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Unconflicted Appeal
October-December 2006  The Trade
But even an agent can have conflicts of interest, notes Gawronski. It could be argued that there are agency brokers whose decision of whether to post or take liquidity is driven at least in part by the potential for a rebate when posting – doing a major disservice to their customers. “We don’t
have our own boxes to feed and are agnostic as to venue other than seeking best price, limiting market impact and maximising liquidity,”
says Gawronski. While Rosenblatt tries to connect to all legitimate liquidity
pools including crossing networks like POSIT, Pipeline and NYFIX Millennium, some firms and their algorithms make much more limited use of
these venues, claims Gawronski. “They either feed their own crossing networks or internal dark pools, or they avoid such venues altogether because the higher commission rates typically associated with them would have an impact on the margins they are making,” he adds... <more>

Market Data Tools

December 2006  NYSE magazine
...“It’s clear that the Exchange is committed to decreasing opaqueness and creating useful data products,” says Richard Rosenblatt of Rosenblatt Securities. <more>

Much Ado About Nothing
Sarbanes-Oxley is only partly to blame for the decline in foreign companies listing their stock on U.S. markets.
By Joe Gawronski, President, Rosenblatt Securities
November 28, 2006  Advanced Trading <more>

Nasdaq's Hunter Sees an End To The Chase

November 21, 2006 Financial Times
Joe Gawronski, president and chief operating officer of Rosenblatt Securities, says he believes Nasdaq might be prepared to go at least 10 per cent higher. <more>

Europe Banks Mirror US Trading Strategy
November 17, 2006 Financial Times
Joe Gawronski, president and chief operating officer of Rosenblatt Securities, an agency-only execution firm, said: "The blurring of lines between brokerage firms and exchanges will only continue in both Europe and the US as exchanges try to find new ways to make money to satisfy their public shareholders and broker-dealers look to check the power of exchanges, keep costs down and look for home-run investments in light of healthy exchange valuations." <more>

Facing Cost Realities, NYSE Is Closing a Trading Floor
November 8, 2006 Securities Industry News
Gawronski called the closing "a sensible business decision based on the fact that the room was added at the height of the Internet bubble, which turned out to be a pretty inopportune moment to expand, and the fact that efficiency gains from automation over the past several years--such as increased Direct+ activity, the penetration of broker handhelds and auto-quoting from the specialists--have reduced the number of people needed on the floor, all the while with volumes actually increasing." <more>

NYSE to Scrap Transaction Fee Cap
October 23, 2006 Wall Street Letter
..."For many NYSE member firms, it is now cheaper to go through [Nasdaq's] Brut [to get to the NYSE] than it is to go through New York directly, " said Joe Gawronski, president of Rosenblatt Securities. "Obviously a pricing plan that encourages your own members to use your largest competitor to access you is not a good plan." <more>

Major Firms Push the ATS Option
October 2, 2006  Dealing with Technology
...Joe Gawronski, president and chief operating officer (COO) of an agency-only execution firm, Rosenblatt Securities, says that the new ATSes are "a means for the bulge brackets’ dark liquidity pools to interact with one another." Though some have been hesitant to embrace dark pools due to the potential for abuse and their limitation in scope, Gawronski says that a neutral, third-party interactive utility could alleviate fears by instilling "a more comfortable feeling." The main issue he sees at this point is "that the bulge bracket has spread its investments very thin," which might make it difficult to make a dent in the "duopoly of the New York Stock Exchange and Nasdaq." <more>

How much longer Can the NYSE floor cheat death?

September 26, 2006  Financial Times

…John Thain, the NYSE Group's chief executive, has expressed a strong interest in taking on the trading of credit default swaps, presently the preserve of the big dealers and banks. This makes sense, theoretically. Both CDSs and stocks represent the securitisation of risk, and CDS dealers hedge their positions in corporate credits in part by using the equity options of the issuers…."I think it's a stretch," says Mr Gawronski. "While price discovery and transparency are what the exchange does, it'll be people who have credit market experience who set up a CDS exchange. It would be more like a broker-dealer consortium, or investors in an electronic platform. It needn't be a floor-based product." <more>

