FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Webinar: Road to Brazil – DMA to BM&FBOVESP March 23, 2011

Join us for this interactive webinar on Wednesday, March 23rd to learn more about why BM&FBovespa is to become more than simply the largest exchange in Latin America.  As Direct Market Access technology has improved, co-location facilities have been set in place. As regulations for foreign investors become more attractive and commodity prices are soaring, trading firms from the US, Europe and Asia are seeking to access and trade Brazil.

Also, hear from our speakers why Brazil has been so successful in the past and how market participants are ramping up their offering to fully profit from Direct Market Access opportunities.

Key Topics will include:

  • Why Brazil?
  • Technology: Type of Market Access, Connectivity, Co-location and Trading Systems
  • Costs of Trading: Accounts, Regulation, Taxes, Custodian, Clearing and Settlement
  • Timeline and Key Milestones

Our webinar will be moderated by Chris Hall, Editor of THE TRADE.

Panelist will include:
Lucy Pamboukdjian, International Business Development Manager, BM&FBovespa
Sergio Parodi, Market Data & DMA Team Leader,  BM&FBovespa
Evandro dos Reis, Jr., Director, Co-head Latin America, Clearing & PTG, Newedge Group
Timo Pentner, Managing Director, RTS Realtime Systems

Wednesday, March 23rd
11:00 am Chicago
12:00 am New York
1:00 pm Sao Paulo
4:00 pm London
5:00 pm Frankfurt

Filed under: BM&FBOVESPA, Brazil, Events, Exchanges, FIX Connectivity, News, Trading Technology, , , , , , , , , , , , ,

Itaú Unibanco Asset Management Live on the Charles River FIX Network

Direct access to Brazilian brokers and international liquidity venues; automates trade execution.

January 5, 2011 – Charles River Development (Charles River), a front- and middle-office investment software solutions provider, today announced that Itaú Unibanco Asset Management (Itaú), the largest privately-owned asset manager in Brazil with more than US$ 128 billion of assets under management, is live on the broker-neutral Charles River Network for real-time, electronic trading via FIX (Financial Information eXchange). Itaú leverages Charles River’s low-cost, internet based Virtual Private Network solution for instant access to local sell-side brokers and global liquidity venues. Itaú is one of the first Brazilian buy-side firms to use the FIX protocol for accessing algorithmic trading strategies and handling block trades.

Itaú has been conducting a multi-phased roll-out of the Charles River Investment Management System (Charles River IMS) since 2008. This project, delivered on time, is part of Itaú’s initiative to eliminate manual trading processes and have a single, consolidated platform for order management and electronic trading. Itaú plans to connect its multi-market desks across Latin America to the Charles River Network, allowing traders in Santiago, for example, to execute trades in São Paulo via FIX.

Before Charles River IMS, Equity traders had to manually input trades in spreadsheets and send the orders to brokers, following-up with them over the telephone. Now, they can execute equity instruments in real-time directly from the Charles River Trader Blotter, sending a high volume of orders to local brokers and international liquidity providers, and automatically receiving execution details. The traders no longer rely on spreadsheets and instead of receiving a telephone call, all transaction details – prices, time stamps, fills and more – are instantly recorded in Charles River IMS.

Support for algorithmic trading was critical to the project. Itaú’s traders can directly access local and regional algorithmic strategies, assign algorithms to block trades, and route high-volume block orders to sell-side brokers. In addition, Itaú’s Quantitative traders can leverage proprietary algorithms and high frequency trading ideas for local executions directly from the Trader Blotter.

“Sell-side firms in Brazil are paying closer attention to domestic order flow – offering the buy-side more sophisticated algorithms and execution tools,” said Spiros Giannaros, Vice President-Americas, Charles River Development. “As electronic trading continues to evolve in Brazil, early adoption of the FIX protocol and implementation of Charles River’s integrated trading solution give Itaú a competitive edge. Charles River IMS allows Itaú to meet growing customer demands by increasing investment management capabilities, streamlining processes and reducing operational risk across the board.”

Charles River serves over 300 diverse investment management clients worldwide, including over a dozen firms across Brazil, Chile, Mexico and Panama. These include three of Brazil’s top 10 asset managers and the country’s leading fund administrator, as well as global investment firms establishing their footprint in the region.

