Friday, 21 November 2014
Last updated 43 sec ago
Jan 23 2013 | 12:14pm ET
Hedge fund GSA Capital Partners is none too pleased with a currency-trading platform it uses.
The London-based firm has stopped posting passive orders on Thomson Reuters' Reuters Matching platform, protesting what it said was a slap on the wrist for another user of the system. The skirmish boils down to another battle over high-frequency trading; GSA and other currency traders worry that high-frequency users are abusing the platform, and the hedge fund lays the blame squarely at Thomson Reuters' feet.
At issue is Thomson Reuters' brief suspension of Lucid Markets late last year. Lucid used multiple servers to get trading data ahead of competitors, which is against the rules, according to Thomson Reuters. Lucid said it broke no rules.
Either way, GSA isn't happy. "Thomson Reuters's failure to sanction the offender publicly has damaged confidence in the platform and in Thomson Reuters's ability to provide a level playing field for all participants," GSA said.
The fight puts Thomson Reuters in a tough place: between two of its biggest customers. GSA traded a notional US$15 trillion in currencies in 2011, The Wall Street Journal reports, while Lucid traded US$13.4 trillion that year.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...