.“Spiralling data costs and OPRA’s expansion of its data dissemination from 48 to 96 lines in February 2024 have placed a significant burden on market participants, both in terms of managing market data budgets and also the necessary data infrastructure [to handle 4TB of data per day]”, added David Robinson, chief technology officer at BMLL.“As a result, firms are looking for cloud-based OPRA data services that are easy to access, within their existing workflows.”The post BMLL adds OPRA options data to offering appeared first on The TRADE.

SEC chair Gary Gensler appeared to suggest a departure from the commission in a speech on Thursday through a thinly veiled farewell message. The words came during a speech on 14 November for the Practicing Law Institute’s 56th Annual Institute on Securities Regulation. “It’s been a great honour to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world […] I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance,” said Gensler.big xyt named Philip Lemmon head of TCA sales EMEA as it seeks to enhance its growth initiatives across the region. His move follows two and a half years as head of EMEA sales at ISS LiquidMetrix. Lemmon has experience working with exchanges, the sell- and buy-side, and has previously served at SteelEye, Abel Noser, Pipeline Financial Group and E*TRADE.  Liquidnet appointed Ayesha Rasheed Boulware as senior trade coverage consultant, based in San Francisco. Boulware will provide primary account coverage for Liquidnet members, with a focus on strengthening relationships and meeting the trading needs of clients across the West Coast. She brings 25 years of industry experience to the role, having held positions at Portware, Tradebook, and Flextrade. Boulware also previously managed the West Coast region for ITG’s electronic products prior to its acquisition by Virtu.The post People Moves Monday: SEC, big xyt, and Liquidnet appeared first on The TRADE.

The European Securities and Markets Authority (ESMA) has proposed a move to T+1 in the EU by Q4 2027 – in line with the UK.  Published in the watchdog’s final T+1 recommendations, ESMA recommends that the migration to T+1 occurs simultaneously across all relevant instruments – with a coordinated approach across the continent “desirable”.  In a report, ESMA highlighted the increased efficiency and resilience of post-trade processes that a move to T+1 would facilitate, “achieving the objective of further promoting settlement efficiency in the EU, contributing to market integration and to the Savings and Investment Union objectives”.  Shortening the settlement cycle in the EU “will undoubtedly change the way in which markets function today”, the report stated, affecting entities throughout the transaction and settlement chains with varying levels of impact.  Regarding potential dates, ESMA recommends 11 October 2027 as the optimal date – considering the difficulties of going live of such a substantial project in November and December. The regulator also wishes to avoid the first Monday of October as the transition date, as it is the first Monday after quarter-end.  ESMA said it will continue to work with the European Commission and the European Central Bank on work related to rules on settlement efficiency, adding that “all actors of the financial system will need to work on harmonisation, standardisation, and modernisation to improve settlement efficiency”.  It is expected that existing CSDR and settlement discipline regulation will need to be amended, in order to “have the legal certainty and to foster the necessary improvements in post-trading processes”, the watchdog said.  The move aligns with the proposed move to T+1 in the UK – which was announced in September. Last month, the European T+1 Industry task force voiced support for a co-ordinated move to T+1 in the EU, acknowledging the benefits of an aligned approach across the entire European region, including the EEA, the UK and Switzerland.   “T+1 will allow EU capital markets to keep up with the evolution of other markets, putting an end to costs linked to the current misalignment of settlement cycles,” the report stated. “This will directly benefit the EU asset management industry, will contribute to the harmonisation of corporate event standards in the EU and will more generally contribute to the competitiveness of EU capital markets.” ESMA added that the costs and benefits related to the shortening of the settlement cycle have been difficult to quantify, however the benefits of risk reduction, aligning with global markets and margin savings represent key objectives for the EU capital markets.  Andrew Douglas, chair of the T+1 Taskforce Technical Group, commented on the announcement, stating: “The UK Taskforce has always promoted a combined migration with UK, EU and CH moving together as our preferred solution and so on behalf of the UK Taskforce, I welcome this announcement of the European migration date for 11 October 2027. “We have worked closely with ESMA over the past 12 months sharing our progress and I am confident that this relationship will continue to develop as we look at how we can develop joint migration plans.”The post EU proposes October 2027 for T+1 switch appeared first on The TRADE.

