Special Report: The New SRO Era, page 9
www.securitiesindustry.com
MAY 19, 2008
NEWS DESK
Thomson Reuters outsources WAN
management to BT; Volante’s new
modules for integrating market data
into applications. PAGE 3
PERSPECTIVES
GUESTCOMMENT: As financial firms
deal with vast quantities of market
data, traditional approaches to analyzing that information “have
caused a potentially dangerous split
between the logic of risk-taking and
risk management,” says Sybase’s
Sinan Baskan. PAGE 4
SPECIAL REPORT
Though the Financial Industry Regulatory Authority will soon celebrate its one-year anniversary, the
process of integrating its predeces-
sor self-regulatory organizations continues.
Calling the consolidation of staff and technology “fairly daunting,” Stephen Luparello, Finra’s
head of regulatory operations, says
that, in bringing the separate rulebooks together, “we will make significant progress during 2008, which
will extend into 2009. There will
be no single ‘big bang.’” Also in this
report: NYSE Regulation’s role in
a post-Finra world; and the place of
principles-based regulation in an integrated rulebook. PAGE 9
DEPARTMENTS
TRADING: A pan-Asian platform operated by Credit Agricole subsidiary
CLSA Asia-Pacific Markets has gone
live in its first markets—Japan and
Singapore—with more to follow.
PAGE 6
SEC Sees an
Interactive Data
Backbone in
Mandatory
XBRL Filings
BYJOHNSANDMAN
Replacing a voluntary filing program that found relatively few
participants, the Securities and Exchange Commission has proposed
a rule that would require all public
companies to submit reports in the
extensible business reporting language, or XBRL, by 2011.
SEC chairman Christopher Cox
has long promoted XBRL, an open
standard designed to make documents easier to navigate, for business data reporting. At a May 15
press conference, Cox said that, if
approved, the proposal “will set us
on a journey to significantly transform the SEC’s business model.
Making interactive data the back-
2002 2003 2004 2005 2006
144A Equity U.S. Public Equity
Source: Thomson Financial
Technology Turns to Illiquid Assets
BYJOHNHINTZE ties in the third quarter, competing
Alternative, and often illiquid, against the likes of Nyppex, which
assets such as private place- offers an assortment of illiquid as-ments and limited-partnership in- sets, and Friedman Billings Ram-terests are taking their turn in the sey Group’s FBR Plus.
industry’s automation queue, pro- In February, when the highly
viding added transparency and liquid auction rate securities mar-generating liquidity at a time when ket dried up, Restricted Stock Part-more conventional markets have ners (RSP) began receiving in-become frozen. quiries from holders of those secu-
Red Bank, N.J.-based Unified- rities and funds looking for dis-Market will this week launch a price tressed paper. New York-based RSP
discovery and discussion Web ser- already had the front-end platform
vice for a variety of illiquid assets. largely in place—automated but in-Meanwhile, Nasdaq OMX Group, cluding live staff to facilitate trans-along with a bevy of major broker- actions—and quickly adjusted its
dealers, plans to roll out a platform back office to clear and settle the
for unregistered Rule 144A securi- Continued on page 18
144As Outraise Listed Equities
$ Billions
175
164 162 154
141
133
NYSE Plans to
Relocate Amex
Options Floor
CLEARING & SETTLEMENT:
Beginning in September, fund distributors will no longer have to pay asset
servicing and custody fees to use
Euroclear’s FundSettle platform.
PAGE 7
A sample of XBRL tagging
96 101 Prepares to join Nasdaq
in offering customers
50
38 market structure choice
BYALEXAJAWORSKI
As it gears up to provide
customers with a choice of
market structure, NYSE Euronext says it will relocate the
American Stock Exchange’s
(Amex) options floor to the New
York Stock Exchange building
early next year.
At the annual Options Industry Conference in Las Vegas
earlier this month, Edward
Boyle, SVP and director of
NYSE Arca Options, discussed
NYSE’s plans to move New
York-based Amex’s options floor
to two vacated equity trading
floors—known as the Blue
Room and EBR, or Extended
Blue Room—at NYSE. “We
will be providing space and systems for the entire Amex options floor at the NYSE,” Boyle
said, adding that Amex’s electronic platform will be based on
New CEO in Place, Pyxis Prepares Arca Options’ OX technology.
NYSE, which anticipates fi-
For Future of Mobile Technology nalizing its acquisition of Amex
in June, expects to complete the
migration in mid-February
2009 and is currently in the
process of building out the new
Continued on page 16
CLEARING & SETTLEMENT: HSBC
is offering clearing services to institutional investors executing securities lending and borrowing
transactions in India. PAGE 14
▼
People in the News
Company Index
People Index
▲
p3
p19
p19
Robert Mazzarella
On the Web
BNY Mellon buys hedge fund
administrator; Fidelity’s National Financial launches training
portal. See Breaking News at:
www.securitiesindustry.com.
bone of the SEC’s system of company registration will be true to this
agency’s early 20th-century roots in
disclosure and transparency,” which,
he said, would pave the way for a
21st-century approach to regulation.
Under the rule, about 500 of the
largest companies using the U.S.
generally accepted accounting principles (GAAP) would need to submit XBRL-formatted data for filings after Dec. 15. Other public
companies using accelerated filing
would migrate to XBRL next year.
A final group, including foreign
companies that adhere to the International Financial Reporting
Continued on page 16
New head Mazzarella
looks to extend reach
BYMELANIEWOLD
As the usage of mobile technology in financial services
begins to take off, Pyxis Mobile is
also moving forward, with a new
chief executive, distribution deal
and product launch.
The Waltham, Mass.-based wireless application provider announced
earlier this month that Robert Mazzarella, a board member and adviser
to the company since November, had
been appointed chairman and CEO.
Mazzarella spent almost 20 years at
Fidelity Investments before stepping
down in 2002 as head of its institutional brokerage business. Since then
he has served on several boards in the
securities industry, including the
Boston Stock Exchange’s.
Pyxis was in the right place at the
right time, said Bob Egan, chief analyst for Needham, Mass.-based
TowerGroup. Citing his “Rolodex
and influence in the market,” Egan
Continued on page 18