When Life Gives You Lemons...
Top Brokerages Exploit NYSE Pricing Increase

September 15, 2006  Wall Street Letter
Large brokerage firms have found a way to exploit New York Stock Exchange's recent transaction fee increase by passing on their own volume-based discounts to smaller firms.
...Traders and analysts say the business is likely to grow, so the exchange may lose revenue while the brokers gain. "If the amount of aggregation is substantial, which we believe it will be, it doesn't take a rocket scientist to see that it will cause a significant negative impact on NYSE revenues since much of the business the NYSE is anticipating receiving at 2.5 cents [per 100 shares] will instead come in though aggregators who are paying an incremental rate of zero to the NYSE," Joe Gawronski, president of agency brokerage Rosenblatt Securities, wrote in a recent research note to clients. <more>

NYSE and NASDAQ Target Sophisticated Traders With New Market Data Tools

September/October, 2006  Financial Enginerring News

Joe Gawronski, chief operating officer, Rosenblatt Securities Inc., a New York agency-only execution firm trading both listed and OTC securities applauds NYSE's commitment to creating useful data products, but has cautioned his clients to watch out for what data is actually being captured and how it is presented. "The program trading figures come from Twice Total Volume (TTV) data which counts both sides of the trade and if you intend to compute percentages, the numbers should be divided by two when being compared to overall volume. Similarly, the retail numbers are likely understated because of the limited tags that are captured by the NYSE today," Gawronski explains.
"Over time, we expect greater explanation of how these numbers are derived and tweaks to ensure apples to apples comparisons, which will make the data more useful. The exchange is not only working to clean up their data, but the fixes required shouldn't present a significant hurdle and we expect more accurate numbers soon." <more>

NYSE Traders Protest Thain's Fee Increase, Threaten Job Cuts
September 8, 2006  Bloomberg News (New York)

Some brokers say the NYSE's new fees are lower than what rival exchanges charge for comparable services.
``It's actually not that expensive,'' said Joe Gawronski, president of Rosenblatt Securities Inc., a brokerage based in New York. ``Brokers are waking up to the new reality that the NYSE is a for-profit company and it's going to do what it perceives is best for its shareholders even if that hurts certain member firms.'' <more>

Best Execution & Transaction Cost Analysis
September 6, 2006 Securities Industry News SPECIAL REPORT
Looking ahead, Scott Burrill, director of analytics for Rosenblatt Securities, believes that cost analysis will move further upstream as portfolio managers seek to incorporate pre-trade market impact analysis into the portfolio construction process. Burrill notes that this is already happening, to a certain extent, at many buy-side firms as traders and portfolio managers work together as a team to determine the most appropriate execution strategy given a trade's urgency and liquidity characteristics. "Portfolio managers will become more familiar with the pre-trade tools offered by brokers and input market-impact estimates into their stock selection screens or, in the case of quants, directly into the optimization process," says Burrill. <more>

Fee-Angered Brokers Mull Defecting From NYSE
New York Post Online Edition, August 27, 2006
"The parties most impacted are not standing still," said Joe Gawronski, president and COO of NYSE member firm Rosenblatt Securities. "They are not only lobbying the NYSE and the SEC for a reversal, but also looking at alternative plans." <more>

Silver Lake Considers Sale or IPO of Instinet
August 24, 2006 Securities industry News
Joe Gawronski, COO of New York-based agency brokerage Rosenblatt Securities, said he did not find this week's revelation all that surprising "considering the compression of time frames that we've generally seen over the past year or so with respect to private equity firms finding exits."
...But there are additional factors that may be at work here. "The reality is that Silver Lake was able to pick up the institutional brokerage division from Instinet for a song as part of a deal that had a lot of hair on it, as [Inet] was sold to Nasdaq and Instinet's Lynch Jones & Ryan division sold to Bank of New York at the same time," Gawronski said. "Since then, not only has Instinet put up great numbers and benefited from generally strong market volumes, but they happen to be in the sweet spot of two market trends, as they are heavily reliant on electronic direct-market access trading, which has been increasing rapidly, and there has been a renewed interest in agency-only execution brokerage as unbundling accelerates and users face greater conflicts from growing bulge-bracket [proprietary trading] desks." <more>

