18 – 24 JULY 2013
EXCHANGES & ATSs
Arca to alter priority rules for open outcry
ids and offers from market makers and floor brokers may soon have priority over those of non-customers represented on the consolidated order book during open outcry executions on the NYSE Arca floor, according to a regulatory proposal from the exchange. If the exchange makes the change it would be a reversal of current rules that allow equal or better priced order on the consolidated book to take priority over bids and offers submitted by crowd participants that may have negotiated a large trade. Arca noted that in some cases, because of current priority rules, a participant in the crowd may not get to participate in a trade negotiated by the participant because of electronically updated quotes on the consolidated book. “Given the speed at which quotes can flicker in the consolidated book, crowd participants who have agreed to a transaction in open outcry do not know if they will actually participate on
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the trade until after execution,” Arca said. In changing the priority rules, Arca said it will allow customer orders on the consolidated book to keep priority over crowd participants where bids and offers are equally priced, but crowd participants will gain priority over noncustomer orders with equal-priced bids and offers if those non-customer orders are ranked in time priority behind customer orders. Non-customer bids and offers equal in price to customer bids and offers but with a higher time priority ranking will still have priority over crowd participant orders with equal bids and offers. “The… proposed rule change strikes the appropriate balance between encouraging larger negotiated transactions in open outcry while at the same time protecting customer interest on the consolidated book, and any interest that has time priority over such protected customer interest,” Arca said.
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this year or Q1 next year. That will be determined by ongoing evaluation of priorities in the firm and what our customers are asking us for.” TECHNOLOGY
eFront to hone focus regionally
eFront, the global provider of risk management, analytics and reporting capabilities for alternative investment funds, expects to sharpen its coverage efforts to focus specifically on larger regions, according to Eric Bernstein, the vendor’s chief operating officer for North America. While the vendor has historically attempted to cover a lot of territory with its sales and business development efforts, Bernstein said that its strategy will change to one that puts more effort into large regions. “To go to every country and push
our products is not as productive,” he said. “So, we’re pouring more energy into Asia, the US and continental Europe, including the UK.” In support of that strategy, Bernstein said the vendor will make a push in the next four months combining targeted marketing campaigns with lead generation covering the entire market. “We want everyone in the market to know who eFront is and what we do, who our clients are and to know what our products are all about,” he added. eFront also recently restructured its management resulting in a two-team structure. Instead of a 10-person executive committee, the company now has a five-person executive team and an eight-person management team. The restructuring comes on the heels of the vendor’s hiring of Paul Wheeler as the chief operating officer and interim COO for Europe, said Bernstein. He noted while eFront had been
considering the change for a while, the addition of Wheeler provided a natural segue to the new structure. “Paul came in and sat through four meetings where, with so many people in the room and so many opinions, it was hard to make an easy decision,” Bernstein added. In his new role, Wheeler will focus on the operational soundness of the corporate entities of the company, including marketing, finance, human resources, research and development, and product management, Bernstein said. EXCHANGES & ATSs
BOX confirms hedge exemptions for Jumbos
The BOX Options Exchange is confirming exemptions to its position limits rules for the jumbo contracts it launched earlier this