April 14, 2008 Issue Abstract

Complex Event Processing: Industry Sees Increasing Use of CEP Solutions; Buy-Side Firms Take Control of Trading Technology. Complex event processing (CEP) is continuing to gain traction in the securities and investment industry, driven primarily by the need to support algorithmic trading strategies, including better management and real-time analysis of market data, say investment industry executives, services providers and industry observers. 

Industry Alert: Calls Raised for Trans-Atlantic Regulatory Convergence. While the US Congress considers a proposed overhaul of financial regulation, including a role for the Federal Reserve in overseeing investment banks, European and North American securities industry trade associations are lobbying for changes to cross-border financial services regulation, although the climate for industry association proposals may not be friendly. 

Securities Messaging Standards: ISITC Says It Will Focus on 3 Working Groups in 2008. The International Securities Association for Institutional Trade Communication (ISITC) will place greatest emphasis in 2008 on securities and investment industry operations improvement efforts by its Investment Funds, ISO 20022 and Commission Management Working Groups.

Spotlight: Joji Watanabe, Managing Director, Electronic Trading Services, Nomura Securities Company Ltd. Tokyo-based Nomura Securities dedicated key staff and about 75 percent of its IT connectivity team to support a new Electronic Trading Services unit to better respond to clients’ needs for direct market access and algorithmic trading.

Transition Management: Technology Increases Accuracy of Transition Risk Models. According to executives of BNY ConvergEx’s BNY Global Transition Management division, improved technology is making it possible for transition managers to have more accurate and detailed risk models and cost models.

European Market Monitor: 7 European CSDs Align to Form Link Up Capital Markets. Seven European central securities depositories have formed Link Up Capital Markets S.L., a joint venture that promises to improve efficiency and reduce costs for post-trade processing of cross-border securities transactions in Europe.

Clearance & Settlement Solutions: Repurchase Agreements Boost Omgeo TradeSuite Offering. Post-execution trade management solutions provider Omgeo has added repurchase agreements (repos) and reverse repos for virtually all types of securities – including mortgage-backeds, treasurys and indexed offerings to version 7.0 of Omgeo TradeSuite, its US trade confirmation service.