April 2002
 
  • Letter From the President
  • IETA Charity Bowl – February 7, 2002
  • Vendor Fair – February 21, 2002
  • Quarterly Meeting With OSC – April 4, 2002
  • Town Hall Meeting On Market Making Proposal By TSE – Monday April 9, 2002
  • Security Traders Association - Institutional Committee Update
  • Business Opportunity
  • Education
  • Frank Henry Retirement
  • Letters To The Board
  • IETA Charity Work
  • A Thank You From Nazareth House
  • Upcoming Annual General Meeting – June 6, 2002
  • CSTA 9th Annual Traders Convention - August 22-25, 2002
  • Dates To Remember
  • Who's Where? This 'N That
  • Welcome to New Members

     

    LETTER FROM THE PRESIDENT

    Over the past few months the IETA Board continued to actively fulfill its multiple roles, which have included further educational forums, meetings with various policy makers and regulators, as well as some incredibly admirable philanthropic work. All these events are highlighted on our website www.ietatoronto.org. I encourage you to look up these items on the site and give us your feedback on these topics. My kudos to the membership and Board for a great effort and level of interest & enthusiasm!

    I look forward to seeing everyone at the upcoming AGM to be held on Thursday, June 6th at the Royal Ontario Museum. Nick Savona and the rest of the Board have put a great effort into what will be a memorable night! We also encourage everyone to forward his or her nominations for next year’s IETA Board. We need to receive all nominations by May 9 at the LATEST! Your input is valued and necessary!

    Please get your foursome request into JP Matthews of RBGIM for the following day’s IETA golf tournament. A great way to relieve the stress of the previous night!

    The Board of the IETA is proposing a change to our existing by-laws, which will be mailed out shortly to all our members. This proposal represents a simple change and only requests the addition of the definition of an institutional equity trader. Our current by-laws do not effectively accomplish this nor does the existing membership definition accurately reflect the composition of our members.

    This solution ensures that our existing membership is compliant with that dictated by our by-laws. It does not mean that we will have a deluge of new members from trading communities other than institutional equities. I encourage you to vote in favour of this proposal either by proxy or in person at the AGM. Please contact me directly with any questions or concerns over this proposal or other pertinent items.

    A number of the Board members from both the IETA and CSTA attended the STANY conference recently and found the business portion quite informative with the social functions lots of fun. The new STA offices were dedicated to the memory of the 44 members of STANY killed in the World Trade Centre. We extend our compliments to the Boards of both STA and STANY on the tasteful and moving tribute to their felled comrades, as well as our continued condolences and support to their families.

    The introduction of TSE/POSIT product and the broker number 01 are just two of the many changes to our capital market that the Board continues to monitor. The controversy regarding these changes continues to be a large focus for the Board and the input from our members is key to the structure of the Board’s response to the regulators on these issues. I continue to believe that the use of broker number 01 is a non-event for the Canadian capital markets, especially given the daily battle by the dealers for market share. The use of broker 01 does not seem to have become prevalent in daily trading and I expect this trend to continue.

    To summarize the views on the POSIT introduction, I quote both Andrew Foote, Managing Director of RBC Dominion Securities, and Joanne Lippa, Director Equity Trading OTPPB. Andrew points out “the product is a useful avenue for both the buy and sell sides of the market to anonymously access liquidity. We will continue to support the product even though the success rate so far has not been that high.” While Joanne comments that “POSIT is another tool to access additional pools of liquidity which might not otherwise be in the market place. It encourages market participants to enter larger orders, especially on thinly traded stocks, due to the fact that it is a black box and there is no market impact. It also creates a level playing field for all participants and offers anonymity.”

    Best Regards,
     

    James Beattie, CFA, President, IETA Toronto
    416-842-6000
    james.beattie@rbccm.com


     

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    IETA CHARITY BOWL – FEBRUARY 7, 2002

    The IETA Charity Bowling tournament was a great success. The Board extends its tremendous thanks to all the bowlers who participated this year. Because of you, we were able to raise a grand total of $7,400 for the Nazareth House and Bloorview MacMillan Children's Foundation. During the days leading to this event, I was reminded “several times" that Nesbitt Burns dominated the tournament last year. However the future does not always reflect the past. This year several teams were in the running for top spot. It seems we have a few "closet kingpins" out there.

