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

BM&FBOVESPA Authorizes New DMA Modality for its Derivatives Segment – DMA Model 3 – Direct Access without Technological Infrastructure of a Brokerage House or DMA Provider

The Brazilian Securities, Commodities and Futures Exchange – BM&FBOVESPA will offer, beginning on October 19, a new Direct Market Access (DMA) modality connection to its GTS (Global Trading System), the Exchange’s electronic derivatives trading platform. DMA model 3 allows clients to directly access the GTS trading platform without the technological infrastructure of a brokerage house or an authorized DMA provider. As with the other available DMA trading modalities, direct access to BM&FBOVESPA and its order flow will continue to be authorized and monitored by a brokerage house.

Source:BM&FBOVESPA, 02.10.2009

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

Brazil: BM&FBOVESPA News September 2009

BM&FBOVESPA September 2009 news update – BM&FBOVESPA – BVMF NEWS September 2009

New order types to be included in the Globex – GTS order routing system
The new orders are “Stop Limit” and “Market with Leftover as Limit”. A successful mock trading session took place on Saturday, September 26, 2009.

BM&FBOVESPA to host webinar with Patsystems
The webinar will be held on October 7 and will discuss the trading of Ibovespa futures, BM&FBOVESPA’s order routing systems, and investment opportunities in Brazil.

Upcoming events
BM&FBOVESPA will participate in the World Federation of Exchanges Annual Meetings, in Vancouver, from 10/5 to 10/7; and the FIA Expo, in Chicago, from 10/20 to 10/22

BOVESPA market segment sets new record
The BM&FBOVESPA stock market trading volume set a new record on September 16 with 494,430 trades. This surpasses the previous record of 444,351 trades set on July 15, 2009.

BM&FBOVESPA authorizes launch of the flexible call and put options on soybean futures contracts
The new derivative instrument provides rural producers with another form of protection against soybean price variations, while at the same time facilitating crop financing on the part of financial institutions.

BM&FBOVESPA discusses new regulations for its Novo Mercado segment
The Exchange held seminars with market participants to discuss the regulation revision of its Novo Mercado segment. Approximately 670 people attended the seminars to debate on themes concerning corporate governance.

Exchange promotes its products and services in effort to widen investor base
The objective behind the projects is to educate the Brazilian public on investment strategies and promote the Exchange’s products and services. Initiatives include a TV program, an investment simulator, and a market educational outreach program.

BM&FBOVESPA market performance – August 2009
Derivatives markets in the BM&F segment totaled 28,907,308 contracts and BRL 1.88 trillion in volume in August. The Bovespa segment (equity markets) reached a total volume of BRL 112.01 billion in 7,233,430 trades during the same period.

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

Tokyo Commodity Exchange Endorses Equinix as a Preferred data Centre Co-Lo Provider

Equinix is to offer high performance colocation and low-latency connectivity solutions to Tokyo Commodity Exchange (TOCOM) market participants through Equinix’s two Tokyo International Business Exchange (IBX) data centres. TOCOM market participants will be able to colocate their electronic trading data infrastructure in close proximity to the vibrant financial community within Equinix’s network-neutral centres.

Equinix’s TY1 and TY2 IBX centres, located in Heiwajima and Shinagawa respectively, offer premium data centre infrastructure for achieving the security and resilience demanded by high-availability execution venues. Within both centres, TOCOM will have a direct connection to Equinix Financial eXchange service’s established community of execution venues, buy and sell side firms, market data providers and technology utilities, that have located at Equinix’s high performance data centres to access the widest choice of low-latency networks and to directly exchange data with strategic partners and customers in close proximity. The high quality, advanced design of the TY1 and TY2 centres offers financial customers a full range of scalable services, including colocation, interconnection, support and monitoring.

“We are delighted to welcome Equinix as one of TOCOM’s preferred colocation providers,” said Masaaki Nangaku, president and CEO of TOCOM. “As one of the world’s leading commodity exchanges, TOCOM recognizes the needs of our international trading community. Equinix’s leading expertise with the global financial marketplace ideally complements our goal of providing world-class trading functionality to the international marketplace. Equinix’s global footprint, commitment to the Asia-Pacific region, and relentless pursuit of the best network providers for the financial industry, offers a new choice for our market participants who are seeking a reliable, low-latency and network rich environment with close proximity to strategic partners.”

