Wall Street Letter VOL. XLV, NO. 33 - Oct. 21, 2013 | Page 3

10 – 16 OCTOBER 2013 NEWS EXCHANGES & ATSs Beta set for new DelphX venue Published by Pageant Media London Thavies Inn House London EC1N 2HA T [phone] F [phone] New York 1441 Broadway Suite 3024, NY 10018 T [phone] F [phone] EDITORIAL Jeanene Timberlake Managing editor [phone] [email protected] COMMERCIAL Lucy Churchill Group commercial manager [phone] [email protected] Sean Creamer Reporter [phone] [email protected] Emily-Jane Stapleton Corporate licence manager [phone] [email protected] Gwyn Roberts Group head of content [phone] [email protected] EVENTS Beth Hall Head of events [phone] [email protected] Indira Peters-DiDio Data manager [phone] [email protected] PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com Sub-editor Eleanor Stanley Sub-editor Luke Tuchscherer Sub-editor DISTRIBUTION Fay Muddle Circulation manager [phone] [email protected] PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group 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 WALL STREET LETTER will be available the week of 10/28/13 The upcoming issue will feature our regular industry news coverage. Until then, news items will be available on our website at www. wallstreetletter.com A beta test schedule has been set for CentralX, the broker-neutral, nonprofit fixed income alternative trading system intended for a 2014 release, according to Ralston Roberts, senior managing director at SunGard, and Larry Fondren, president and CEO of DelphX, a neutral fixed income ATS. DelphX announced its plans for the launch last week with support from SunGard – the former will offer CentralX to its members using the SunGard Global Network (SGN), which offers a FIX connection and more than 2,100 global connections to over 500 brokers. The beta is scheduled to start in December, said Fondren. The decision to launch the platform is a move to provide another option for participants in light of the fact that the traditional dealer-centric OCT market doesn’t offer enough liquidity, according to comments from Fondren. The liquidity level of the markets, impacted by new regulation and changing market dynamics, is less than 20% of 2007 levels, he added. While CentralX will initially cover the same fixed income issues currently covered by DelphX, the executives noted the two platforms will be targeting different types of participants. 01 CONTINUED... Farley also detailed stark contrasts between futures and equities in terms of sourcing liquidity and the hand of regulation. “The [futures] markets are allowed to evolve in a much more natural way. Equities markets are just rule on top of rule and it is forcing the mar