18 – 24 JULY 2013
EXCHANGES & ATSs
BOX changes billing on trade management software, connectivity
T
he BOX Options Exchange is planning to make changes to the way it bills for trade management software it offers out to its members and how members will pay for connectivity to the exchange. Specifically, the exchange told the Securities and Exchange Commission in a regulatory filing it would no longer charge members to access the back office trade management software. The software is used by BOX participants to manage post-trade data. BOX said it has traditionally charged a monthly user fee to members that varies based on the number of users per
member. Now, the exchange said it will allow its participants to access the software for free to open the service up to more participants. The exchange also told the SEC it would require members connecting to the exchange to pay third-party data center operators directly. Connectivity to BOX requires the use of either Equinix’s NY4 data center in Brooklyn, NY, or 365 Main’s 65 Broadway data center in New York. BOX has been collecting fees from its participants and passing them to the respective data center operators, but the exchange said it would no longer do so.
TECHNOLOGY
TMX Atrium sees growth outside equities
TMX Atrium is seeing growth in its business outside of cash equities where the vendor got its start, according to comments from Emmanuel Carjat, managing director. The vendor, which provides infrastructure to connect buy- and sellside firms with a variety of market participants including multi-lateral trading facilities, exchanges, clearinghouses, and market data providers, has also seen interest from a new variety of participants. Just in the last month, the vendor announced it upgraded its connectivity to Knight Hotspot to quell client demand for access to the FX venue. It also added a connection for SuperDerivatives, which serves a broad variety of derivatives classes, in London to provide access to Nasdaq OMX NLX. Carjat noted the interest seems to be developing from a variety of sources, with some new business being generated from long-term relationships and recommendations from venues TMX Atrium partners with.
The other element is essentially the network effect in that the more clients TMX Atrium has the more likely non-clients find out about the offering and existing clients can cross connect with other participants, Carjat explained. As the provider adds more clients, Carjat noted it will start to look at opportunities to build more awareness among its users of potentially helpful connections they might make within the community. “Certainly one of the things we are looking at is that we are looking to foster relationships within our community,” he said. As an example, he cited the recent addition of NLX as being attractive to users that trade on NYSE Liffe in light of the fact that both offer trading in shortterm interest rates. “We’re making our clients aware that NLX is on our network, and vice versa. This gives them immediate access to additional venues, lowering their friction cost for trading,” he said. In terms of participant variety, TMX Atrium is seeing growing interest from technology vendors, such as SS&C and Raptor Trading, both of which have recently connected to TMX Atrium’s community in Toronto. “It’s good for us and our community that we are continuing to grow and expand,” Carjat said. “The richness of
new tech vendors gives our community and clients a choice of which technologies to use.” TRADING FIRMS
I.A. Englander expands biz dev for managed accounts, prime services
I.A. Englander is adding three executives to the sales and business development team for its Managed Accounts and Prime Services (MA&PS) division, WSL has exclusively learned. The independent institutional brokerage has hired Bob Chicoine, Harry Freda and Nick Rizzi as managing directors. Each joined from Cantor Fitzgerald and previously worked at PCS Dunbar Securities in Purchase, NY, which Freda co-founded. In their new roles within the MA&PS sales team, the executives will sell the division’s services to hedge fund managers and investors in support of growing demand. Chicoine, Fred and Rizzi will be based in New York and will report to Brett Langbert, managing director and head of sales and distribution, a spokesman confirmed.
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