MARKET STRUCTURE DICTIONARY

BRIAN W. LEITE

An Insider's Guide to the Real Language of

Trading and Exchanges

Over 2700 Entries

Dark Trading Channel

Brokers, Dark Pools May Face Automation Reviews

Sept 14, 2012 Securities Technology Monitor The Securities and Exchange Commission may include large brokers and dark pools in a planned rule aimed at ensuring that regulated securities markets have adequate technology systems, an SEC official said.

Results Are in for NYSE's Retail Pilot Program

Sept 12, 2012 Traders Magazine NYSE Euronext is trading about 6 million shares a day through a pilot program aimed at attracting retail investors, according to Michael Geltzeiler, the exchange operator's chief financial officer.

Dark pools face up to harsh realities

Sept 5, 2012 The Trade The closure of ICAP’s BlockCross dark pool is further evidence of the tough competitive environment faced by non-displayed multilateral trading facilities in Europe with innovation the key to survival.

Retail Program Counts for Less than 1% of NYSE Volume

Aug 24, 2012 Securities Technology Monitor After three weeks in operation, the number of shares executed Thursday in NYSE Euronext’s “price improvement” program for retail investors accounts for eight-tenths of one percent of overall New York Stock Exchange volume.

BATS Files to Launch Retail Price Improvement Program

Aug 14, 2012 Traders Magazine BATS filed with the Securities and Exchange Commission today to launch its own Retail Price Improvement (RPI) program on the BATS BYX Exchange. The filing today and program are a response to NYSE's recent installment of its own price program, the Retail Liquidity Program.

The Danger of Too Much Dark Liquidity

July 25, 2012 Advanced Trading Dark pools play a critical role in today's market. But rising dark pool volumes mean wider spreads and higher costs on the lit markets, according to researchers in the U.S. and abroad.

Debate on Playing Field Heats Up

July 16, 2012 Traders Magazine Be careful what you wish for. Duncan Niederauer, chief executive of NYSE Euronext, one of the largest operators of stock exchanges, called on Congress in June to level the playing field between exchanges and brokers alternative trading systems.

NYSE retail program raises market structure questions - ITG

July 13, 2012 The Trade Agency broker and technology vendor ITG has raised objections toUS regulator the Securities and Exchange Commission handling of NYSE Euronexts retail liquidity program, arguing it risks exposing investors to unintended consequences.

Buyside Exec Opposes Sub-Penny Pricing

July 12, 2012 Traders Magazine There is nothing wrong with regulators experimenting with new pilot programs in order to improve the structure of the equity marketplace. But the one thing they should avoid at all costs is sub-penny pricing.

The Impact: Dark Orders, but Not a Dark Pool

July 6, 2012 Securities Technology Monitor The NYSE says its retail liquidity program is "still operated in the exchange framework, but all rules on treating retail customers are those that are "filed and standardized and submitted to the SEC.''

SEC Approves NYSE Retail Liquidity Program

July 5, 2012 Traders Magazine Securities and Exchange Commission on Tuesday approved controversial proposals by exchanges operated by NYSE Euronext that will enable them to compete with wholesalers for retail order flow.

Liquidnet Screwed Up on Customer Data

June 22, 2012 Securities Technology Monitor The operator of the largest venue for institutions to trade large blocks of shares anonymously acknowledged to its customers that it failed to fully guard information about them.

Former Pipeline Wrapping Up Operations

June 5, 2012 Traders Magazine After selling its crown jewels to Portware and disposing of the rest of its intellectual property to ITG, Aritas Group, formerly known as Pipeline Trading Systems, is winding down and looking to sell off anything left with value.

Dark Pools Handle 13% of U.S. Equity Volume - Tabb

May 22, 2012 Securities Technology Monitor Dark pools accounted for 13% of total volume in U.S. equities volume during April and March, a sign that trading firms are increasingly trusting the anonymous venues, according to the Tabb Group.

Where Has All the Stock Trading Gone?

May 10, 2012 Bloomberg Its been a rough few months for NYSE Euronext, owner of the countrys biggest stock exchange. In February, European regulators scrapped its planned $9.5 billion.

Dark pools must prove they have nothing to hide ITG

May 08, 2012 The Trade Dark pool operators must be more open to clients and regulators if they wish to regain trust following a renewed focus on order handling, according to Jamie Selway, head of liquidity management at agency broker ITG.

Poor routing decisions costing US investors billions

May 7, 2012 The Trade US brokers continue to route equity orders to trading venues based on execution fees rather than seeking best execution, costing the buy-side's clients up to US$5 billion annually, according to research from Woodbine Associates.

Cover Story: Keeping Watch

May 6, 2012 Traders Magazine Using sophisticated monitoring and analysis techniques, bulge bracket brokers are starting to build profiles of the traders in their dark pools. They know who's naughty and who's nice, and they are using their newfound information to shore up the integrity of their trading systems.

Buy-Side Traders Find Liquidity in Dark Pools

May 3, 2012 Advanced Trading With U.S. equity volumes in the dumps, the buy side increasingly is searching for liquidity in dark pools, stoking fears about a lack of execution transparency in the opaque markets. But buy-side traders are finding value in the dark -- if they know where to look.