Source: Charles River Development, 05.01.2011

Filed under: Brazil, FIX Connectivity, Latin America, Trading Technology, , , , , , , ,

Metabit launches simulator for new Osaka Stock Exchange

As the industry eagerly awaits the launch of the Osaka Stock Exchange on 14 February 2011, Metabit has been authorised and licensed by NASDAQ OMX to build an exchange simulator against their OMNetAPI.  Metabit has leveraged its extensive experience of exchange simulation to launch Exsim for J-GATE on the 2nd of December, enabling sell side organisations to comprehensively simulate the new exchange’s APIs, prior to the exchange going live.

Daniel Burgin, CEO of Metabit, commented:

“We are delighted to be the first software vendor to launch an exchange simulator for J-GATE.  Companies will need to thoroughly test out different transaction scenarios before J-GATE goes live and after, when Exsim becomes an integral part of a broker’s internal testing facilities.  Exsim for J-GATE will enable them to do so realistically and effectively as well as supporting the onboarding process for the broker members’ institutional buyside clients on an ongoing basis.”

Exsim for J-GATE is independent of geographical location and time zones.  Organisations using Exsim can simulate the behaviour new J-GATE API for order execution as if were up and running now.

Metabit is headquartered in Japan, with offices in Australia, Hong Kong and Mainland China.  For further information about how Exsim for J-GATE could help your organisation, please contact Kenichi Morita on +81-3-3664-4160, mail or see

Source: Metabit, 24.11.2010

Filed under: Exchanges, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , ,

Metabit -Asia’s Trading Hub- Rebrand Marks 10th Anniversary

Metabit is celebrating its tenth anniversary in Tokyo on the 6th October 2010.  In acknowledgement of this milestone, the company which specialises in intuitive institutional trading platforms, exchange connectivity and a well established trading community, has commissioned a new corporate identity, website and advertising campaign.  These are to be launched at The FPL Japan Electronic Trading Summit 2010 on 6th October.

Daniel Bürgin, CEO of Metabit commented:

“We wanted to bring home to our clients and the market at large that our systems have been built out of Asia, for Asia.  It was important to demonstrate our intimate knowledge and understanding of Asian markets.“

“Metabit’s new brand image had to not only represent our commitment to Asia, but demonstrate our unique approach to client solutions and innate dynamism.  Our new positioning, Think Asia, Trade Asia, was developed to convey who we are and our area of speciality.”

A new advertising campaign will also be launched at the conference.  Metabit’s Metamorphosis Campaign, which features a butterfly with a map of Asia superimposed upon its wing, was chosen to symbolise the way in which the company operates. Bürgin continues:

“We wanted an original look that represents our approach. The metamorphosis theme was chosen to reflect the way we help clients transform and develop their business, enabling them to trade effortlessly and efficiently.”

Metabit has four offices in Japan, Australia, Hong Kong and Mainland China.  For more information about Metabit, visit or see the company at Stand 9 at the FPL Summit in Tokyo.

For more information, contact Claus Kwon on +852 3752 0674 or Kenichi Morita on +81-3-3664-4160 or mail to .


Filed under: Asia, Australia, China, FIX Connectivity, Hong Kong, Japan, Market Data, News, Trading Technology, , , , , , , , , , , , , ,

Rapid Addition Wins Bolsa de Valores de Colombia BVC

Rapid Addition, the leading global provider of low-latency trading technology solutions to financial institutions, today announced its engagement with the Bolsa de Valores de Colombia (BVC) to implement GRHub, Rapid Addition’s flagship FIX Protocol gateway and order routing hub, and u-Trader, Rapid Addition’s web-based, FIX-enabled dealing system.

u-Trader is Rapid Addition’s lightweight buy-side trading application, which connects traders to multiple trading counterparties, either brokers or execution venues. Using u-Trader gives institutions the ability to automate their flow of equity orders, equity options, program, list, and portfolio trades, and also supports Direct Market Access (DMA) and algorithmic trading.

Rapid Addition was chosen by the BVC on the basis that they could exceed the low latency performance requirements of BVC’s exchange members.

Toby Corballis, CEO of Rapid Addition, welcomed the announcement, saying:

“We are delighted to be working with the BVC by providing them with the lowest latency hub solution available on the market today. This will enable the exchange to give its users the best possible performance and help them maintain their competitive edge in the market.”

Jitendra Puri, Vice President of Technology of the Bolsa de Valores de Colombia, said:

“By choosing a firm of Rapid Addition’s industry-leading reputation, we wish to send a clear message to the community that we are totally committed to providing a fully modernized, state-of-the-art solution for the Colombian securities market. Rapid Addition’s expertise in global FIX connectivity and low-latency FIX trading technology made them the best choice for the BVC as we look to expand our offerings internationally.”

