Cover Story

Nick Leeson: Confessions of a Rogue Trader

With questions still swirling over how one trader could cost Societe Generale more than $7 billion, Advanced Trading turns to Nick Leeson, the infamous rogue trader who bankrupted Barings Bank in 1995, for his unique perspective. In an exclusive interview, Leeson candidly discusses how he hid his losses and offers key strategies to financial services firms on how they can prevent rogue trading.

Sidebar: The Personal Side of the Barings Scandal

Special Rogue Trading Report:

This special report traces the events that led to the Societe Generale scandal and details how the debacle unfolded. It also includes a time line of rogue trading events in history, commentary on the scandals, and an audio podcast of Advanced Trading's exclusive interview with Nick Leeson.

Anatomy of a Trading Floor

Featuring Weeden & Co.

Greenwich, Conn.-based Weeden & Co.'s trading floor has a unique layout -- arranged in the shape of a rectangle with two rows of block traders facing each other, it is surrounded by a ring of sales traders. The floor services Weeden's 1,500 institutional clients with NYSE/regional, Nasdaq/OTC and program trading.

Electronic Marketplaces

A New Season for Electronic Futures Exchanges?

The industry is questioning who will lead ELX, the new electronic futures exchange that is being created by a consortium of large brokerage firms, technology providers and a hedge fund, and it is wondering when more details will be made public. The exchange will go head to head with the CME.

Algorithmic Trading

Shedding Light on Dark Algorithms

As brokers begin to code dark pool access into all of their algorithms, the buy side is demanding more disclosure into executions. Buy-side firms want to know which dark pools algos reach and where their orders are being executed.

Sidebar: Brokers Code Dark Pool Routing Into All Algorithmic Trading Strategies

Data and Infrastructure

Exchanges Enter the Tech Business

As technology increasingly becomes a key differentiator among exchanges and a major factor in exchange consolidation, NYSE Euronext and Nasdaq recently acquired technology providers. In addition to enabling exchanges to tap the acquired technology, entering the tech business also creates alternative revenue sources.


Research Watch

Customize My Dark Pool

Dark pools must find ways to differentiate their offerings and attract liquidity, says TABB Group's Cheyenne Morgan.

Leveraging Search Technology

Using search technology can help the sell side add value back into the high-touch service model, claims TABB Group's Monica Schulz.

Street Cred

Smart Order Routing Gets Enlightened

Placing and taking liquidity is becoming a science that smart order routers need to master, says Contributing Editor Larry Tabb. But the increasing complexity of today's market will push routers into places where few ever dared to go, creating increasing demands on the smart router of the future.

At the Close

Tech Acquisitions Could Pose Conflicts for Exchanges

Nasdaq and NYSE Euronext have acquired the leading technology suppliers of exchange matching engines and operations platforms. Now the question is, "Will rival markets be comfortable relying on systems operated or supported by their competitors?" Advanced Trading Editor-at-Large Ivy Schmerken asks.

Market Intelligence

Nasdaq OMX Invests in OTC Derivatives ECN

Expanding into the fast-growing derivatives market, Nasdaq OMX has acquired a 20 percent stake in a new electronic communications network, Agora-X.

Credit Suisse Promotes Santayana

Manny Santayana has been elevated to head of Advanced Execution Services global sales, replacing Richard Balarkas.