NYSE Euronext: Merging the Platforms
August 07, 2006 Wall Street & Technology
Joe Gawronski, COO at Rosenblatt Securities, an institutional agency broker and a member of the NYSE, contends there is confusion over the meaning of "platform" because there is a difference between the underlying technology and the market structures. In Gawronski's view, when NYSE and Euronext executives say they will consolidate down to one surviving equity platform and one derivatives platform, they're talking about technology infrastructure - the three existing market structures (Arca, NSC and Hybrid) will survive...While Gawronski believes that the various NYSE Euronext cash equity markets will run on the AEMS technology infrastructure, he maintains that multiple market structures and trading applications could run on the same platform/infrastructure. "That still means that Arca has its own rules and market structure, Euronext has various country markets with their own rules and the NYSE has its own rules," he says. <more>

The Benefits of Competition
August 07, 2006 Wall Street & Technology <more>

NYSE Pricing Changes Will Take Effect Next Week
July 24, 2006 Securities Industry News
Joe Gawronski, COO of New York-based agency brokerage Rosenblatt Securities, said the new pricing schedule has been "anxiously anticipated" since the NYSE merged with Archipelago Holdings in March and became a public company.

...In addition, Nasdaq will on Aug. 1 implement new pricing for routing to the NYSE via the Direct Order Turnaround (DOT) system and increase the liquidity provider rebate in dual-listed securities.

Gawronski noted that "with DOT now likely to cost them $9 million a year (since they are one of the largest DOT users and would be expected to hit the $750,000-a-month cap), which represents half of the first-quarter's net income of $18 million, Nasdaq wasted no time in responding and immediately released its own revised listed pricing schedule. It looks like a sensible approach." <more>

A Brief History of TCA, Its Shortcomings. and a Proposed Framework for Integrating Trading into the Investment Process
Joseph Gawronski and Scott Burrill
Summer 2006, THE JOURNAL OF TRADING

This article provides a brief survey of the history of transaction cost analysis (TCA), from its humble beginnings on the compliance/marketing front to its modern-day de rigeur usage on the trading desk. Despite becoming an essential part of the execution process, by and large TCA tools have still not been able to realize their potential as they have not been fully integrated into the investment process. The next step in the evolution of TCA is to look at the investment process and execution process more holistically, connecting them rather than allowing them to co-exist, divorced from one another. Accordingly, we propose an integrated framework for achieving consistency in alpha capture. Three of the seven steps in the proposed process actually occur even before the pre-trade estimate is calculated, a place where many TCA tools and providers start today, ignoring the necessity of gaining a true understanding of the investment style, portfolio manager's motivations and trading environment in order to maximize alpha capture. <please contact us for a reprint>

Nyfix in IOI Partnership With Goldman, Morgan, Citigroup
July3, 2006 Securities Industry News
Joe Gawronski, COO of New York-based agency brokerage Rosenblatt Securities, said more competition will be welcomed by buy siders, especially in view of Autex's dominance. "New tools like those offered from Nyfix, [London-based] Fix City and even the New York Stock Exchange's new Broker Volume product should help from both competitive pricing and innovation standpoints," he said. "The key is the quality of information that is communicated by the sell side, which historically has been considered subpar, even with OMS integration and all the filtering tools available to the buy side. Garbage in, garbage out is the rule with IOIs, so it will be interesting to see if Nyfix and its large broker-dealer partners can reverse this perception by changing the reality." <more>

Deutsche Börse Throws a Curve
June 12, 2006 Dealing With Technology
An easy integration of platforms "sounds swell in theory, [but] is a little easier said than done," says Joe Gawronski, chief operating officer (COO) at Rosenblatt Securities, an agency-only execution firm. But with Euronext's long track record of integration and the reputation of Atos Euronext Market Solutions (AEMS) for providing technology to global exchanges, the survival of its platform would seem a solid bet "even if certain components or architectural features of the Arca and NYSE/SIAC platforms could indeed be incorporated," Gawronski says.<more>

Off and Running: NYSE's Hybrid Market Takes The Stage
June 2006, Electronic Trading Outlook
Joe Gawronski, COO of New york-based agency brokerage Rosenblatt Securities, says he is cautiously optimistic of the hybrid - generally favoring the combined platform, because the alternative of running Arca-ex and the floor seperately creates seperate pools of liquidity, and that's bad for price discovery. <more>

Rosenblatt Securities Creates State of the Art Trading Cost Analysis and
Reporting for its Customers
Tableau Software, June 2006 <more>

The Adventures of SuperThain
June 2006 Institutional Investor
Floor brokers are just as frustrated. The NYSE, they contend, has not provided them with the proper technology to let them adapt to an electronic trading environment. Tasks that should be intuitive require too many keystrokes, and testing has been inadequate. "They have been very slow to roll out the technology that we feel we need to be competitive in the hybrid market," says Joseph Gawronski, COO of Rosenblatt Securities, an institutional brokerage with a big floor presence.