Source: A-TEAM GROUP, 23.07.2010

Filed under: Colombia, Exchanges, Latin America, News, Trading Technology, , , , , , , , ,

MetaBit Trading Technology and Services opens Hong Kong Office

Tokyo/Hong Kong, 18 May 2010 – Specialist DMA and exchange connectivity solution provider MetaBit opens its Hong Kong office in May 2010 as part of its business expansion in Asia.
The new Hong Kong office represents a further strategic milestone for MetaBit to accelerate the expansion of its rapidly growing Asian client base and support its strategic objective to service Asia’s financial markets with localized and low latency trading solutions.  The Hong Kong office will promote and support institutional DMA, algo and manual trading across fourteen Asian markets.
MetaBit have also announced the appointment of Claus Kwon as managing director for the Asia Pacific ex-Japan business.
“I am very pleased to have Claus Kwon taking responsibility to further expand MetaBit’s business outside Japan” says Daniel Burgin, CEO at MetaBit.  “With Mr Kwon’s appointment, MetaBit continues to proactively build on its success and reputation earned through the quality of its technology and MetaBit’s continuous efforts in helping its clients achieve greater trading efficiency. Headquartered in Tokyo, our company is firmly rooted in Asia.  The addition of the Hong Kong office strengthens MetaBit’s ability to deliver the best solution with service catered for local needs.”
“I am excited to be joining MetaBit as their business expands in the region and as electronic trading continues to develop at an incredible rate in Asia,” says Mr Kwon. “MetaBit has a history of delivering innovative electronic trading solutions to both global and local clients in the Asia markets. Whilst MetaBit’s solutions are global by underlying technology, their unique infrastructure supports businesses that are serious about their Asia operations and want to stay competitive in this market.”
Today, MetaBit covers all of Asia’s DMA and Algo markets through its flagship trading platform XiliX, its vendor neutral FIX hub MLH (Market Liquidity Hub), and Alpha, its ultra-low latency exchange connectivity solution.
With the opening of a Hong Kong office, MetaBit – a pro-active promoter of the FIX Protocol – has formally joined the FPL.
About MetaBit –
MetaBit is a specialist low latency DMA trading solution provider in Asia reducing transaction processing times and  increasing trading opportunities by providing FIX enabled DMA and algorithmic trading access to market liquidity across fourteen Asia’s markets, including Japan.
MetaBit’s flagship products are the XiliX™ intuitive buy side DMA trading platform and MLH, a vendor neutral Market Liquidity Hub. Other products are Alpha, ultra-low latency exchange connectivity to Japan’s exchanges and EXSiM – Japan exchange simulators.  All of MetaBit’s products are powered by the CameronFIX Engine.

Source: Metabit, 18.05.2010

Koji Ito

Filed under: Asia, Australia, FIX Connectivity, Hong Kong, India, Japan, Korea, News, Singapore, Trading Technology, , , , , , , , , , , , , , ,

Latin American Electronic Trading: Caliente!

Latin America, dominated by Brazil and Mexico, is growing faster than fortune seekers from the global exchanges, banks and vendors can fly south.  The major stock markets were up 400% over the last decade, and the Brazilian derivatives market, BM&F, is now the sixth largest derivatives market in the world with growth of 67% in Q1 2010. In March 2010 the number of single stock option contracts traded on the Brazilian derivatives exchange BM&F passed the number of contracts traded on CBOE, ISE or NasdaqOMX.

Brazil and the rest of Latin America have not received the same adulation as other emerging market rock stars.  This changed in 2009, as Brazil emerged early and unscathed from the worldwide financial crisis.

Latin America’s time has now come. In the last two years, major exchanges have gone public, trading volumes have soared, brokers have rushed to deploy electronic trading services, early mover technology vendors have racked up impressive sales, and high frequency trading has begun.

Proprietary trading shops of local banks co-located at the exchanges battle it out with traders who have just flown in from Chicago.  Brokerage firms rush to deploy new algorithms to their buy-side clients. Exchanges play “hard to get” with global exchanges eager to bolster their emerging market credentials. Local technology vendors with relationships try to keep out foreign vendors with advanced technology. Brazilian bankers migrate back from New York to Sao Paulo because the bonuses are better. And everyone’s trying to arbitrage local stocks against American Depository Receipts.

This report is your map.
Latin America. Caliente!

This 41-page PowerPoint report focuses on the two largest markets Brazil and Mexico, but also covers Chile, Argentina, Peru and Columbia. The report covers both equity and listed derivative markets.

