Great coup for EBS as ex-BARX Architect joins EBSBrokertec as Chief Strategist


Tim Cartledge most recently Global Head of FICC and electronic FX trading at Barclays, and instrumental in the development of Barclay’s BARX platform (along with Dave Cooney, now CEO of Mahi FX) is joining EBSBrokertec as Chief Strategy Officer, reporting to EBS CEO, Gil Mandelzis.

Tim will be responsible for leading and delivering on the strategic direction of EBS BrokerTec, following the successful integration of EBS and BrokerTec in July 2015. Tim brings significant expertise in electronic trading within both the foreign exchange and fixed income markets, at a time when EBS BrokerTec is bringing together its two leading central limit order book platforms and disclosed trading venues EBS Direct and BrokerTec Direct.

The obligatory quote from Tim in the PR states:

“The EBS and BrokerTec platforms are extremely well-regarded as industry leaders in the FX and fixed income markets. Over the past few years EBS has transformed itself into a multi-product, growth business and built a very strong foundation for expansion. EBS BrokerTec is exceptionally well positioned to lead the market in the years to come and I am looking forward to being part of this exciting journey”

In my view this is a really significant hire for EBS, and of course another example of the continual loss of senior talent from top-tier banks.

Full press release here

ICAP results, and strategy for Electronic Markets and Post Trade Services


ICAP today released first half results, confirmed the sale of the Global Broking Business (IGBB) to Tullett Prebon, and as part of their investor presentation, provided more details on the NewCo that will comprise Electronic Broking and PostTrade Services group.

In terms of result, group revenue fell 4% to £595m, although after stripping out ICBB, would show 4% rise, whilst revenues at TriOptima the post trade division rose 35%.

ICAP reported they had invested Continue reading

Could MiFID II be delayed by a year?


Earlier this week, Steven Maijoor, chairman of the European Securities Market Authority (ESMA), told MEPs that the timing for stakeholders and regulators alike to implement the rules and build the necessary IT systems (for MiFID II) is extremely tight.

Even more, there are a few areas where the calendar is already unfeasible. This relates to the fact that it will take some time, and well into 2016, before the text of the regulatory technical standards (RTS) will be stable and final.

According to Steven Maijoor, chairman of ESMA: Continue reading

FX Platforms Oct 15 vols: Major platforms vols slightly lower, CME vols crash, whilst Fastmatch shines with double digit gains


Following weak Sept FX vols, the major OTC FX platforms reported further falls in October, with Reuters down -4.6% at $104bn/day, EBS down -6.5% at $83.6bn/day, whilst The CME futures exchange saw vols for all FX products collapse, down -22% at $92bn/day.

The only bright spot coming from second tier platform Fastmatch, which recorded a +15.4% gain to $9bn/day.

In terms of year on year changes, all platforms are now showing large falls, with Reuters Spot down -27.8% and EBS down -29.1% and CME down -36% compared to last Oct. Continue reading

ThomsonReuters integrates all of its FX transaction venues into next-generation FX Trading desktop


Thomson Reuters has announced they are integrating all of their FX transaction venues into next-generation FX Trading desktop, to streamline access to liquidity for the FX community; including advanced portfolio order management system for buy-side participants. The integration will include:

  • Request For Quote service -RFQ (FXall QuickTrade)
  • Continuous streaming prices -ESP (Bank Stream)
  • Central limit order books-CLOB (Matching, Order Book)
  • Conversational dealing platform (Dealing)

The new FX Trading desktop will also include Continue reading

Buyside to start paying for research under MiFID II


The introduction of MiFID II regulations around Transparency, BestEx and Inducements will change the relationship between buyside firms such as asset managers , and the sellside banks and brokers who service these clients (although non-financial clients such as corporates will be excluded). In particular, the regulations will lead to the ‘unbundling’ of research from execution, and the effect will fundamentally change the way in which buyside firms pay for, and consume research across all asset classes.

Traditionally, buyside firms have ‘paid’ for research through a Commission Sharing Agreement (CSA), whereby the executing broker would ‘retain’ a portion of the commission paid for the trade to use to pay for external research and other services for the client. Buyside fund managers would typically allocate commission attributable to research on the basis of ‘broker voting’. However, this was seen by the Financial Conduct Authority (FCA) (and more recently here) as an inducement to trade, as it could encourage buyside firms to over-trade in order to gain larger share of research budget, rather than considering value for money.

Under MiFID II, the rules on inducements and paying for Continue reading

Thoughts on ICAP – Tulletts discussions


The discussions between Tulletts and ICAP whereby Tulletts will buy ICAP’s global broking business is a great move on the part of ICAP. They will offload the high cost, low margin global broking voice business, and focus on the high margin and growing electronic broking (EBSBrokertec) and post trade services (including Traiana and TriOptima) divisions.

Update 11 Nov: Tullett confirmed acquisition of  ICAP’s Global Broking Business for £1.1bln here

Looking at these two slides from their last investor presentations Continue reading