https://tabbforum.com/opinions/sixs-bid-to-acquire-bme-will-ultimately-prevail-creating-a-new-pan-european-exchange/ David Tabaka - Burton-Taylor International Consulting "A combination of the two exchange operators would reach Pro Forma 2019 revenues totaling $1.2 billion, with the largest revenue impact in the Trading, Clearing & Settlement segment, increasing SIX’s existing revenues by more than 35% as it brings equity, fixed income, and derivatives trading revenue to the combined entity. The deal would also further bolster SIX’s information services efforts that include data sold by SIX’s Securities & Exchanges unit as well as data, indices and other services from SIX’s Financial Information unit. The acquisition would give SIX a new data footprint in the EU, and significantly expand its ability to offer Spanish datasets and index products."
https://tabbforum.com/opinions/outsourced-trading-goes-viral/ Michael Mollemans TABB Group - "Beyond the basic features of outsourced trading services, many firms try to differentiate themselves by emphasizing services such as technology and analytics, access to a wide broker network, regulatory reporting, flat monthly fee pricing options, prime brokerage services, and more. While the firms that have been providing outsourced trading services for many years argue that they benefit from experience, newer entrants in the space say they gain from leapfrog effects in trading and process technology"
https://tabbforum.com/opinions/mifid-ii-the-blocks-are-back/ Tim Cave TABB Group - "October also was a record month for dark trading overall under MiFID II. Dark MTFs accounted for 10.4% of on-exchange volumes and dark average daily notional was €4.4 billion, up 26% on September and the highest since February 2018"
http://l.emails.history.com/rts/go2.aspx?h=732621&tp=i-H43-9I-A3l-sn3lr-1c-1cOYb-1c-smb6f-1QHxpi&x=hist-tdih-2019-1115%7c11152019%7ca0193d46a649b89283c4a61eef74e904402343d967d48482b5ada6bbeb3243c3%7c809614715%7c38673%7chist-tdih-2019-1115%7c11152019%7ca0193d46a649b89283c4a61eef74e904402343d967d48482b5ada6bbeb3243c3 On November 15, 1867, the first stock ticker is unveiled in New York City. The advent of the ticker ultimately revolutionized the stock market by making up-to-the-minute prices available to investors around the country. Prior to this development, information from the New York Stock Exchange, which has been around since 1792, traveled by mail or messenger. The ticker was the brainchild of Edward Calahan, who configured a telegraph machine to print stock quotes on streams of paper tape (the same paper tape later used in ticker-tape parades). The ticker, which caught on quickly with investors, got its name from the sound its type wheel made. Wikipedia https://en.wikipedia.org/wiki/Ticker_tape?wprov=sfti1
https://tabbforum.com/opinions/inside-outsourced-trading-the-buy-side-perspective/ Michael Mollemans - "Further, the typical workflow, duties and responsibilities of buy-side traders are quite different from sell-side traders. Outsourced traders are mandated to be an extension of the buy-side firm and so buy-side trading experience can be very helpful. In fact, buy-side firms often insist that their outsourced trader have buy-side experience so that they understand the unique responsibilities of the role, and this is among the service offerings most valued by managers (see Exhibits 1 and 2, below). Outsourced trading firms understand this point and often hire only traders with buy-side experience."
https://tabbforum.com/opinions/sec-extends-no-action-relief-on-mifid-ii-greater-flexibility-in-acquiring-research-encourages-csas/ Christopher Tiscornia - "As we move forward, U.S. asset managers need to implement best practices to promote greater transparency and support the spirit of MiFID II and its unbundling requirements. These practices include: Having a thorough, defensible process around research valuation and consumption. Unbundling the trade execution decision from the research decision via the use of CSAs. Providing transparent reporting of research funding, consumption, and value to asset owners and regulators. Ensuring that the interests of managers and asset owners are aligned. Managers need to articulate how their research spending patterns, approaches to investing, and enhanced reporting processes are consistent with asset owners’ expectations."
https://alphacution.com/schwab-and-others-confirm-status-as-casinos-purveyors-of-financial-opioids/ Paul Rowady - "Ok. So, in order to avoid one of those vein-popping rants, I just want to remind that there is no such thing as a free lunch, that the retail brokerages are not charities, and that they will absolutely make up lost commission revenues in other ways, usually obfuscated way down in the guts of their workflow process where few people notice."
https://tabbforum.com/opinions/meet-your-market-maker-europes-elp-sis-gain-ground/ Tim Cave - As Exhibit 4, below, shows, the future prospects for the ELP SI market are affected by a range of regulatory, operational and competitive forces. Taking all these factors into account, we think there is no reason why this market won’t continue to grow over the next 12 to 28 months. That said, the continued collection of data on ELP SI execution quality by brokers is likely to reinforce the consolidation of activity into the best-performing SIs, making it difficult for others to survive.
https://tabbforum.com/opinions/cat-resurrects-the-age-old-question-build-vs-buy/ Alex Rabaev - Overall, in-house built solutions are not replaceable, but it may be more practical to consider outside solutions. The decision is never one dimensional and never in the moment, as it will transcend scope and time. Your decision should balance practical short-term considerations and long-term strategy/vision.
https://tabbforum.com/opinions/on-the-cost-of-free-trades/ Don Ross - Our markets, you see, were not built for institutions. They were built for the little guys – guys with little orders. We have complex and costly market-linkage and order-handling rules to protect their orders.