Traders Magazine | September 20, 2017
WHEEL. OF. ALGOS.
Yep, agency brokerage and technology company ITG has rolled out an approach where various broker dealer algorithms are evaluated, normalized and eventually rewarded for their performance.
Enter the Algo Wheel. Soft launched by ITG late in 2016, the Algo Wheel is a broker-neutral tool for allocating trades among your broker algorithms in an unbiased, systematic fashion, which allows a buy-side trader to establish a quantifiable method for evaluating and rewarding brokers for good execution performance.Read more >
Tabb Forum | September 19, 2017
On 28 August 2017 the European Commission published a delegated regulation amending the definition and allowed behaviour of systematic internalisers. What are the concerns around systematic internalisers, what are the requirements for SIs, and what does it mean for traders?
Systematic Internalisers were originally conceived in MiFID I in 2007, but have been little used thus far, as banks and brokers were able to cross orders in Broker Crossing Networks (BCNs). Under MiFID II, however, systematic internalisers are expected to play a much bigger role in the European equity trading landscape, as BCNs will be banned, and the dark caps of 4% per platform and 8% overall are expected to curtail dark MTFs’ use of the reference price waiver. So under MiFID II the new tools offered to institutional equity traders will be:
– Revamped systematic internaliser platforms brought to market by banks, brokers and electronic market-makers, which publish principal quotes to the market;Read more >
– Block trading MTF platforms (such as POSIT Alert) that use the large-in-scale waiver and are completely dark, often utilising conditional orders; and
– Periodic Auction platforms (such as BATS Periodic Auction), which feature limited pre-trade transparency during an auction process
The Trade | September 06, 2017
ITG is to launch POSIT auction as a lit book across the EMEA region ahead of MiFID II’s trading caps in January 2018. The service is a new lit segment on the POSIT MTF running periodic auctions for matching opportunities submitted to the POSIT auction order book.
It was designed to provide a low-impact approach to finding liquidity while protecting traders during price discovery including price collars, limit and peg orders types, ITG said.Read more >
Financial News | August 14, 2017
US regulators are close to softening their stance on how banks and asset managers comply with Europe’s new trading regime, in an unusual move that could have implications for future rules.
The Securities and Exchange Commission is expected to issue guidance as early as September helping US brokers to circumvent local laws that restrict them from charging for research, according to people familiar with the matter. Direct payments for research are required under Europe’s second markets in financial instruments directive.Read more >
Markets Media | August 08, 2017
The majority of buyside traders expect to use systematic internalisers from the start of January and regard increasing employment of the SI regime as positive for European equity markets.Read more >