Nasdaq's intentions for LSE put on hold
June 9, 2006 Financial Times
Joe Gawronski, chief operating officer at Rosenblatt Securities, says: "The LSE, with its recent strong operating results and a share price that has more or less continued to go up every time it has spurned a suitor's bid, has the wiggle room to chart an independent course for some time."
He adds that "while it is a bit of a stretch", it is possible to imagine them holding out long enough to merge late this year or early next year with the combined NYSE Euronext. <more>

Talk About Contrarian Thinking
May 29, 2006 Pensions & Investments
....“There is indeed academic evidence that shorter hours equals more chances for orders to interact and better markets; for-profit exchanges that are worried about competitors taking away business when they’re closed will never go for that,” Gawronski said. <more>

The Great Order Flow Debate
May 26, 2006 Advanced Trading
While rankings based on execution quality started with quants, "It's beginning to permeate the rest of the buy side," observes Gawronski. Now, traditional asset management shops and mutual funds have started to get involved in ranking their brokers, "not only to reward them for giving great research, but also to reward those that give great execution," he continues.

....Burrill adds "A major reason for TCA's current upswing is that there's a general recognition on the buy side that lowering transaction costs can help boost investment returns. When your index is returning 30 percent a year, there's a lot of room for slippage.  Now that the equity risk premium has shrunk so much, there isn't a lot of room."

<more>

Euronext integration no bar to success
May 23, 2006 Finanical Times
...Joe Gawronski, chief operating officer of Rosenblatt Securities, which is a member of the NYSE, said: "I think all member firms would naturally worry that the NYSE has too much on its plate now with the integration of Arca and upcoming Reg NMS [a new set of regulations that will require US exchanges to speed up their trading systems and make them more transparent]. The upside, however, is that, unlike a deal with the Deutsche Börse, this deal gives management at both exchanges much more control and autonomy." <more>

Three-way exchange merger not dismissed
May 19, 2006 Financial Times
...Analysts say a three-way merger would make perfect sense and skip ahead one step in the inexorable advance of exchange consolidation. "It is certainly appealing in many ways," said Joe Gawronski, chief operating officer at Rosenblatt Securities.

"And you may end up with something like that some day anyway. But because of all the complexities regarding political issues, social issues and integration issues, it would be an extreme long shot." <more>

S&P downgrades Nasdaq credit rating to junk
May 17, 2006 Financial Times
Joe Gawronski, chief operating officer at Rosenblatt Securities said: "Below investment grade companies can make acquisitions. They can find the financing . . Nasdaq just has to decide how much it wants to leverage its future to do this deal." <more>

An Industry in Denial
May 15, 2006 Wall Street & Technology
Regardless of who spends the most money to comply with the stipulations of Reg NMS, those expenses ultimately will be borne by the investor, says Rosenblatt's Gawronski. "Most of the exchanges are for-profit entities now, so I don't know how much [cost] their stockholders will let them eat," he says. To fill the budget hole created by technology expenditures, exchanges likely will increase their fees, or, at minimum, elect not to pass along any of the benefits from other saves such as merger integrations, Gawronski speculates. <more>

Strategic Intelligence for the Securities & Investment Industry
May 15, 2006 Global Investment Technology
Ongoing consolidation of exchanges gives the LSE a stronger bargaining position for the time being. "The LSE can resist, says Gawronski. "Whether they merge with someone else or go stand-alone for a while, their stock price will be supported by the consolidation going on and the re-rating the whole sector has recently experienced." The LSE may have three to six months, or even a year if it so chooses, to make a decision on a deal with anyone, adds Gawronski, as long as it has no missteps along the way.

<more>

Thain keeps his finger on the LSE bid pulse
May 11, 2006 Financial Times
...."The increasing ownership stake by Nasdaq, as well as the increasing involvement by hedge funds, certainly helps Nasdaq but at the end of the day if the NYSE wants the asset, and if they are willing to pay a similar price, then the prize probably goes to the NYSE," says Joseph Gawronski, chief operating officer of Rosenblatt Securities, the New York-based agency brokerage firm.  He added that the NYSE could probably even pay slightly less a share than Nasdaq's ultimate offer if it were offering stock, or a mix of stock and cash, as it would be a friendly deal more likely to gain the support of the LSE's management. <more>

Nasdaq Raises London Stock Exchange Stake to 24.1%
May 10, 2006 Bloomberg
...."When you have a company that has rejected four suitors and every time the stock has gone up, with operating results that were great, management has a little bit of wiggle room to do the deal it wants,'' said Joe Gawronski, chief operating officer at Rosenblatt Securities Inc.

