Brown recalls cleaners' campaign


Gordon Brown told students about winning better pay for cleaners
Gordon Brown has told a student website about his own campaigns as a student - opposing apartheid in South Africa and supporting "decent pay" for cleaners.
The Labour leader was answering questions on the Student Room website.
His comments on cleaners' pay come as a campaign from today's students is set to call for university cleaners in London to receive a "living wage".
Mazdak Alizadeh of the University of London Union says he would like Mr Brown to "champion" the campaign.
'Tough fight'
Asked about his own student days, Mr Brown said: "The thing I'm proudest of as a student journalist was the campaign I led to get the university to disinvest from apartheid South Africa.
"It was a tough fight, but we won it, and it meant a lot to me to be able to talk with Nelson Mandela years later.
"I also got involved in the campaign for the cleaners to get decent pay and became the second student to be elected Rector, chairing the governing body of Edinburgh University.
"I like to think we had a real impact on the university. So I guess you could say I have the same interests today."
The Liberal Democrat leader, Nick Clegg, has also answered questions on the website about his own university days and highlighted an interest in meditation over politics.
"I wasn't into student politics, but I did campaign for things I believed in, like the rights of indigenous peoples through an organisation called Survival International," said Mr Clegg.
"In terms of hobbies I tried out a few things, quite a lot of sport, I did some acting, and I even got into transcendental meditation for a while, which my friends still love to remind me."
Conservative leader David Cameron is set to answer questions next week.
Mr Brown's recollection of raising university cleaners' pay has parallels with student campaigns being launched 40 years later.
The University of London Union and campaign group London Citizens want cleaners at the University of London's colleges to be paid at least £7.60 per hour, which they say is the minimum needed to live in an expensive city such as London.
It is already paid in several of the universities' colleges - including the London School of Economics, Queen Mary and the School of Oriental and African Studies.
'Dignity'
But there are other colleges in London which fail to pay this wage - with campaigners set to press for this higher rate of pay.
Mr Alizadeh, the vice-president of the ULU students' union, says the living wage is what is needed "to live with any kind of dignity in a city as expensive as London. It's a bare minimum."
"It's a figure that represents the reality of living in London - rather than living and working in poverty," he says.
Cleaners paid less than this rate are caught in a cycle of needing two or three different jobs to survive, he says.
Political leaders were accused by student leaders of ducking questions about tuition fees earlier this week - and when asked about fees in the Student Room website, he said: "We have commissioned a review of the whole system of student finance which is due to report later this year."

Wood joins Nasdaq MTF to trade CEE stocks

Prague-based investment bank Wood & Company has become a member of pan-European multilateral trading (MTF) facility Nasdaq OMX Europe to trade stocks listed in the Czech Republic and Hungary.
Wood is the first member from the central and eastern European region to join to take advantage of the Nasdaq OMX Europe’s expansion in the region.
The MTF, owned by global exchange group Nasdaq OMX, started trading the 12 constituents of Hungary’s BUX index and the 12 constituents of the Czech Republic’s PX index from 16 April, slightly later than its initial launch schedule of Q1 2010.
Wood & Company has already executed on the MTF. Its trades were settled by the domestic currency services division of Deutsche Bank, which acts as a general clearing participant for pan-European central counterparty EMCF – Nasdaq OMX Europe’s incumbent clearing house.
"We consider this mandate a huge endorsement of our clearing capabilities and a further milestone in our continuing strategy to grow our service capability in central and eastern Europe,” said Roger Harrold, head of Deutsche Bank’s domestic custody services division, in a statement.
For constituents of the PX index, Nasdaq OMX Europe charges members 1.5 basis points for removing liquidity and pays a rebate of 1 bp for adding it. For BUX stocks, it charges 1 bp for taking liquidity and rebates 0.5 bps for adding it.
According to data vendor Thomson Reuters, Nasdaq OMX Europe accounted for 0.79% of total European trading in March with a turnover of €6.3 billion.

