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Crossing, Algo Vet Starts Information Exchange
06/10/2008 Dean Stamos, an algorithmic trading veteran and one of the creators of NYFIX Millennium, is getting ready to roll out InfoExchange, a matching engine for trade information. The company has roughly 50 customers participating in beta mode, and the engine will go live once the company secures financing, Stamos said. The idea is to get access to the customers’ orders and filter trade information, such as research reports or corporate news announcements, based on the customer’s real-time interest, and alert the customer so he can do the trade. For example, if the customer is working a trade through Morgan Stanley’s desk and a research report comes out of Credit Suisse, he may not know that there is liquidity available at CS. “The worst thing we hear from buyside customers is they have 300 emails to deal with a day. We match information to real-time trading flow to help traders make decisions,” Stamos said. The engine watches the trades and filters out irrelevant emails. The filters can be refined several levels to ensure that only the relevant information is received. For example, a head trader may only care about trade ideas about company X but won’t want emails on road shows, while a portfolio manager for the same firm would want road show info. “You shouldn’t have to seek out information; with this engine, the information comes to you", Stamos said. The firm is also in the process of talking to sell-side firms, particularly independent researchers, about getting their ideas onto the platform. With the global research settlement ending next year, many independent research firms are losing valuable sales channels and many are looking for a better way to get clients to use their ideas. |