Data Feed Information Gets Suppressed After Clients Demand It Overseas!
Check out this story, please. We want to tip our hat to the buyside overseas. They have effected change by standing up against a gigantic lobby. I don’t know what else to say, except we are proud of you, and there are millions here in the states who are proud of you as well.
Chi-X Europe, Bats Suppress Dark-Pool Data After Client Demand
2010-05-21 10:31:21.859 GMT
By Nandini Sukumar
May 21 (Bloomberg) — Chi-X Europe Ltd., the region’s biggest alternative stock-trading system, began suppressing some market data from its dark pool after customer concern about information leaks led to a decline in business.
Starting today, London-based Chi-X Europe will no longer disclose customer identification or order numbers in Chi-Delta, its dark pool. Bats Europe, the second-largest multilateral trading facility, will impose similar controls on May 24.
“We’ve changed our practices in response to customer requests,” Alasdair Haynes, chief executive officer of Chi-X Europe, said in a phone interview today. “We’ve suppressed some market data in our dark pools in order for customers to be satisfied there’s no information leakage. We expect trading to bounce back now.”
The move comes after customers said they are concerned that identification could lead to others guessing their trading strategy and follows a May 11 report from U.S. brokerage Themis Trading LLC titled “Exchanges and Data Feeds: Data Theft on Wall Street.” The value of trades on Chi-X Europe’s dark pool plunged 61 percent to 118.7 million euros ($148 million) in the seven trading days after the report was released.
As of May 24, “Dark Pool Trade Message Order IDs will no longer be exposed but instead be obscured with zeros,” Bats Europe said in a notice to members. This is “following participant demand.”
Don’t Display Quotes
Trading on dark pools, off-exchange platforms that don’t display public quotes, will likely rise to 7 percent of the total in “major” European markets this year, according to Tabb Group LLC. Dark-pool trading accounts for about 4.1 percent of European equity volume at present and there are 33 dark “environments” in the region, the study said.
Brokers such as Credit Suisse Group AG and Goldman Sachs Group Inc. operate dark pools for their clients, as do European bourses including London Stock Exchange Group Plc, NYSE Euronext and Deutsche Boerse AG. Alternative trading systems such as Chi- X Europe and Bats Europe and the London-based units of electronic crossing networks Investment Technology Group Inc.
and Liquidnet Holdings Inc. also have their own platforms.
Turquoise, now owned by LSE and the investment banks that set it up to rival the exchange, had a surge in business after the Themis Trading report, Xavier Rolet, chief executive officer of LSE, said on a conference call today.
Turquoise has tried to make its dark pool “a safer place for brokers to trade institutional client orders,” Natan Tiefenbrun, commercial director of Turquoise said.
For Related News and Information:
News on exchanges: NI EXC <GO>
News on dark pools: STNI DARKPOOL <GO>
Top stocks stories: TOP STK <GO>
News on European stocks: TNI STK EUROPE CN <GO>
–Editors: Andrew Rummer, David Merritt.
To contact the reporter on this story:
Nandini Sukumar in Brussels at +44-207-673-2479 or firstname.lastname@example.org
To contact the editor responsible for this story:
David Merritt at +44-20-7673-2639 or