FSA fines Winterflood £4 million for market abuse as appeal fails

The UK Financial Services Authority (FSA) has fined broker and market maker Winterflood and two of its traders a total of £4.25 million for market abuse after they lost their case in the Court of Appeal.
As a result of the Court of Appeal’s decision, Winterflood will have to pay a £4 million fine while the two traders, Stephen Sotiriou and Jason Robins, will have to pay £200,000 and £50,000 respectively. The court also ordered Winterflood, Sotiriou and Robins to pay the FSA’s appeal costs of £52,000.
In June 2008, the FSA found that Winterflood, the largest market maker on the London Stock Exchange’s AIM market for growth stocks, and its traders played a pivotal role in an illegal share-ramping scheme related to Fundamental-E Investments (FEI), an AIM-listed company. In particular, the FSA said the company misused rollovers (where positions are rolled over from one client to another) and delayed rollovers (where the size and price of the buy and sell legs of the rollover trade are agreed at the outset, but the two legs of the transaction are then executed at different times of day), which it alleged created a distortion in the market for FEI shares and misled the market for about six months in 2004.
The FSA said Winterflood made about £900,000 from trading in FEI shares, its single most profitable stock at the time.
In March 2009, the Financial Services and Markets Tribunal found that the broker and its traders had committed market abuse, but they appealed.
“Winterflood allowed highly profitable trades to go ahead despite clear warnings that something was amiss. Their actions led to serious losses for investors and damaged market confidence. This was well below the standards expected of a leading market maker which is why they will be paying a substantial fine,” said Margaret Cole, director of enforcement at the FSA, in a statement. “The importance of this case is underscored by Winterflood’s determination to challenge our finding of market abuse.”
She added that the FSA’s eventual victory in the case should “serve as a clear message to other market participants that we are determined to stamp out market abuse and that we will not back down simply because cases are tough and hard fought.”
The FSA has levied a number of fines this year for market abuse. Most recently, on April 16, the regulator fined spread better Sameer Patel and research analyst Robin Chhabra £180,541 and £95,000 respectively for market abuse.
The Winterflood/Sotiriou/Robins decision takes the total to £10.96 million for the financial year so far.

Changing trading strategies on the fly can cut costs – Celent

Technology-savvy buy-side firms are showing that analysis applied at the time of the trade can help reduce execution costs and move beyond the widely prevalent ‘measure and forget’ attitude, according to a new report from consulting firm Celent.
The study, ‘Transaction Cost Analytics Stuck in Neutral: Accelerating At-Trade Adaptation’, says that while even elementary transaction cost analysis (TCA) has yet to be fully embraced by the whole buy-side community, those firms that have made the leap are now adopting more sophisticated techniques.
“The TCA discipline continues to evolve so that leading-edge buy side firms can more effectively refine their execution strategies,” said David Easthope, senior analyst with Celent’s capital markets group and co-author of the report, in a statement. “Today, those firms that have embraced TCA are moving beyond simple measurement and intermittent evaluation of execution strategy to actually adapting strategies at the point of trade.”
According to Celent, the ‘at-trade’ movement involves some increased use of pre-trade analytics, but also sophisticated new technologies to monitor execution at the point of trade and switch strategies based on a dynamic feedback loop.
The report said that the financial crisis and the advent of high-frequency trading is making real-time adaptation necessary to maintain and improve upon existing execution strategies. It added that the buy-side must evolve to keep pace with the changing market structure, particularly as explicit execution costs fall and implicit execution costs are more closely scrutinised.
Specialised TCA vendors and execution brokerages are offering more tools to meet the buy-side demand, Celent said. While the report argued that some promises of real-time TCA are simply faster data, many brokerages are providing the useful, granular data needed for the new methodologies. Other firms are going further, providing specific tools to monitor performance during the execution phase.
Traders are also being allowed to input smarter parameters to automate the monitoring and switching of execution strategies based on these parameters for stocks during the trading day.
“While at-trade developments are pushing TCA forward generally, some specific areas will be key drivers of this at-trade evolution, namely intra-day algorithm performance measurement and predictive switching,” says Mayiz Habbal, senior vice president of Celent’s securities and investments practice and co-author of the report.

