1 – 7 AUGUST 2013
EXCHANGES & ATSs
Phlx to offer another complex order pricing exception
Nasdaq OMX Phlx plans to allow traders to execute complex orders against non-complex order components even if the price would fall outside the National Best Bid or offer, according to a trader notice last week. The exchange said it has allowed legging of complex orders, or matching a complex order to contra quotes and order interest by individual components, against non-complex order interest as long as the price was equal to the NBBO. Now, Phlx said it plans to allow legging of complex order components against non-complex interest outside the NBBO at the end of the month. The exchange already offers this
exception when complex orders trade against other complex orders. Phlx still plans to restrict quote and order interest matching when legging complex orders by requiring pricing to remain within the Phlx BBO. The exchange said it will make the change on symbols starting with the letter E through J on July 31 and all other symbols on August 1. EXCHANGES & ATSs
BOX to allow exposure for Limit Complex Orders
The BOX Options Exchange told the Securities and Exchange Commission in a filing it wants to give members the opportunity to expose their Limit Complex Orders. The exposure, a period that had been restricted to BOX-Top and Market Complex Orders, should provide
more opportunities for execution, according to the exchange’s proposal. Currently, complex orders are matched up with interest on the BOX order book and the complex order book as long as the price is equal or better than the complex National Best Bid and Offer (cNBBO) and the BBO. After execution, any remaining interest for BOX-Top and Market Complex Orders is exposed for as much as one second and contra interest can be immediately executed against the orders. Remaining interest is cancelled. For Limit Complex Orders, remaining interest after the first execution is placed on the Complex Order Book. BOX said its plan is to allow Limit Complex Orders to be exposed, as other orders are, with the same time restrictions. An additional constraint to exposure for Limit Complex Orders is that the exposed price must be better than the cNBBO or it will be cancelled.
05
TECHNOLOGY
Thomson Reuters partnership with CQG is a first
partnership between CQG and Thomson Reuters is a first for the latter, which has never offered a third-party direct market access (DMA) capability to its clients, according to Brennan Carley, global head of platform and transactions at Thomson Reuters. The vendors announced the details of the partnership last week, which involves an integration of CQG’s platform, and provides global futures exchange access via DMA, with Thomson Reuter’s Autex Trade Route order routing network. Carley said in an interview that while the majority of the futures commission merchants on the platform offer their own DMA, the connection with CQG offers the potential for access to additional exchanges
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without requiring investment by the brokers. CQG’s network provides access to more than 40 exchanges and its DMA offering can be whitelabeled for FCMs. While Thomson Reuters is not considering additional partnerships for third-party DMA, Carley said similar partnerships in the future are possible as the agreement with CQG is not exclusive. The deal also allows Thomson Reuters to build on its multi-asset capabilities, Carley said. While the Autex platform has had a heavy focus on cash equities, he said: “Cash equities is about as electronic as it is going to get. The trends we saw in the equities markets are now happening in other asset classes.” The partnership is one milestone towards the goal of a built out platform, he added.