FlexAdvantage Blog

27
Oct

MiFID II: The Buy-Side Transparency Challenge

MiFID II is going to boost transparency in financial markets and improve and broaden best execution standards for the buy side, but not everyone is prepared to handle all the data. While MIFID II standards go into force as of January 3, 2017, buy side market participants have suggested there is not enough time to prepare for the technology changes.

20
Oct

Simplifying Complexity: Trading Complex Order Books in Options-Part 2

By Ivy Schmerken, Editorial Director Primary Challenges Traders seeking an edge in multi-leg options trades are relying on technology to navigate a complex market structure. One major challenge is that there is no linkage with regards to complex order books spread across seven US options exchange.  Hence, it’s very important to scan all the exchanges …

14
Oct

Simplifying Complexity: Trading Complex Order Books in Options-Part 1

By Ivy Schmerken, Editorial Director The appetite for multi-leg options strategies is on the rise. But this also means capturing liquidity that is fragmented across multiple options exchanges. Complex orders or spread trades allow traders to simultaneously buy or sell a number of different options in what otherwise would require separate orders. “The vast majority ...
23
Sep

Buy-Side Options Trading: Covering the Spread in Complex Order Books with Multi-Leg Strategies

As multi-leg options strategies gain traction on the buy- and sell-side, sophisticated front-end tools are essential for accessing complex order books at US options exchanges. Multi-leg orders have been around a long time, but in recent years they have moved from the trading floors to electronic systems. A complex order (or spread trade) allows an …

8
Sep

Buy-Side FX Shifts in Evolving Market Structure

            By Ivy Schmerken, Editorial Director As electronic trading grows on the buy-side and top dealers retreat from sharing market color, exchanges are snapping up FX trading venues. In July, Deutsche Borse said it will buy foreign exchange trading platform 360T for $796 million to diversify and capture volume in ...
28
Jul

Portfolio Trading – Plotting Your Optimization

Big index funds and mutual funds that trade passively are popular these days, but moving large positions without incurring market impact can be challenging. Pension funds and index funds that periodically rebalance their portfolios once a month or once a quarter can face similar portfolio trading risks. FlexPTS (Portfolio Trade Scheduler) To solve this problem, ...
21
Jul

Tick Pilot – The Road Forward

            By Ivy Schmerken, Editorial Director Trading in securities of some small cap companies will change next May when the industry is scheduled to implement the tick-size pilot widening spreads for more than 1,000 stocks. But like Y2K, Reg NMS and other regulatory projects, the technology changes are not trivial ...
29
Jun

Liquidity and Fixed Income Trading — Trends to Keep in Mind (Part 2)

Corporate Bonds By Ivy Schmerken, Editorial Director Electronic bond trading is in the spotlight as traders and investors focus on a potential liquidity crunch in the U.S. corporate bond market, setting the stage for an influx of fixed income trading platforms to match buyers and sellers. As dealers have pulled back from risk-taking, market participants …

23
Jun

Liquidity and Fixed Income Trading — Trends to Keep in Mind (Part 1)

US Treasuries By Ivy Schmerken, Editorial Director While media headlines have obsessed over a lack of liquidity in corporate bonds, some market experts appear to be more nervous about U.S. Treasuries, which is the largest and most liquid asset class in fixed income. Electronic trading has grown in U.S. Treasury bonds just as it has ...
15
Jun

ETF Trading and Order Management

With an eye on new revenue opportunities, sell-side firms are launching trading desks for exchange traded funds, a global market that has close to $3 trillion in assets under management. Investors have been pouring money into ETFs, as they offer low fees, exchange trading and exposure to different countries, regions and asset classes.  While sell-side ...
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