June 22, 2009 Issue Abstract

Market Data: Outsourced Solutions Gaining Favor Among Firms As Costs Drive Changes in Market Data Strategies. Investment management firms and broker-dealers are both increasingly moving away from in-house, data warehouse solutions for market data and more toward outsourced providers’ offerings that can operate in a range of different models.

Industry Alert: U.S. Regulatory Reform: Pro-Market or Backward? The Obama Administration’s assignment of responsibility for systemic risk regulation to the Federal Reserve is drawing criticism as a “looking backward” measure that wouldn’t prevent a recurrence of the financial market events of 2008.

Transaction-Cost Analysis: Transaction Cost Analysis Remains Inefficient, Underused. Although more buy-side institutions and trading desks are integrating transaction cost analysis (TCA) capabilities into their investment processes to determine trader compensation, TCA tools are not yet efficient enough to account for trade execution processes, according to research by Greenwich Associates.

Spotlight: Phil Maisano, Chief Investment Officer, The Dreyfus Corporation, and Chief Investment Strategist for BNY Mellon Asset Management. Owned by BNY Mellon Asset Management, The Dreyfus Corporation takes a specialized approach within a large-scale family of money management boutiques.

Securities Data Innovation: Data Partnership Paradigm Puts Avox on the Ascendant. Seeking a cost-effective way to manage corporate securities data, Citi sought a service provider that could accommodate the firm’s large footprint, and turned to Avox, a business entity reference data provider that is a subsidiary of the Deutsche Börse Group.

Clearance & Settlement: EuroCCP Seeks Standard Pact on Interoperability. European Central Counterparty Ltd. (EuroCCP) has proposed a single, standard Convention on Interoperability that all central counterparties (CCPs) would sign, to accelerate the seamless connectivity across Europe needed to free market participants to choose where their trades will be cleared and settled.

Business Strategies: NYSE Euronext, DTCC Team on Fixed-Income Derivatives. NYSE Euronext and The Depository Trust & Clearing Corporation (DTCC) are planning a joint venture for clearing US fixed-income derivatives, to be named New York Portfolio Clearing, which will launch in 2010.