FT Trading Room

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.

Mifid 2 may hurt small investors

Mon, 19 Mar 2012 01:35:00 GMT

Brussels' review of Mifid will fail in one of its key aims - getting the best execution price of small and private investors. That's according to Michael Buhl, joint chief executive of the CEE Stock Exchange Group which owns the Vienna, Prague and Budapest exchanges. He tells Philip Stafford that mid-tier exchanges will be the first to take a hit when organised trading facilities or OTFs are introduced.

'Heat off' HFT

Mon, 12 Mar 2012 04:30:00 GMT

The move by some exchanges to clamp down on some types of trades is an 'odd move' according to Richard Balarkas, president and CEO of Instinet Europe, as he feels the case against high frequency trading has been weakening. He also discusses with Philip Stafford the findings of interim report on the UK equity markets by Professor John Kay.

Competition coming to swaps markets

Mon, 05 Mar 2012 21:54:49 GMT

Daniel Maguire, head of SwapClear US, tells Telis Demos, FT's markets reporter, that SwapClear will be making sure that standards remain and that companies will not compete on risk standards.

Who cares about Mifid?

Tue, 28 Feb 2012 03:06:00 GMT

The Markets in Financial Instruments Directive or Mifid, which has spawned a host of market structure changes such as equity market fragmentation and growth of "dark pools", is a huge topic for institutional investors. But Damian Stansfield, managing director of Halifax Share Dealing, says neither Mifid nor its sequel Mifid 2 are known to most retail investors, let alone considered in their share transactions.

Trading options in Australia fragment

Tue, 21 Feb 2012 03:14:00 GMT

Chi-X has been available on the ASX in Australia since November of 2011. Steve Grob, director of group strategy at Fidessa, discusses with FT Trading Room editor, Jeremy Grant, how fragmentation of trading options in Australia is developing.

Clearing Emir

Tue, 14 Feb 2012 03:47:00 GMT

Europe has just passed the European Market Infrastructure Regulation (Emir), new legislation that will force OTC derivatives through clearing houses. Leonard Ng, partner at law firm Sidley Austin, talks to FT Trading Room editor Jeremy Grant about "third country provisions" in Emir and Ddod-Frank that are worrying market participants

Clearing way as bourse merger era ends

Fri, 03 Feb 2012 11:32:00 GMT

Regulatory disapproval in Europe ended the proposed nuptials of NYSE Euronext and Deutsche Börse. Several other planned big exchange mergers have recently suffered the same fate. John Authers, Long View columnist, discusses with FT Trading Room editor Jeremy Grant, whether exchange consolidation is over, and where this leaves the London Stock Exchange, which is small despite its famous brand.

DB-NYSE may appeal market definition

Thu, 02 Feb 2012 01:10:00 GMT

NYSE Euronext and Deutsche Börse are considering appealing the European Commission's decision to block their proposed merger. Jeremy Grant, editor of FT Trading Room, talks to Philip Stafford about how the companies might frame their argument.

NYSE CEO doubts Deutsche Börse deal

Thu, 26 Jan 2012 23:43:22 GMT

NYSE Euronext chief executive Duncan Niederauer discusses his attempted tie-up with Deutsche Börse and admits a "low probability of success" after Brussels officials blocked the deal this month. The FT's Veronica Kan-Dapaah reports from Davos, Switzerland.

LatAm emerges as trading hotspot

Tue, 24 Jan 2012 10:47:00 GMT

Latin America is rapidly emerging as a hotspot for trading of shares and derivatives by domestic and international players. Philippe Carre, global head of connectivity at SunGard, talks to FT Trading Room editor Jeremy Grant about why the spotlight is on the region.

More clarity on client side clearing

Fri, 20 Jan 2012 11:40:00 GMT

As Brussels debates the European Markets Infrastructure Regulation, the buyside has more clarity on how OTC derivatives clearing requirements will affect asset managers. Jane Lowe of the Investment Management Association, discusses progress.

Another year of big changes for markets

Tue, 17 Jan 2012 14:51:13 GMT

Alison Crosthwait, managing director for global market structure research at Instinet, tells the FT's Telis Demos that, whether you are on the buy side or the sell side, 2012 will be a tough year for investors.

What happens if DB/NYSE fails?

Thu, 12 Jan 2012 04:58:00 GMT

Antitrust regulators in Brussels have recommended that the Deutsche Boerse-NYSE tie-up be blocked. Jeremy Grant and Philip Stafford of FT Trading Room discuss the implications.

Asia not the HFT haven people think

Tue, 03 Jan 2012 11:56:00 GMT

Asia is no stranger to high-frequency trading but Steve Edge, principal of Asiaetrading.com, a market structures, news and commentary portal, says transaction costs are still too high to attract the kind of HFT activity levels that we've seen in the US and Europe. He outlines to FT Trading Room editor Jeremy Grant the state of HFT in Asia, what trades are undertaken and where.