SEC chair Gensler appeared to suggest a departure from the commission in a speech on Thursday through a thinly veiled farewell message.“Before I close, I want to say something about the SEC and its staff. It’s a remarkable agency. The staff and Commission are deeply mission-driven, focused on protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. “[…] It’s been a great honour to serve with them, doing the people’s work, and ensuring that our capital markets remain the best in the world.”The words came during his ‘Car Keys, Football, and Effective Administration’ speech yesterday, 14 November, for the Practicing Law Institute’s 56th Annual Institute on Securities Regulation.Read more: US Senate approves Gensler for SEC chair roleGensler went on share some personal details in his conclusion, highlighting that neither of his parents had completed university or worked in finance, instead investing their savings and benefitting from the securities markets’ ‘common-sense rules of the road’. “The SEC’s effective administration of well-regulated securities markets promotes trust. It’s what brings investors and issuers to the market like fans to a football game. It’s what underpins the world’s largest capital markets. It’s what has contributed to our nation’s great economic success these last 90 years.“[…] I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance.” Gensler’s was appointed by the US Senate to chair the SEC in 2021, as part of the then-freshly appointed administration of President Joe Biden.Prior to his various roles in public service, he spent 18 years at US investment bank Goldman Sachs working in mergers and acquisitions, fixed income and currency trading, and treasury. During his tenure, Gensler has faced consistent scrutiny from the market where some questioned his heavy-handed approach to regulation, with some having gone as far as to suggest that in some instances the SEC’s approach has been not only ‘over-reaching’ but also in some cases potentially ‘unconstitutional’.Notably, Gensler’s potential departure comes as the incoming president prepares to begin their new term in two months’ time.The SEC had not responded to The TRADE’s request for comment at the time of publishing.The post Gensler alludes to departure from SEC appeared first on The TRADE.

Did you observe any notable trends or changes in trading behaviours during the election? Outside of the increased trading volumes, which were expected in certain asset classes, from an electronic trading perspective, there was a notable uptick in the use of FX algos—especially market-tracking algos. This is perhaps not a surprise, but it does show the progression from limit orders to more dynamic algorithmic execution during risk events. What particularly stood out for me was the significant increase in basket trading. The basket execution tool, that we call StratX, likely suited these market conditions given the ability to react quickly during market events and simultaneously execute a basket of market-tracking or limit-based liquidity-seeking strategies containing multiple sizes and currency pairs. To put that in context, if a Trump victory and a Republican sweep were perhaps foreseen, by creating a basket in advance that reflects the desired positioning, you would have it all ready to go as and when needed. During the campaign, with the policy proposals that were put forward, the associated potential tariffs and fiscal outlook, the FX strategy could look to express broad USD strength versus CNH, high-beta Eurobloc, and commodity FX. In addition to that is the single-line ‘basket order’, which may have provided the ability to execute a single limit order at mid. To what extent do you think these trends may become more common place beyond the elections? The basket trading observed demonstrates how workflow efficiencies that enable market participants to trade at scale can be just as important as execution and pricing competitiveness, especially in volatile markets. I believe that these execution tools, as well as other tools, will become more widely used, not only in stress events but also during normal times when their use perhaps fulfils a desired execution outcome. In the current rate environment, we’ve seen this during monetary policy decision points and any associated volatility. The increased use of FX algos reflects the growing level of comfort with algorithmic execution, but it also signifies a step change in the development, customisation, and sophistication of the algos, as well as the associated tools. As trading insights, analytics, and TCA develop in tandem, the performance of the algos and those associated e-trading tools can then be assessed, whether it’s pre-, at- or post-trade, which then validates or helps to shape algo choice and further enhancement. Additionally, when looking at broader asset classes, algos are being employed and developed elsewhere, so it will be interesting to see how that shapes up. How could a potential regime shift impact the trading landscape over time?   We know that policy initiatives have a meaningful impact on how market participants interact and trade. One doesn’t have to look back all the way to Dodd-Frank to see how regulatory requirements have shaped trading behaviour and technological developments. We’ve certainly seen a significant number of regulatory proposals and final rules in the past few years. Thinking about this election and what lies ahead, personnel at the regulatory agencies will have a significant impact on the policy agenda. Over time, we will be monitoring any changes in senior staff at agencies like the SEC and the CFTC and assessing the impact these changes may have on rulemaking dynamics. Under a Trump administration, there are a few ways that previously finalised rules can be unwound, delayed, or amended. Set against this backdrop, we expect a less active regulatory environment. Policy priorities for the new administration may focus on initiatives that support innovation and the use of emerging technologies like digital assets and artificial intelligence. That said, it is too early to make any predictions, and we’re tracking what this change in administration could mean across a number of market structural rules. Are there any particular final rules you’re keeping a look out for that could affect trading? Absolutely. I’ll mention just a few that we’ll be examining these through the lens of what the new administration could mean for likelihood of finalisation, timing, and impact. First up, it will be of particular interest to see the outcome of litigation on the SEC ‘definition of a dealer’ final rule. Given the effective date of this rule in Q2 2025, should the rule stand, this does not leave a huge amount of time for any impacted market participants to prepare, compounded by the US Treasury cash clearing requirement at end of 2025.   There is considerable industry preparation underway for the US Treasury central clearing requirements. The repo clearing component, for example, impacts a vast number of market participants. This final rule is significant given the potential impact on pricing, liquidity, and trading activity in both the cash and repo markets.  With the advancement of trading technology in mind, an SEC proposal, which looks to change the definition of an ‘exchange’ and apply Regulation ATS to Treasury platforms previously exempt from this regulation, had been in the frame for finalisation. Market participants have been keenly tracking this due to considerations for execution management systems and emergent technology, which seek to introduce efficiencies in operational workflows. And last but not least, we are of course keeping an eye on any revision to the Basel III Endgame and GSIB Surcharge proposals from the US agencies because of the broad reaching and significant impact the original proposals would have on market liquidity and capital markets. The post Fireside Friday with… JP Morgan’s Kate Finlayson appeared first on The TRADE.