The report is divided into these sections:
Overview of the economies in the region, and stock market performance.
Exchange trading volumes – Data on size and growth rates of Latin American exchanges with a focus on BOVESPA (Brazil equities), BM&F (Brazil derivatives) and Mexico Exchange.
Exchanges – Review of the current state and future plans of the major exchanges in each market, including BM&FBovespa. Mexico Exchange, Santiago Exchange (Chile), and Argentinian exchanges. Technologies used internally, trading systems and networks offered to clients, partnerships such as BM&F and CME, regional alternative marketplaces.
Brokerage – Local and international equity and derivative brokers, recent acquisitions, technologies used in house and offered to clients.
Three case studies of local brokerage firms showing what in-house and vendor trading technologies they use and offer to clients.
Buy Side – Data on the types of asset management firms and what assets they own. Pension funds/hedge funds/retail investors/proprietary trading groups/foreign investors. Trading software and network vendors used by the buy side, including both local and foreign vendors.
Technology vendors – Market shares by OMS technology vendor, including local and global vendors. Usage of OMS, EMS, equity and derivatives systems, market data and network connectivity. Including local vendors CMA, Extol, Cedro, Estado, Apligraf and international vendors GL Trade, Bloomberg, Reuters, Fidessa, Marco Polo Networks, Charles River RTS, Pat Systems, Trading Technologies, CQG, TradingScreen, NYSE Technologies/NYFIX, BT Radianz, Progress Software Apama, Streambase.  In-depth information about local OMS, market data and network vendors CMA and Extol.
High frequency trading – Data on the growth of DMA/algorithmic trading/high frequency trading in Brazil during the last two years across both equity and derivatives trading. Review of what high frequency or algorithmic services exchanges and brokers provide. Case study of a high frequency trading firm in Brazil, with detail on the technologies used
Merger & Acquisition targets – local technology vendors with potential to be acquired.

About the Author
Martin Koopman has worked in the securities trading industry as President Cameron Systems, President North America Orc Software, CEO FMO Pty Ltd and as a consultant with The Boston Consulting Group. He lives in New York City and can be contacted at

Source: TABB Group, 28.04.2010

Filed under: Argentina, Brazil, Central America, Chile, Colombia, Exchanges, FIX Connectivity, Latin America, Mexico, News, Peru, Trading Technology, , , , , , , , , , , , , , , , ,

CMA announces LatAm Investments available on Trade HUB

CMA the leading Market Data, Order Management and Connectivity provider of Latin America continue to grow its ON-NET LatAm capital markets community of participating exchange trading institutions announces the addition of LatAm Investments to the CMA Trade HUB.

Rapid expansion of cross boarder trading preceded by exponential growth with the Mexican, Brazilian and other regional LatAm exchanges have been brought together through a mutual interests in multi-asset, multi-regional trading strategies. Recognizing the need to bring trading communities together from Europe and North America with key South American banks and broker dealers, CMA has developed a global network that certifies trading protocols and provides a deep set of Latin American market information for real-time trading of equities, options, futures and foreign exchange.

LatAm Investments, LLC is the latest organization to join CMA’s Global Trade HUB global network. LatAm Investments is a key player enabling North American and European institutions looking to send order flow South-Bound while providing essential expertise in the US markets for Latin American firms routing order flow North-Bound.

“CMA provides a strong foundation for our firm’s trading strategies with clients as they are able to provide all of the tools, market information and reach we require to access our key market opportunities and customers,” said Mr. Joe Cantatore, SVP of LatAm Investments, LLC. “CMA’s expertise is unique in market data, order management and the level of understanding to help enable client connections within the Latin American capital markets community. Through our partnership with CMA, we can offer more flexible and profitable relationships with our primary market participants” Mr. Cantatore adds.

Source: CMA, 21.12.2009

Filed under: Brazil, Chile, Data Management, Latin America, Market Data, Mexico, News, Trading Technology, , , , , , ,

Dark Pools: HKEx chairman slams dark pools

Ronald Arculli joins the ranks of those criticising alternative trading platforms for creating an unfair playing field.

Much has been said and written in recent months about dark pools, and on Wednesday the chairman of Hong Kong Exchanges and Clearing threw his hat into the ring. Not surprisingly, Ronald Arculli is not in favour of such trading platforms, which only require prices to be published after a transaction is complete.