Telco providers enhance trading solutions

Verizon Business, the technology division of telecommunications firm Verizon Communications, has extended its US trading network to the financial services industry in Europe.
The Verizon Financial Services Network will allow brokers, hedge funds, exchanges, asset managers and pre and post-trade service providers to share market data and trade information at high-speeds.
According to Verizon, users will be able to collaborate with customers and partners, consolidate their market access, distribute services and information, and execute pre-trade, trade and post-trade transactions within a secure, resilient environment.
“The Verizon Financial Services Network solution helps financial institutions capitalise on market movements by enabling them to respond with speed and agility,” said Chandan Sharma, global managing director, Verizon Business financial services practice, in a statement. “Essentially, we bring the capital markets closer to our customers through a low-latency, highly available and scalable business infrastructure that helps them better manage the challenges of market fragmentation, globalisation, high-frequency trading, asset class proliferation and fierce competition.”
Verizon’s European network is available to clients as a standard managed solution or a customised implementation to suit individual business needs.
Meanwhile, fellow communications provider BT’s Global Banking & Financial Markets (GB&FM) business unit has singed a deal with visual messaging provider Kulu Valley to enhance its trading services product suite.
The two firms have entered into a reseller agreement, enabling BT GB&FM to broaden its communication portfolio by allowing video messages and presentations to be delivered across all of BT’s trading services products.
According to BT, Kulu Valley’s visual messaging solution will increase trader productivity by speeding up market access and data delivery. Financial institutions will also be able to create and distribute video communications globally.
The Kulu Valley visual messaging solution will initially be integrated with BT’s Trading Communications solutions with a view to extending deployment across the BT Radianz shared market infrastructure.
“With financial markets becoming increasingly automated and complex, financial institutions need access to tools that help them get the most out of their time and their trading rooms,” said Tim Furmidge, head of strategy and product development, BT GB&FM. “People and technology are interacting more closely than ever before during sales and execution, creating a growing need for converged voice, data networks and multi-media applications to improve efficiency and productivity.”

BATS Europe’s dark pool breaks the €100 million barrier

The non-displayed book operated by pan-European multilateral trading facility (MTF) BATS Europe passed the €100 million turnover mark for the first time on 21 April, trading €100,758,149.
The new milestone for BATS Europe’s dark pool follows a number of market share records set by the MTF’s lit book the previous week. According to BATS’ own figures. It had an 11.7% market share of trading in the FTSE 100 UK blue-chip index on 12 April, 8.7% of the FTSE 250 on 14 April, 9.7% of the Swiss SMI blue-chip index also on 14 April and 6.1% of the OMXH25 Finnish blue-chip index on 16 April.
“We’re pleased to continue a record-setting year and that our increasing number of participants are benefitting from the great technology and aggressive simple pricing in our dark and integrated markets,” said BATS Europe COO Paul O’Donnell in a statement.
BATS Europe launched its mid-point matching dark book in August 2009. According to figures from data vendor Thomson Reuters, BATS Europe’s dark book was the fifth-largest non-displayed MTF in Europe in March 2010, with an 8.7% market share of the total value traded by the dark books that identify themselves to Thomson Reuters. Chi-X Europe’s dark book is the largest, with a 29.4% market share, Liquidnet is the second with 19.1% and Turquoise the third with 15.5%.

Citi completes overhaul of algorithmic platform

Thu, 2010-04-01 16:33Investment bank Citi has completed a two-year project to revamp its global algorithmic trading platform for institutional equity trading clients.The new platform was a total overhaul of its previous algorithmic platform and was done to help Citi keep up-to-date with the changing market structure across the globe.“While we continued to provide tactical enhancements to original platform, we decided to rebuild a brand new system from the ground up,” Young Kang, global head of algorithmic products, Citi, told the TRADEnews.com. “We opted for rebuilding so we can set up a proper foundation and framework to build a smarter system that can adapt to new market conditions with enhanced historical and real-time analytics, new features, improved latency and enable more customised solutions.”Specifically, the new platform will enable symbol-specific trading decisions driven by real-time and historical analytics, optimal balancing and control across trading styles, easy management of trading venues clients want to execute on and a sophisticated limit order model.Clients will be also be afforded full control and diagnostics of child orders with analytics pertaining to the relevant care order, real-time data of strategy performance and progress, and greater self monitoring alerts for exceptional conditions with market.The platform has been tested internally over the last 10 months and is currently being rolled out in the US, Europe, the Middle East, India, Hong Kong, Singapore, Taiwan and Korea.Country specific algorithmic strategies will be developed by Citi’s regional teams. Kang added that the new platform would be capable of handling FIXatdl, the algorithmic trading development language developed by messaging standard provider FIX.“We are FIXatdl compliant so we can deploy the latest features to algorithmic strategies quicker and create trader specific strategies overnight, compared to the months it would have normally taken,” said Kang. “We have also spent a lot of time ensuring the switchover to the new platform would be 100% seamless for our clients from the front-end perspective.”