Pipeline Sales Training
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- What two things set Pipeline apart from all other trading systems?
- "Blocks only" and "Automatic Executions"
- What are the three major sources of information leakage in trading?
-
Displaying orders;
Being probed by small orders;
Negotiating - How does Pipeline prevent information leaking from displayed orders?
- Pipeline does not display orders. The BlockBoard holds orders confidentially and does not display any orders. No information leaks from Pipeline as a result of displaying orders.
- How does Pipeline prevent information leakage from small order probing?
- Pipeine rejects small orders and does not interact with them. This gives probers no information.
- How does Pipeline prevent information leakage from negotiation?
- Pipeline does not allow negotiation. All orders are frim and execute automatically when a contra is available.
- What is the Block Price Range?
- The Block Price Range is a continual calculation of the price range within which a block of the Pipeline minimum size should be able to be executed.
- What is the Reference Price?
- The Reference Price is a continually updated volume-weighted moving average of the mid-point of the stock's NBBO.
- What is the Orange Light?
- The Orange light is part of the "heat map" on the Pipeline Block Board. It is used to signal the probable presence of a large order at or near the market's prices.
- What causes the Orange Light to turn on?
- The Orange Light turns on when an order is entered into the BlockBoard and is executable within the Block Price Range.
- What causes the Orange LIght to turn off?
- The Orange Light is on a random timer that turns it off at some time after all orders are executed, after all orders are outside the Block Price Range and after all orders are XXXX??
- Are investors better off coming directly to Pipeline than coming through Dark Server?
- Orders that come directly recieve priority protection in Pipeline's price time priority queue; information about passive contras present; and xxxx???
- How does Pipeline differ from Dark Server?
- Pipeine is the only market for "blocks only" that offers "automatic executions." Dark Server is an order routing system that routes orders to several execution venues.
- What is ACE?
- Automated Crossing Engine is Citigroup Global Markets' crossing engine
- What is Liquifi?
- Liquifi is the proposed new mane for ACE, which is Citigroup's Automated Crossing Engine
- Who is Tom Richardson?
- Tom Richardson was the managing director at Citigroup who launched ACE. He left Citi in November, 2006, to become President of Boston Equities Exchange.
- What is Bosotn Equities Exchange?
- Boston Equities Exchange is the new electronic exchange based on the Bosotn Stock Exchange. Citigroup and four other large broker dealers have stakes in BeX.
- What is BeX
- BeX is another name for the Boston Equities Exchange.
- How can customers get orders in to ACE?
- Customers can submit orders directly or through Citigroup sales traders.
- Can Citigroup position traders access liquidity in ACE?
- Yes
- Which order flows does ACE cross?
- ACE crosses both customer and Citigroup internal order flows, including flow from the cash desk, retial order flow from Smith Barney, agency and principal program flow, and algorithmic trading flow.
- ACE customers can choose to cross with what subset of ACE flow?
- Customers can choose to cross with all order folw or only with agency order flow.
- What technology underlies ACE.
- Citigroup's crossing engine, ACE, uses technology from LAVA.
- What are the perceived strengths of Citigroup's ACE?
- Citigroup customers have the ability to specify that thier orders cross only with orders of a similar size.This feature attempts to level the field for different size players.
- Does Pipeline interface with ACE?
- No.
- What are the perceived weaknesses of ACE?
-
1) Orders are exposed to Citigroup's internal flow only.
2) Internal crossing pools are dark pools and typically have very low fill rates, on the order of 1% TO 2% - What are Pipeine's strengths relative to ACE?
- Pipeline aggregates interest from a much broader community and offers fill rates 7 to 15 times larger.
- Why do we say that Pipeline is an aggregator?
- Pipeline's heat maps signals the entire block trading community that there is a high probability of a large block priced at or near the market.
- What are the two basic kinds of dark pools?
-
Dark pools that focus on blocks and deliver large average execution sizes, and
dark pools that foucs on retail orders and deliver average execution sizes of abut 400 shares. - Who is Ted Oberhaus
- Partner ans Director of Trading at Lord Abbett & Co.
- Who is Kerry Massaro?
- Editor-in Chief, Advanced Trading Magazine
- What is Edge Trade?
- Edge Trade is a broker dealer offering an execution management system and an algorithm called FAN that interacts with dark pools and public markets.
- Who is John Wheeler?
- Director of US Equity Trading at American Century in Kansa CIty, MO. John appears frequently on trade show pannels as an experto on trading.
- Who is Floyd Coleman?
- Co Head Trader, Axa ROsenberg, in Orinda, CA
- Who is Michael Sobel
- Head Trader, Barclays Global Investors
- Who is Bob O'Brien
- Head Trader, Evergreen Investments n Boston
- What is Automated Trading Desk?
- A highly electronic broker-dealer in South Carolina
- Who is Jack Poulson?
-
Head trader at FIve Mile Capital in Stamford CT.
Five Mile manages about 1 billion. Uses Trade Web and Bloomberg - What is LEVEL?
- Level is an ATS launched by the eBX, (Boston Stock Exchange?) and backed by CITIGROUP, Credit Suisse, Fidelity Brokerage, Lehman,and Merrill Lynch.
- What is BIDS?
- Block INterest Discovery Service is sponslred by Calgary-based Alberta Market Soultions and is backed bu Citigroup, Goldman, Lehman, Merrill Lynch, Morgan Stanley, and UBS Fund Consortium
- What is Advent?
- Advent offers buy side firms an integrated portfolio, client management and order management system.
- Who is Brian Carr?
- CEO of NYFIX/ Millinium
- What is a dark pool?
- A trading system that does not display prices.
- What is an "interceptor"?
- A dark pool that intercepts retail flow on its way to another execution venue.
- Why does a broker dealer offer an interceptor style dark pool?
- To save the costs of sending orders to another execution venue; to be able to have ERISA orders intract with proprietary orders.
- What characteristics must a dark pool have in order to have ERISA orders interact with proprietary orders.
- anonymity and price-time priority
- What is the difference between NYFIX/Millinium and other intercetor dark pools?
- NYFIX Millinium is an independent vendor of execution pooling order flow of many broker dealers; the interceptors are typically handling just one firms order flow.