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Tech Talk

Nasdaq Agrees To Power New Bitcoin Marketplace

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MarketMuse blog update profiles Nasdaq recent agreement to power a new marketplace from bitcoin trading. Bitcoins are the largest decentralized digital currency in the market and has been taking the investment world by storm since its introduction in 2009 by its founder,  Satoshi Nakamoto. MarketMuse blog update is courtesy of Nasdaq’s article, “Nasdaq to Provide Trading Technology for Bitcoin Marketplace — Update” with excerpts from the article below. 

Nasdaq OMX Group Inc. has agreed to provide New York-based startup Noble Markets with core technology to power a new marketplace aimed at allowing companies and institutional investors such as hedge funds to trade bitcoin and related digital-currency assets.

According to a joint statement provided to The Wall Street Journal, Noble’s platform will use Nasdaq’s X-stream trading system, a high-tech system for matching market participants’ orders that is used by more than 30 exchanges and marketplaces worldwide. Nasdaq will also provide marketing support.

The agreement follows other Wall Street initiatives that could pave the way for financial institutions to own and trade digital currencies, which fans say have the potential to make the global financial system more efficient but which have also been marred by price fluctuations, investment scams and cybersecurity concerns.

 

Recent developments include: the New York Stock Exchange’s investment in bitcoin exchange Coinbase; regulatory approval of public trading in the Digital Currency Group’sBitcoin Investment Fund; former J.P. Morgan Chase & Co. executive Blyth Masters’ appointment to a lead new digital-asset settlement service; and news earlier Monday that former NYSE Chief Executive Duncan Niederauer will work as an adviser to bitcoin derivatives platform TeraExchange.

To read the entire article from Nasdaq, click here. 

ETF News, Tech Talk

Nasdaq OMX Plan: Convert PSX Exchange to ETF Exchange

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Csecurities technology monitorourtesy of Tom-Steinert-Threkeld

Nasdaq OMX Group plans to re-launch its PSX exchange as a “better trading venue” for exchange-traded funds, notes and other related products, as early as next month.

The exchange will execute trades in all National Market System securities, but will give special incentives to retail and institutional investors to participate as well as special benefits to firms that register as market makers, committing to make continuous two-sided quotes on exchange-traded products.

Neither a filing with the Securities and Exchange Commission nor a Nasdaq official with its Transaction Services division describe the incentives that will be given to investors to place orders on PSX nor the benefits that will be provided market makers.

“The unique features that will make PSX compelling we can’t go into today,’’ the Transaction Services executive said Tuesday afternoon. “We are keeping that under our hats for a couple weeks.”

Nasdaq OMX PHLX, the formal name of the exchange, filed a document dated March 8, 2013, describing its plan to changeover PSX to an exchange that “in all material respects” has rules for handling buy and sell orders that mirror those at Nasdaq OMX’s other two exchanges.

These are the Nasdaq Stock Market, which handles about 16.5 percent of all equities trading in the United States, and Nasdaq BX, which has as its differentiating factor the payment of rebates to market participants who remove liquidity from its market.

The move to match rules among all three Nasdaq exchanges means that orders at PSX will be handled in what is known as price-time priority. This favors the speed at which orders arrive. Continue reading →