Wall Street Letter VOL. XLVI, NO. 7 - July 2014

THE DEFINITIVE SOUR CE FOR TR ADING NE WS VOL XLVI ISSUE 7 JULY 2014 www.wallstreetletter.com IN THIS ISSUE News People moves04 Analysis Fee char t16 Feature Trading system failures18 MORE NEWS INSIDE TCA not critical for mid-sized hedge funds Mid-sized hedge funds aren’t using pre-trade analytics services made available to them by their brokerage firms, says Woodbine report TURN TO PAGE 06 REDI considers novel asset class expansion REDI Technologies is beginning to hire staff for an acquired office in Dallas, Texas TURN TO PAGE 11 + PLUS Trading 18 system failures cannot be norm Lasalletech’s Jason Nothey on testing trading systems TURN TO PAGE 18 TOP STORY Pragma to jump into FX as algos provider BY SEAN CREAMER New York City-based Pragma Securities will offer FX algorithms to market participants in a move to compete with banks that dominate the space, according to David Mechner, CEO (pictured). He noted clients of Pragma trade in multiple asset classes and have been yearning for an algo provider that isn’t a bank operating a Chinese wall between trading and algo functionality. “There is a clear need for this functionality in the FX space. We saw ourselves and heard from clients that there is a lack of independent providers of advanced trading tools in FX,” said Mechner. “In FX, the only algo providers are the big banks. The problem is that the banks themselves are trading as principals as well.” The lack of agency FX algos prompted Pragma to begin outfitting its Pragma360 offering, which sits on a data plant that collects data in real-time for analytics TURN and order management TO PAGE capabilities, to cover FX 03 markets, Mechner said. V I S I T WA L L S T R E E T L E T T E R . C O M F O R U P - TO - T H E - M I N U T E I N V E S T M E N T N E W S