He set out his stall in a speech at the Foreign Correspondents’ Club in Hong Kong titled ‘Roles and Challenges of Stock Exchanges’. Highlighting the benefits of exchanges (good risk management, transparency, liquidity fairness, a reliable infrastructure and central counterparty services, among other things), he said they demonstrated their worth during the crisis: “Almost all exchanges continued to function normally and remained open during the turmoil.”

Arculli also remarked that governments worldwide have recognised the “unique value” of exchanges, with a number of moves afoot to standardise over-the-counter contracts and move them onto exchanges. This is in stark contrast to well publicised concerns of regulators, such as the US Securities and Exchange Commission, as to whether dark pools create unfair advantages for some in the market. Arculli believes they do and clearly outlined his concerns.

Firstly, these platforms lack transparency, as they show buy and sell orders and deals that are not transparent or available to the general investing public, he argued, effectively creating a two-tiered market. They are typically run by broker-dealers and large market-makers looking to save on transaction costs and fees, and do not alert the broader market of impending deals which could affect a stock’s equilibrium.

Powerful technology can be used to conduct high-frequency algorithmic trading in dark pools through both on- and off-exchange platforms to profit or arbitrage on small price differences, said Arculli. This has resulted in dark pools accounting for 12% of market trades in the US now, up from 1.5% just five years ago, while in Europe they account for some 4% of equity trades. In Asia, these venues make up a much smaller percentage of the average daily turnover, he added, but in a globalised marketplace, they still raise significant concerns.

Besides transparency, another issue is that the proliferation of alternative platforms means liquidity is increasingly fragmented, diverting volumes away from publicly traded exchanges, he said. Smaller companies may suffer as high-frequency traders tend to prefer larger, more liquid shares. Such fragmentation not only affects effective price discovery, said Arculli, but also increases price volatility and adds to surveillance difficulties.

Moreover, the lack of regulation and transparency of dark pools could result in notable systemic risk, he said, citing the problems surrounding Lehman Brothers and AIG last year. “As dark pools typically lack a central counterparty, the default of a large participant could have severe consequences on market stability,” he said.

In addition, these platforms raise concerns over company ownership. “Arguably when shares are held only for fractions of a second, it is no longer about participating in the ownership of a company or ensuring it is well run,” he said. “The opaqueness of trading, and its fragmentation have negative implications for effective corporate governance.”

Arculli suggests the rise of such platforms set up by investment banks might indicate a trend towards the re-mutualisation of stock trading. Originally stock exchanges tended to be set up as associations by their trading members, he said, but have since de-mutualised and become commercial, often listed, corporate entities to better serve their stakeholders.

“Now as the bigger trading participants are getting together again to create their own networks, is the trend reversing?” said Arculli. “Complicating matters even further, some exchanges have decided to join the fray and team up with large institutions to set up their own dark pools.” Singapore Exchange’s recent tie-up with Chi-X is one such example. Other trading platform providers, such as Liquidnet, are also working on expanding into Asia.

Arculli went on to say that regulators in the EU and the US have been reviewing dark pools and considering stricter measures to ensure a fair and stable trading environment. Investors — especially institutional ones — are seeking better, faster and cheaper services for more computerised methods of trading. Hence, he added, exchanges must continue to offer better execution and more efficient pre- and post-trade services to stay competitive, while protecting investors.

Despite his worries, Arculli, said, competition is welcome. China, for example, has the capacity and the need for more than one successful financial centre. But he added a caveat.

“We welcome challenges that strengthen our markets and make them more effective and efficient,” said Arculli. “But we are concerned by those that increase systemic risk or disadvantage a certain segment of investors to the benefit of others.”

Source:, 11.12.2009

Filed under: China, Exchanges, Hong Kong, News, Risk Management, Singapore, Trading Technology, , , , , , , , , , , , , , , , , ,

Liquidnet adds Metabit to its network / リクイドネットの発注管理システムネットワークにメタビットが接続

Lquidnet Japan, the global institutional marketplace, announced today that it has completed the system connectivity development with MetaBit, a Japan-based financial solution provider for institutional investors. Through MetaBit’s intuitive XiliX trading platform, MetaBit users can now join Liquidnet’s 592 Members (as of September 30, 2009) that trade large blocks of stocks among themselves anonymously, with significantly reduced transaction costs. Liquidnet’s patented technology allows institutional asset managers to link order management systems, giving buy-side traders a first look at the world’s largest pool of natural liquidity.

We are pleased to have established connectivity with Liquidnet,” said Daniel Burgin, CEO of MetaBit. “By enabling access to the Liquidnet system, our clients will have the opportunity to expand their block trading capacity to help achieve best execution.”