<more>

NYSE's Hybrid Approval Stirs Buyside Concerns
May 2006, Traders Magazine
"A specialist algorithm can see an incoming order but only can react by improving the price or the volume to the advantage of the incoming order," according to Richard Rosenblatt, who runs a floor brokerage." <more>

Come over to the dark side
Apr-Jun 2006, The Trade
...Some query whether this is the start of a breach in Liquidnet’s strict buy-side only ethos. “I think there’s more behind H20 than simply streaming liquidity,” suggests Joe Gawronski, chief operating officer, Rosenblatt Securities, an agency-only execution firm. “I think it’s Seth’s way of letting in the sell-side. The reality is that 80-90% of commissions are tied to research as long as bundling is still the norm. It’s very tempting to let in the sell-side where the majority of the order flow ends up in the course of fulfilling all of the research obligations.” The key for Liquidnet, says Gawronski, is not to alienate the buy-side. “Of the systems they’re going to work with, some are used by both agency-only brokers and brokers that trade as principal,” he notes. “Are all BNY/Sonic or Goldman Sachs/Redi users going to be allowed to put orders through H20 or is there a way to ensure that it is all agency-only business?” <more>

Hidden Agenda
April/May, 2006 Trader Monthly

Program trading is supposed to be straightforward. So what exactly does Rosenblatt Securities' Joe Gawronski see lurking in the shadows?

<more>

Increased trading volumes aid ISE
April 28, 2006 Financial Times
..."such investments in smaller and regional exchanges served to some degree as a hedge against possible NYSE and Nasdaq price increases. said Richard Rosenblatt of Rosenblatt Securities. "They seem to be more aimed at gaining exposure to the exploding valuations in the exchange space."  <more>

ISE Announces Equities Exchange; Liquidnet Names Liquidity Partners
April 24, 2006 Securities Industry News
...."Joining CTA-UTP telegraphed that new equity products were coming soon," says Gawronski
.... "Also, the choice of the International Securities Exchange name was no accident. I don't think the ISE wanted to limit itself to trading just domestically or to any particular type of instrument like options."

<more>

Questions hang over the NYSE as Nasdaq guarantees itself a seat at the LSE table

April 12, 2006  Financial Times

.... "This is a very bold move and it certainly puts the LSE management and the NYSE management in the hot seat."

.... Mr Gawronski said Nasdaq's latest move "makes it very easy for the NYSE to come in as a white knight, if they are willing to pay the price".

<more>

Hype and Algorithms
March-April, 2006 CFA Magazine
...“By increasing their efficiency, algorithms allow traders to focus their nergy on the difficult names where they can add more value.” Says Gawronski. <more>

Crossing Over
March 31, 2006, Advanced Trading
In addition, Joe Gawronski, COO of Rosenblatt Securities, an institutional agency broker, is concerned that brokers that do proprietary trading can aggregate all the data from the crosses to glean information about trading patterns that can then be used to customers' disadvantage. "If they say we don't look at your orders, that fact is likely true on an individual order basis," he says. However, Gawronski suggests that the next question that needs to be asked is whether they do in fact look at information on an aggregate basis. For instance, "If they see there are 3 million shares to buy and 100 million shares for sale in their system, how do they deal with that?" Gawronski asks. "The big brokers are not making their profits on the agency trading - they're making it on the proprietary trading, so tough questions are warranted," he says. <more>

LSE's white knight plays hard to get
March 27, 2006 Financial Times

"[Mr Thain] will try to come in t the end as the white knight for the LSE, rescuing it from a hostile Nasdaq," Joe Gawronski, chief operating officer of Rosenblatt Securities, wrote in a recent report. <more>