Source: A-Team 11.06.2009

“TOCOM is transforming into an international commodity market by expanding trading services,” said David Wilkinson, Representative Director of Equinix in Japan. “With presence in all of the top ten world financial centres, the global reach of Equinix Financial eXchange affirms such view with reliable, fast and seamless access via low-cost connectivity to execution venues around the world. Featuring industry-leading uptime, best-in-breed connectivity capabilities and ultra low-latency, we help pioneers like TOCOM achieve and build a lasting competitive advantage.”

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

Fidessa LatentZero Extends Asset Class Coverage For Derivatives

Hong Kong, 8th June 2009 – Fidessa LatentZero™, one of the world’s leading providers of front-office solutions to the buy-side, has further expanded derivative instrument coverage in the Capstone™ suite of solutions.  Capstone now handles nearly 30 different types of derivative contracts, having added equity OTC derivatives to its existing range of fixed income and FX contract types.

As a result of the recent developments, users of Capstone can now model and manage OTC equity options, equity swaps, total return equity swaps and dynamic equity baskets alongside more traditional asset classes in a single integrated environment.  This offers users greater choice and flexibility over the strategies they use, including the popular 130/30s which can be traded using dynamic equity baskets.  Together with the existing exchange-traded functionality in Capstone Minerva™, Fidessa LatentZero’s order and execution management system (OEMS), the latest developments in OTC derivatives gives Capstone users complete coverage of fixed income, foreign exchange, equities, commodities and commodity indices.

Derivatives users can choose from a number of derivatives pricing sources. Derivatives are tightly integrated with Sentinel, Fidessa LatentZero’s pre-and post-trade compliance solution, to aid compliance with UCITS III and other relevant regulations.  Users can also drill down into their exposures, which are displayed in Tesseract, Capstone’s portfolio modelling and decision support tool, to enhance counterparty and credit risk management.

Peter John, Derivatives Product Manager at Fidessa LatentZero, says: “We have worked very closely with our clients to enhance our derivatives trading capabilities and give them the greatest possible coverage across all asset classes, currencies and strategies.  Derivatives are integrated across our entire product suite, and, in particular, closer integration with Tesseract and our compliance engine Sentinel have enhanced their functionality even further.”

John continues, “We were the first buy-side vendor to market with a dedicated derivatives solution, and the new dynamic basket functionality in particular will help us to maintain a healthy lead over our competitors.  Naturally, we will continue to enhance the product in response to client demand and support new asset classes as they hit the market.”

Source: FIDESSA, 08.06.2009

About Fidessa group
Fidessa group is a leading supplier of multi-asset trading, portfolio analysis, decision support, investment compliance, market data and global connectivity solutions for the buy-side and sell-side globally. Available as a simple workstation or as an integrated application suite, the Fidessa products and services are built on the clear vision of providing the richest functionality, coverage and distribution to the financial markets community.

The Fidessa suite is used by 85% of tier-one, global equity brokers as well as niche regional players, providing powerful multi-asset trading, order management, compliance and middle-office  capabilities, along with  sophisticated algorithmic trading and smart order routing services, to all tiers of the sell-side.

The Fidessa LatentZero suite is used by the world’s largest asset management firms through to smaller specialist hedge funds, and provides comprehensive portfolio analysis, real-time P&L, what-if analysis, investment compliance, order and execution management, and post trade processing tools, across all asset classes, to all tiers of the buy-side.

Fidessa’s global  network carries  over  180 million  messages a month covering DMA, Care and  Algorithmic  orders, Indications  of  Interest  and  FIX  Allocations  between over 2,200 buy-sides and 360 brokers across 115 markets worldwide.
www.fidessa.com
www.latentzero.com

Filed under: Asia, Exchanges, FIX Connectivity, Hong Kong, News, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

BM&F Bovespa: Opens UK office and record trade and order routing in May 2009

BM&F Bovespa will open an office in the UK to consolidate as the gateway to Latin America.

BM&FBovespa: order routing between BM&FBovespa and CME Group (carried via Globex-GTS) set a record of 67,698 trades in May (up 273% m/m) and 645,825 contracts (up 136%). BM&FBovespa also have a record May for net buys of foreign inflows. Foreign investors bought R$6.08 billion ($3.16 billion) in net equities in May.