“We are very excited to partner with MetaBit, a well-respected financial technology provider that services some of the largest and most sophisticated asset managers in Asia,” said Lee Porter, head of Liquidnet Asia. “There is a strong interest among Asian institutions to be considered for inclusion in our marketplace. This agreement will allow those firms that join our marketplace to realize the effectiveness of our trading platform.”

In the third quarter of 2009, Liquidnet had an average trade size in Asian equity securities of US$897,829 which, in some cases, represented several days of average daily volume in some stocks. Despite the challenge of sourcing liquidity of that size, Liquidnet Members traded 95% of transaction within the bid/ask spread and 65% at the mid-price.

Also in the third quarter of 2009, Liquidnet continued to build momentum in the region, as it set quarterly records for principal traded and the number of executions. Liquidnet’s average daily liquidity in Asian equity securities increased over 10% quarter-over-quarter, as a result of the participation of 155 live Members in our system.

Source: Meta-Bit Systems, 01.12.2009







Filed under: Asia, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , , , ,

CMA launches Latin America algo trading offering

CMA the leading Market Data, Order Management and Connectivity provider in Brazil has officially launched CMA Algoritmos onto its Trade Hub platform.

CMA can now provide algorithmic trading as a part of its portfolio of leading LatAm capital markets services and applications. CMA product offerings are currently in use throughout Latin America by over 17,000 workstations, 75 brokers with access to over 100 global exchanges.

CMA Algoritmos is a sophisticated suite of solutions particularly designed for and by the Brazilian trading market with uses throughout Latin American, Europe and North America. The user simply defines trading strategies, customizes triggers while being able to utilize many common methodologies such as SpreadMaker, VWAP, TWAP, QuickBasket, Best Offer, Volume Tracker and Financial Summary as a few examples.

CMA has enabled Algoritmos onto CMA Trade Hub, the largest network of services and applications utilizing all versions of FIX in Latin America, so that any interested trading party Buy-Side or Sell- Side in North America, Europe or beyond would have instantaneous access to broker dealers for execution.

The CMA services and applications on Trade Hub are utilized by more than 17,000 workstations from 60 brokers and many of their clients in Brazil as well as 15 other brokers and their clients throughout: Argentina, Chile, Peru, Colombia, Mexico and Spain. The addition of Algoritmos makes trading Equities, Futures, Options and Foreign eXchange in Latin American Capital Markets even more lucrative.

Source: FINEXTRA, 23.11.2009

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Exchanges, FIX Connectivity, Latin America, Mexico, News, Peru, Trading Technology, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

UBS launches international algo trading in Brazil

The global Equities business of UBS (NYSE: UBS) today announced the launch of algorithmic trading for international clients trading equities on the Bovespa stock exchange in Brazil.

UBS is among the first broker-dealers to offer non-Brazilian clients algorithmic trading in this major market.

UBS is launching this offering for international clients who trade Brazilian securities with three popular algorithms: Volume Weighted Average Price (VWAP); Time Weighted Average Price (TWAP); and Volume Inline, a strategy that enables an investor to execute an order correlated to available liquidity. Execution algorithms are complex quantitative electronic trading formulae that clients can use to manage and tailor their equities orders. UBS clients can use these algorithmic trading strategies to quickly and efficiently send their electronic orders directly to the Bovespa, without passing them through an intermediary.

In July 2008, UBS was among the first international brokers to launch Direct Market Access (DMA) in Brazil whereby non-Brazilian investors can trade electronically directly on the exchange. UBS clients can send front-to-back algorithmic trading orders directly from their desktop execution management system or order management system, including UBS’s own “Pinpoint.”

“We gained a tremendous amount of experience over the last year with our Direct Market Access offering in Brazil, and our intention has always been to add algorithmic trading,” said Owain Self, Head of Algorithmic Trading for EMEA and the Americas at UBS Investment Bank. “Our successful DMA platform provided the ideal knowledge base to build algorithmic strategies for the Bovespa in a truly custom way – specifically geared to the unique attributes of this market. This development is particularly exciting as our clients who trade stocks in Latin America have had an extremely positive response.”

Raul Esquivel, the Head of the UBS Investment Bank for Latin America, said, “The launch of algorithmic trading into Brazil is a perfect example of our ongoing commitment to the region. We are pleased to offer these sophisticated strategies to our international clients who wish to efficiently tap the abundant investment opportunities in this dynamic marketplace.”