Market Centers Prepare for Reg NMS
March 27, 2006, Securities Industry News
Joe Gawronski, COO of Rosenblatt Securities, a New York agency brokerage, said he has always believed that the June timeframe was unrealistic. "I expect trade-through implementation will be delayed," he said. "I think we're looking more like the fall or the end of the year at the earliest. At minimum, a three- to six-month delay."
"As we get closer to D-day, I think the SEC will announce a significant delay," Gawronski continued. Two weeks ago, Nazareth "actually stopped talking the talk' that things will go forward as planned. ... There are good reasons for the delay. The risk/reward of implementing Reg NMS in as short a timeframe as originally planned is not a good tradeoff, in our opinion, as these are massive market-structure changes. So we'll be happy to see a delay."  <more>

NMS, ECNs and Regionals: Are They the Winners?
March 27, 2006, Securities Industry News
Joe Gawronski, COO at New York agency brokerage Rosenblatt Securities, sees the Reg NMS order-protection and market data rules renewing interest in the regionals, but with a caveat: "Reg NMS alone cannot reinvigorate the exchanges," he said. "At the end of the day (even in a world with much greater electronic linkages and rules that mandate routing to the best quote), only the support of their broker-dealer patrons and the actual creation of an added-value product will be enough to take market share away from the NYSE and Nasdaq, much bigger players who are spending a ton of time and resources innovating." <more>

Hybrid exchange given little chance for a long life
March 20, 2006, Pensions and Investments

...Joe Gawronski, chief operating officer at brokerage firm Rosenblatt Securities Inc., New York, said if the NYSE is successful in ironing out problems with the hybrid, it will serve the exchange — and investors — well. “The bottom line if they get the hybrid right — which is an if — is that I do think hybrid is going to be very valuable particularly in stocks outside of the top 100 to 200 names,” he said. “Outside of those, a lot of these securities trade by appointment or less frequently and when thathappens,the specialist model supported by floor brokers creates liquidity.” <more>

Acquisitions needed for NYSE options growth
March 14, 2006 Financial Times
Joe Gawronski, chief operating officer of Rosenblatt Securities, said that the negative side of a bid for the LSE would be its lack of a large derivatives business. “In addition to expanding geographically, Thain wants to go deeper into derivatives as well. The Nasdaq bid forces his hand a bit.” He added: “Even though the continental exchanges haveerivatives businesses and would therefore better meet Thain’s goals, the LSE is really the only asset I see available right now in Europe for the NYSE. Domestically, I could also see the ISE as a fit for the NYSE. If they don’t get involved with London, I wouldn’t be surprised if they tried to negotiate a deal with the ISE soon.”<more>

SEC order protection rule may be delayed
March 6, 2006, Pensions and Investments
...“The New York Stock Exchange is obviously the biggest market center and it’s very important that the SEC sign off” on both the hybrid and the Big Board’s planned acquisition of electronic stock exchange Archipelago Holdings Inc., Chicago, said Joseph C. Gawronski, chief operating officer at Rosenblatt Securities Inc., New York. “The only way the NYSE can comply with Reg NMS is to have the new market approach blessed by the SEC.” On Feb. 27, the SEC approved the NYSE takeover of Archipelago. He added the problem appears to be that the Securities and Exchange Commission is stretched too thin. “I don’t think there’s anything sinister going on,” he said. “Whether it’s the hybrid, the NYSE/Archipelago approval or Reg NMS, the SEC is way behind and for good reason considering both the complexity of these changes … and the amount of change that has occurred at the SEC in the past year.” <more>

NYSE Floor Brokers Confront `Hybrid Market' as Takeover Nears
March 2, 2006 Bloomberg News
The e-Quote system forces brokers to program trades ahead of time, hindering their ability to react to incoming orders, said Joe Gawronski, chief operating officer at Rosenblatt Securities Inc. in New York.``This has the potential to weaken the NYSE's price discovery mechanism, which would put the NYSE in real danger of experiencing serious market share losses,'' Gawronski said. ``Superior pricing has been its competitive edge.''<more>

Mastering a shrinking trade: Rosenblatt Securities uses old-fashioned ways to gain share in an industry besieged by technology
February 6, 2006, Pensions and Investments

<please contact us for a reprint>

Brokerage houses are getting creative with new algorithms
February 6, 2006, Pensions and Investments
...Richard Rosenblatt, president and chief executive officer of the brokerage firm that bears his name, agreed that clients are looking for customized algorithms. “What our clients really seem to be asking for are algorithms customized to their specific needs, and they simply don’t exist,” Mr. Rosenblatt said in an e-mail. “We are designing our interactive algorithms to not only provide custom execution solutions but also toadapt to a particular trader’s style.” <more> 