BM&FBovespa: equities market set a record yesterday of 431,245 operations during regular hours.

Source: FMX Exchange Connect, 03.06.2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, , , , , , , , , , , ,

Fidessa adds first BlueBox algorithmic engine to hosted Asian trading platform

Fidessa group plc (LSE:FDSA) the leading provider of trading systems, market data and global connectivity solutions for the buy-side and sell-side, today announced the addition of BlueBox, its fully-integrated algorithmic trading engine, to its hosted Asian trading platform for brokers. BlueBox provides easy access to pre-built, industry standard algorithmic strategies along with a toolkit for clients wanting to build and offer their own proprietary models.

Built on Fidessa’s pedigree technology, and already live in several other regions of the world, BlueBox incorporates low-latency market data and global exchange connectivity, thus providing a proven, easy to deploy, cost-effective solution for brokers keen to enter the algorithmic trading space.

Incorporating BlueBox into the Fidessa hosted Asian trading platform will make this sophisticated solution available to mid-tier brokers across the region, allowing them to automate their own trading activities as well as to offer direct access to their algorithmic strategies to their buy-side clients.

David Jenkins, Business Solutions Manager at Fidessa in Asia, comments: “Fidessa BlueBox has redefined the algorithmic market by lowering the financial barriers and complexities of algorithmic solutions. With this Asian launch we have initially added new models for VWAP, TWAP, POV, Passive and Short-sell tailored for the local markets. These models are specifically designed to allow for dual-session trading days and non-trading periods, and incorporate model-generated volume curves which plot the unique characteristics of these markets.”

BlueBox empowers traders with tools to track key performance indicators in real-time, and then step in to alter parameters on the fly, slow down or speed up trading, pause or stop the algorithm in response to changing market conditions and to mitigate risk.  It also supports the use of pre-, post- and intra-trade analytics to evaluate performance.

“These new tools enable our clients to optimally execute their order flow with both passive and aggressive strategies” adds Jenkins. “Our Asia-Pacific clients are increasingly demanding advanced solutions for executing their trades, as well as requiring the flexibility to offer their own innovations directly to their clients. The Fidessa BlueBox offering addresses both these requirements.”

BlueBox is part of Fidessa’s advanced trading suite which includes List Management, Wave Trading, Pairs Trading and Analytics, all of which are built on and integrated with Fidessa’s award winning trading platform. Asia-Pacific is the fifth Fidessa region to launch the BlueBox solution, following on from the US, Europe, Japan and Canada, where it is already in use by over 60 clients.

Source: Fidessa, 02.06.2009

Filed under: Asia, FIX Connectivity, Hong Kong, News, Trading Technology, , , , , , , , , , , , ,

Brazil: The chicken and egg – June 2009 IXE-Banif Market Analysis

The Brazilian stock market brings back to mind the decoupling theory. Foreign investors continue to place their resources in Brazil, in particular in the stock market, which received approximately 40% of the total. The problem is that the good feeling from investors does not reflect in the economic scenario. The GDP being published on June 09 will show a -2,3% drop, with expectations that things will get better only in 4Q09. The data showing the fall in capital goods capex reflect the low expectations for growth. The 80% utilization rate of installed capacity is worrying. This should result in the Brazilian Central Bank cutting the basic rate by at least 75 bps this month. The savings problem seems to be resolved: not to the satisfaction of all, but enough so as not to create political contention in the pre-election year.
The Dollar and the Brazilian currency
The Real appreciated again, closing the month below R$ 2.00/US$. However, the question asked is whether it was the Real that appreciated, or the Dollar that devalued. The prices of many goods suggest that it was the Dollar that depreciated, which will result in a lower cash generation for companies, but better results (base for dividends).
Pension funds; the next buyers
Each time interest rates drop, discussion on pension funds increasing their participation in the stock market becomes prevalent. The reason is simple: low interest rates do not permit them to reach their targets. However, it is important to highlight that pension funds have already increased the participation of equity in their portfolios, from 10% some years ago, to around 30% this year.
Good winds continue to blow
To a lesser degree than in past months, we believe that, in June, the stock market should continue to perform positively, or at least flat MoM. We therefore reduce our exposure to defensive stock and concentrate our portfolio around the main representatives of the Ibovespa. Download: Brazil – Monthly allocation – June 2009 IXE Banif

