April 2007

Cover Story
Alternative Trading Systems Are Emerging in Europe to Meet MiFID Best Execution Requirements
Europe's MiFID regulation is giving rise to alternative trading systems (ATSs) to challenge the traditional exchanges and help the buy-side achieve best execution.

Sidebar: Instinet Prepares to Roll Out BlockMatch for Buy Side in Europe
Instinet is developing BlockMatch - an Alternative Trading System for European equities that is aimed at institutions.

Electronic Marketplaces
The SEC May Start Monitoring Non-Transparent and Restricted-Access Trading Alternatives, or Dark Books, More Closely in the Future
The SEC is concerned about the effect the proliferation of dark books will have on public markets.

Algorithmic Trading
Interactive Brokers Runs Annual Olympiad Trading Program to Recruit Technologists for Electronic Trading
Interactive Brokers Conducted its second annual Olympiad Trading Program to find technology savvy college students who can create a computerized trading program.

Adoption of Electronic Systems and Algorithmic Trading Tools Is on the Rise With Canadian Traders
As more Canadian capital markets firms turn to algorithmic trading tools, U.S. players dominate the market.

Data & Infrastructure
The Options Penny Pilot Has Been Successful So Far
While early returns on the SEC's graduated pilot for switching from nickel pricing to penny pricing of options have been positive, data-capacity issues remain.

Managing the Desk
Head Traders Discuss What It Takes to Manage a Trading Desk
Advanced Trading's Randall S. Devere spoke with some prominent head traders about what it takes to manage a trading desk. What quickly emerged is a portrait of a group that has to think well outside the parameters of buying and selling - particularly those who trade for or run their own hedge funds.

Research Watch
Evaluated Security Pricing Service Offerings Have Increased Recently
Vendors have invested actively in evaluated security pricing services, focusing on emerging market opportunities and new, complex products such as structured debt and derivatives.

From The Editor
Advanced Trading Web Site's "Anatomy of a Trading Floor" Offers a Look at the Most Exciting Technology in the Industry
Through "Anatomy of a Trading Floor", we'll be offering our readers a glimpse at the most exciting technology in the industry. You can experience a state-of-the-art trading floor, including close-ups of trading desks, such as institutional sales, currency, special situations, block trading and much more.

Market Intelligence
The NYSE Has Asked for a 30-Day Exemption From the Trade-Through Rule
The NYSE still uses the Intermarket Trading System (ITS) to access other market centers and does not have access to some ATSs as well as the International Securities Exchange.

LSE CIO David Lester Opens Up About Launch of Next-Generation Trading Platform, TradElect and the Global Market
As the chatter around Nasdaq's failed takeover of the London Stock Exchange dies down, the LSE is readying to prove that it's worth its weight in trading. The exchange is preparing to launch its next-generation trading platform, TradElect, late in the second quarter.

Symons Gets Good Prices During Market Downturn
Having anticipated the recent market downturn, Symons Capital Management dips into cash reserves and gets good prices.

Lehman Brothers and Fidelity Brokerage Link Their Dark Pools
This direct link between their respective ATSs will enable traders to place orders on either firm's matching engine and cross with both liquidity pools while still limiting market impact.

Investment Technology Group Augments POSIT Match With POSIT Now
To take advantage of the new European trading landscape resulting from the implementation of MiFID, ITG in February developed POSIT Now, a continuous intraday crossing system for equities that covers 9,000 stocks in 15 countries, while continuing to operate its POSIT Match platform, which crosses orders intermittently.

Morgan Stanley Investment Management Hired Robert Shapiro for Trading Execution and Analysis
Morgan Stanley Investment Management tapped Robert Shapiro, formerly of Abel Noser, to work on trading and execution analysis and MSIM's global trading infrastructure.

Cantor Fitzgerald Hires Execs to Head Structured Products Group
Cantor Fitzgerald, a leader in the fixed-income market, has launched a structured products group with the hire of two senior executives. The group will operate as part of Cantor's debt capital markets team.

Bill Cline Leaves Accenture to Form Capital Markets Consultancy, Acai Solutions
William (Bill) Cline has left Accenture, the global consulting firm, to found Acai Solutions, a deep-domain capital markets consultancy located in New York.

Order Management Systems
This issue features an exclusive directory of prominent order management systems. The directory includes a detailed description of the systems, the OMS and execution-management functionality they offer, and future plans for enhancements.

Street Cred
The LSE-Nasdaq Deal May Be Dead, but Nasdaq Has Other Options
Finding another large acquisition target may be difficult for Nasdaq as the pickings are slim, but there are some interesting options the exchange could consider other than the LSE.

At The Close
Is the Securities and Exchange Commission's Launch of Reg NMS Putting Stress on the Equities Market?
The Securities and Exchange Commission moved ahead with launching Regulation NMS even though the market decline put stress on the equities market.