28 MARCH – 3 APRIL 2013
TotalView offering provides data of displayed participant orders on the exchange, including aggregate size at the various price levels, and trade data for executions on the exchange. Members or distributors can pay a fee to access the service and distributors can then offer access out to their clients planning to use the data without displaying it, PSX said. Distributors accessing the service will pay $750 a month to provide the data through an automated system, such as an application programming interface, to users with limited controls, PSX said. The exchange noted that while the distributor may not have control over how its end users use the information, it is liable for unauthorized use by recipients. For non-professional subscribers to MDS, PSX said it would charge $20 per month per subscriber for PSX Depth Data, which includes TotalView. Professional subscribers will be charged $100 per month per subscriber, the exchange said. The service responds to demand from members and is intended to increase the amount of data available to consumers, it said. Nasdaq OMX BX has also made a similar proposal. POST-TRADE
EXCHANGES & ATSs
IEX trading venue set for summer launch
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SunGard eyes posttrade capabilities for APAC
SunGard plans to build out the reach of the capabilities of its post-trade derivatives business in the AsiaPacific region, according to John Omahen, vice president of post-trade derivatives for SunGard’s capital markets business. The expansion targets requirements that must be met by SunGard clients trading swaps as regulations requiring central clearing of the overthe-counter contracts take effect. In the US, an implementation deadline for a portion of the market passed
EX Group, a venture aimed at providing the buyside a safe haven from predatory trading, is getting ready to go live this summer, according to industry executives who spoke to WSL. IEX is likely to launch in August, multiple sources confirmed. Smart order routing capabilities are expected to come later in 2014, a brokerage executive said. It will likely have both a lit and a dark portion, the brokerage executive added. Backed by a few buyside firms, IEX will initially launch as an alternative trading system (ATS) but is expected to eventually apply to become an exchange, the sources added. The brokerage executive said backers include Capital Group, Greenlight Capital, RBC Capital Markets and T. Rowe Price, with RBC expected to be the main liquidity provider. Capital Group, Greenlight and RBC Capital Markets declined to comment. T. Rowe Price did not immediately return a message left for comment. Given the current environment of shrinking volumes and lower margins, a head trader and a former exchange executive were skeptical the venue could move away from the influence of firms using low latency technology given that prices on most ATSs are tied to the NBBO, which is in turn affected by HFT activity. The former exchange executive
also wondered where they would find the volume necessary to remain viable, saying the venue would be lucky to find 50 million shares a day. “It’s going to be tough going for them,” he added. RBC Capital Markets alums Brad Katsuyama, who is CEO of IEX, and John Schwall, tapped to be chief operating officer of IEX, are leading the initiative, according to IEX’s spartan website. They left a market structure group within RBC’s capital markets division to start IEX as a natural progression of their work with the anti-HFT Thor trading platform with the Canadian bank’s blessing, according to sources. The venture was able to raise nearly $10m in funding, according to a filing with the Securities and Exchange Commission. When reached by WSL, Schwall declined to comment but said the group would make an announcement in the next few months.
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earlier this month, and two more deadlines are pending later this year. Omahen said the post-trade derivatives business has been focused on its ability to support clients by connecting to clearinghouses that have launched specific OTC clearing initiatives with a particular focus on US entities and then those in Europe. “We are now moving into a phase where we are tackling the Asia-Pacific clearinghouses,” he said. Timing is based mainly on the effective dates set out by regulators in the different re-
gions, Omahen added, where the US is first out of the gate with its changes and changes in Asia are expected to be phased in last. As part of its business for clients needing support in over-the-counter derivatives, the post-trade unit provides the ability to capture trade information from clearinghouses its clients are connected to, as well as books and records for OTC cleared and listed derivatives, among other back office services. The vendor also plans to extend
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