Outperforming the Ibovespa – Recommended BUY Portfolio (“LONG”)
Stock – Catalysts/Fundamentals
BRTO – The best potential upside in the sector
CCRO – A lower than expected fall in traffic
CSNA – Better performance than its peers, due to having iron ore
ITUB – Multiples lower than its peers
MMXM – MOU with Chinese and the M&A in Corumbá not priced in
PCAR – Lagging, despite good supermarket sales in April
PETR – Should perform in accordance with the Ibovespa
PRGA – With the merger, it presents lower risks than the risks for Sadia
SUZB5 – lagging in relation to its main peers
TCSL – Sale of control brings tag along gains
VALE – Price negotiations should result in a lower than expected price decrease

Source:IXE & Banif, 01.06.2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, Latin America, News, , , , , , , , , , , , ,

Malaysian broker RHB joins Fidessa’s global network

20 May 2009 – Fidessa group plc  provider of award-winning trading, market data and global connectivity solutions for the buy-side and sell-side, has today announced that RHB Investment Bank, one of the leading brokers in Malaysia and the Corporate and Investment Banking arm of the RHB Banking Group, has joined its global connectivity network. RHB will receive DMA flow from Fidessa’s trading platform clients across the region and around the world.

Simon McDowell, Managing Director of Connectivity at Fidessa, comments: “Despite the current difficult conditions, Fidessa is continuing to grow its number of clients across the Asia-Pacific region. Local brokers from a number of countries and regional offices of international firms are connecting to Fidessa to receive order flow. We are continuing to invest heavily in our global connectivity network and are delighted that RHB’s Malaysian market expertise is now available to all our clients. RHB now have access to the whole of our buy-side and sell-side communities, many of whom are keen to take advantage of Malaysia’s dynamics and potential, and take advantage of DMA access which has recently been permitted by the Malaysia stock exchange.”

Chay Wai Leong, Managing Director of RHB Investment Bank, comments: “Electronic trading is set to expand significantly in Malaysia and Asia as a whole, and we have seen a significant growth in demand for connectivity to the markets in our region. Our relationship with Fidessa will help ensure that we remain at the head of this trend. Fidessa’s flexible technology combined with our local knowledge creates a compelling offering for both buy-side and sell-side firms on the network.” In 2008, Fidessa’s global connectivity network increased its number of connections by 50 per cent while message throughput grew by more than 80 per cent to over 180 million messages a month. The Fidessa product suite provides integrated trading, market data and connectivity solutions to over 22,000 users at around 630 clients worldwide, and serves more than 85 per cent of global, tier-one equity brokers.

Source: Fidessa, 20.05.2009

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

BM&FBOVESPA Provides Investors With Direct Access to the Brazilian Derivatives Market via Bloomberg Tradebook

BM&FBOVESPA has just authorized Bloomberg Tradebook do Brasil Ltda to act as a provider of direct market access (DMA), which will allow investors to connect directly to the Exchange’s derivatives trading system, or Global Trading System (GTS). This authorization will allow Bloomberg to offer its customers an order routing system via the infrastructure that is furnished by Bloomberg, with its hardware and software structure located in an external data processing facility that is independent from BM&FBOVESPA.

The system works as follows: after obtaining an authorization from a brokerage house to trade contracts in the BM&F segment, the investor will establish a direct physical connection to the order book of the Exchange’s GTS derivatives trading system. This physical connection is accomplished directly between Bloomberg and the Exchange through the Financial Community Communication Network (RCCF), allowing orders to be sent to BM&FBOVESPA through a proprietary FIX session, without transmitting the data through the brokerage house’s network.

The connection between the investor and the Exchange, however, is monitored by the brokerage house that provided the access so as to enable it to control the customer’s order flow. The brokerage houses that are interested in using the services of Bloomberg Tradebook must contract these services directly from Bloomberg.

With the adherence of Bloomberg Tradebook do Brasil Ltda., BM&FBOVESPA now has two DMA access providers for the derivatives and futures markets. The service related to the routing of orders to the GTS, which has been provided by the company Marco Polo since January of 2009, is also available to all the CME Group Globex system users. Other companies are currently in the process of obtaining authorization and will soon offer similar services, which will further facilitate the access of investors to all the products offered by the Brazilian Exchange.

