THE DEFINITIVE SOUR CE FOR TR ADING NE WS
VOL XLV ISSUE 20 20 - 26 JUNE 2013 www.wallstreetletter.com
IN THIS ISSUE News People moves 04 Focus Fee chart 10
MORE NEWS INSIDE
TOP STORY
Buy-side exec: Costs no lower with more tech
The cost to buy-side institutions to execute trades hasn’t been dramatically affected with increasing levels of electronic trading TURN TO PAGE 04
Cowen develops switching engine
BY JEANENE TIMBERLAKE
Vendors say tech still secondary to people
Execs talk staffing at TABBForum’s “The Fate of US Equities” event last week in New York TURN TO PAGE 06
GoldenSource plans geographic expansion
Expansion will see the vendor add new offices as well as broaden its reach to new regions, says CEO Mike Meriton TURN TO PAGE 08
The Cowen Group plans to start using technology it has developed that will allow it to use fewer trading algorithms by optimizing a set of just a few, according to John Cosenza, co-head of electronic trading at the firm. Cosenza’s comments were part of a panel discussion hosted by the TABBForum in New York last week. The firm recently built technology for what he called a switching engine that would manage trade execution by choosing between fewer, more optimized algorithms, as opposed to requiring a
decision from among the current slew of options, Cosenza said. “Instead of having a VWAP, TWAP, liquidity seeking... we would have one with several parameters,” he explained. Cosenza noted that he expects this type of technology to penetrate the market in the next few years more than it already has due to the overwhelming menu of choices traders have today. “There are too many strategies,” he told attendees. “There are 30 to 40 TURN providers and thousands TO PAGE of permutations of order types.” 03
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