Challenges Today for Market Makers Knight Capital, Getco and Virtu at High-Frequency Trading Leaders Forum 2012
Building off of the momentum of past conferences, Golden Networking brings back High Frequency Trading Leaders Forum 2012, "How Knight Capital's 'Knightmare on Wall Street' Could Transform the Regulatory Landscape and Impact Investors, Speed Traders and Brokers", now in Chicago and London (http://www.High-Frequency-Trading-Conference.com).
- New York, NY (1888PressRelease) September 29, 2012 - Electronic-trading giants Knight, Getco and Virtu Financial have gotten into designated market making in recent years even as the number of floor-trading firms at the exchange has shrunk. The challenges they face today will be analyzed at High Frequency Trading Leaders Forum 2012, this time in three of the world's most important financial centers: Chicago and London.
As reported by Dow Jones' Matt Jarzemsky, the NYSE ordered that some securities be reassigned to other market-making firms because Knight's new investors--a consortium including Jefferies Group Inc. (JEF), Blackstone and trading firm Getco LLC--had common ownership or business relationships with some of the issuers of those securities, according to a person familiar with the move by the exchange. Designated market makers--formerly known as specialists--act as intermediaries among brokers looking to buy and sell shares and have obligations to maintain orderly markets and facilitate pricing in their assigned securities.
The exchange's rules give it broad authority to ask for the reassignment of securities that are perceived to present potential conflicts, such as firms having ownership stakes in their designated market maker, the person familiar with the matter said.
Such potential conflicts put a small dent in Knight's business acting as the designated market maker for companies that trade on the Big Board. They come in the wake of six firms investing in Knight earlier this month, which helped the brokerage stay afloat after a software glitch triggered $440 million in trading losses.
Potential conflicts resulted in Blackstone replacing Knight as the designated market maker for two closed-end funds it sponsors, according to a person familiar with the company's switch. DDR Corp. (DDR), a real-estate investment trust, moved away from Knight as the market maker for its stock and several issues of preferred shares because a venture between DDR and Blackstone bought 46 shopping centers for $1.4 billion in June, according to people familiar with the matter.
High Frequency Trading Leaders Forum 2012, How Knight Capital's 'Knightmare on Wall Street' Could Transform the Regulatory Landscape and Impact Investors, Speed Traders and Brokers", will provide attendees in Chicago and London with the most up-to-date review of where this ever-changing industry stands and how new technology and regulatory developments will impact it. Recognized experts, regulators, and strategists, will return to High-Frequency Trading Leaders Forum 2012 to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.
With insightful keynote speeches and highly regarded panels, everybody involved in high-frequency trading will gain inside knowledge about the latest technologies that can drastically optimize HFT infrastructures and take a first look at upcoming regulations that could radically change the HFT firms' business model. Topics that will be discussed at High Frequency Trading Leaders Forum 2012 include the movement toward emerging markets, every time more attuned to the use of bots, the regulatory environment, how new technologies are changing the game, including FPGA applications, and a look at the upcoming regulatory changes that will definitely impact how speed traders capture alpha.
High Frequency Trading Leaders Forum 2012 is produced by Golden Networking (http://www.goldennetworking.net), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info ( @ ) goldennetworking dot net.
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