Source:BM&FBOVESPA, 04.05.2009

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

FIX : The Standard that Could

As the global financial crisis hits firms worldwide, it will take longer for the FIX protocol to become a de facto standard in FX trading as IT executives grapple with where to spend their vanishing budgets. By Oksana Poltavets

It is nearly impossible to predict how long the worldwide economic crisis will last. Wall Street, The City of London and the global financial community alike have to hope for the best, but prepare for the worst when planning ahead and divvying up their shrinking IT budgets. Although some projects du jour, such as risk management, have received a much needed financial and manpower boost, other initiatives fall by the wayside.

The uptake of the FIX messaging protocol in foreign exchange (FX) trading may be yet another casualty of the cost-cutting battle in IT departments. When buy-side firms are faced with deciding how to allocate precious IT budget monies, adding or enhancing FIX capabilities might not make the cut. “With all the events going on in the market, FIX may be the last thing on their minds,” says Sang Lee, co-founder and managing partner with industry analyst firm Aite Group.

The worldwide recession is wreaking havoc not only on budgets, but also on overall global FX trading volume. Skittish investors have been pulling their funds back closer to home in an attempt to decrease their exposure to global risks. “Once the economy turns up, we’ll see more investment in FIX. We are going to need a return to happier times,” says Laurie Berke, senior consultant with analyst firm The Tabb Group.

In a move that observers say couldn’t come soon enough, the messaging standards group FIX Protocol Ltd. (FPL) has recently changed its development and release schedule for the protocol. For most of FIX’s history, it has been released in major versions. From the current version, 5.0, going forward, rather than making large protocol changes, the organization is instead restructuring this so that changes are implemented in small extension packs. An extension pack may add a new message, or it may add a single field, but the idea is that extension packs are smaller, granular, incremental changes to the protocol. Then the FPL will gather up 25 to 50 extension packs, bundle them together, and call it a service pack. This has already been done once with the release of FIX 5.0 Service Pack 1 (SP1), according to Ryan Pierce, FPL’s newly minted technical director.

Shift to Electronic Trading

The FIX protocol originally was not very applicable to FX trading, which is still done primarily on an over-the-counter (OTC) basis, with the exception of FX futures, which are traded on the Chicago Mercantile Exchange (CME). Earlier editions lacked the nuances necessary for the asset class. It wasn’t until version 4.2, which was released in 2000, that the FPL added FX support to the protocol. As standards go, nine years is a not a long time and FIX is still relatively new in FX trading, according to Mary Knox, analyst for Gartner.

Since the bulk of FX trading is conducted over inter-dealer or inter-bank platforms, as well as ECNs and individual banks, the marketplace was originally built on one-to-one connections. Banks and ECNs provided their own proprietary protocols or application programming interfaces (APIs) for customers to use. There is still no one single, consolidated location for trading in FX, nor is there a consolidated tape for market data, which initially made it difficult for electronic execution. However, volume growth and increased fragmentation of trading venues over the past several years have spurred the rise of electronic trading in FX. Last year, more than 60 percent of FX orders were executed electronically, up from 35 percent in 2001, according to an Aite Group report. The analyst firm predicts that number to rise to more than 70 percent by 2010.

However, only about 33 percent of all FX transaction occurred via FIX last year, up from 12 percent in 2004, according to Aite Group. By 2010, nearly 40 percent of all FX orders will be done through the FIX protocol. And although the need for a standard such as the FIX protocol was not as pressing as it was in the equities trading space, FIX has gained a lot of traction in FX over the past couple of years, according to market insiders.

FIX as a Standard in FX

Major FX ECNs have seen more clients, such as hedge funds and asset managers, asking for FIX connectivity versus the proprietary protocols or APIs they previously preferred. Although Hotspot FX ECN owned by Knight Captial has been offering FIX support since 2002, about 40 percent of its customers now send their orders in via FIX, according to Paul Reidy, director and head of technology for Hotspot FX. Similarly, FXall has seen an uptick in customers inquiring after FIX connectivity, says Minor Hoffman, CTO of the ECN. FXall started offering FIX as a protocol about two years ago when customer demand swelled. (For more on FXall and the fixed-income space, please turn to page 20.)

