LSE introduces proximity service

Finextra: LSE introduces proximity service
The London Stock Exchange LSE is introducing a hosting service that will provide high-frequency algorithmic trading firms with low latency access to its TradElect and Infolect systems.

The new service – called Exchange Hosting – allows firms to physically locate servers within the LSE’s data centre. The UK exchange says this will provide them with sub-millisecond access to the TradElect matching engine and Infolect market data, thereby eliminating network latency.

EMS and OMS: Integration on the Horizon

EMS and OMS: Integration on the Horizon? by Advanced Trading
The use of trading technology reaches back to the early 1990s to the introduction of the order management system (OMS). The OMS substantially consolidated error-prone, paper-intensive trading processes prevalent at many firms into easily manageable electronic trading blotters. The benefits realized, the OMS evolved into the central hub of buy- and sell-side trading activity becoming the de-facto gateway to execution venues.

The emergence of electronic connectivity networks (ECNs), the introduction of direct market access (DMA), the emergence of algorithmic trading and smart order routing, and the proliferation of the OMS on the buy-side trading desks rapidly lead to the development of newer, more advanced functionality focused on the execution aspect of the trading process in the early 2000s. This range of solutions became known as the execution management system (EMS).

Equiduct revises pricing to reward liquidity providers

Finextra: Equiduct revises pricing to reward liquidity providers: New multi-lateral trading facility Borse Berlin Equiduct has revised its pricing structure ahead of its forthcoming launch in an effort to reward users for bringing liquidity to the platform.

Lehman Brothers Expands Algorithmic Trading to India Shares by Advanced Trading

Lehman Brothers Expands Algorithmic Trading to India Shares by Advanced Trading
Lehman Brothers, the global investment bank, has extended algorithmic trading for shares traded on the National Stock Exchange, India, through its LMX(r) Trading Strategies, further enhancing the efficiency of its equity trading platform.

Lehman Brothers executed the first algorithmic order on August 4 through the new Direct Market Access (DMA) offered by the NSE.

ISE insider trading

Three charged with insider trading in ISE-Eurex deal: Chicago Tribune
John Marshall, the vice-chairman of International Securities Exchange, and two other men have been charged with insider trading before ISE’s merger with Eurex last year, officials said on Thursday.

The US attorney’s office in Manhattan said Marshall and financial consultants Alan Tucker and Mark Larson have been charged with conspiracy and 10 counts of securities fraud. They are principals at Marshall Tucker & Associates in Port Jefferson, New York. The men face up to 20 years in prison on each count of securities fraud. The US Securities and Exchange Commission also brought civil charges against the men.

State Street Extends Commission Management Services Through Acquisition

State Street Extends Commission Management Services Through Acquisition
State Street Global Markets announced that it has expanded its commission management services through the acquisition of software provider Financial Sockets. The investment research and trading arm of State Street Corp. said the deal allows it to offer clients an end-to-end solution to better manage commission flows, address regulatory reporting and administer commission-sharing arrangements (CSAs).

The new offering will include broker evaluation software that enables investment managers to tie compensation to the quality and depth of a broker’s services. It will also administer CSAs among asset managers, brokers and research providers. Such capabilities help fund managers decide which brokers they want to reward with their trade execution business, their actual versus budgeted commission spending, and their soft-dollar and directed commission expenditures.

Arca Beats Nasdaq to Dark Pools

Arca Beats Nasdaq to Dark Pools
NYSE Arca beat Nasdaq to the punch. On Wednesday, Arca announced a price improvement and routing service that gives users access to order flow in 29 pools of non-displayed liquidity. Both Arca and Nasdaq have been working on similar initiatives for the past several months, according to executives at both exchanges.

Nasdaq’s offering, currently under development, is scheduled to launch in mid-April. That initiative will pool electronic liquidity from a “handful” of non-displayed execution venues, said Brian Hyndman, senior vice president for transaction services at Nasdaq OMX Group.

Finextra: Eurex to establish US options trading link

Finextra: Eurex to establish US options trading link
European derivatives exchange Eurex says it will establish a transatlantic trading and clearing link that will enable its customers to access options products at the New York-based International Securities Exchange (ISE), which it acquired last year.

Speed of Trading Leaves Some Traders Behind

Speed of Trading Leaves Some Traders Behind
The speed of trading is getting so fast that trading in microseconds is expected to soon become a reality. The trend promises to benefit some traders at the expense of others.

With algorithmic traders demanding faster turnaround times, exchanges and ECNs are beefing up their trade processing capacity. Turnarounds under 10 milliseconds are fast becoming the norm, and exchange officials predict the numbers will go even lower.

Finextra: Nyse Arca provides routing to dark liquidity

Finextra: Nyse Arca provides routing to dark liquidity
Nyse Euronext says it is launching a new “routing and price improvement service” that will provide users of its Arca electronic trading platform with access to non-displayed liquidity.