First, this is least tech conference I have attended so far, but it was interesting and give some thoughts.
• Most people who visited TTN are from Sweden, buy side and sell side are the majority of audience.
• Study showed that 74% Managers from buy side concerns about lack of transparency. It is on top of all issues for year 2010. This has been a red thin thread through whole conference.
• Study also showed 80% buy side believes they will change trading strategy in next 6 months. This shows rapid development undergoing at the moment.
• Darkpool have about 67% activities in UK and only 29% in rest of Europe
• Algo trades are about 48% activities in UK and 64% in rest of Europe
• Audiences’ poll showed that people at TTN believe technologies with solid local knowledge are the key to success in Nordic Region due to many medium & small companies.
• From panel “war on bank” concluded neither international broker nor local broker is better than other. International probably has better technique, but lack of local knowledge.
• Also smaller local broker who doesn’t have money to invest on technique must “white-labeling” from big firm solutions.
• In same white-labeling discussion concluded similar problem with cloud computing. “Control” and “transparency” have been questioned.
• Audiences’ poll: buy side showed 93% are “afraid” of international broker who has money of technology such as SOR will take most advantage of it.
• Burgundy asked about panel of banks about SOR (particular in Nordic), banks showed lack of interest of implementation. (Surprisingly…)
• FSA - financial regulator from Nordic Region spoke about laws that are under discussion and waiting for be implemented. It is a long list 2 page with 14 fonts. (Didn’t understand much)
• Audiences' poll showed about 50% think current law & rules are inefficient for stock market. Even more disagree that MIFID2 will make market safer. Audience also disagree about short sell prohibit rules from FSA.
• 60% Audiences also think it is FSA task to drive the development of regulation of HTF and algos.
• Debate regarding definition of HTF, those parameters and algos. Non-transparency can confuse and miss measure the current market statistics.
• NasdaqOMX showed algos trading is increasing in Nordic Market. SE and FI share similar development. DK is behind.
• They also mentioned Market is looking for better & cost effective clearing system and OTC products.
• Last, they are looking for use existing infrastructure to reduce cost.
• NasdaqOMX see increased velocity, trend is following USA. Increasing algo members, interest in low-latency and clearing products.
• NasdaqOMX Nordic CEO concluded this is just a beginning of new trading development. Next 3-5 will be very interesting.
• Broker criticized SOR is expensive and hard to get value (or measure it).
• A great sample is Brokers/Exchanges with SOR are Flight Towers. People who want to attend TTN probably end up Växjö or Östersund than Arlanda. Advantage and disadvantage of SOR discussed.
• Darkpool discussion poll showed most buy side avoid it because lack of trust & transparency, also afraid of get gamed in dark.
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