    The results were as follows:
    * 1st place - TD Newcrest (Marcia Akai, Kevin Gordon, Scott MacNicol, George Stratis, Janet Toffolo), 1884 points
    * 2nd place - Raymond James (Andy Herrmann, Bob Little, Steve Martin, Mike Smith, Helen,) 1804 points
    * 3rd place - Shotz Brewery (Angelo Gasparotto, Scott Munro, Judy Nishimura, Roberta Pigat, Jason Taylor)
    * 3rd place - First ITG (Erica Lupetto, Jill O'Neil, John Sarfrance, Etienne Phaneuf), 1774 points

    A couple of honourable mentions: Nick Bradbrook who threw 5 strikes in a row...WOW...scored the highest individual score with 185 points. And most unusual "uniform" goes to UBS Bunting Warburg...all I have to say about that is "you had to be there".

    Many thanks to the generosity of the following corporate sponsors: BMO Nesbitt Burns Inc., Canaccord Capital Corp., Knight Trading Group, NDB Capital Markets, National Bank of Canada, TD Newcrest and UBS Bunting Warburg Inc.

    Judy Nishimura
    416-308-4743
    jnishimura@yahoo.com
     

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    VENDOR FAIR – February 21, 2002

    This year the CSTA and the IETA co-sponsored our first stand alone Vendor Fair on February 21, 2002 at the Design Exchange. The event started at 12:00 noon and members from the traders associations were asked to participate along with IT professionals from their firms. The event was a great success and we have been encouraged to hold a similar event next year. Seventeen vendors and exchanges participated and were very satisfied with the attendance that we believe to be over 400 throughout the day. Member feedback would be greatly appreciated as with all events.

    Vendors included: Archipelago, Belzberg, Bloomberg, Canadian Securities Institute, E*Ttrade, ITG Canada Corp, KTG Technologies, Moneyline Telerate, Nucleus Financial; OM Group, PC Quote, Reuters, Royal Blue Financial Corp, Galway Securities, and CGI Corp. Exchanges present were the TSE, Nasdaq and the NYSE.

    Sponsors - Galway Securities Corporation, CGI Corp, and NYSE.

    James Duncan
    Director, IETA
    Governor, CSTA
    416-869-3844
    james_duncan@canaccord.com



     

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    QUARTERLY MEETING WITH OSC – APRIL 4, 2002

    The IETA and CSTA Boards met with Randee Pavalow to go over the changes that have been happening over the last 3 or 4 months. Randee was asked about the 1/2 penny trading increments that are contained in the final UMIR. Randee informed us that this is to accommodate average pricing and Posit and is not meant for entering 1/2 penny orders. There were several questions from Randee with regards to the everyday entering of orders and how frequently brokers were informing clients about pro bids moving ahead of client orders. The Boards will meet with Randee and her staff again in June or July.

    Peggy Bowie
    Past President, IETA
    416-865-3247
    mbowie@cpinvest.com


     

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    TOWN HALL MEETING ON MARKET MAKING PROPOSAL BY TSE – MONDAY APRIL 9, 2002

    Some highlights . . . . .

    Rik Parkhill, Senior Vice President, TSE-CDNX Markets Inc. met with the IETA on Monday, April 9th to discuss the proposed New Market Making System.

    Rik began by discussing the benefits of this new system i.e., maximizing the trading on the exchange and attempts to attract increased volumes of Canadian and US order flow for interlisteds.

    The membership had a few concerns with the new proposal i.e., how will dealers be compensated for the increase of capital commitment for market making responsibilities, etc. Concerns were also raised regarding Attribution and POSIT. The point was made that our markets appear to be heading towards less transparency instead of increased transparency. While Rik admitted he couldn’t give us definitive answers to some of our questions on the new proposal, he assured us that when more information is available and they move towards the final proposal, he would meet with us again and at that time, he would have some answers to our questions. I think the general consensus after this meeting was one of frustration because the TSE couldn’t answer our questions at this time although I do think it is important to have these regular open forums with the TSE to ask questions and discuss the current issues. It is very important that we continue to cultivate our relationship with the TSE on both the buy and sell side.

    One thing to remember through all of these changes that are occurring is that the TSE is doing its utmost to increase liquidity and attract more investors and that should benefit us all eventually.

