Volume 1; No. 1 December 2007

Dear Buy-Side Colleague,

Welcome to the first edition of The Buy-Siders Club, an e-newsletter for the buy-side trading community that covers both domestic and international trading issues. We cover topics from setting up a 24-hour trading desk to what the fluctuations in the markets mean to the buy-side trader. This month, we focus on algorithmic trading, quant traders and how the explosion in electronic trading will impact present and future trading strategies.

Algorithmic Trading and the Japanese: Changing the way the TSE is Trading
The Japanese market has only recently implemented electronic trading and currently it is facing the challenges that the US market faced 2-3 years ago – an explosion in volume. How the Tokyo Stock Exchange is handling it and how it is trying to ramp us its technology is a lesson to which all of us can relate. More >>

What the Buyside is Doing to Tap Into More Trading Venues
Today’s market is witnessing an explosion in different trading opportunities. This has raised concerns with the buy-side about how to handle fragmentation and also whether or not the trader is missing out on trading opportunities. What’s a buy-sider to do? More >>

Buyside Opportunities: Dark Pools and Equity Options
Fund managers are increasingly using equity options where they are facing the same challenges that they faced in the equity markets where they wanted to execute trades anonymously. With the changes in the options market, quoting in pennies now, the volume of trading will take off and the buy-side equity options trader needs to have the right tools on hand for trading. More >>

2008 IT Budgets Up More Than 10% for Financial Services Firms
Despite a downturn in the markets, buy-side companies are still investing heavily in technologies that helps distinguish them from the competition.. It is essential that these firms are prepared for the next wave and currently buy-side firms have budgeted for a spend 10% more on technology for 2008 than they spent in 2007, particularly on trading technologies. More >>

Are Quant Firms Victims of Their Own Success?
Markets wobbled in August as we all know and much of the media was focused on the sub-prime market and the credit crunch. But there was another crisis going on – when the models used by quant-based firms (like Renaissance) went wrong and what that revealed as a major problem in today’s financial system. More >>

Markets: How One Country is Reacting to the Consolidation of the Exchanges
In a move of nationalistic proportions, the Swedish government is to pass a new law to protect the country’s stock market from being “Americanised” if it is taken over by a consortium led by NASDAQ. How this will impact trading and what this means for future acquisitions is under discussion. More >>

Our next issue is scheduled for March 2008. If you have a story, abstract or white paper that you would like to share with your fellow buy-siders, please email me at Stacey.mankoff@worldrg.com.

I wish you all the best for the holiday season and a happy and healthy 2008!

Sincerely,

Stacey Mankoff
Director
The Buy-Siders Club