Not to be left out, Thomson Reuters hopes to offer full support for FIX across all of its platforms, new and old, by 2010, according to Richard Kiel, global head of post trade services at the vendor. Currently, Reuters’ dealing and matching platforms do not have a FIX interface, but client demand is driving the change. Still, Kiel says that a minority of FX orders it executes comes in via FIX. That is not the case for one ECN: Currenex claims that nearly 60 percent of its trading volume is done via FIX. Currenex, a subsidiary of State Street, has been pushing customers away from its Java API toward either a FIX connection or a proprietary graphical user interface (GUI), says Sean Gilman, CTO of Currenex.

Although the current economic conditions and the constrains of IT budgets have somewhat hampered the adoption of the FIX protocol in FX trading, industry experts agree that FIX will eventually be the dominant protocol in the space. The shift in power will most likely happen next year or even further out, depending on the state of global finances, among other things.

Added Benefits

No one can dispute the benefits the equities marketplace has gained from the FIX messaging protocol. Market participants want to apply those positive aspects to reap similar rewards in FX trading. In fact, much of the driving force behind FIX adoption in FX comes from firms trading in equities. ECNs are seeing many equities market participants who want to start trading FX asking if they can use their existing infrastructure, trading platforms and connectivity for the FX space. Clients who wish to trade multi-asset strategies that include FX are also looking to be able to use one common protocol. “Ideally, they want to standardize their infrastructure as much as possible and use as much common technology as possible,” says Hotspot FX’s Reidy. Even customers who were already using a proprietary API have begun switching to a FIX connection in order to consolidate on one system within their own organizations, he adds.

As with any standard, FIX brings the added benefit of stability and ease-of-use. Integrating new customers becomes much faster when using a protocol such as FIX, because the majority of the industry is familiar with it. However, in some cases, two firms can define FIX in different ways, which could cause discrepancies. “There’s always an element of customization required for every individual but if we can drive toward a common standard, that would make things a lot easier,” says Kiel.

Although the FIX protocol is used mainly in the pre-trade and trade areas of FX, the industry could also benefit from FIX adoption in the post-trade environment. Version 5.0 of the protocol has added support for post-trade services, as well as traditional capabilities. Back-office activities such as trade notifications and allocations can be electronically delivered via FIX. In spite of its added functionality, version 5.0 has not yet gained wide traction in any asset class. The FPL plans to release the second service pack (SP2) for FIX 5.0 early in the second quarter of this year. FIX 5.0 SP2 will include added support for FX non-deliverable forwards (NDFs).

Market participants have been using FIX in FX trading for years, but the protocol has not yet become the de facto standard for the asset class. The present economic pressures on technology teams and budgets at global financial firms have slightly slowed the uptake of FIX in FX. However, the benefits of adopting one standard outweigh the financial costs to invest in FIX infrastructure and support. FX is a rapidly changing marketplace, observers note. “If they were starting from scratch, FIX would be a no-brainer. But now there needs to be an incentive to make it work,” says Lee. “It will take time.”

Source: Waters, by Oksana Poltavets, 01.04.2009

Filed under: Data Management, Exchanges, FIX Connectivity, Market Data, News, Standards, Trading Technology, , , , , , , , , , , , ,

Fidessa certifies new Intel chipset for its market leading, high performance architecture

Hong Kong – 1st April 2009: Fidessa group plc (LSE: FDSA), provider of award winning, high performance trading, market data, compliance and global connectivity solutions for all tiers of the financial markets community, has today announced the completion of its testing and certification of the new Intel® Xeon® 5500 platform for the Fidessa product suite. As part of this process, Fidessa found that the new Intel chips offered significant improvements in speed and power consumption over the current offerings from leading manufacturers.

Fidessa’s products and services have long been the benchmark for financial technology suppliers, and are used by many of the world’s largest financial institutions. Fidessa’s reputation and proven track record for offering market-leading, high performance and low-latency solutions to these most demanding of clients is well established.

Philip Beevers, Chief Architect at Fidessa, comments: “To maintain our market- leading position, we always ensure we are at the forefront of technological innovation, and evaluating new hardware solutions from suppliers like Intel for our products is a key part of this. As part of our certification of the Xeon 5500 chipset, using the Solaris operating system, we saw our benchmark ‘trading transaction’ throughput test run twice as fast as on the current fastest processors, achieving a sustained level of over 7,000 orders per second. In addition, the comparatively low power consumption of these processors for this level of performance makes them an extremely attractive proposition for efficient and cost effective use in data centres.”