Mid caps go dark

Thu, 22 Dec 2011 10:05:00 GMT

It's been suggested that exchanges are winning back market share from dark pools. However Tony Nash, head of execution services at Espirito Santo, explains to Philip Stafford that trading on these off-exchange venues is maturing and beginning to include mid cap stocks.

Access to exchange finance for SMEs

Mon, 19 Dec 2011 11:25:00 GMT

There is a concern that small and medium sized enterprises are not getting access to the funding they need via stock exchange listings. Peter Clifford, deputy secretary general of the World Federation of Exchanges, the trade association for all the world's regulated exchanges, discusses whether this is the case and what exchanges are doing to encourage SMEs to come to the market.

High frequency hitting investor trust?

Mon, 12 Dec 2011 06:25:00 GMT

Jim McCaughan, chief executive of Principal Global Investors, claims high-frequency trading is denting investor trust in markets. Talking to FT Trading Room’s Philip Stafford, he blames increased volatility and a lack of transparency.

Can clearing houses cope in real time?

Tue, 06 Dec 2011 00:24:00 GMT

In times of market and political uncertainty are clearing houses able to cope with risk management in real time? Christian Lee, head of the clearing practice at Catalyst, talks to Jeremy Grant, editor of FT Trading Room, about how clearing houses are looking to upgrade their risk management systems.

Asia welcoming to high-frequency trading

Mon, 28 Nov 2011 06:10:00 GMT

High-frequency trading has less of a stigma attached to it in Asia, according to global head of wholesale services at Citi, Jack Vensel. He also tells Jeremy Grant, FT Trading Room editor, which exchanges are leading development.

Satyajit Das queries the clearing model

Mon, 21 Nov 2011 04:18:00 GMT

Regulators have found a new way of killing the derivatives market, so says author of 'Extreme Money: The Masters of the Universe and the Cult of Risk', Satyajit Das. He explains to Jeremy Grant, FT Trading Room editor, that the goal to deal with counterparty risk between derivatives traders and also system risk is a good one, unfortunately the execution plan is "awful".

Report: big banks lose in derivatives reform

Thu, 17 Nov 2011 19:06:59 GMT

Kevin McPartland, director of fixed income research at Tabb Group, tells the FT’s Telis Demos about how swap dealers business will change because of Dodd-Frank. Tabb's report says big banks expect profits to decline in their derivatives business and that technological advances will change the way swaps are traded.

Volatility pays

Wed, 16 Nov 2011 11:37:00 GMT

Volatility in the markets has helped London Stock Exchange beat expectations with its interim profits. Lex's Vincent Boland and Nikki Tait discuss how the LSE has achieved this in an industry in flux thanks to advances in technology, consolidation and restructuring driven by post crisis regulation.

US financial lobby says reform years away

Sun, 13 Nov 2011 18:20:03 GMT

John Taft, chairman of the Securities Industry and Financial Markets Association, talks regulation with Gillian Tett, the FT's US managing editor, and explains why he believes that we are still three to five years away from the implementation of the Dodd-Frank reforms.

Back office inefficiencies

Tue, 08 Nov 2011 00:01:00 GMT

Recent banking crises and scandals have shown the back offices of investment banks do not have the same controls and procedures as the front of the operation. Fabian Vandenreydt, head of securities markets at Swift, the payments messaging system, talks to the FT's Philip Stafford about these inefficiencies.

Brokers dealing with regulations

Wed, 02 Nov 2011 00:28:00 GMT

David Clark, chairman of the Wholesale Markets Brokers' Association explains to Philip Stafford why differences in global regulatory approaches may mean inter-dealer brokers need to adopt differing business models for each jurisdiction.

Algorithms will defeat regulators

Mon, 24 Oct 2011 03:48:00 GMT

The algorithms which drive high-frequency trading are being demanded by regulators. Larry Tabb, founder and chief executive of Tabb Group, the capital markets consultancy says regulators don't currently have the tools to scrutinise such markets.

Seeing in the dark

Fri, 21 Oct 2011 10:42:00 GMT

Dark pools face greater scrutiny by regulators. These off exchange trading venues, where prices are only revealed on completion should not be expected to be more transparent, argues Seth Merrin, chief executive and founder of Liquidnet, one of the world's largest dark pool operators. He explains why some pools are darker than others and those which trade for institutions rather than retail investors and in greater bulk than exchanges and at better prices should be exempt from new rules.

Chief regulator on US derivatives reform

Tue, 18 Oct 2011 19:07:29 GMT

Gary Gensler, the chairman of the Commodities Futures Trading Commission, tells the FT’s Telis Demos that increased transparency is necessary in the derivatives market despite the industry's concern that some of the proposed rules could impact market liquidity.

Battle over derivatives rules intensifies

Mon, 17 Oct 2011 23:16:28 GMT

After more than a year of debate, the details of how derivatives will be traded in a post Dodd-Frank world are finally taking shape. The FT's Telis Demos speaks with key players including Gary Gensler, chairman of the Commodity Futures Trading Commission, and Michael Gooch, the chief executive of GFI Group.

