NEWS
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feed data into the surveillance suite in real-time. The systems should be able to watch over chat, email, phone conversations and social media, she said. Additionally, she noted they should “generate alerts that are accurate, with as little percentage of false alerts as possible, that waste people’s time,” and also seamlessly integrate into a firm’s infrastructure without impeding normal trading activity. In a separate interview, Cromwell Fraser, director, NICE Systems, said a system it launched last week solves those issues. The vendor launched Proactive Compliance Solution for Trading Floors that can search archived communication to match it to trading activity and provide alerts to the potential for concern. By having access to all of a firm’s transactions, the system can review against what’s happening in the markets, layer it on top of every form of communication and even discover trends that weren’t expected, Fraser further explained. TRADING FIRMS
volatility,” he said, adding that volatility is the biggest factor in terms of whether trading costs go up or down. “The names have changed, in terms of who is trying to get in the middle, but the faces stay the same,” he said. Lyons added the perception that block liquidity is harder to source is true, noting that with more electronic methods, there is “no direct line to block liquidity”. He cited the New York Stock Exchange as having been a good source of that type of liquidity in the past, and he added it was easier to understand supply and demand in size via the exchange than it is today. He noted his firm does take advantage of low-touch trading models because of concerns around information leakage, but he said the decision per firm depends on the assets they manage. “If I am a passive manager and there is no information content in my flow, I am not too worked up about anonymity,” he said. For his firm, PEOPLE MOVES
low-touch channels offer more of a guarantee that managers will find large blocks. TECHNOLOGY
State Street targets year-end to complete cloud migration
State Street expects to wrap up a project it has undertaken to move its servicing applications to a cloud infrastructure by the end of the year, according to comments from Jay Hooley, chairman, president and CEO during a presentation at the Morgan Stanley Financials Conference last week. Hooley said the bank started with 200 applications, all of which it endeavors to rewrite for the new environment. So far, 50 of the applications have been rewritten and relocated, he said. “Of the 150 left, there is no single big one, so generally you can think about 50 [applications to be rewritten] per quarter for the rest of the year,” he noted. The transition has made the bank more effective and more efficient, while positioning it to provide value to shareholders in the long-term, Hooley said. “This is probably the most transformational thing that has happened to our business in this industry in 20 years, in my opinion.” Hooley also noted he feels State Street is well positioned in terms of providing service to alternative assets, particularly hedge funds. In addition to providing middle office service, the bank provides custody for a growing number of funds, he said. All of that contributes towards increasing the scale of the business, which in turn p ?????????????????????????????????????????qQ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????t??????????() ???????????
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