Wall Street Letter VOL. XLV, NO. 36 - December 2013 - Page 8

NEWS business to South America to take advantage pension fund managers in these regions and the world trading in US ETFs, Wallach noted. The move is intended to attract northbound flow, he explained. TECHNOLOGY Verdande to hire financial team after IEX partnership 08 Verdande Technology plans to hire experienced IT and other types of staff in Q1 of 2014, according to Joanne Kinsella, CEO of financial services. The data analytics and predictive software vendor, has partnered with IEX Group to give the latter, a FINRA-registered alternative trading system, Case-Based Reasoning technology in the form of its VTEdge platform, which allows for real-time surveillance by comparing real-time data with historical analytics to identify patterns from events that led to crashes or outages. Kinsella noted this client, and others, are the reason why the company is hiring. “We’ve hired four people in the past three months and are looking at more hires for Q1 in the realm of data scientists, project management executives with financial service experience and senior technologists,” said Kinsella. “At this point JOANNE KINSELLA with the level of intensity we are facing, there is a need for people with experience and all being brought on are exceptional industry people that have worked for tier one investment banks or major software development programs.” POST-TRADE FIX to standardize back office messaging F IX Protocol plans to fully standardize back office messages for firms trading fixed income, FX and equity swaps and options, according to Dave Tolman, chair of the FIX Trading Community Buy-side Post-Trade Working Group and technology manager at Greenline Financial Technologies. Tolman said members of the US Buyside Working Group are pushing for a FIX standard for the messages as they feel legacy messaging providers such as SWIFT are not meeting demands in these asset classes. “We are in the process of working on standardization of the back office for fixed income, equity swaps, FX, and equity options,” said Tolman. “By the end of that process we will have a post-trade framework across asset classes and is more or less the same framework for all of the asset classes.” Andrew Muir, head of standards implementation at SWIFT noted there is an overlap of back office standardization, but both utilities adhere to a dictionary of terms standardized between them, allowing end users who may be using FIX to communicate with entities using SWIFT. Muir noted that high-frequency trading strategies benefit from FIX but SWIFT is more suited for high-risk securities settlement. “There are good reasons, especially in HFT, why a very low bandwidth implementation of FIX makes sense, as they want to communicate orders and indication of interest at lightning speed,” said Muir. “SWIFT on the other hand, is in world of high risk, high reliability, and SWIFT fits the profile of securities settlement and payment messages.” VTEdge was crafted in response to client need for an offering that can pre-emptively flag system issues, quelling disasters where everyone is left with a broken venue or platform due to an error not caught in time, according to Kinsella. There has been a paradigm shift from traditional system monitoring in 2013 from an indicator turning red means that the shit has hit the fan and it is too late to one where outages can be prevented through proper technology,” said Kinsella. TRADING FIRMS Brownstone aims to bolster bond coverage Brownstone is looking to hire corporate and municipal bond market vets to add to its roster for 2014 in an effort to expand bond coverage, according to Doug Lowey, CEO. The company opened a San Francisco office earlier this year (WSL Online, 10/01/2013) to strengthen its move into the municipal bond market, according to Lowey, who added the market has grown substantially but still has potential to encompass more of the market. Brownstone is targeting an expansion of its distribution network, which requires a stronger staff of seasoned bond professionals, according to Lowey. “The mold for these hires would be professional corporate and municipal bonds salesmen with a focus on the middle market and who have established registered investment advisor relationships.” Lowey noted one trend in the corporate and municipal bond space is that some firms are too big for local boutique firms but also too small to be picked up by New York firms. “We’ve seen a trend where clients are demanding more high-touch, high-quality service than they’ve been