Source: Finextra, 12.11.2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, Trading Technology, , , , , , , ,

Fidessa expands connectivity network with nine new Latin American brokers in Mexico and Brazil

Fidessa group plc, provider of award-winning trading solutions for the buy-side and sell-side, today announced the addition of nine brokerage firms, with operations in Brazil and Mexico, to its global connectivity network. This extends the range of order execution opportunities for firms looking to access the Latin America (LATAM) markets.

BES Securities, Credit Suisse Hedging-Griffo, Fator Securities, Grupo Bursatil Mexicano, ICAP Brazil CTVM, Interacciones Casa de Bolsa, Itau Securities, IXE Casa de Bolsa and XP Investimentos are now all available on Fidessa’s network, and join previously announced LATAM firms including Planner Corretora De Valores and Casa de Bolsa Finamex.

Access to these brokers’ services is available via direct FIX connection or fully integrated into Fidessa’s own products – including the Minerva OEMS and EMS Workstation for the buy-side, and its sell-side trading platform solutions.

Martin Hakker, EVP marketing at Fidessa comments: “We’re committed to expanding our global network to provide the broadest possible range of execution services on a global basis. We’re seeing increased demand in the LATAM region from both buy-side and sell-side firms as institutions in the region continue to embrace electronic trading technologies and international firms look to the region to expand the trading and execution services they can offer their clients.”

Hakker adds: “Having joined Fidessa’s network, these brokerage firms are now able to offer their market-leading DMA, care, and algorithmic trading solutions to both the buy-side and sell-side via one of the largest trading networks in the industry.”

Fidessa’s connectivity network links over 2,300 buy-side institutions to more than 400 brokers and 120 markets around the world, providing a “one-stop-shop” for best execution services. Fidessa group serves around 24,000 users across more than 730 clients around the world and are used by more than 85 per cent of tier-one financial institutions.

Source: Fidessa, 03.11.2009

Filed under: Brazil, Exchanges, FIX Connectivity, Latin America, Mexico, News, Trading Technology, , , , , , , , , , , , , , , , , , , , , , ,

ASEAN markets cross trading links in demand – TABB Group

In new equity markets research published today, TABB Group says US and European demand for electronic linkage to Association of Southeast Asian Nations (ASEAN) exchanges is strong and primed to expand, as seamless access will attract brokers already trading in other parts of Asia. However, there is a wide range of needs across the different market segment, including direct market access (DMA), low-cost versus real-time market data, advanced order types, and reliable trading platforms.

TABB’s senior analyst Kevin McPartland, who authored the ASEAN Equity Markets Pinpoint report, an industry update on equity trading in the ASEAN region covering the Indonesia, Philippines, Thailand, Vietnam, Malaysia and Singapore exchanges, says the global financial crisis had little impact on growing buy-side demand for trading in ASEAN markets.

“More seamless access will drive brokers already operating in other parts of Asia to begin trading in the ASEAN markets,” he says, with the sell side set to benefit most from that seamless access. Explaining that the availability of real-time market data is crucial for all trading in the ASEAN markets, and that real time data is a requirement for the sell side even when trade volumes are low or non-existent, he adds, “High costs and time zones do tend to limit buy-side market data usage outside of the region.”

Addressing the relationship between the buy side and sell side, McPartland says that although no single broker currently dominates across all Asian markets, over 90% of buy-side firms are unwilling to give brokers full discretion over their orders. However, while the buy side does look to their brokers for market access, they agree that more seamless access would lower costs for execution and market data. There is also significant support for the idea of central ASEAN execution venue, McPartland adds.

The report’s in-depth coverage includes 24 charts:

  • Support for a central ASEAN venue
  • Improving ASEAN trading
  • Sell-side interest in ASEAN linkage
  • % of bulge-bracket participants trading in each market
  • Impact of the financial crisis on ASEAN interest
  • Roadblocks to sell-side trading in ASEAN markets
  • Buy-side broker usage – all Asia ·
  • Buy-side broker usage – ASEAN markets
  • Top brokers by country (by # of mentions)
  • Bulge-bracket participants trading in each market
  • Mid-tier participants trading in each market
  • Buy-side interest in a seamless ASEAN linkage
  • Roadblocks to buy-side access of ASEAN markets
  • Average number of buy-side orders per week
  • Average blended commission rates (bps)
  • % for which counterparty risk is an issue
  • Importance of each component when trading in ASEAN markets
  • Markets providing real-time market data to sell side
  • Market data sources for sell side
  • Markets providing real-time market data to buy side
  • Reasons for buy side’s lack of market data
  • How the buy side trades ASEAN markets
  • % of buy side using multiple data providers ·
  • Sell-side and buy-side market data providers

TABB Group collected data through interviews with heads of electronic trading from 12 top global broker-dealers, 9 hedge funds and 14 institutional asset managers. On the buy side, participants had combined global assets under management (AuM) of approximately $6 trillion and are currently trading in Asia from slightly under $10 million to over $5 billion monthly.