As the extended trading hour debate continues, experts speaking at an exclusive London Stock Exchange panel earlier this week agreed that when it comes to equities, this would essentially be superfluous.The idea of the asset class following in the footsteps of the FX, crypto and retail markets – with increasingly 24-hour processes in place – was relatively dismissed, with a move even potentially in the opposite direction suggested. Byron Griffin, head of execution sales and microstructure at ODDO BHF, asserted that while extended hours works very well for crypto it would not work for equities. “I actually think we need to shorten the hours to make it more attractive to a generation that doesn’t want to sit there absolutely glued to their screens for eight hours a day. There’s a gap in the middle of the day between about 9.30 – 10am, when the US numbers come out, where volumes just plateau.“You could take out that whole chunk of the day, the volume would still go through, nothing bad would happen and everyone would get hours back on the day.”Simon Dove, managing director, head of liquidity at Instinet, agreed, asserting that as metrics and data suggest it doesn’t actually matter whether the markets are open for 4 hours or seven to eight, the priority for the equities market is more so the reality of work life balance.“I don’t want to have to choose between work and family. The way our hours work, it’s not a very friendly environment for families. The market does not need to open until 9am, the market could close at 3pm and still have the same volume.”Further, he reminded the room that the UK had tried to do something about market hours last year which was dismissed due to European players viewing it as an anti-competitive move for their own markets.“Equities is different [to the FX and crypto markets] and though the buy-side have been very, very vocal, unfortunately it’s been dismissed.”Read more: Does the industry really want to be on 24/7?Jessica Morison, head of market structure and quantitative analytics at the LSE confirmed that the topic is still “very much a live debate internally at the moment” for the exchange.She added: “From a personal opinion, as a working mum, I think the morning isn’t necessary because the original idea that you might be getting all this flow of information isn’t really happening, there doesn’t seem to be any benefit to shortening the end of the day.“The US is going to wake up at the same time regardless, so you’re not going to move liquidity.”Morison further asserted that it is vital to remember the difference between volume and liquidity; while extending hours means numbers are going to go up, this does not necessarily translate to the underlying bedrock of natural liquidity.The post Expanding equity trading hours risks alienating the new generation appeared first on The TRADE.

The Depository Trust & Clearing Corporation (DTCC) has launched enhancements to its Value at Risk (VaR) calculator, adding cross-margining and repo transaction functionalities.The updated risk tools seek to support firms as they prepare for the expansion of US Treasury clearing in 2025 and 2026.Developed for the Fixed Income Clearing Corporation’s (FICC) Government Securities Division (GSD), the calculator functionality offers users estimated calculations of potential cross-margining reductions at FICC as well as other enhancements.DTCC added that by providing users with access to new tools, firms can enhance their understanding of GSD’s risk management and margin requirements capabilities.“FICC is the leading provider of trade comparison, netting and settlement for US Treasury transactions, and we continue to innovate and provide increased transparency to meet the needs of the industry as the markets evolve,” said Laura Klimpel, managing director, head of DTCC fixed income and financing solutions.“FICC is laser-focused on providing the highest level of service and value to our diverse set of clients.”The cross-margining VaR calculator allows users to estimate the potential cross-margin reduction on a sample portfolio containing GSD cash positions and CME Group futures which are based solely on FICC’s cross-margining methodology.Market participants are able to determine whether they can take advantage of greater margin savings on a combined portfolio, including eligible positions at GSD and future contracts.These tools can be used collectively by traders to calculate all available margins across multiple accounts using portfolio management to offset trades, which helps with capital efficiencies, alongside helping reduce the need for unnecessary position liquidation.“Our risk management team is focused on creating new capabilities that support greater transparency for market participants. These enhancements represent a significant step forward to better understanding and managing members’ obligations while ultimately safeguarding the Treasury Market,” said Tim Hulse, managing director, financial risk and governance at DTCC.The post DTCC’s FICC bolsters VaR calculator capabilities ahead of US Treasury clearing requirements appeared first on The TRADE.