Wall Street Letter VOL. XLV, NO. 36 - December 2013 - Page 6

NEWS 06 The rule would require ATSs to report volume information to FINRA as well as use unique market participant identifiers when reporting trade data to FINRA. The regulator has also proposed that the costs of the rule will end up falling on market participants. Commenters – including Knight Capital Group, Liquidnet, Barclay’s, Fidelity Investments, the IEX Group, New York Stock Exchange, and the Security Traders Association – applauded the efforts of the regulator, noting a need for scrutiny in dark pools. But some of the firms noted the structure of the rule, which entails ATSs aggregating volume on a weekly basis via a MPID and then dissemination by FINRA on a delayed basis, could bring about cost burdens and redundancy. “Once ATSs have incorporated into their trade report a unique MPID, it will no longer be necessary for ATSs to report aggregate volume weekly to FINRA,” KCG said in its letter. “ATSs will be reporting to FINRA on a realtime basis… [allowing] FINRA to calculate the aggregate, weekly volume information for each ATS and then disseminate it on a delayed basis.” The STA, Fidelity, Barclays, Liquidnet, and IEX Group also noted FINRA should take the cost of transparency into account, citing the SEC’s methodology of making collected market data free to the public from its website. STA also asked FINRA to re-open comments 12 months after the rule goes into effect, to measure real costs and iron out any kinks, according to Jim Toes, president and CEO of the STA. “We are supportive of transparency, but when you introduce a mandate, regulators need to be careful about explicit and implicit costs on the industry,” said Toes. “We cannot know the costs around after it has been up and running for a period of time.” TECHNOLOGY Eagle seeks vendors for ACCESS platform Eagle Investments is sourcing vendor offerings to be integrated on Eagle ACCESS, the vendor’s agnostic platform intended to help users craft custom trading systems, according to John Lehner, CEO. The vendors chosen for the platform will be dictated by client need, Lehner said. New clients are corralled onto the ACCESS platform where they can choose a system configuration that works for them. The vendors are then sought out by Eagle and integrated into ACCESS for end clients, Lehner detailed. “Clients will say to us which vendors they want to use and we will get on the phone, meet them in person to seal the deal,” said Lehner. “From there, we put the technology in place, get the right people needed to run it, overall it ends up as an ongoing process to fully integrate and provide support.” One such example is the partnership between BlackRock and Eagle, where a m Z??]H??Y[???\]Y\?YX??\???H?X????[Y[??Y[??]??K?X??\?]K[X?[Y?XY?H\?H?[ZY\???????X?H?[??[????'?H\?H?[??H?????????Y[??\??[?H??X??\?B??H[?Y?]HP??T???]B??X?????[Y[?]??K8?'H?ZY?Z?\??8?'?X???????\??H?????P?????B??U????\??\?H[??]H[??[?YH\?YX\???B????&\??\?H[??]H?[??\?H?[?YX[?X\??]?[??B?XYH]?Z[X?H??Y[??[?H??[??H?Y??HH[??B?YX\?X???[????Y???X?Y?KXY?[??]ZX??Y[???H??\?[??[????Y\????Y]?[??]ZX??[??[??[???X[[YH?]?[??[?\?\??H???H?Y]?[??HY?X?X?H?B??YH\?]\?[?Y?H?H?U??&\??\?[?\???H[????X?Y?H]Z[Y[?[?[?\??Y]??]?? ???'\?\?[\?[????Y[???X?]\?H\?X\??]??X??YB?[?H??\X?]Y[?[???\?H[?H??\?X?]Y [?\?\??[??[?\??[???H[???X?X[H???8?'H?ZY?X?Y?K??H?\?H\X?][??[???^H?[?YX[?[?[Y\?X?[???X?\?]Y\??Y\??[?\?\??[?????[??Y\??H?X?X?\?Y?]??H]?X?[]]\?H?X[[YH?\X?[]Y\??H??\?[????X?Y?H??Y ??Z?[??H??\?[????[?YH?\]Z\?YU??????Y???????[\?Y?????]?YH[??[?YH[?HT??]?YX??B???Y]?\?H???\??]?H???H?]?[???[?]X]K???'H??H]?[?Y[????\??[????Y\?[????][???^B?Y??\?[??\?[?H?^H?[?YX[??????\?H?YY ???^[\K??[?YX[??????\?H?[?????\?Y[??YHX?]?[H[?]T?\??[\??[?YK8?'H?ZY?X?Y?K?8?'???\?H\?????X?HY[?Y?H[?\?^H?\???Y[??[????[?YX[?[?T??[?Y\??'B??\??[?KU?\?H?H?[????Y[??\?\H??\X?[]K?X?\??Y[?H]?[??H]??[?H ? L????] X???[???X?Y?K???'\?\?H?\??[YH?Y[??]?HYH?X[[YH?Y]?[????[??????8?'H?ZY?X?Y?K?8?'?H?YH\?\?H?[?[Y[?[?X\???Y[???X?]\?H[?H\?^H?]??H?[??]????[??YH[??]Z[??X?\??[?\?[???X][?[??YB?[??[??X[[YK??'B??