Source: MondoVisione, 23.10.2009

Filed under: Asia, Data Management, Exchanges, Indonesia, Malaysia, Market Data, News, Singapore, Thailand, Trading Technology, Vietnam, , , , , , , , , , , , , , , , , , , , , ,

Dark Pools in Danger ?

Increasing regulatory supervision and calls for transparency on one side and  the threaten proliferation of “unregulated and opaque”  Dark Pool and crossing networks by large institutions, have increased the calls by exchanges and exchange federations to review regulation and even ban them.

While the global debate is in full swing, China has clearly distance it self from any alternative trading venues in the country and prohibited the access to any “non-transparent” trading venues like dark pools for it’s QDII (Qualified Domestic Institutional Investors).

Below Article highlight the current trends and voices

SEC to extend probe into dark pools 09.10.2009

The Securities and Exchange Commission is to extend its regulatory probing of dark pools to include issues surrounding high frequency trading, direct market access and co-location.

What’s the Matter with Dark Pools, 02.10.2009

Dark pools are on the regulatory front burner. They’re seen as competing with the displayed markets, even as they’ve captured a segment of trading from the desks of broker-dealers’ upstairs.

The Securities and Exchange Commission is now bearing down on issues related to trading in dark pools and how much flow can execute in individual pools without triggering obligations to the rest of the marketplace. To provide some perspective on this broader discussion….

LSE and Turquoise an Item: Official, 01.10.2009

When we suggested here a few weeks back that the London Stock Exchange take a look at on-the-block Turquoise as a possible solution to its ‘TradElect problem’ it was slightly tongue in cheek. After all, we knew the LSE was in talks with MillenniumIT and it looked on paper as if an approach to Turquoise would amount to the exchange losing face to an upstart rival.

Dark Pools 2009: Not So Dark Anymore AITE Group, 30.09.2009

Only two things about dark pools are clear at this time: their overall market share continues to grow, and regulatory intervention appears inevitable.

London Stock Exchange to leave FESE  30.09.2009

But the move is a sign that a recent criticism by some of the world’s largest exchanges of the large banks’ off-exchange activities is not shared by some exchanges, which see their interests increasingly aligned with those same banks.

n a letter to Eddy Wymeersch, chairman of the Committee of European Securities Regulators, Ms Hardt said FESE believed the banks’ dark pools were “unregulated venues” operating with “full opacity”. The European equities market was “becoming a dealer market”.

Chi-X Global alleges ‘fear card’ move by ASX 30.09.2009

The head of Chi-X Global, the equities trading platform, on Wednesday accused the Australian Securities Ex­change of playing the “fear card” after the exchange’s chairman spoke of the dangers of allowing multiple share trading venues.

New ideas fail to lift mood over dark pools 24.09.2009

Yet even as dark pools continue to generate eye-catching ideas, controversy is raging over their very existence. In Europe, the issue is pitting exchanges against big banks in a new battle over control of billions of dollars in share trading orders.

Exchanges call on G20 to tackle dark pools 23.09.2009

The World Federation of Exchanges (WFE) has urged G20 leaders to press for market reform to tackle the uneven playing field and eroded price discovery it claims has been caused by the emergence of alternative trading platforms such as dark pools.

In a letter sent to Mario Draghi, head of the financial stability board at the Bank for International Settlements ahead of the G20 summit in Pittsburgh, the WFE calls for more uniform rules between exchange-traded and “less-regulated” markets.

The WFE warns: “The heightened opacity of certain market operations in many countries inhibits price discovery and may lead to negative outcomes, such as increased volatility.”

“Taken together, the combination of the absence of a level playing field between execution venues and decreased market transparency is an unsettling development,” says the letter, signed by William Brodsky, chairman of the WFE.

The exchanges call on G20 leaders to agree on ways to avoid “regulatory arbitrage” to ensure market participants do not just go to countries with weak rules.

Source: Finetik, 01.10.2009

Filed under: Australia, Exchanges, FiNETIK Articles, Japan, News, Risk Management, Trading Technology, , , , , , , , , , , , , , , ,