Wall Street Letter Volume XLV Issue 21

THE DEFINITIVE SOUR CE FOR TR ADING NE WS VOL XLV ISSUE 21 27 JUNE - 3 JULY 2013 www.wallstreetletter.com IN THIS ISSUE News People moves 04 Focus Fee chart 10 MORE NEWS INSIDE TOP STORY NRI considers messaging platform for the buyside The Nomura Research Institute is eyeing the possibility of providing a messaging platform for Japanese asset managers investing in foreign domiciled funds. TURN TO PAGE 06 Responses to Reg SCI target testing concerns BY JEANENE TIMBERLAKE Portware sees strong market for core trading tech Portware is seeing strong demand for core trading technology from the market in spite of metrics that typically point to lower interest, according to Harrell Smith, head of product strategy. TURN TO PAGE 07 Financial technology vendors and service providers descended on the Hilton New York for SIFMA Tech 2013. WSL sat down with some of the executives to talk tech. TURN TO PAGE 08 SIFMA Tech talk A few early comments in response to the Securities and Exchange Commission’s Reg SCI proposal focus on testing concerns, some of which are specific to the proposal and others of which are ongoing. The Commission proposed Reg SCI earlier this year to put rules in place to ensure exchanges, alternative trading systems, clearing entities and others are appropriately and effectively managing information technology resources. The rules would replace the current automation review policy that provides guidelines for system testing. The regulatory agency is on its second round of comments, due July 8, after commenters in the first round universally requested more time for review. With two weeks until the deadline, Bloomberg CEO Ray Tierney told the SEC in his comment letter the regulator should require SCI entities to offer testing-specific infrastructure and facilities. He added it’s critical in order to reduce operational risk across the entire process, from trading to settlement, and said TURN the lack of dedicated TO PAGE testing facilities is a “dramatic weakness.” 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