October 2017
Inscription  Fixed income  on PC screen. Financial concept.
Feature Article

Pulling Together the Fixed Income Picture
by Brian Cassin, Head of Business Development, Vela


Preface by Jim Toes, STA

In 1997 the SEC approved Order Handling Rules, (“OHR”) in equities, which led to orders that were automatically executable being publicly displayed alongside traditional market maker quotes requiring a response to anyone seeking to interact with them. OHR ushered in the electronification of equity markets as investors preferred interacting with electronic, “auto-ex” prices over those which were not. The evolution from a quote driven market to a fully electronic order driven market in equities did not take long. Around the same time of OHR, electronic trading in fixed income was introduced into the market and while the amount of FI traded on electronic platforms today rivals equities, the evolution has been much slower due to a number of factors. Vela's Brian Cassin, Head of Business Development , recently published an informative overview on FI market structure. The article is reprinted below and we hope you, our readers, find it insightful.

"Trading venues have launched across fixed income markets in order to fill the void created by the concentration of market makers on the most liquid securities. From rates to credit, cash and derivatives, more than one hundred venues have been created in the last years . Some of these are using genuinely innovative new trading models, particularly all-to-all which has proven successful in the credit space, but no matching mechanism can make up for a lack of buyer/seller to your trade ."

Read Brian Cassin's full article here
From the Hill

The U.S. Department of the Treasury released its third report on the Administration's Core Principles for Financial Regulation. This most recent paper examines the current regulatory framework for asset managers and insurance industries. Full report here
STA Lighthouse
brought to you by JonesTrading

Falling-back is not failure, not even with CAT

Thesys CAT now owns this project and as such, has accountability and an economic interest in seeing that CAT gets built. These factors place a stronger foundation under CAT that can withstand a temporary fall-back that has benefits as well. To be clear, STA is not advocating that CAT never be built. What we are saying is that at this junction, falling-back is a better next step; moving forward is too dangerous and doing so now will allow us to reevaluate, regroup and reengage from a position of strength. Full story here
Upcoming Affiliate Events
 brought to you by Virtu

Den ver STA - 47th Annual Convention, November 2, Centennial, Colorado with featured discussion on MiFID II presented by Jack Pollina, Managing Director, ITG
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STA in DC

Oct 19 - STA issued a letter to the CAT Operating Committee recommending they petition the SEC for a revised implementation plan. Full letter here

Oct 23 & 24 - STA held meetings with FINRA and Congressional Staff on a range of issues including how equity rules impact the trading of ETPs and the effect the supplementary leverage ratio may have on the options market. Discussion draft here
STA Women in Finance
brought to you by Thomson Reuters

Our Nation's Best - Women Veterans
To date, 345,000 women have deployed since 9/11, representing more than 11% of deployed forces. Women currently comprise nearly 20% of new recruits and are the fastest growing veteran group. Only 37%, however, report feeling recognized, respected and valued as veterans in civilian life. Full story here

Featured Charity*

Drexel Hamilton's 3rd Annual Call to Action "Charity Day"
Veteran's Day is Friday, November 10 and on that day Drexel Hamilton, a service-disabled, veteran-owned broker-dealer , will celebrate its 3 rd  Annual Call to Action “Charity Day.” In support of America’s veterans, Drexel Hamilton will donate a portion of its gross equity commissions to three nonprofit organizations that serve veterans: Travis Manion Foundation , Foundation for Women Warriors and Catch A Lift Fund.

To learn more, call 212.632.0403 or visit www.drexelhamilton.com


*Each month STA will feature a charity supported by an STA Member.
If you are an STA Member involved in a cause, please submit information to sta@securitytraders.org
STA Open Call

A special thank-you
Nick Colas, DataTrek Research
who presented Oct. 19 on
"Market Structure & Its Impact on Volatility"
P resentation here