Our mission is simple, although sometimes it has felt like we’re fighting the gravitational pull that protects the status quo. The good news is that not only do we have lift-off, but we are fast approaching orbital speed! This became clear at FIA Boca, where we had numerous conversations and positive engagement on how we are driving record volumes, record open interest and material buy-side interest.
So what’s the answer?
Well, we’ve spent a fair amount of time banging you over the head about the margin offsets we offer at LCH. You know about lower execution costs. And of course, there’s no charge for data at CurveGlobal. All economically important – but seemingly not enough by themselves to fire the after-burners.
Perhaps surprisingly, technology and market structure are the real agents of change. On the technology front, the deployment of the Fidessa smart order router (SOR) is allowing traders to aggregate the market and “split” orders based on best price or in some type of proportion. SORs are not new in equity and FX markets but Fidessa joins TT and Stellar in offering this service to customers in futures. Delivering the economic results without changing the habits of the trader has been huge!
On the market structure side, our dynamic futures block pricing now allows you to trade between the bid and offer at any price that suits you. As a trader, you had two choices to get filled previously: hit the bid or sit passively on the offer and hope you get lifted. At CurveGlobal, we’re pioneering a “third way” that allows the user of the product to trade competitively sized blocks at a price between the bid and offer. This is helping to galvanise hedge funds, such as BlueCrest, props and banks to make and take better pricing – inside the bid-offer.
Finally, thanks to all my friends and colleagues for the messages of support. After a recent bone break, it’s good to be back up and moving again. I asked my doctor if I could tap dance when I’d regained fitness. He said “Yes.'' That's excellent news, as I couldn’t before I broke my leg!