Wall Street Letter VOL. XLVI, NO. 1 - January 2014

THE DEFINITIVE SOUR CE F O R T R A D I N G N E W S
VOL XLVI ISSUE 1 JANUARY 2014

www.wallstreetletter.com

IN THIS ISSUE
News People moves04
Focus Fee chart16
Feature Timing is everything18

MORE NEWS INSIDE

NSCC cuts Stock
Borrow Program
The utility said it had the Stock
Borrow Program in place to
cushion the functionality of its
Continuous Net Settlement system
TURN TO PAGE 05

Pacnet eyes PEN
growth in Asia
The infrastructure provider is
looking at adding making PEN
available in more financial hubs
TURN TO PAGE 09

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PLUS

Timing is
everything

18

How time synchronization
technology has changed
over the years

TOP STORY

Newedge dives into OTC,
middle office buildout
BY JEANENE TIMBERLAKE

Newedge plans to dig in to the
second phase of a project to
build out its electronic trading
and processing infrastructure
that will involve expanding
its connectivity for over-thecounter swaps execution,
according to Nick Garrow,
global head of eSolutions at the
futures commission merchant.
The firm will also launch an
overhaul of its middle office
processing capability, Garrow
said in an interview with WSL.
The projects follow an
approximately 18-month effort
undertaken by the firm to replace
legacy trading systems and

infrastructure in its futures and
equities businesses, he explained.
The effort, which it completed
by outsourcing the bulk of the
technology to Fidessa, was
Newedge’s way to cut costs
in light of difficult economic
conditions, Garrow said. Cost
savings are in the range of single
digit millions of euros, he added.
“We have come up with what
I think is a more streamlined
solution. So cost reduction
is not negative, I see it as a
positive in many ways, and it has
obliged many FCMs to focus
and begin the process
TURN
of rationalization and
TO
PAGE
streamlining,” Garrow
said.
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