Commentary

Elaine Wah

Modern Markets, Modern Metrics - A Blog By IEX

In this blog by IEX's Elaine Wah, the newest public exchange looks to refute public claims that the metrics it uses are designed to inflate its own volume numbers and mislead people.

Traders Poll

Do you think it's a good idea to conduct an access fee pilot to assess the pricing models used by many trading venues?

Yes

67%

No

0%

Should have had a pilot program a long time ago.

33%

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April 16, 2007

News Briefs

By Editorial Staff

* Morgan Stanley merged its equity trading and fixed income trading operations. At the same time, it separated the sales functions of both groups into a separate group.

* The National Stock Exchange started trading NYSE- and Amex-listed securities on its new Blade trading platform. Previously, it traded only Nasdaq names.

* A seat on the Chicago Board Options Exchange sold for a record high price of $1.95 million recently. During 2006, the highest price paid for a CBOE seat was $1,775,000. The lowest price paid was $850,000.

* The Boston Stock Exchange plans to demutualize and become a for-profit organization. Its 203 members will receive shares in a new holding company in exchange for their membership.

* Nasdaq reduced its liquidity-taker and outbound routing fees for some of its most active customers from 27 cents per 100 shares to 26 cents.

* BIDS Trading signed up six new investors: Bank of America, Bear Stearns, Credit Suisse, Deutsche Bank, JP Morgan and Knight Capital Group. The alternative trading system now counts every bulge bracket firm as an investor.

* The NYFIX Millennium crossing network matched 50 million shares on a recent day in February. The single-day record follows a record January, when the system matched an average of 35 million shares per day.

* Merrill Lynch bought a stake in BATS Trading, the fast-growing ECN. Merrill is the fourth big trading house to take a minority interest in BATS. The others are Lehman Brothers, Morgan Stanley and Lime Brokerage.