FT Trading Room

BATS eyes Europe's retail market

Wed, 22 May 2013 05:09:00 GMT

BATS Chi-X Europe has led the charge as competition has hugely changed share trading in Europe in the past decade. Mark Hemsley, chief executive, talks to FT Trading Room editor Philip Stafford about the ETF market and what the group’s new exchange licence will mean for retail investors.

Flaws of financial transaction tax

Tue, 21 May 2013 12:34:00 GMT

A 'Robin Hood' tax on financial transactions was seen as a way to discourage speculative market trades. Capital markets editor Ralph Atkins and FT Trading Room editor Philip Stafford discuss how turning theory into practice is proving a challenge.

Regulatory over-reach?

Mon, 13 May 2013 05:17:00 GMT

Financial markets capitals are growing increasingly worried about the potential extra-territorial reach of markets legislation such as the US Dodd-Frank act or the proposed eurozone financial transactions tax. Thomas Zeeb, chief executive of SIX Securities Services, discusses the potential impact on Switzerland with FT Trading Room editor Philip Stafford

Europe's Tobin tax - a hit to savers?

Mon, 06 May 2013 04:59:59 GMT

Brussels' proposed financial transactions tax on equity and derivatives markets in eurozone countries is proving highly contentious. Jane Lowe, director of markets for the Investment Management Association, tells Philip Stafford, FT Trading Room editor, why her members, who represent UK-based institutions, are worried about a levy intended to affect eurozone states.

Clearing's impact on buy-side

Tue, 30 Apr 2013 11:44:00 GMT

Clearing becomes mandatory for over-the-counter derivatives trades in the US this year. Garth Friesen, co-chief investment officer of III Associates, explains to FT Trading Room editor Philip Stafford why he is confident institutional investors will be ready for the transition.

Taming the high-frequency beast

Fri, 22 Mar 2013 02:07:00 GMT

With high frequency trading still making headlines, politicians are examining whether to clamp down or raise revenues from the sector. John Lowrey, head of electronic markets at commodities broker Marex Spectron, tells Philip Stafford, editor of FT's Trading Room, that it is too late to put the HFT genie back in its bottle.

OTC derivatives need new language

Mon, 04 Mar 2013 10:14:00 GMT

The regulatory drive for more over-the-counter derivatives to be electronically traded requires new platforms, and new language to cope with the demands. Kevin Houstoun, co-chair of the Fix Protocol Global Technical Committee and chairman of Rapid Addition, explains the difficulties of translating rules into reality to Philip Stafford, editor of FT Trading Room.

Swapping for futures

Mon, 18 Feb 2013 00:41:00 GMT

The push to convert more of the swaps market into futures has its critics. George Harrington, global head of fixed income at Bloomberg, explains to Philip Stafford, editor of FT Trading Room, why the market may be distorted by inconsistencies in proposed new rules.

Implications of exchange deals for traders

Fri, 01 Feb 2013 10:55:00 GMT

The global landscape for bourses is in flux once more following Hong Kong Exchanges & Clearing's purchase of the London Metal Exchange and IntercontinentalExchange's agreed bid for NYSE Euronext. John Fay, global head of commodities, currencies and fixed income at Newedge, explains some of his concerns and comforts to Philip Stafford, editor of FT Trading Room.

A glitch too far?

Mon, 21 Jan 2013 05:51:00 GMT

Almost on a weekly basis markets are faced with technical problems and malfunctions. Dan Waters, managing director of ICI Global, a trade association for global fund managers, explains to FT Trading Room editor Philip Stafford how the steady stream of news is undermining the confidence investors need in exchanges' reliability.

ICE-NYSE deal and derivatives

Mon, 14 Jan 2013 10:39:00 GMT

IntercontinentalExchange's $8.2bn bid for NYSE Euronext could spark another round of consolidation for exchanges around the world. Bill Brodsky, chief executive of Chicago Board Options Exchange, explains to FT Trading Room editor Philip Stafford the deal's implications for the derivatives market and why he is optimistic that Dodd-Frank will bring more business for bourses.

Adapting to a new world

Thu, 20 Dec 2012 11:51:00 GMT

The future of some bespoke off-exchange securities like interest rate swaps is uncertain as regulators push to for more over-the-counter derivatives trades to be pushed through clearing houses. Derek Sammann, senior managing editor of interest rate products and FX at CME Group, explains to FT Trading Room editor Philip Stafford how a new breed of swap futures mimics swaps but meets the new regulations.