    Carol Banahan
    416-730-5326
    carol_banahan@otpp.com


     

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    SECURITY TRADERS ASSOCIATION - INSTITUTIONAL COMMITTEE UPDATE

    Focus has been on the following;
    1. NASDAQ Agency Trading
    2. Trading and Reporting with explicit commissions on NASDAQ
    3. NASDAQ Alternative Display Facility ("ADF")
    4. ECN Fees http://www.securitytraders.org/ECN_FEE_Comment_Letter1.doc

    You can access the minutes of meetings through the STA website at http://www.securitytraders.org

    Peggy Bowie
    Past President, IETA
    SEC Institutional Committee
    416-865-3247
    mbowie@cpinvest.com


     

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    BUSINESS OPPORTUNITY

    Westmoore Trading Co. deals exclusively with hedge funds and portfolio managers offering them deep discounted trades. I am currently looking to add a trader that can trade the VWOP and get great execution. I have some very large clients that expect the best from my firm and I am looking for a trader I can count on who is experienced enough to do their job well and be a quality representative of my firm. The trades would be called in by the portfolio managers to the traders who would then execute the trades and send my firm a daily recap where I will clear the trades and prime broker them back to the respective manager’s firm. I would like to find a trading firm that also can do block orders and option orders. To make a long story longer, I need a trader who can execute VWOP trades and can be an all-in-one stop for my managers.

    If you are interested in this position, please contact me directly.

    Thanks in advance,
    Rob Jennings
    President
    WestMoore Trading Co.
    (800)-503-7775


     

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    EDUCATION

    The Board would like to thank everyone who attended the various information sessions we have organized over the last several months. The turnouts have been great. This year we have hosted the following presentations:
    January 30: Tom Atkinson from Regulation Services,
    February 6: NASDAQ SuperMontage Presentation
    March 18, 19 & 21 UMIR Sessions (Universal Market Integrity Rules)
    April 5: Town Hall meeting with TSE to discuss the RT proposal.
    (Summaries of the presentations are available on our website under “Education”.)

    Moving forward, our goal is to keep all current issues in front of our membership. As always, we encourage any feedback or suggestions.

    Michelle DaCosta
    416-365-2427
    mdacosta@dynamic.ca


     

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    FRANK HENRY RETIREMENT

    Frank Henry retired at the end of March after a 39-year career on Bay Street. Frank started as a TSE floor clerk back in 1963 when the Dow Jones was at 600. Through various firms and many incarnations Frank managed to survive several recessions, the 'Nifty Fifty' collapse and mining, oil, gold, real estate and tech booms. Frank, we would all like to wish you the very best and hope that you go out and have lots of fun!!!

    Peggy Bowie
    Past President, IETA
    416-365-3247
    mbowie@cpinvest.com


     

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    LETTERS TO THE BOARD

    Saying good-bye – Bonnie Gotshalks

    Five years ago, I wrote an article in response to a colleague's bemoaning the decline in the ethics of the industry and longing for the "good old days". In it, I compared the business, as I knew it when I was a rookie in 1969 and as it was in 1997. I would like to reprise some of that article as a farewell to this industry which has treated me so well, because I hope that it bears repeating.

    "Well, nothing has really changed. Oh sure, now men and women do battle every day. We all have access to unimaginable amounts of financial information. We routinely see million share blocks shopped and printed. Most young traders have business degrees and seemingly limitless computer expertise. Clients have upped the ante - moving from driving down commission rates to demanding use of brokers' capital (both, by the way with the acquiescence of the brokerage community) to trading as aggressively as there brokerage counterparts.

    But, the ethics and morality are still basically the same. It's just that the money involved is so much larger; it makes the abuses seem worse.

    Personal integrity is the dividing line. The "good guys" still try to work on their clients' behalf. It's just that it's more of an uphill battle than in the past. The obstacles are more numerous and certainly far more sophisticated. The "bad guys" (on both sides) still work for themselves first. They help create a lot of those obstacles.

    The only solution is to find people to trust, identify those we can't and educate us as much as possible. The business will evolve, the complexities will remain, the ethical questions will continue to surface.

    Plus ça change, plus c'est la meme chose."

    By the time I retired last October, I had decided that I no longer had the energy for "the same old thing". Since 1997, everything exists on an even larger scale - the size of the deals, the egos, the successes, the failures, the competitiveness and, sadly, the complacency. When the fun of this lively industry suddenly is hard to find day to day, it is time to say "so long".

