Wall Street Letter Volume XLV Issue 16 - Page 12

NEWS Adam Nemser, head trader, Southpoint Capital, told attendees during the panel discussion that he cares most about capital supply and stability, adding he would pay more for the added stability that comes from having a prime broker that understands his business model and world view. TRADING FIRMS tronically. Cowen Group expects both the electronic execution business and cash business to thrive together in light of the growth of the cash equities business. TECHNOLOGY Cowen plans inward focus, won’t shy away from acquisition Cowen Group is planning to turn its focus inward for the near future but the firm won’t shy away from future acquisitions, according to comments from Peter Cohen, chairman and CEO, during the firm’s first quarter earnings call. Noting the firm is fresh from the closing of its acquisition of investment bank Dahlman Rose, Cohen told analysts the firm isn’t looking for another acquisition, though it has been approached and has considered options. “We have looked at a number of acquisitions and declined to pursue them,” he said. “We are being approached on a consistent basis by firms that are subscale who are looking to tuck in. We will continue to look at those opportunities and if it makes sense we might pursue them.” Cohen noted he expects the market to continue to contract until just bulge brackets and mid-sized, nonbulge brackets are left. “There isn’t room in the economics for a lot else. We will take advantage of it if the opportunity rises,” he added. Cowen executives also noted that the addition of electronic trading capabilities is already positively impacting its business. The firm acquired Algorithmic Trading Management last year and executives said the firm has added business since then from significant accounts that could only trade elec- NFA wants to start confirming assets in commodity pools The National Futures Association wants to use technology to start confirming assets held in commodity pools, according to comments from Chris Hehmeyer, chairman of the National Futures Association, at the most recent Technology Advisory Committee meeting held by the Commodity Futures Trading Commission. During the first part of the meeting, Hehmeyer, along with Bryan Durkin, chief operating officer at the CME Group, and Aleks Kins, CEO of AlphaMetrix, discussed the first phase of a plan to implement and use technology from Alpha Metrix to verify assets held CHRIS HEHMEYER chairman of the by futures comNational Futures Asmission merchants sociation in a move to limit the potential for customer funds shortfalls due to unverified reports of assets. According to Kins, AlphaMetrix either accepts or requests data from institutions that is then pushed out to the CME and the NFA. The two regulators then compare data from AlphaMetrix with actual assets found when conducting regulatory checks. Hehmeyer said the NFA’s plan is to add set up process similar to what it conducts for FCM data to confirm assets in commodity pools. But he said the agency is still conducting its 12 initial research on the process, which is more complicated than for FCMs. “This is complex and a large technolo