Davis Polk's Annette Nazareth and Jeffrey Dinwoodie review Reg SCI, its implications, costs and how the rulemaking may be an interesting window into the SEC's future steps in market structure.
Crossing Networks/ATSs Channel
The U.S. equity market has finally come to the light at the end of the commissions tunnel - growth in broker-dealer fees during the last year. For the 12 months ending February 2014, the pool of U.S. cash equity commissions increased 10 percent to $10.34 billion from $9.30 billion, according to Greenwich Associates, an equity market consultancy.
KCG Holdings, the new firm birthed from Knight Capital and GETCO, has announced that it will launch a new quantitatively-driven market commentary service for its trading clients. And it has hired market pro and former Credit Suisse alum Phil Mackintosh to lead the new group.
Buyside traders who execute on or at swap execution facilities (SEFs) are about to get better tools to evaluate their trading costs.
More change is coming to the equity trading markets of the Great White North.
Canada's Omega ATS has opened its second trading venue in the Great White North -Lynx ATS. After receiving final approval and making all the tweaks and getting its trading technology in order, the new venue is officially open for business.
PDQ ATS is looking to get into the institutional trading business and has started an institutional equities group to get the buyside's business and its bigger trades. And it has hired two new ex-exchange pros to help get the new venture going.
The dark markets have become so efficient that the costs of execution and market impact are lower than at the display markets, where take fees are highest and market impact is most significant.
Traders believe dark pools have entered a "mature phase" and use them to avoid "toxic liquidity" from high-frequency trading firms, but the size of trades in those pools is getting smaller. These are among a few findings from a new report published by market research firm Celent.
Industry professionals took the opportunity to gripe about the proliferation of stock exchanges at this year's Security Industry and Financial Markets Association market structure conference.