Wall Street Letter VOL. XLVI, NO. 1 - January 2014 | Page 3

JANUARY 2014 NEWS EXCHANGES & ATSs 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 © 2014 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 02/10/14 The upcoming issue will feature our regular industry news coverage. Until then, news items will be available on our website at www. wallstreetletter.com Amex Options harmonizes bid-ask spread differentials NYSE Amex Options will once again require market makers to comply with just one set of rules on bid-ask spread differentials after two years of imposing the narrower requirement, according to a regulatory proposal from the exchange. The set of narrower differentials, which were applied during electronic auctions, were a part of the rules prior to 2010 but were eliminated after market makers had adapted to a new trading system that included the ability to define price parameters during auctions. The exchange brought the narrow differentials back because of delays opening contracts for trading due to a lack of narrower differentials for opening auction quotes. Under Amex Options’ current rules, quote widths for market makers may range from $0.25 to $1 depending on 01 CONTINUED... The completion of the transition from legacy to outsourced systems gave Newedge the one-stop-shop offering it needs to be well-positioned for the future, Garrow noted, especially as the firm makes its foray into centrally cleared and executed swaps. “We’ve not been a huge player in the OTC space, but clearly with the move of the business from OTC markets onto central clearing and execution, it plays very nicely into our business model,” Garrow said, adding the firm expects to be able to service existing clients in this area as well as to garner new clients with its infrastructure. The firm has connected to the CME Group, SwapClear and other central counterparty clearing houses the bid, with the smallest width required