Wall Street Letter VOL. XLV, NO. 29 - Sept. 16, 2013 | Page 3

NEWS 19 – 25 SEPTEMBER 2013 TRADING FIRMS Published by Pageant Media London Thavies Inn House London EC1N 2HA T [phone] F [phone] EDITORIAL Jeanene Timberlake Managing editor [phone] [email protected] Sean Creamer Reporter [phone] [email protected] Gwyn Roberts Group head of content [phone] [email protected] Indira Peters-DiDio Data manager [phone] [email protected] PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com New York 1441 Broadway Suite 3024, NY 10018 T [phone] F [phone] COMMERCIAL Lucy Churchill Group commercial manager [phone] [email protected] Tracey Carey Content sales manager [phone] [email protected] EVENTS Beth Hall Head of events [phone] [email protected] DISTRIBUTION Fay Muddle Circulation manager [phone] [email protected] PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group Brokerage execs call for redundancy in wake of exchange outage In the wake of an outage across markets operated by Nasdaq OMX Group last month, brokerage executives are calling for increased levels of redundancy for the securities information processor, according to comments from executives that spoke to WSL. According to a press release from the exchange operator, Nasdaq experienced a technical error on August 22 within the infrastructure of the SIP, causing a halt on trades concerning Nasdaq-listed securities. Jamie Selway, managing director and head of electronic brokerage and sales at ITG, said that there should have been redundancy set in place for the SIP in the form of a duplicate system being run by Nasdaq or even a third party if the exchange is unable to handle the task. “There has to be some measure to eliminate the single point of failure risk,” said Selway. “If Nasdaq goes JAMIE SELWAY managing director down, one should and head of elecbe able to switch tronic brokerage to one of the 12 and sales at ITG other exchanges.” Tom Carter, chairman of the Security Traders Association and a managing director at Jones Trading, noted centralized redundancy practices at the exchanges would work wonders for investor confidence. “The issue is unnerving in that there was no info as to what was going on, what happened and what the remedy was,” said Carter. “How do you make 03 01 CONTINUED... Sub-editor Eleanor Stanley Sub-editor Luke Tuchscherer Sub-editor ISSN# 726-98790 © 2013 Pageant Media Ltd. All rights reserved. COPYRIGHT NOTICE: No part of this publication may be copied, photocopied or duplicated in any form or by any means without Pageant Media’s prior written consent. Copying of this publication is in violation of the Federal Copyright Law (17 USC 101 et seq.). Violators may be subject to criminal penalties as well as liability for substantial monetary damages, including statutory damages up to $100,000 per infringement, costs and attorney’s fees. The next will be available the week of WALL STREET LETTER 09/23/13 The upcoming issue will feature our regular industry news coverage. Until then, news items will be available on our website at www. wallstreetletter.com John Lothian, owner of John J. Lothian & Company, agreed, raising the issue of whether a set of speci