Nigel Woodward, Global Director of Financial Services at Intel, adds: “At Intel we have been focused on the front office trading space, and how our technologies can contribute to key functions across the trade life cycle. From buy-side to sell-side we see Fidessa as a leading service provider in this space, and hence to achieve these superb performance results on our new Xeon 5500 series processors is an excellent entry to the market for the new architecture – showing that it can have a tangible impact on trading profitability.”

Fidessa’s high performance solutions serve over 22,000 users across 630 clients globally and are used by 85% of the largest financial institutions around the world.

Source: Fidessa, 01.04.2009

Filed under: News, Trading Technology, , , , , , , , , , ,

Fidessa extends coverage to include Hong Kong

Hong Kong, 23 March 2009 – Fidessa group plc (LSE: FDSA),  has announced the extension of its CBX ASIA connectivity agreement with Instinet to include Hong Kong equities. As a result, Fidessa’s institutional client base can now seamlessly execute trades through CBX ASIA for both Japanese and Hong Kong stocks.

Simon McDowell, Managing Director of Global Connectivity at Fidessa, comments: “The addition of Hong Kong stocks on CBX ASIA offers a number of benefits to our customers on the network and is a key move in achieving maximum coverage of the region. It remains our strategy, both in Asia and globally, to offer the widest possible choice of trading venues. The strong partnerships we already have with the key venues in other locations mean that we are well-placed to offer connectivity quickly as they enter the Asia Pacific region. Our focus remains on expanding the network and ensuring that it is poised to adapt to the changes in the market as they occur going forwards.”

“Given the current market environment, clients are more focused than ever on execution quality, making alternative liquidity pools like CBX ASIA increasingly popular. We are pleased to extend CBX ASIA for Hong Kong equities to Fidessa’s global client base who are already trading CBX ASIA for Japanese equities”, added Christian Chan, Head of Electronic Trading for Instinet in Asia.

Launched in Asia in 2001, first in Japan under Instinet’s Japanese PTS (Proprietary Trading System) License, CBX ASIA is a real-time, low-latency central limit order book with traditional price/time priority and rich order functionality for the trading of Japanese and Hong Kong equities. It allows investors to trade in size and anonymously with natural counterparties and without exposing orders to pricing pressure from the public markets. Unlike Instinet CBX in the US, which is based on the same technology and is the market’s second largest independent dark pool, CBX ASIA is a displayed platform whose market data is available to clients, as fully-hidden orders are prohibited under securities laws in certain Asian jurisdictions. 

Source: Fidessa, 23.03.2009

Note: CBX ASIA is the brand name for Instinet’s CBX platform in Asia and is not licensed or regulated in any market as a pan-Asian platform. Instinet’s CBX offerings in each market are regulated under the relevant rules and regulations governing each jurisdiction.

Filed under: Hong Kong, News, Trading Technology, , , , , , , , , , , , ,

ITAU Securities Selects NYSE Technologies To Create New Direct Market Access Platform – First Global Electronic Trading Platform To Offer Access To Brazilian Markets

NYSE Euronext (NYX) and Itau Securities today announced that NYSE Technologies, the commercial technology division of NYSE Euronext, has been selected to develop a next-generation electronic trading platform that will allow Itau Securities’ customers around the world to send orders directly to Brazil’s BM&F Bovespa market center.

Making them the first to offer Direct Market Access (DMA) connectivity to BM&F Bovespa. Itau Securities and NYSE Technologies will work together to implement a best-in-class technology solution that combines comprehensive hosting software with an integrated back office platform utilizing the super-fast, resilient SFTI network.

“We are excited to work with Brazil ’s leading capital markets firm on a truly ground-breaking project that further opens the Latin American marketplaces to the global investors – and puts the global markets within reach of the Brazilian investors” said Stanley Young, CEO, NYSE Technologies and Co-Global CIO, NYSE Euronext.

“With our industry-leading technology and Itau’s extensive customer relationships in the Americas , Europe, the Middle East and Asia, we will be implementing a new breed of direct market access solutions unlike anything currently available in Latin America .”

“As we continue our global expansion to London, Dubai, Hong Kong and Tokyo, Itau Securities is working with NYSE Euronext to build this new platform giving us the ability to offer our customers outside Latin America a robust, innovative trading solution for trading in our markets,” said Roberto Nishikawa, CEO of Itau Securities.

