July 7, 2008 Issue Abstract
Risk Management: Sub-Prime Crisis Pushing Risk Management Up To Portfolio Levels; Industry Seeks Best Practices. Securities and investment firms continue to assess their risk management policies and procedures, seeking to redress operational gaps on an ad hoc basis. Industry-wide risk management practices aimed at better managing any future crisis akin to the current crunch have not yet emerged, say enterprise risk management professionals.
Industry Alert:
Cross-Border Trading Arena Competition Heats Up. With
NYSE Euronext acquiring a 25 percent stake in the Doha Securities
Market, the Persian Gulf country of
Focus on Best Execution: Execution Quality Study Finds Markets Swing to Speed. Securities traders have embarked on the quest for a Holy Grail of extremely low latency, an environment wholly devoid of any information leakage, and trade executions faster than the speed of light, according to research by consultancy Celent.
Spotlight: Ashik Ardeshna, Partner, Strategic IT and Operations, Oliver Wyman. Buy-side firms are catching up to the sell side by increasing IT expenditures and revitalizing or replacing legacy systems, according to research by the Oliver Wyman consultancy.
Trading Networks: CorvilNet Finds Hot Niche in Network Latency Management. When Credit Suisse was looking to improve its network infrastructure to lower latency in trading activities, the firm turned to BT Global Services, which in turn chose pricing and trade execution provider Corvil and its CorvilNet 5.0 latency management system to complete this task.
Securities Messaging Standards: FIXatdl Standardizes Algorithmic-Trade Order Flows. A new version of a FIX-based, algorithmic-trade messaging language aims to help market participants keep up with the proliferation of algorithms being developed by broker-dealers.
New Product Watch: New Tools Zero-In on Trader Behavior, Counterparties. A solutions update continues a roundup that appeared in our May 26, June 9 and June 23 issues.