Wall Street Letter VOL. XLV, No. 31 – Sept. 30, 2013 | Page 8
NEWS
08
move to make access more seamless
and workflows more intuitive (WSL
Online, 9/19).
Hess said he doesn’t know how
many firms will be participating in
the beta test for Advent Direct, but
added: “There are more people that
want to be in beta than what we can
take.”
Participants will come from all
types of firms and Advent clients, including hedge funds, fund
administrators, wealth managers
and traditional asset managers, said
Hess, adding that spreading out the
beta will provide the vendor with
better results.
Todd Gottula, chief technology
officer, noted the company has been
selective about beta participants
because the process is expected to be
intense.
“We want regularly incorporated
feedback in a timely fashion. It’s
a time commitment for them,” he
said. “In days we will send you a new
update and then ask you to give us
feedback on what we have updated
and changed.”
Hess added the beta participants
are all considered thought leaders in
the industry but have also been chosen because they will have patience
with the new software. “They do it
because they want to influence the
outcome,” he said.
EXCHANGES & ATSs
CBSX shakes up
RMM appointment
process
The CBOE Stock Exchange is shaking
up the process by which it appoints
securities to its Remote Market
Makers (RMMs), according to its
latest filing at the SEC.
The exchange has typically required
its RMMs to apply for appointments
in securities, but now the market
makers will go through a selection
process, CBSX said. The intention is
to make the process timelier and offer
more flexibility for RMMs, it added.
“The exchange believes this will
provide RMMs with more efficient
access to the securities in which they
want to make markets and disseminate competitive quotations, which
will provide additional liquidity and
enhance competition in those securities,” CBSX said.
Under the new process, CBSX will
consider the RMM selections and
then make its appointments.
The same factors for the decisions
will be applied, CBSX said, including preference, maintenance and
enhancement of competition among
RMMS in each security, and whether
an RMM would have the financial
resources to satisfy its obligations if it
were assigned the security.
CBSX noted the change should
provide some additional liquidity
in the names due to the expected
increased speed of the assignment
process.
at a price higher than intended, it
added. Instead, allowing traders to
enter trades with limit prices at nonstandard increments will eliminate
some of the risk.
“A result of the proposed change is
that participants who wish to provide
meaningful price improvement and
a reduced transaction cost to the
opposite side of the trade can do so
without incurring the additional risk
of executing at a price more aggressive than their desired limit,” the
exchange stated.
TSX confirmed in the filing that
the change is only intended for dark
midpoint orders and the order will
still only be executed at the midpoint,
as per regulatory mandate.
EXCHANGES & ATSs
More comprehensive testing and
better monitoring of financial
trading systems could help smooth
the instances of technology glitches
across the industry, according to
technology executives monitoring the
financial markets.
The last few months have been rife
with glitch-triggered market issues,
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