Special Report: Global Outsourcing, page 11
www.securitiesindustry.com
DECEMBER 10, 2007
NEWS DESK
Nasdaq changes fees; NumeriX re-
leases pricing model for exotic cred-
it products; TradingScreen links to
Axes; and more. PAGE 3
PERSPECTIVES
GUEST COMMENT: With industry
observers suggesting that carbon
could become one of the fastest-
growing markets ever, Triple Point
Technology’s Michael Schwartz says
that cap-and-trade schemes are here
to stay. PAGE 4
ORIGINAL SOURCES: The Commodity Futures Trading Commission’s Walter Lukken calls his
agency’s principles-based approach
a “hybrid of desired public outcomes
complemented by specific rules
aimed at achieving those ends.”
PAGE 6
SPECIAL REPORT
Eastern Europe’s high-level technical
talent and proximity to Western Europe are driving its development into
an offshoring powerhouse,
but India’s international finance expertise and cheaper
talent still mark it as the premier destination. Also in this
report: Integrated technology and research services; outsourcing risk management; and more. PAGE 11
DEPARTMENTS
ASSET SERVICING: Three transition
managers who signed the T-Charter
code of conduct say it doesn’t go far
enough to product plan sponsors.
PAGE 8
DATA MANAGEMENT: RiskMetrics bolsters its services with a measurement
tool for structured credit and enhanced
stress-test capabilities. PAGE 8
CLEARING & SETTLEMENT: OMX
supplies the Singapore Exchange with
a new clearing system for derivatives
and securities trading. PAGE 9
TRADING :The Chicago Board Options
Exchange has rolled out a Web-based
system for trading index and equity Flex
options. PAGE 18
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People in the News
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People Index
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On the Web
Aleri’s new liquidity-measure-ment tool; Markit plans to
buy Swaps Wire; and more.
See Breaking News at:
www.securitiesindustry.com.
FX Platforms, Event Processors Partner Up Nasdaq Options Delayed as Market
Hotspot, Truviso unveil forex algo development software BYKATHERINEHEIRES velopment, testing and execution of Braces for New Maker-Taker Exchange
As algorithmic methods make proprietary algorithms. BYJOHNHINTZE proposal contains new features
their way into the foreign ex- Forex trading portal FXall said he Nasdaq Options Market’s reminiscent of those offered by
change market, complex event pro- that it has teamed with Bedford, T (NOM) launch was delayed equity exchanges, including the
cessing (CEP) tech- Mass.-based Progress last week, postponing a day of reck- Nasdaq Stock Market, that
nology, which can Software Corp.’s Apama oning when market participants and could have dramatic effects on
react to streaming bid- division on a platform regulators alike will have to adjust the options market. The SEC
and-ask data in mi- that allows clients to to the arrival of an options exchange analyzes applications that devi-
croseconds, will be create, test and deploy that could offer potentially market- ate from the status quo careful-
helping traders speed customized algorithmic altering features. ly—it took five years for Nas-
the process of devel- strategies for its Accelor Nasdaq had planned to open the daq to obtain equity exchange
oping, testing, execut- electronic communica- seventh U.S. options exchange on status from the agency.
ing and analyzing the tions network (ECN). Dec. 7, but its proposal—filed April Even if the delay was caused
algorithms. Keith Lite And FXMarket- 25 with the Securities and Exchange by the SEC haggling over the
Electronic forex trading plat- Space, a centrally cleared, over-the- Commission—did not receive reg- final form of the new features,
form Hotspot FX is partnering with counter forex trading platform that ulatory approval in time. The ex- say market observers, the fun-
Foster City, Calif.-based CEP tech- is a joint venture of Reuters and change said on Dec. 3 that it would damental components—in-
nology provider Truviso to offer its CME Group, announced on Nov. be rescheduled. cluding executing orders ac-
hedge fund and asset management 28 that it is offering its customers Although no specific reasons cording to price and time pri-
firm customers a system for the de- Continued on page 22 were given for the delay, Nasdaq’s ority, and a related maker-taker
fee model that charges all in-
Icap Exchange Could Heat Up Emissions, Energy Markets vestors for removing liquidity
and credits them for providing
Interdealer brokerage’s application signals product expansion it—are likely to be approved.
BYSHANEKITE Mercantile Exchange, European En- products are not within the scope of Two other options exchanges—
Icap’s plan to launch an exchange ergy Exchange and European Cli- the Icap Exchange, as it was called NYSE Arca and Boston Op-for emissions, energy and trans- mate Exchange. Icap and other in- in the earnings report. “We are not tions Exchange (BOX)—already
port products, revealed in its half- terdealer brokers have already cut looking at our existing products, only offer those core functions, but
year earnings report, does not en- deeply into several exchanges’ Eu- new products,” he reiterated. a third, especially one with Nas-compass its core bond offerings, ac- ropean energy trading business by Treasuries and foreign exchange daq’s firepower, may push the
cording to the London-based in- charging lower fees. already trade much like exchange- agency to consider new regula-terdealer brokerage. Icap, which is preparing to file listed stocks on interdealer plat- tory parameters for the options
Observers say that Icap’s pursuit with the U.K.’s Financial Services forms such as Icap, GFI Group, market, just as it has in the eq-of exchange status is largely target- Authority (FSA), has been in dis- Cantor Fitzgerald subsidiary e- uity market over the last decade.
ed at taking market share from the cussions with regulators about ex- Speed, Compagnie Financiere Tra- “The entrance of another
futures exchanges that are trading change status “for some time,” said dition and Tullett Prebon. As in ex- maker-taker exchange is going
such products, including the Chica- Icap spokesperson Mike Sheard, change trading, the brokers list top- to force the SEC to address the
go Board Options Exchange, Inter- adding that that the brokerage’s cur- of-book, executable prices that are issue of maker-taker pricing
continentalExchange, New York rentover-the-counterfixed-income Continued on page 21 more specifically,” said Neil
Fitzpatrick, head of retail exe-
DTC Will Settle Unregistered Securities Nyfix, Virt-x Plan Continued on page 20
Transactions for Nasdaq Portal Alliance Block-Trading Service
BYCHRISKENTOURIS settle the restricted securities. Amer- For Swiss Blue Chips
Depository Trust Co. (DTC) has ican Stock Transfer & Trust Co. BYJOHNHINTZE
agreed to settle and safekeep (AST) and Bank of New York Mel-in book-entry form unregistered Rule lon Corp. will be the first to connect Nyfix’s Euro Millennium and
virt-x are joining forces on a
144A securities traded on their shareholder track- non-quote-displaying block-trading
the Nasdaq Portal Al- ing systems with the service for the Swiss exchange’s blue-liance, a joint venture New York-based De- chipstocks, thecompaniesannounced
platform formed by the pository Trust & Clear- last week, giving Nyfix’s multilateral
Nasdaq Stock Market ing Corp. subsidiary. trading facility (MTF) a major source
and a group of invest- “We will enhance of liquidity from the start.
ment banks and expect- our Inventory Manage- Euro Millennium is scheduled to
ed to go live in the first John Jacobs ment System [IMS] to launch in the first quarter of next
quarter of next year. accept instructions from year, and the virt-x block-trading ser-
Within six to eight months, designated third parties that the re- vice is expected to be operational by
D TC will link third-party agents stricted securities are eligible for set- then. Like other non-quote-dis-designated by issuers to process and Continued on page 19 Continued on page 21
