Advanced Trading
       August 2006

Cover Story
NYSE Euronext: Merging the Platforms
The success of the proposed merger between NYSE Group and Euronext hinges on consolidating equity and derivatives trading platforms. But uncertainty over the definition of 'platform' makes evaluating the deal difficult.

Electronic Marketplaces
MiFID: Unintended Consequences
The Markets in Financial Instruments Directive may lead to increased fragmentation and, in turn, drive the demand for algorithmic trading.

TSX and Nymex: Perfect Together?
The potential combination of the Toronto Stock Exchange and the New York Mercantile Exchange has its pros and cons.
Derivatives Dealings

Competition Heats Up Between Regionals and ECNs
Philadelphia Stock Exchange Senior Adviser Robert Miller and Direct Edge ECN's William Karsh duked it out at a recent Financial Market's World panel discussion in New York.

Algorithmic Trading
Algorithmic Trading: Somehow, It All Adds Up
Wall Street continues to pour millions of dollars into developing algorithms. But are brokers realizing a return on their investments?

Data & Infrastructure
Brokers to NSCC: Now Is Not the Time for Real-Time Trade Reporting
Concerned with losing data in the event of a disaster, the NSCC has proposed a regulation that would require firms to submit completed trades in real time.

Research Watch
Trading Credit Derivatives: The New Frontier
Former Federal Reserve Chairman Alan Greenspan said in late May, "Credit default swaps [CDSs] are becoming the most important instrument I've seen in decades."

Industry Voice
The Benefits of Competition
The exchanges' battle for market data revenue should lead to innovation.

From The Editor
Highway to Liquidity?
Yes, Dark Liquidity Pools are Hot, as Larry Tabb points out in his column. Every broker-dealer either has one or is building a crossing network to create one.

Market Intelligence
Auto Trading in a Box
As automated trading strategies continue to sweep through Wall Street firms, everyone wants to get in on the action.

ITG's Acquisitions - and Solutions - Gradually Come Together
The action really started Jan. 3," says Ian Domowitz, CEO of ITG Solutions Group, referring to the date on which his business division was founded with the closing of two acquisitions.

NYFIX's New IOI Product Will Lower Costs for Users
In an effort to lower the cost structure of IOI messaging, New York City-based NYFIX has begun connecting the buy and sell sides to its service.

Royalblue Breaks Into Algo Trading
Royalblue/Fidessa (London) is launching Fidessa BlueBox, an algorithmic trading system for sell-side firms seeking to offer their own automated trading strategies.

The Sell Side Searches for Solutions to Reg NMS
Looking to move from concept to execution, sell-side institutions are searching for technology and strategies to support compliance with the SEC's Regulation National Market Structure (Reg NMS).

Bloomberg B-Pipe Market Data Feed Stirs Up Competition
As the market data business shifts toward providing direct exchange feeds for electronic trading applications, competition is looming among the low-latency market data infrastructure providers distributing Bloomberg B-Pipe - Bloomberg's new consolidated, real-time, high-volume market data feed.

Fagen Joins Lehman
After spending 19 years at Morgan Stanley, Brian Fagen has left the firm to join Lehman Brothers as managing director and U.S. head of electronic sales.

OPERS Hires New Senior Equities Trader
The $70 billion Ohio Public Employees Retirement System has hired Matthew Sherman as senior equities trader.

Street Cred
Dark Is Hot. But Is It Good?
Dark pools are all the rage. Those opaque matching venues where large blocks meet seem to be on everyone's hit parade.

At The Close
NYSE Euronext Courts Other Exchanges
If you think the NYSE-Euronext linkup is only about creating synergies between the U.S. and European securities and derivatives markets, then you are mistaken.