Parity Question Could Stymie Hybrid Approval
February 2006, from Traders Magazine
Joe Gawronski, chief operating officer of floor broker Rosenblatt Securities, opposed the new interpretation [of Rule 108 by the NYSE]. "It's bad for public policy and it's bad for institutions," Gawronski told Traders Magazine. He said that giving the specialist parity when one is acting as an agent is fine. "When Rule 108 applies, they're saying [specialists] should get parity all the time. We don't like that," he said. <more>

Sell-Side Algorithmic Offerings: Don't Believe the Hype (at Least not Yet)
Rosenblatt, Richard and Gawronski, Joseph
Winter 2006, THE JOURNAL OF TRADING <more>

Reg NMS: Unintended Consequences Best Execution Confusion
January 30, 2006, Advanced Trading
Joe Gawronski is asked by Advanced Trading about unintended consequences of Reg NMS. He focuses his answer on confusion in best execution responsibilities that may unknowingly be created in the post-Reg NMS world. <more>

Pipeline Users Execute Record Volume

January 26, 2006, from Market Wire

...Joe Gawronski, Chief Operating Officer, Rosenblatt Securities Inc. said, "Pipeline has now entered the league of liquidity pools that cannot be ignored. It has been a real lifesaver for us on many occasions. Whether we're trading a several hundred name list for a customer or a single stock, I can tell you that being able to search for liquidity with no information leakage and actually get meaningful size done in stocks that are otherwise just trading in hundred and thousand share lots through algorithms has saved our customers real money." <more>

Rosenblatt adds Burrill
January 24, 2006, Wall Street &Technology <more>

Hybrid Reg NMS: Hurry Up and Wait
January 24, 2006, from Wall Street & Technology
Currently, financial services companies are scrambling to ready systems and processes for Reg NMS and the NYSE's planned hybrid exchange structure. However, Joe Gawronski, COO at Rosenblatt Securities, says that while it's important to be prepared, don't be surprised if implementation of both Reg NMS and the NYSE's hybrid model are delayed.
<more [summary text]>                     <more [full audio interview/podcast]>

Making Best Execution "Legal"
January 23, 2006, from Securities Industry News

..."As complex as the rules are, and considering the musical chairs we have seen at the SEC over the past year, I wouldn't be surprised to see it take even more time for the SEC to respond to the long list of questions industry participants have posed," says Joe Gawronski, chief operating officer of Rosenblatt Securities, a New York agency brokerage..."New FIX tags for intermarket sweep orders, order-entry screens for crosses andaudit trail enhancements, among other things, need to be programmed," adds Gawronski. "It is impossible to do that without clarification of the rules and what the SEC is expecting from market participants." <more>

Nasdaq Exchange' to Meld 3 Systems
January 23, 2006, Dealing with Technology

…Dick Rosenblatt, CEO of Rosenblatt Securities, a boutique agency-only broker/dealer, says that he agrees. "From a functional standpoint, there won't be much of a difference," Rosenblatt says. "Obviously, they've streamlined their bureaucracy by no longer being under the managementof the NASD, which should give them some more flexibility. Also from a perception standpoint, it makes the regulation of the market look cleaner because [of] this division between the exchange and its NASD regulator," he says… <more>

Burrill Joins Rosenblatt
January 9, 2006, Dealing with Technology. <more>

Rosenblatt Names Burrill Head Of Product Development

January 2006, Dow Jones Newswires. <more>

Everything's Coming Up Hybrid
January, 2006, from Wall Street & Technology

...Charles Roney, chief compliance officer at Rosenblatt Securities, an institutional agency broker that is a member of both the NYSE and the NASD, asserts that the SROs already try to avoid duplication. The SROs are mandated by a memorandum of understanding that they signed with the SEC to conduct nonduplicative exams, he contends. "If a regulator wants to look at business continuity or anti-money laundering or soft dollars, both regulators are not going to be looking at the same thing," Roney says. "This has been in place more than two years." ...Furthermore, Roney contends, the NYSE model is correct for Rosenblatt's business model - since about two-thirds of its business still is done on or through the floor. I'm dealing with regulators that are close and more familiar with our model - I get less uneducated questions," he says. "If I get a super regulator, I'll have to educate them." <more>