Wall Street Letter Volume XLV Issue 11 | Page 3

NEWS 28 MARCH – 3 APRIL 2013 EXCHANGES & ATSs Published by Pageant Media London Thavies Inn House London EC1N 2HA T [phone] F [phone] EDITORIAL Jeanene Timberlake Managing editor [phone] [email protected] Ryan Gorman Reporter [phone] [email protected] Gwyn Roberts Group head of content [phone] [email protected] Indira Peters-DiDio Data manager [phone] [email protected] PRODUCTION Claudia Honerjager Head of production c.honerjager@ pageantmedia.com New York 240 W 37th St. Suite 302, NY 10018 T [phone] F [phone] COMMERCIAL Lucy Guest Group commercial manager [phone] [email protected] Stefano Giacoia Content Sales Manager [phone] [email protected] EVENTS Beth Hall Head of events [phone] [email protected] DISTRIBUTION Fay Muddle Circulation manager [phone] [email protected] PAGEANT MEDIA Charlie Kerr Chief executive Printed by The Manson Group BATS open to future offline BCP testing BATS Global Markets is leaving open the possibility that it may conduct future business continuity planning (BCP) tests in an offline capacity, according to a spokesman. The exchange operator said Monday it took its Kansas City, Mo., headquarters offline as part of a BCP test it conducted March 14 to test the potential for a disaster where the location was completely disconnected from outside network access. “We needed to make sure we were 100% functional and are pleased to say we were,” he said. While BATS has no plans to do another fully disconnected test, the spokesman said the company will consider it for the future. This was the first fully offline test the company has completed, but he indicated it was not in response to Hurricane Sandy, the most recent natural disaster to affect the East Coast and the US financial markets. “This latest test on March 14 is something we still would’ve performed if [Hurricane] Sandy hadn’t occurred,” the spokesman said. The test did not include trading systems, though the spokesman noted the exchange has successfully tested its ability to conduct live trading out of its backup data center in the past. Monthly tests will continue to be conducted as usual. TRADING FIRMS Partnerships seen as the next wave in financial tech Jeff Bell, CEO of Lime Brokerage, said he believes the financial services industry will see more partnerships and coalitions based on discussions that took place at the NYSE Technologies Client Conference in Miami earlier this month. community. “We have a bullpen of hedge fund managers that are looking to raise capital and you have a roster of investors who are looking to allocate capital, and we are giving both sides the ability to do so through our tech offering and a menu of services,” he added. The opportunity is one the firm started to explore after noticing that the hedge funds it was working with were getting allocations through managed accounts, a capability the division didn’t offer, Yarkon noted. Additionally, while investors are said to be interested in emerging funds due to the increased potential for Alpha in the first few years, they are cautious due to the inherent risk of investing. “We are giving them technology that is wrapped around an offering that