A data demand too far

Mon, 17 Oct 2011 11:47:00 GMT

Data overload, or in the case of the forthcoming Markets in Financial Instruments Directive (Mifid) review, data over-demand - that's what's required from market participants and infrastructures so regulators can evaluate trading efficiency, transparency and safety. PJ Di Giammarino, chief executive of think tank JWG Group, explains to Jeremy Grant, FT Trading Room editor, why the demand for data has exploded and why this is much too much.

Why speed is important

Mon, 10 Oct 2011 10:12:00 GMT

Lars Ottersgård, head of Nasdaq OMX Group's technology division, talks to Jeremy Grant, editor of FT Trading Room, about selling trading technology to emerging markets and why speed is important.

Europe 18 months behind US regulators

Mon, 03 Oct 2011 00:10:00 GMT

The implementation of financial regulation in Europe is 18 months behind the United States, according to Jeff Gooch of MarkitSERV. The chief executive of the post trade processing company explains to Jeremy Grant, FT Trading Room editor, the likely timetable for the Dodd-Frank reforms in the US and in Europe under the European Market Infrastructure Regulation (Emir) and Markets in Financial Instruments Directive (Mifid).

RTS-Micex won't stifle competition

Mon, 26 Sep 2011 01:03:00 GMT

The merger of RTS and Micex creating Russia's largest stock exchange has raised concerns it will stifle competition. Ruben Aganbegyan, who'll be chief executive of the combined group, explains to Philip Stafford that there is very little risk of an anti-competitive 'vertical silo' being created.

Regulators must cooperate to avoid data gaps

Mon, 19 Sep 2011 11:30:00 GMT

International regulators and central banks have warned that moves to shore up the vast over-the-counter derivatives market could be undermined by potential data gaps in trade repositories, the information warehouses that store details on trades. Larry Thompson, general counsel of the Depository Trust & Clearing Corporation, tells FT Trading Room's Philip Stafford there needs to be global harmonisation among all regulators.

How to improve surveillance of trading

Fri, 16 Sep 2011 05:58:00 GMT

Matthew Coupe of Redkite outlines the difficulties facing regulators and companies to monitor high-frequency trading and possible fraud, and ways to improve surveillance.

ISDA chair warns on derivatives rules

Thu, 15 Sep 2011 16:09:31 GMT

Stephen O'Connor, the chairman of the International Swaps and Derivatives Association and a managing director at Morgan Stanley, tells the FT’s Michael Mackenzie that Dodd-Frank derivatives rules could impose different regulations across borders, which would impact banks caught in the middle and potentially be bad for liquidity.

Greek short selling ban

Mon, 12 Sep 2011 03:16:00 GMT

Greece's sovereign debt crisis continues to concentrate the minds the eurozone's leaders. Socrates Lazaridis, chief executive of Hellenic Exchanges, explains to Jeremy Grant, FT Trading Room editor, how the crisis has effect trading conditions, with share prices falling but transactions increasing and no evidence of foreign capital fleeing the market.

Vertical or horizontal?

Tue, 06 Sep 2011 03:41:00 GMT

Exchange ownership of clearing houses, the so-called vertical silo, and whether it undermines competition is a hot topic thanks to the Emir and Mifid reforms in Europe, and the proposed Deutsche Börse-NYSE Euronext combination. Jeffrey Wallis, managing partner at consultancy SunGard Global Services makes the case for and against.

Canada should think global

Fri, 26 Aug 2011 05:19:00 GMT

The London Stock Exchange and TMX Group abandoned their planned merger in June, leaving the way open for a Canadian consortium to buy TMX. The two parties are discussing a merger which must pass antitrust scrutiny in Canada. Renée Colyer, chief executive of Forefactor, a Toronto-based capital markets consultancy, argues that even though it is a local deal, Canada's market infrastructures would still benefit from being globalised.

Regulation uncertainty slows adoption

Wed, 17 Aug 2011 03:48:00 GMT

Uncertainty over what the US Dodd-Frank act will mandate for clearing is slowing adoption of clearing platforms. Michael Davie, chief executive of SwapClear, the LCH.Clearnet-owned clearing service, tells Jeremy Grant, FT Trading Room editor, that he expects the majority of over-the-counter (OTC) derivatives products will be eligible for clearing on its platform.

Markets pass test

Thu, 18 Aug 2011 10:08:00 GMT

The extraordinary volatility on the world's markets in recent weeks has tested the robustness of market infrastructure as well as participants' nerves. Hugh Cumberland, senior consultant at trading technology company Colt Enterprise Services, explains to Philip Stafford how exchanges, technology companies and high frequency traders will all take new insights from the rapidly-shifting sentiment.

Turquoise technology speeds through volatility

Mon, 15 Aug 2011 00:09:00 GMT

Turquoise, the multilateral trading facility operated by the London Stock Exchange and several banks, had some glitches when it upgraded its trading technology late last year. However, as its commercial director Natan Tiefenbrun tells Jeremy Grant, FT Trading Room editor, the platform has coped well during the recent market volatility.