John D'Antona Jr.
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June 3, 2013


By Peter Chapman, John D'Antona Jr., Tom Steinert-Threlkeld

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JMP Looks To Grow in NYC

JMP Securities plans to triple its market share of institutional commissions in the next five years by growing its presence in New York.

That was the message from JMP chairman and chief executive Joe Jolson to analysts in May during the San Francisco-based institutional brokerage's quarterly conference call. The executive wants to expand JMP's market share of the institutional commission pie from 36 basis points to 1 percent.

"To meet our goal, we need to build our sales and trading presence in the greater New York marketplace and improve our corporate access product and its delivery while continuing at the same time to grow the number of companies under coverage by around 30 percent to 450 to 500 names," Jolson said. "We must also continue our efforts to increase the institutional relevancy of the companies we cover from the standpoint of market cap, as well as liquidity."

Jolson's assessment of JMP's market share is based on data provided by McLagan, a management consultant that works with financial services companies. The exec noted that an increase to 1 percent over the next five years would translate into a doubling of its net brokerage revenues. Last year, the firm took in $22 million in net brokerage revenues, down from $36 million in 2008.

- Peter Chapman

Largest Dark Pool Goes Dark on Its Data

Credit Suisse has stopped reporting trading volume data to industry record-keepers for Crossfinder, the largest dark pool.

The international financial services group is no longer reporting equities trading activity on Crossfinder to Tabb Group or Rosenblatt Securities, each of which keeps track of market shares of dark pools. The two industry consultancies get their data from broker-dealers and other dark venue operators.

"While we are disappointed that Credit Suisse has decided to stop reporting, it is hard to argue that continued self-reporting would do them much good," said Tabb Group analyst Adam Sussman in a statement. "We still feel it is important for the industry to continue to try to measure these numbers, so we have no plans to cancel LiquidityMatrix. At least until regulators feel the same and put in place a better way for the industry to measure the volume and impact of different trading mechanisms."

Justin Schack, managing director at Rosenblatt Securities, confirmed to Traders Magazine that Credit Suisse "is no longer reporting data to us for Crossfinder in the U.S."

"We're disappointed with Credit Suisse's decision, but respect that the firm must ultimately do what it believes is best for its business," Schack said.

Credit Suisse spokeswoman Katherine Herring declined to comment.

Merrill Lynch Bank of America, JPMorgan, ITG and Fidelity Capital Markets also do not report their dark pool volumes.

- John D'Antona Jr.

Buyside Wants More Info, Control of Algos

The buyside is looking for even more insight into and control over its algorithms.

That's the viewpoint of at least one buysider, Mark Kuzminskas, director of trading at Robeco Investment Management, who is searching for more information about how his algorithms operate and how to protect himself from them, should one run amok.