Structured Products are not new to the securities industry. Some of the popular structured products are
1.Warrants
2.CBBC
3.ELN
Warrents are often confused with Stock options. Please check out article from Hong Kong stock exchange detailing difference between them.
Sunday, April 18, 2010
Wednesday, April 14, 2010
Post-trade transparency in Europe and fix protocol
Post Mifid, a European equity market continues to be fragmented. One of the challenges created by fragmentation is lack of “True” post trade transparency.
Post-Trade reporting happening as per Mifid via regulated market or reporting venue is mere accomplishment of the regulatory obligation. Post trade data generated from the regulated market, alternative trading systems and reporting venues creates sea of information. In the current state, even if simple consolidation is done from all of these venues, participants will not have accurate data or actionable data. This is because different methods ( i.e. size, type of trade, time) followed by each participant to report a trade.
Apart from regulatory intervention, there is a room for industry wide standard in this area. FIX protocol is best placed to address this need. FIX protocol can enhance standard so that post trade reporting happens in consistent manner. It should cover all the reporting requirements from regulated markets as well as OTC trades carried out by brokers.
Once industry starts talking in the same language then “Consolidated Tape” desired for “Actionable Data” will be on the horizon.
Post-Trade reporting happening as per Mifid via regulated market or reporting venue is mere accomplishment of the regulatory obligation. Post trade data generated from the regulated market, alternative trading systems and reporting venues creates sea of information. In the current state, even if simple consolidation is done from all of these venues, participants will not have accurate data or actionable data. This is because different methods ( i.e. size, type of trade, time) followed by each participant to report a trade.
Apart from regulatory intervention, there is a room for industry wide standard in this area. FIX protocol is best placed to address this need. FIX protocol can enhance standard so that post trade reporting happens in consistent manner. It should cover all the reporting requirements from regulated markets as well as OTC trades carried out by brokers.
Once industry starts talking in the same language then “Consolidated Tape” desired for “Actionable Data” will be on the horizon.
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