Clearing risk

Thu, 20 Dec 2012 04:54:00 GMT

The push to clear more trades means participants' fortunes are tied to the security and reliability of their counterparties. Mireille Dyrberg, chief operating officer with post-trade service company TriOptima, explains to FT Trading Room editor Philip Stafford how 'tearing up' of long-dated contracts can limit those exposures.

Search for corporate bond liquidity

Fri, 14 Dec 2012 13:17:38 GMT

New capital requirements for banks have had a dramatic impact on corporate bond trading. Rick McVey, chief executive of bond trading platform MarketAxess explains to FT Trading Room Editor Philip Stafford the problems and the move to electronic trading in search of liquidity.

Collateral shortfall

Thu, 06 Dec 2012 02:46:00 GMT

Jon Philp, a collateral specialist at Rule Financial, explains to FT Trading Room editor Philip Stafford that tough markets mean clearers and brokers are becoming more selective and efficient in the services they can offer as regulatory demands for collateral become tighter.

Search for alpha turns to OTC FX

Wed, 28 Nov 2012 11:05:00 GMT

Over the counter (OTC) derivatives trading in foreign exchange is rising as investors shun equity markets. Emmanuel Doe, president of Interactive Data's Trading Solutions Group, explains to Philip Stafford, FT Trading Room editor, how the regulatory goals of best pricing and transparency in equities are extending into forex trading. (4m 59sec)

Market needs more than duopoly

Tue, 13 Nov 2012 00:10:00 GMT

Europe's Markets in Financial Instruments Directive (Mifid) opened the equities market to competition but now failures and consolidation has left just the incumbent versus an independent in most countries. Alasdair Haynes, chief executive of Aquis Exchange, explains to FT Trading Room editor Philip Stafford why the market needs more than a duopoly and how the scenario under the Mifid review offers opportunities for new companies.

Search for Middle East crude benchmark

Sat, 03 Nov 2012 02:49:00 GMT

There have been numerous attempts by exchanges in the Middle East to develop a flagship benchmark for crude oil. Chris Fix, chief executive at Dubai Mercantile Exchange, talks to the FT's Philip Stafford about why some of them have failed in the past and what might happen in the future.

Cover your shorts

Wed, 31 Oct 2012 03:50:00 GMT

The EU ban on uncovered shorts comes into effect on November 1 with some details yet to be finalised. Lex's Stuart Kirk and Nikki Tait discuss the new world for trading and hedging in the eurozone.

What Black Monday says about a flash crash

Tue, 16 Oct 2012 22:05:15 GMT

It took the whole of Black Monday for the Dow to fall 23 per cent, as brokers on the floor of the New York Stock Exchange looked in vain for buyers at lower and lower prices. In today's high-speed world, crashes can come and go in moments, and trading firms can be taken to the brink of collapse by an errant piece of computer code. The FT's Stephen Foley speaks with Icap managing director Kenny Polcari, Getco chief technology officer Jon Ross and Canadian regulator Susan Wolburgh about how such events are influencing the marketplace.

Changes to clearing credit default swaps

Fri, 12 Oct 2012 06:14:00 GMT

G20 regulations are forcing deep-rooted change in the vast over-the-counter derivatives market with mandatory clearing of swaps. One of the biggest products to be affected are credit default swaps. Clive de Ruig, head of ICE Link, which processes CDS trades, explains the changes.

Fixing the message

Mon, 08 Oct 2012 16:54:40 GMT

The messaging systems used by the world's exchanges are becoming ever more important. The FT's Jeremy Grant discusses how such systems are developing in Asia with Edward Mangles, regional director for Fix Protocol in Asia.

Faster than a nanosecond

Wed, 03 Oct 2012 13:28:07 GMT

In high-frequency trading, speed is everything. The FT's Jeremy Grant talks to Matt Hurd, founder of Zeptonics, a company that makes components that work in extremely tiny fractions of a second.

Collateral damage

Tue, 25 Sep 2012 10:59:00 GMT

Regulators want more collateral to be posted to underpin trading but some schemes intended to alleviate the burden may bring new systemic risks. Jeffrey Tessler, chief executive of Clearstream, Deutsche Börse's settlement unit, tells Philip Stafford how banks will have to make more efficient use of existing collateral if they are to continue trading in their current form.

