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FLASHBACK FRIDAY GALLERY: Florida Security Traders Association Orlando Conference

Flashback Friday sponsored by Instinet

Traders Magazine Online News, February 15, 2019

John D'Antona Jr.

While frigid temperatures were evident in a broad swath of the U.S., warm sun, discussions about market structure and dancing were the trades du jour at the 36th Annual Florida Security Traders Association Conference in Orlando, Florida. 

With upwards of 100 trading executives traveling from across the country, Traders presents some of the images of the meetings and events that took place, including the receptions, dancing and business gatherings that took place at the Waldorf Astoria Resort in Orlando. Some of the highlights were the annual golf outing, dinner and reception and market panel discussion on the upcoming Reg ATS –which included Christopher Nagy, Jay Biancamano and John Russell.

Please click here for the fully gallery of images

Disclose, disclose, disclose – that was the advice of several market structure and Wall Street equity trading pros to attendees at the recent 36th Annual Security Traders Association of Florida on how to deal with the SEC’s recently published Reg ATS regulation. While the actual regulatory filing is approximately 686 pages, two words – disclosure and transparency – can solve most problems either the buy- or sellside might face in so-called “offboard” or dark pool trading.

“Volumes (dark pool) keep going up and through the roof, and now Congress wants to regulate and keep an eye on electronic trading,” said Richard Levin, attorney at Bryan Cave, explaining the current regulatory environment. “If you don’t disclose, you’ll get sanctioned. We tell all our clients to over-disclose.”

And Levin’s clients include some of Wall Street biggest brokers, who consequently operate some of the largest dark pools.

Christopher Nagy, who runs the Healthy Markets Association and KOR Trading, said that while the SEC is constantly playing “regulatory catch up” the Commission is intent passing some sort of dark pool regulation given the recent incidents regarding their operation, referring to such cases as Pipeline, ITG, Barclays and Credit Suisse.

“They are looking for any types of conflict of interest,” Nagy said. “Specifically, they want to see what kind of information leakage goes on. There has been a big lack of disclosure and that is why we’re seing this Reg ATS.”

Fidessa’s Jay Biancamano, Head of Product Marketing and Business Development, Equities Americas, at the time added that when he worked at ITG back in 1996 through 2003, said that the SEC only asked dark pool operators if they filed a Form ATS – nothing else.

“All you had to do back then was file the Form,” Biancamano said. “There were never really any rules pertaining to disclosure.”

Bryan Cave’s Levin added that back during the late 90s and early 2000’s there was no continuity among Reg ATS filings from one firm to another.

“Some filings were pure garbage,” Levin said. “Now, we tell clients that when choosing an ATS to check out their Form ATS thoroughly – and make sure it is updated and current.”

Biancamano agreed with Levin, adding that besides examining a firm’s Form ATS that a face-to-face meeting should be part of the buysider’s plans when selecting an ATS operator.

“You have to look these ATS guys in the eye – ask them questions in person. You might see things in their eyes you’d never see on a Form ATS,” Biancamano said.

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