Structured products : Warrants Vs Options

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.

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.

what are dark pools of liquidity ?

Dark pools are private exchanges. They are also known as crossing networks.

Why Dark?
-They do not display liquidity details to the public i.e. Order Size, Price, Counterparty
-May display liquidity only to selected participants
-May publish IOI's only to selected participants
-May publish best bids and offers if market volume is more than certain percentage of total traded volume

Who run them
-Broker/Dealers
-Consortia
-Independent firms.

Need for Dark Pools
-Better access for liquidity for block trades or illiquid Stock.
-Minimize risk of information leakage i.e. anonymity or do not disclose trading intentions
-Reduce impact Cost.
-Reduce trading Cost.

Others
-Earn revenue by publishing post-trade information.
-Execution price defined by reference price in main market
-Increase revenue by executing order on own dark pool (i.e.Broker's) than on market

Asian Capital Markets - Growth of Crossing Engines.

Broker crossing engines are not new in Japan. Citi has launched internal crossing engine called "Citi Match". This will increase access to Citi's internal liquidity pool and reduce trading cost.

Here is the list of other crossing engines in Japan

Credit Suisse's - Crossfinder.
Goldman Sachs's - Sigma X.
Bank of America/Merril Lynch's - MLXN.
Morgan Stanley's - MS Pool.
UBS - PIN.

How industry can measure success of crossing engines ?

1. Number of Trades ( Published at times )
2. Trading Cost. (No data around this)

Liquidity fragmentation in Europe and Consolidated tape

Thomson Reuters has published "White Paper" on the issue of liquidity fragmentation in Europe and need for consolidated tape.
They have talked about two types of tapes 1. Consolidated Quote and 2.Consolidated Trade Tape.
I think concept of consolidated tape is nothing but benchmarking to compare pre-trade and post-trade data for the purpose of regulatory compliance (i.e. MifiD) as well as for transaction cost analysis.
As we know, Best Execution is not a strict definition. It varies as per client needs and an agreement between Buy and Sell Side. In the absence of consolidated tape,  BUY Side will have to end up in getting Sell Side version of "best execution". "Best Execution" will also change per broker.
Buy side should be able to get the COMPARATIVE view of best execution for trades executed on any exchange/ATS/MTF via any broker/s.
Hence, there is need of two benchmarks for comparison.
Best Execution [Market]: This will be derived from consolidated tape.[Not Available]
Best Execution [Client]: This will be derived as per Client specific needs. [Currently Provided]
By taking all Best Execution parameters into account, Buy side will be able to validate size, price, venue and trading cost from consolidated tape with the executions received from broker. This will give Buy side an idea about degree to which they have actually received best execution, increasing transparency.