Special Report: Sifma Technology Conference Review, page 9
www.securitiesindustry.com
JUNE 16, 2008
NEWS DESK
Dealers and the Fed meet about
OTC derivatives operations;
Chicago Board Options Exchange
and Korea Exchange sign an
MOU; Accenture outsourcing for
Icap; and more. PAGE 3
PERSPECTIVES
COMMENT: The Securities and Exchange Commission may soon have
a full complement of members, but
the political calendar and other
complications may ensure that no
major policy or rulemaking initiatives are carried to completion.
PAGE 4
SPECIAL REPORT
President and CEO Timothy Ryan
says the Securities Industry & Financial Markets Association is actively
addressing the financial
crisis, working with regulators and legislators
out of sight of the
media. Through indus-try-led task forces, Sifma hopes to
“come up with an answer on credit
rating agency reform by midsummer
and then link that into our views on
what we need to do with asset-backed
securities and structured products,”
explains Ryan. Also in this report:
Nyfix chief executive Howard Edelstein discusses his company’s eventful
year; Bloomberg Professional is available to Windows Mobile handheld
users; and more. PAGE 9
DEPARTMENTS
TECHNOLOGY: Credit Suisse has
spun off a company that will provide an internally developed application for virtual infrastructure
management. PAGE 6
Bolstering Tech
Business, NYSE
Offers Hosted
Services Platform
BYALEXAJAWORSKI
NYSE Euronext gave its expanding commercial technology business a boost last week,
introducing a hosted platform that
allows technology vendors to offer
their applications and services to financial firms on the Secure Financial Transaction Infrastructure
Dean Stamos (SFTI).
Dubbed the SFTI Community
ware then matches that dynamic Platform, NYSE is touting it as the
profile with content that providers industry’s first network that provides
submit to InfoEx “boxes” and sup- customers with both global connec-plies hyperlinks to users. Thus far, tivity and third-party technology so-InfoEx has signed agreements lutions. The service “will allow our
with trading systems providers customers to be part of the most in-Linedata Services and Portware, novative technology environment
whose CEO, Eric Goldberg, is a complemented by superior connec-member of the company’s adviso- tivity to the largest, most accessible
ry board and an investor. global liquidity pool in the world,”
“Any hedge fund today is cov- asserted Sam Johnson, EVP of
ered by a minimum of 15 broker- NYSE Euronext. SFTI is a highly
dealers, and the hedge fund man- resilient communications network
Continued on page 20 that links exchanges, market centers,
A Matching Engine for Content
InfoEx automates the
sales-trading function
BYJOHNHINTZE
New York-based start-up InfoExchange is bringing the
matching engine concept to the
pre-trade information-gathering
process with a platform that filters
content to meet investors’ specific
needs.
Headed by Dean Stamos, co-founder and former president of
the Nyfix Millennium trading
venue, InfoEx has created a database that pairs investors’ trading
histories with information from a
practically unlimited universe of
content providers. The company is
seeking a patent for the technology,
which pulls a trader’s data from his
order or execution management
system and develops a profile.
Users tell their trade management systems to provide the
matching engine with drop copies
and determine a time frame for
InfoEx, which began testing and
limited production six months
ago, to build a profile. The soft-
Larry Leibowitz
content service providers and
over 1,300 market participants.
SFTI is also part of NYSE’s
Advanced Trading Solutions
unit, which will support the platform and allow firms to access
technology from what is expected to, ultimately, be a wide
range of suppliers. The NYSE
technology unit was introduced
in March in conjunction with its
finalized deal for market data
technology provider Wombat
and also includes the Transact-Tools connectivity and messaging business.
Green Technology
Getting White Hot
Banks look to data centers
for savings, smaller footprint
DTCC Bringing Mutual Fund-Like
Benefits to Alternative Investments
TRADING: Thomas Kloet, former
Fimat executive and Singapore Exchange head, will join the newly
created TMX Group as CEO.
PAGE 6
BY REKHA MENON
Relentlessly rising oil prices and
the widespread acknowledge-
ment of the role of human activity in
increasing greenhouse gas emissions
have made climate change a prima-
ry concern for businesses and gov-
ernments worldwide. In the finan-
cial services industry, there is also a
p3 “green” revolution under way, as a
p22 growing number of firms imple-
p22 ment initiatives to decrease their en-
ergy consumption and emissions.
Citigroup, a frontrunner in the
movement, has pledged $50 billion
to address climate change over the
next decade and by 2011 plans to
cut its global emissions by 10 per-
cent from their 2005 levels. Wa-
chovia Corp. says it will do the
Continued on page 18
BYJOHNHINTZE
The Depository Trust &
Clearing Corp. (DTCC) is
aiming to make its Alternative Investment Products (AIP) platform
a prime example of back-end processing services having a dramatic
impact on a market.
DTCC on June 3 announced
that it had received Securities and
Exchange Commission approval
for AIP, which will offer processing and settlement services expected to make alternative investments more widely accessible and
attractive to individual investors
and institutions.
One week later, New York-based DTCC said it had hired
Mark Lancaster to manage the
suite of services. Lancaster, who
was director of new business development at Fortis Bank, said
Mark Lancaster
“The power of this platform
is that once you’re connected to
it, you can not only execute
through us and reach most
other exchange destinations, but
also get your market data, TCA
[transaction cost analysis] or algorithmic trading services, most
of which are not our products,
but third-party products that we
provide access to over this network,” explained Larry Leibowitz, group EVP and head of
U.S. markets and global technology at NYSE Euronext.
Continued on page 22
TRADING: Tradweb’s dealer-backers
agree to extend their use of its STP
services; its euro interest rate swaps
market gains four participants.
PAGE 16
W
People in the News
Company Index
People Index
V
On the Web
Preparations continue for new
options symbology; Liquidnet
CEO says exchanges should
connect; and more.
See Breaking News at:
www.securitiesindustry.com.
early adopters will begin testing
the service in the third quarter and
actively using it before the end of
the year. A 20-year financial services veteran, Lancaster has run
units delivering products and services to broker-dealers and hedge
funds at financial firms including
Bank of New York and UBS.
“This has the potential to revo-
Continued on page 20
