"Drift arbitrage" should not define the future of capital markets, says JonesTrading's Tom Carter.
Traditional asset managers are growing more comfortable with foreign-exchange trading, and while many are dealing directly over the phone with large banks to facilitate their FX trading, some are crafting their own forex trades on electronic platforms.
Credit Suisse Securities only entered the retail end of the equities business in late 2011, but is racking up big gains. During the first four months of this year, Credit Suisse executed over 700 million shares on behalf of retail brokers, placing it in the Top 10.
Morgan Stanley is on the hunt for a 'desk strategist,' according to a posting on Peopleclick. The big broker is looking to hire a trading and market structure expert for its electronic trading group.
Commissioner Scott O'Malia of the Commodity Futures Trading Commission (CFTC) is on a mission. He says the process of writing new over-the-counter derivative contract rules needs more transparency. Over the past year he has repeatedly called for more roundtables and public comment on how rules are written. Why is this important? Because these rules, among other things, will determine which OTC derivative contracts must go through a clearing process and which ones can continue to use the old bilateral, dealer-to-dealer model.
Time to pull the plug on the back office? The deathwatch and the questions never stop in the clearing industry. The costs of the business, which have been consistently rising at a time of increased regulation and declining margins, are forcing most clearing firms to think seriously about long-term strategy.
Clearing Quarterly & Directory recently caught up with Omgeo's Tony Freeman and spoke with him about what the clearing industry can do better. As director of industry relations, he focuses on working with the industry to improve settlement efficiency and reduce risk. His company works with investment managers, broker-dealers and custodian banks.
Traders Magazine editor Peter Chapman reviews "The Buy Side," a book about one institutional trader who was addicted to the lifestyle but ambivalent about the actual job. In the book, Turney Duff gives his own account of what it was like to be a buyside trader both on and off the desk.
Here are this month's Editor's Picks for the best and most newsworthy stories covered by Traders Magazine online news. These stories appear in abbreviated form. To read full length items, please visit our wesbite at www.tradersmagazine.com.
Andy Brooks just wants to get something done about the structure of equity markets. Brooks, the head of U.S. equity trading for T. Rowe Price Group, which manages $617 billion in assets, is itching for more than bans on naked access and price bans. Is that too much to ask for?