“Moreover, Itau’s clients will have access to the most complete provider of investment services for the Brazilian market – from custody to asset management, foreign exchange, research for equities, derivatives and fixed income products.”

Source: MondoVisione, 04.02.2009

Filed under: Brazil, FIX Connectivity, News, Trading Technology, , , , , , , , , , , , , ,

2nd FPL Latin America Electronic Trading Conference.

 2nd FPL Latin America Electronic Trading Conference. May 11th / Marriott Renaissance Hotel / Sao Paulo, Brazil

Building upon the tremendous success of the 2008 event, which generated requested registrations from almost 300 delegates from the local trading community, almost double the anticipated numbers, the 2009 conference will address the key issues, challenges and opportunities impacting the Latin American electronic trading environment today.

By employing the knowledge and experience developed in delivering the 2008 event, in 2009 we will aim toprovide an exceptional conference driven by a high quality, educationally focused agenda, prepared by the FPL Latin America Subcommittee. This dedicated team benefits from a wealth of local knowledge and includes representation from firms across the region. The agenda will feature dedicated business and technology streams, including a series of presentations and panel sessions.An exploration of the key developments that have taken place in the global electronic trading environment over the past 12 months

Topic areas to be discussed will include:

  • An analysis of the electronic trading trends emerging within Latin America and the impact of changing market structure within the region
  • The opportunity to compare various emerging markets from across the globe and explore the issues and challenges presented by these regions. Additionally, it will examine the key factors that should be considered if Latin America is to continue enjoying the growth of recent years
  • How firms can benefit from business opportunities and remain competitive within the changing Brazilian market
  • Algorithmic Trading and Direct Market Access (DMA) – The evolution of these trends over the past 12 months
  • Market volatility and its’ impact on trading in Latin America
  • An examination of the changing roles of buy-side and sell-side traders in Latin America and the opportunities, and challenges they will face in late 2009 and 2010
  • The opportunity to benefit from detailed FIX and FAST Protocol implementation adviceAn examination of the technical architecture of FIX-enabled exchanges from across the region.

Source: FIX Protocol Org, 24.02.2009

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Nomura launches Electronic Trading Platform In Asia-Pacific – Trading Live In Japan, Hong Kong, Singapore and Australia

Nomura, the pre-eminent Asia-based investment bank, this week announced the launch of its Asian Electronic Trading platform, providing clients with Direct Market Access (“DMA”) and Algorithms via its “ModelEx” platform connecting to equity markets in Japan, Hong Kong, Singapore and Australia. ModelEx is Nomura’s algorithmic trading platform which allows clients to electronically access its suite of automated trading strategies.

The firm expects to launch the platform in India, Taiwan and Korea by April 2009.

Nomura is unique in the electronic trading services (ETS) business for its award winning quantitative analytics and risk models, which provide pre- and post-trade analytics, market microstructure and quantitative research to help clients generate new and innovative trading ideas.

The new ETS team combines the best electronic trading capabilities of the Lehman Brothers acquisition, including the quantitative analytics team, developers of the algorithms, information technology and operations personnel, with Nomura’s strong client relationships and dominance in Japan.

Previously, Nomura has been active in the Japan ETS market in both DMA and Direct-Strategy-Access (DSA), utilizing its “Experts” algorithmic platform. The current ETS team, led by Managing Director Rob Laible, has maintained the Nomura platform while at the same time building-out the pan-Asian capabilities of ModelEx in order to ensure seamless execution and provide superior analysis and a competitive edge for its clients.

“Nomura is committed to establishing a world-class suite of electronic trading products for its customers globally, and we’ve been very focused over the last few months on re-establishing a market-leading platform in Asia,” said Rob Laible, Head of Nomura Electronic Trading Services in Asia. “We are well-positioned to offer our long-only clients, hedge funds, pension funds, and other institutional investors value-added and customized trading solutions and execution services.”

Nomura’s Asia-Pacific Equities division delivers the full resources of a multi-product execution platform to its clients globally. Committed to a state-of-the art risk management platform and market-leading research coverage and insight, Nomura provides its clients with a full-service equity broker offering, including structured and flow derivatives sales and trading, cash sales and trading, program and electronic sales and trading, quantitative advisory/analytics, structured derivatives and prime services.

Source: MondoVisione, 26.02.2009

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