Kevin on the Street is back after a little hiatus, and I’m excited to get things up and running again. Why am I back? Turns out research is what I really enjoying doing. If we’ve met you’ve probably heard me explain why research is a great gig – you basically get paid to talk to […]
Tag: Bloomberg
Swaps Data Deal Under Dodd-Frank Wins 89% Market Share for DTCC (Bloomberg)
Last week we learned that ISDA decided they would endorse DTCC as the swaps data repository for interest rate products, essentially shutting down the repository created by TriOptima only a year or so ago. I love competition to spawn innovation and lower prices as much as anyone, but in this case I think the best […]
Bank Margins at Risk as EU Probes Credit-Default Swaps Market
It seems regulators are again after the evil dealers. Since dealer to dealer trading accounts for most of the volume in the CDS market, and the dealers all invest in Markit, they must be doing something wrong – right? I just can’t see how this case has any merit, nor does the timing of the […]
CFTC Proposal to Change Futures Margin Payments May ‘Kill’ Brokerage Model (Bloomberg)
The CFTC is thinking about extending some of its proposed margin rules for OTC derivatives clearing to the futures market. The part that matters here is if they require FCM’s to segregate margin for each client rather than pooling into one big account. If FCM’s can no longer get (and pass on to their clients) […]
Tullett, Tradition Talks Are Said to Hit Snag Over Price (Bloomberg)
It seems SEF consolidation has already begun, even though SEFs are technically yet to exist. I think this kind of consolidation is inevitable, and it seems the exchange merger mania will only add fuel to the fire. The new rules will force consolidation among derivatives brokers and “once all is flushed out and done, you’ll […]
Israeli Startup Correlix's Technology Selected for Direct Edge Exchanges (Bloomberg)
I’ve spoken quite a bit about latency metrics and latency transparency in the past few months including conversations with both Corvil and Correlix. It seems there is a race on between those providers to bring on as many exchanges as possible to enhance the value of their product offering. Corvil works with Deutsche Borse and […]
CBOE Files to License Pulse Trading Workstation to Member Firms (Bloomberg)
Not sure I get this one – why is CBOE filing to charge clients for a trading front end in an environment where exchanges are willing to pay for order flow? Not to mention how hyper competitive the EMS market has become. Maybe some unique functionality that will not be made available through third party […]
Dropping Swaps Plan for Volcker Rule May Not Reduce Bank Risk (Bloomberg)
Some think its too much and some think its too little. Either way the proposals don’t seem good for the market and its feeling more and more like the resulting rules will push business off shore. The market-making exemption will have little effect on how banks use swaps to place trades betting on the direction […]
Swaps Dealers Prepare Defense as Obama Predicts ‘Big Battle’ (Bloomberg)
The OTC derivative reform debate has clearly moved from one over market structure to one over politics. Whether one is a Republican or Democrat should have nothing to do with determining the best market structure going forward – but I’m not so naive. From the story: “Lincoln’s bill has made the situation much more contentious […]
SunGard Unveils Valdi Order System With Global Focus (Bloomberg)
SunGard took its BRASS sell side OMS and combined it with the recently purchased GL Trade to make their new platform, called Valdi. Sungard will be their toughest competition, with those unwilling to spend the time to swap out their existing system second toughest: “This allows the SunGard platform to give customers quick access to […]