COVER STORY

A NEW WAVE OF ROGUE ALGOS

Algo Wave The Next Rogue Algo
After the May 6 Flash Crash, buy-side firms are wary of a wave of disruptive algorithms that could trigger the next trading tsunami. To shore up the markets, regulators are pursuing sharper algo audits and stricter certification.

REGULATION

HFTs Fear SEC's 'Naked' Access Ban May Squeeze Profits
Although the move by U.S. regulators to ban "naked" access to public markets has been lauded as a necessary risk curb, a portion of the high-frequency trading community is awash in concern the new rules will damage time-sensitive strategies.

Buy-Side Must Pay to Play in New OTC Derivatives Market
But some firms may not be able to afford the table stakes in a market that's still unruly.

MANAGING THE DESK

Deploying an OMS, Natcan Takes on Pre-Trade Risk
Canadian investment firms did not have the same exposure to the credit collapse as their counterparts in the US. One asset manager - Natcan - shows how even the choice of a trade order management system can help in its quest for greater risk oversight.

FROM THE EDITOR

A Hard Lesson
People often repeat the same mistakes, even when they should have learned their lessons the first time.


FEATURE

EMS Growing Pains
As brokers debate the economics of execution management systems, Barclays and Citi have quit the EMS game. Meanwhile, Goldman Sachs goes broker-neutral and Morgan Stanley decideds to fly solo.

MARKET INTELLIGENCE

The Buy Side Looks to the Cloud to Reign In 2011 IT Costs
Despite a boom in trading volumes, infrastructure spending will only see a small boost.

NYSE Euronext Adds Latency Monitoring
NYSE Euronext will implement Correlix's RaceTeam latency monitoring service in order to provide exchange clients with greater transparency into execution latency.

ONE ON ONE

Russell Investments: Managing Risk in a Recession
With the release of new indexes, the dual-role investment firm discusses how it stays within the lines.

STREET CRED

Trends and the Tornado: Predictions for 2011
A battle of epic proportions over OTC derivatives reform will suck all of the air out of equities, writes contributing editor Larry Tabb.

AT THE CLOSE

Implications of the Insider Trading Probe into Expert Research Networks
A widening insider trading probe into expert research networks has put a chill on money management firms that rely on the networks' industrial insight. Buy-side firms that purchase research are fearful of becoming tangled up in the scandal, notes editor-at-large Ivy Schmerken.