COVER STORY

Buy Side Reevaluates Counterparty Risk and Reliance on Sell-Side Trading Platforms

After the demise of Lehman Brothers, buy-side firms are focusing on counterparty risk, measuring their exposure to sell-side trading systems as well as trading partners.


SPECIAL FEATURE

THE NEW WALL STREET
As Wall Street grapples with the impact of the credit crisis, financial services execs predict what is to come.

Will the Next Wall Street Be the Last?

The credit crisis is reshaping Wall Street as we know it. Will it rise to the challenge?, asks Rosenblatt Securities VP Justin Schack.

Wall Street IT Spending to Drop as Much as 15%

Just days after Lehman's bankruptcy and Merrill Lynch's acquisition, TowerGroup's Matt Bienfang had already estimated the impact to IT spending.

More Rationalization Ahead

BIDS CEO Timothy Mahoney sees a reduction in risk and certain business lines being rationalized.

Regulators Must End Systemic Crisis

Muriel Siebert says we are witnessing a sea change that if properly regulated could see restoration of confidence, and if ignored could turn into a historic financial disaster.

The More Things Change, the More They Stay the Same

Kevin Chapman, managing director and head trader, Nicholas-Applegate Capital Management, looks at what the future will entail and how Nicholas-Applegate may change trading to adapt to the new environment.



ANATOMY OF A TRADING FLOOR

JonesTrading

JonesTrading is an agency-only broker-dealer specializing in large block trades for its buy-side customers. The firm's Westlake Village trading floor is home to 36 sales traders and eight agency traders.


MANAGING THE DESK

CCAs May Get a Face-Lift as Counterparty Risk Looms Large

The buy side rethinks client commission agreements as market turmoil boosts counterparty risk.


Sidebar

Brokers Hash Out Details of CCA Consortiums to Allay Buy-Side Concerns

Moving commission balances into a neutral entity is under consideration.



Brian Baker, Manager of Trading, BB&T Asset Management, and Navin Sharma, VP and Director of Risk Management, OppenheimerFunds
Brian Baker, Manager of Trading, BB&T Asset Management, and Navin Sharma, VP and Director of Risk Management, OppenheimerFunds


FROM THE EDITOR

Counterparty Risk Rules Minds of Market

Counterparty risk is top of mind for traders as it affects everything including algo, technology and CCA use.


MARKET INTELLIGENCE

Buy-Side Order Flow Could Shift Away From Dark Pools

As the news continues to be grim from Wall Street, dark pools could start to feel the crunch.


Sidebar

Goldman Sees Record Dark Pool Volumes in September

Sigma X saw a record 531 million shares trade in a single day on September 18th while the entire month of September saw an average daily volume of 332 million shares per day.


RESEARCH WATCH

The Future of Futures Execution

In the short-term, the overall de-leveraging of the global economy will cut back the use of all derivatives products by investment banks and hedge funds.


STREET CRED

Developing a New Prime Brokerage Model

As hedge funds move away from prime brokers and toward using traditional custodians, the prime brokerage model is becoming endangered.


AT THE CLOSE

Despite Counterparty Risk, Buy Side May Stick With Bulge Bracket

Will the buy side abandon bulge-bracket firms — and their research — in favor of agency brokers to avoid counterparty risk?