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56 Cards in this Set

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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 ACE?
Automated Crossing Engine is Citigroup Global Markets' crossing engine
What is Liquifi?
Liquifi is the proposed new name for ACE, which is Citigroup's Automated 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.
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 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.
What is BeX
BeX is another name for the Boston Equities Exchange.
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.