New capital requirements hit LSE

Fri, 28 Sep 2012 03:49:00 GMT

New rules requiring higher capital requirements for clearing houses hit shares in the London Stock Exchange on Friday. Lex's Julia Grindell and Nikki Tait discuss why this is short-term pain for the exchange for a longer-term gain.

Berlin takes on HFT alone

Wed, 26 Sep 2012 03:28:00 GMT

Germany has taken unilateral action to regulate high-frequency trading just as the European Parliament is set to endorse pan-EU plans to curb this sort of ultra-fast electronic trading. Lex's Stuart Kirk and Nikki Tait discuss why Berlin is going it alone and the difficulties of introducing Europe-wide regulation.

Asia Pacific tackles fragmented markets

Tue, 18 Sep 2012 10:50:00 GMT

Exchanges across Asia Pacific are addressing issues such as fragmentation of trading across rival venues, and high-frequency trading. Elmer Funke Kupper, chief executive of ASX, explains to Philip Stafford how the region's regulators are using their comparative immaturity to their advantage and why more open market structures are not offering the benefits they promised.

Clearing with confidence

Tue, 11 Sep 2012 02:34:00 GMT

New regulations for clearing of over-the-counter (OTC) derivatives could throw up more problems for investors. Jeff Gooch, chief executive of post trade services company MarkitSERV, explains why credit hubs may emerge.

Tagging trades

Thu, 16 Aug 2012 10:29:00 GMT

Global regulators want brokers and investors to use identity tags in trades so they can more closely monitor potential systemic risks in markets. The tags, known as Legal Entity Identifiers, are 20-digit alphanumeric codes intended to streamline the system. Virginie O'Shea, analyst at Aite Group, discusses the issue with the FT's Philip Stafford.

CME grasps European future

Mon, 20 Aug 2012 03:25:00 GMT

CME, the world's largest futures exchange operator, is setting up shop in London, in a challenge to Europe's biggest derivatives trading exchanges Liffe and Eurex. Lex's Stuart Kirk and Vincent Boland discuss why CME is eyeing Europe and its chances of winning significant market share.

Size matters

Thu, 16 Aug 2012 03:23:00 GMT

A new pan-European stock exchange for entrepreneurs is being planned by NYSE Euronext to plug the gap in funding for small companies and help them raise money from investors more easily. Lex writer Oliver Ralph tells Stuart Kirk, head of Lex, why he doesn't think it's a good idea

Rogue algos all too common

Thu, 09 Aug 2012 09:50:00 GMT

The errant Knight Capital algorithm has stoked a fierce debate about setting standards for technology in trading. Frederic Ponzo, managing partner at the capital markets consultancy GreySpark Partners, says stipulations for market operators are missing in Europe's Mifid 2 proposals, and with algo glitches occurring globally on a daily basis, regulators need to act.

Microwaving high frequency trading

Wed, 01 Aug 2012 01:38:00 GMT

In the perpetual search for faster trading, the latest tool for high frequency trading is point-to-point microwave links. Andy Young of Colt Technology Services explains to Philip Stafford how it will work, how much faster trades could be executed, and mounts a defence of microwave reliability.

Algo again

Fri, 03 Aug 2012 03:31:00 GMT

Investors' anxieties over volatile marktes compounded on Wednesday by a trading algorithm malfunction. It cost the brokerage company Knight Capital $440m. Lex's Stuart Kirk and Vincent Boland discuss the effect of another rogue algo on jittery markets.

Europe split on equities clearing

Fri, 13 Jul 2012 03:57:00 GMT

Greater choice in equities clearing in Europe has become a reality in the last year but the market is firmly split between those who offer interoperability and those who do not. Diana Chan, chief executive of EuroCCP, talks to Philip Stafford about whether Europe will open up any further.

Moving swaps trading to screens

Fri, 06 Jul 2012 02:26:00 GMT

US regulations are forcing upheaval in the swaps trading market. Trading is moving from phone to computer, new venues are being created and the industry is required to clear more of its trades than ever before. Jonathan Fieldman, chief operating officer at Broadway Technology, a US fixed income trading technology company, explains to Philip Stafford how these changes are more likely to alter market shares for existing players than to usher in high frequency swap trading.

SGX's derivatives push

Tue, 26 Jun 2012 12:59:54 GMT

Asian capital markets structures require local exchanges to take a very different approach to their western counterparts, according to Michael Syn, head of derivatives at the Singapore Exchange. He explains to Jeremy Grant how the bourse is looking to create new risk management products based on other asset classes.