Is Buy-Side Order Flow Really Going Dark?

May 2, 2012 Advanced Trading In the search for liquidity, the buy side increasingly is turning to dark pools. Or is it?

Designer Liquidity

May 2012 Traders Magazine Who do you want to trade with today? It appears that choice is growing in today's electronic marketplace. This month's cover story details how a few bulge bracket firms offer clients peace of mind through greater transparency in their dark pools.

5 Reasons Why One In Every Three U.S. Equities Shares Is Traded In the Dark

April 26, 2012 Advanced Trading Tabb Group offers the real reasons why 33 percent of U.S. equities volume is traded off-exchange.

33% of Trading Taken Off Exchanges - Tabb

April 10, 2012 Securities Technology Monitor In March,33 percent alltrading in U.S. equitieswas executed away from registered exchanges, with a growing amount taking place via internal orders, according to commentary released by the Tabb Group.

Internalization of Order Flow on the Rise

April 9, 2012 Traders Magazine March saw a new record in U.S. equities trading executed away from registered exchanges, according to commentary released by the Tabb Group.

Whats in Store for 2012?

Traders Magazine As regulators start to press their agendas for the coming year, Traders Magazine asked some industry experts what they expect to be the biggest regulatory and market-structure issues of 2012.

France Urges Tougher Rules on High-Frequency Trades, Dark Pools

Dec 16, 2011 Bloomberg Frances financial market regulator urged the European Union to toughen its planned overhaul of rules, highlighting the need for more oversight of high-frequency trading and new trading platforms.

Milstream Gone, Pipeline Tries To Win Back Customers

Nov 21, 2011 Traders Magazine Pipeline Trading announced on Friday it will cut Milstream Securities off from its dark pool and divest itself of the controversial affiliate that had been supplying the bulk of liquidity in its block market.

Pipeline's Bombshell Hurts All Dark Pools

Nov 15, 2011 Advanced Trading Trust in all dark pools takes a hit as the industry reacts to SEC charges that Pipeline filled the vast majority of customer orders through an affiliated trading entity rather than by matching them against other customer orders, as advertised.

Factbox: Key outcomes of G20 Cannes summit

Nov 4, 2011 Reuters Following are the main achievements of the Group of 20 heads of state summit in Cannes,France, on November 3-4.

Experts Call For Greater Transparency in Dark Pools

Nov 3, 2011 Traders Magazine In the wake of Pipeline Trading Systems' settlement with the Securities and Exchange Commission, experts say "transparency" and "trust" have to become more than mere buzzwords, especially as they relate to dark trading venues.

Commentary: When Hidden Orders Come to Light

Nov 1, 2011 Traders Magazine The news on Pipeline Trading Systems' $1 Million dollar SEC fine for trading with an undisclosed affiliated entity brings to light some very important questions about trading in so-called dark venues, and how best to go about selecting which is best for your specific investment strategy. Read a commentary by Garrett Nenner, head of global markets at Momentum Trading Partners, about when dark pools aren't really dark.

Pipeline Trading Fights To Regain Trust After SEC Settlement

Oct 28, 2011 Traders Magazine After agreeing to pay $1 million to settle charges brought by the Securities and Exchange Commission, Pipeline Trading Systems is reaching out to its customers, attempting to retain their business in spite of the fact the company admitted it was not forthcoming about how its dark pool operates.

Pipelines Misuse of Client Information

Oct 25, 2011 Advanced Trading Pipeline went above and beyond other agency brokers in talking about the need to protect institutional orders from predators lurking in dark pools.

On the Pipeline Fiasco and Our Addiction to Anonymity

Oct 25, 2011 Advanced Trading The dark pool operator faces an uphill battle in restoring the confidence its shaken buy-side clients.

Pipeline Fined $1 Million For Misrepresenting Natural Liquidity

Oct 24, 2011 Traders Magazine Dark Pool Pipeline Trading Systems has agreed to pay $1 million to settle charges brought by the Securities and Exchange Commission that the company failed to disclose the fact that at times more than 97 percent of orders in Pipeline's dark pool were filled by a trading operation affiliated with the firm.

Liquidnet Tries to be Haven From High Speed

October 17, 2011 Advanced Trading The past few months of market volatility have underscored concerns of large fund managers about high frequency trading and the need for a deeper separation from institutional trading, the chief executive of global trading network Liquidnet said on Monday.

SEC Faults Direct Edge For Weak Controls That Caused Losses

Oct 14, 2011 Bloomberg Direct Edge Holdings LLC and two electronic exchanges it operates were faulted by U.S. regulators for having weak controls that led to about $2.8 million in trading losses and a systems outage.

Global watchdogs to discuss ultra fast trading rules

Oct 13, 2011 Reuters Regulators from across the world meet in London on Friday to better coordinate supervision of ultra fast computerized trading after concerns raised by last years flash crash on Wall Street.

New Rules Could Hinder Dark Pools in Canada

Oct 3, 2011 Traders Magazine Canada's nascent dark trading market is about to see more regulation that could limit its growth and possibly drive business across the border, into the U.S.