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One week in Paris…

Published in Automated Trader Magazine Issue 13 Q2 2009

Trade Tech 2009 kicked off in Paris just as this issue of Automated Trader was due to go to press. With reports coming in of a recession-defying show featuring lots of new product launches, we took the decision to hold these front pages open for a selection of the top stories from France.

Lucky number for LineData?

Linedata Services chose Paris as the venue for announcing the roll-out of Version 7 of its LongView Trading order management system. Version 7 includes "new and enhanced functionality" across all areas of the system, including trading, portfolio management, compliance and enhanced support for the alternative investment markets.

Michael Portillo

Enhancements include:
• Increased securities coverage with over 125 security types, and full FpML (Financial products Markup Language) mapping to support the increasingly demanding audit and compliance demands necessary to support firms' derivatives trading needs
• Enhanced electronic trading functionality, with new tools, improved workflows and throughput so that traders can act and react to markets faster
• Greater hedge-fund specific functionality and tighter integration with Beauchamp FundManager, the core of Linedata's alternative investment solution suite
• New tools for compliance officers with an enhanced rule builder, new formula builder, violation override facility and many more features
• A recently launched Linedata Reporting application to provide web based reporting for internal and external audit and reporting requirements

The new release also sees the debut of LongView Live - a powerful graphically rich application that creates actionable visualisation tools that enable traders to "see and act", in order to take advantage of market opportunities.
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Party time for Portware

There was a party already in full swing on the Portware stand when the news was released that AllianceBernstein has deployed Portware's Enterprise trading platform globally. We understand that AllianceBernstein's decision to accelerate the deployment of Portware Enterprise in the UK and Hong Kong follows a successful implementation in the US.

We tracked down Michael Schwartz, chief operating officer of global equity trading at AllianceBernstein. Schwartz told our Paris correspondent: "Portware's Enterprise product is a great fit in meeting our global trading and workflow requirements, while the system's open architecture allows us to customize Portware to meet our specific trading and compliance needs."
Also celebrating the news, Eric Goldberg, CEO of Portware, said: "We believe that this decision speaks to Portware's ongoing commitment to provide innovative trading solutions and unparalleled client support worldwide."
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GFI find the RtRisk solution at Aleri

Another good reason for holding the front end of this issue was Aleri's revelation that GFI Group will be deploying Aleri's Real-Time Risk (RtRisk) Monitoring solution, which by the way combines CEP and Live OLAP technology, to gain immediate insight into their pre- and post-execution risk.

"We looked at several other options and concluded that Aleri's RtRisk Monitoring solution was the best fit," said Brian Farrelly, Operations Strategic Projects Director at GFI. "We believe we shall be able to easily and quickly integrate the Aleri solution into our existing enterprise architecture, allowing us to aggregate data from across all businesses and products providing an immediate comprehensive view of our overall market and credit risk."

The idea is that with Aleri's RtRisk Monitoring solution, GFI will be able to consolidate and analyze positions both periodically and in real-time to help identify unacceptable levels of exposure along a number of configurable dimensions, including counterparty, trader, asset class, region and industry sector. The solution will give GFI the "unique" ability to determine the underlying cause of the exposure right down to individual trades.

"Credit and market exposures are often managed by a number of different systems making monitoring and maintaining critical market and credit risk data a challenge for some firms," Don DeLoach, CEO of Aleri, told us. "We are happy that we are able to provide GFI with an easy solution that allows them to see all exposures and concentrations in one view, business section-wide or globally."
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ActivFinancial launches in Europe

There was a warm welcome in Paris for the news that ActivFinancial is now launching its operations in Europe. The intention is for customers to be able to access ACTIV's flexible market data delivery options, including the company's North American and Asian low-latency market data, for trading advantage in capital markets around the world. In addition to that North American and Asian market data, the company will initially support European equities, derivatives, fixed income and news data from Deutsche Boerse, LSE, Nasdaq OMX and NYSE Euronext.

"European customers have serious data problems, and we're investing in the critical infrastructure and top-level leaders to manage this colossal market opportunity," said Frank Piasecki, co-founder and president, ACTIV Financial.
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Chi-X Europe to launch "Chi-Delta" dark book

Chi-X Europe used Paris to announce the introduction of a new dark order book. Until now, Chi-X Europe has offered its trading participants hidden order types in the visible order book, subject to meeting Large in Scale requirements. Chi-Delta, which has been developed in line with MiFID requirements, will be a separate, non-displayed referenced pegged order book for orders that do not meet those requirements. Prices on Chi-Delta will initially use the Primary Best Bid and Offer (PBBO) as a source of reference prices. European Best Bid and Offer (EBBO) is expected to become the source of reference prices at a later date.

Mid-peg, primary peg and market pegged orders will be supported and orders will match on a continuous basis. Trade executions, excluding post-trade costs, for orders posted on Chi-Delta will be free of charge from launch until 31 August 2009. IOC (Immediate or Cancel) orders will be charged at 0.30 bps for execution. Market data will continue to be disseminated free of charge via the CHIX MD feed, with dark executions flagged accordingly.

"Many of our trading participants have expressed interest in Chi-X Europe adopting a dual market structure that includes a market for speedy price discovery and a market for non displayed crossing," said Hirander Misra, Chief Operating Officer of Chi-X Europe. "We developed Chi-Delta with this in mind, to help those participants wanting to execute orders whilst minimising market impact by potentially trading with a natural counterparty and limiting information leakage."
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