High-speed trading costs outweigh benefits

Tue, 19 Jun 2012 11:57:00 GMT

The risks and costs associated with high frequency trading outweigh its benefits, according to Benoît Lallemand, senior research analyst at Finance Watch, an association it says represents the broader public's interests in financial reform. He explains to Philip Stafford what he feels regulation should be tackling.

Exchanges edge eastwards

Fri, 15 Jun 2012 03:24:00 GMT

Hong Kong Exchanges & Clearing is set to control the world’s largest metals market after the board of the London Metal Exchange recommended its £1.4bn ($2.2bn) bid. FT Trading Room's Philip Stafford and Julia Grindell of Lex discuss how this edges the power base of exchanges eastwards away from US and Europe.

Dangerous algorithms?

Mon, 11 Jun 2012 10:47:00 GMT

Technological progress makes algorithmic trading a must, according to Owain Self, global head of algorithmic trading at UBS. He explains also to Philip Stafford how more investors can now have their own algorithms tailored.

Regulating non-systemic risks

Tue, 29 May 2012 00:16:00 GMT

The losses at JPMorgan's CIO unit has renewed talk about banking regulation. Larry Tabb, chief executive and founder of the capital markets consultancy Tabb Group, explains to Philip Stafford, that the proposed new bank regulation in the US would probably not have prevented the JPMorgan shortfall and instead bank governance rules about risk strategies may need reviewing.

In defence of high-frequency trading

Tue, 22 May 2012 06:35:00 GMT

High-frequency trading is under fresh attack from European policymakers. However Remco Lenterman, chairman of FIA European Principal Traders Association, defends the industry's social utility to Philip Stafford, and calls some European proposals to curb their activities as "unprecedented".

Decision time for regulators

Tue, 15 May 2012 04:13:00 GMT

Regulators need to make some decisions on trade repositories if they are to meet a year-end deadline, says Dan Cohen, managing director government relations at the Depository Trust & Clearing Corporation (DTCC). He also explains to Philip Stafford how regulators in Asia are looking at European legislation as a model as they look to comply with G20 mandates.

Automated trading restrictions

Fri, 04 May 2012 05:39:00 GMT

Automated trading is facing new regulation. John Bates, chief technology officer at Progress Software, says hi-frequency trading is facing a clampdown despite little evidence that it is detrimental to markets. He explains to Philip Stafford of FT Trading Room how surveillance should operate across markets.

Growing technology

Mon, 30 Apr 2012 01:18:00 GMT

NYSE Euronext's fastest growing division, NYSE Technology, has been set a target to reach $1bn in revenue by 2015. Its chief executive Stanley Young explains to FT Trading Room's Philip Stafford how he plans to achieve it.

Markit strategy

Fri, 20 Apr 2012 09:38:00 GMT

Markit, the data and post-trade services provider, last year failed in its bid LCH.Clearnet, the Anglo-French clearing house. On this week's View from the Top Lance Uggla, Markit chief executive, explains to Philip Stafford of FT TRading Room what the company's strategy is now.

‘Useful trading’: Brussels told to listen

Mon, 16 Apr 2012 06:10:00 GMT

Judith Hardt, secretary general of the Federation of European Securities Exchanges, makes the case for "useful trading" and admits that her members must learn to "talk to" rather than "talk down" to politicians in Brussels about tougher regulations.

FX enters brave new clearing world

Tue, 10 Apr 2012 06:17:00 GMT

Roger Rutherford, FX products manginig director at CME, explains the issues facing FX traders as some business starts to go through clearing under new US and European regulatory mandates.

Clearing FX

Fri, 30 Mar 2012 01:37:00 GMT

As a part of the increased regulation of markets, some foreign exchange instruments will require clearing. Philip Weisberg of institutional foreign exchange trading platform FXall, explains to Jeremy Grant what that will mean for those involved in trading.

Risk checks in nanoseconds

Mon, 26 Mar 2012 10:44:00 GMT

Paul Ellis, chief operating officer and co-founder of Fixnetix, tells Philip Stafford about take-up by banks and investors of its super-fast trading chip, which can execute trades in nanoseconds. He also explains why the UK trading technology company agreed to NYSE Euronext purchasing a 25 per cent stake in February.