Wall Street Letter Volume XLV Issue 16

THE DEFINITIVE SOUR CE FOR TR ADING NE WS VOL XLV ISSUE 16 16 – 22 MAY 2013 www.wallstreetletter.com IN THIS ISSUE News People moves 04 Reader poll 13 Focus Fee chart 14 MORE NEWS INSIDE TOP STORY Bond markets at a turning point The bond market is at a crossroad of rising demand and dwindling sell-side inventories, says Aite Group’s David Weiss TURN TO PAGE 04 NSX plans products, pricing schemes BY RYAN GORMAN Marco Polo eyes LatAm fixed income biz Marco Polo will likely target Mexico first, says CEO Hugh Webb TURN TO PAGE 07 PLUS + 11 CFTC: Data standardization Commissioner Scott O’Malia spoke during a panel at the Big Data Finance Conference in May The National Stock Exchange is looking at new products and additional pricing schemes in an effort to increase both volume and revenue, according to Bill Karsh, special advisor. In an interview, Karsh said the exchange is looking at how it can help individual investors buy higher priced securities. NSX is additionally looking to shake up its rebates and fees to give liquidity makers and takers more order routing options, he added. The exchange wants to create a security that will allow less than one share of a particular stock tradable on the exchange, Karsh said. NSX has been trying to tackle this problem for the past nine months and while Karsh said he believes it can be done, he would not commit to a timeline. The new product will be a divergence from mutual funds and ETFs so that retail investors can pick and choose stocks a la carte instead of having to deal with the potential drawbacks of baskets of securities they are not interested in, he added. There are other hurdles, he said, such as the fact that NSX isn’t a listing exchange, so NSX’s ruleset will need rewriting, and TURN the exchange will need TO PAGE technology upgrades to handle new functionality. 03 V I S I T WA L L S T R E E T L E T T E R . C O M F O R U P - TO - T H E - M I N U T E I N V E S T M E N T N E W S