    I have had a wonderful career on Bay Street. I learned so much, was surrounded by such good and wonderful people, met so many interesting characters, laughed so much, got so frustrated, got so excited when a trade worked. (Note to brokers - it's not just your side that high-fives a good one).

    When I started trading, so many people helped me to learn how to do my job – Bob Lee, Bob Sztam, Maggie Haughton, David Neale, Mike Spooner, Colin Fraser, Don Finkle. To this day, I still miss David and Don, two of the best men I ever had the honour of doing business with. Later years brought a different group of traders who also taught me a few things - Ian MacMillan, Nick Monaco, Mike Smith, Danny Brown, Richard Kim. My thanks to all of them and to all of you whom I haven't named and whom I do not wish to slight. Every experience and every relationship taught me something valuable that helped me do the job I wanted to do for Sceptre and its clients. My trading partner, Laura Filippetto, and I worked together half of my career at Sceptre. We are like chalk and cheese in almost every way and Laura looks at things differently from me. But she shared her ideas generously and helped me try new approaches to old problems. I know that my trading capabilities were still improving as my career came to an end. Thanks Laura, for helping me along the way.

    To all my colleagues on both sides of the street, thank you for everything. It's been a great run and I am taking lots of wonderful memories to beautiful British Columbia next month. I wish you all good health and much success in the future.

    Bonnie Gotshalks


     

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    IETA CHARITY WORK

    The IETA is searching for other charities that may benefit from our endeavours. Please contact James Duncan with any suitable charity names with which we may form an association.

    James Duncan
    416-869-3381
    james_duncan@canaccord.com


     

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    A THANK YOU FROM NAZARETH HOUSE

    Excerpt from Thank You letter written by Nazareth House Inc.

    31 March 2002

    "On behalf of the women and children at Nazareth House, I would like to extend our sincere appreciation and gratitude for your generous gift.

    Each year at Nazareth House women arrive at the door fleeing abuse, addiction, violence or they are homeless due to a shortage of affordable housing or they are suffering from mental health problems. .....Nazareth House is seen as a place of hope and a move towards a safe and secure place.

    It is the generosity of organizations like yours that allows us to keep the doors open to provide a home of hope and compassion for women at risk. Your donation will be used to assist us in continuing to provide a service, which recognizes the needs and personal worth of the women currently living at Nazareth house, and those who are reintegrating into the community with their babies."

    Sincerely,
    Sister June Dwyer, csj
    Executive Director

    If you have any questions or suggestions regarding charity matters, please feel free to contact Carol Banahan at carol_banahan@otpp.com or Trish Keays at tkeays@teracap.com

    Judy Nishimura, CFA
    TD Asset Management
    Tel:(416) 308-4743
    Fax:(416) 307-0577
    jnishimura@yahoo.com


     

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    UPCOMING ANNUAL GENERAL MEETING – JUNE 6, 2002

    The IETA Annual and General Meeting will be held on Thursday, June 6, 2002 at the Royal Ontario Museum beginning at 5:00 p.m. Additional forms can be found on the IETA website under Events.

    We have already received several nominations for the new Board. The deadline is May 9. If you have made a submission, please call Michelle DaCosta at 416-365-2427 to confirm that it has been received.

    IETA Board


     

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    CSTA 9TH ANNUAL TRADERS CONVENTION - August 22-25, 2002

    Invitations to the 9th Annual Canadian Traders Convention will be mailed to you shortly. Last year's conference was our best attended event to date, and we would like to continue the trend. While it will be very difficult to surpass last year's conference, we at the CSTA feel confident that we have accomplished just that. We have put together another excellent educational seminar, and the venue is one of the finest in the world. Mark your calendars now to be in beautiful Mont Tremblant in the Laurentian Mountains north of Montreal from August 22 to August 25. Don't postpone making your reservations when your invitation arrives, as the city of Montreal is hosting the INDY Cart races Sunday, August 26th and flight and hotel reservations will be at a premium.

    Diane Peto
    Chairperson
    Canadian Security Traders Association Inc.
    416-369-2413
    dpeto@omers.com


     

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    DATES TO REMEMBER

    Washington Traders Conference May 8-9, 2002 Washington
    IETA Annual Meeting June 6, 2002 Toronto, Ontario
    IETA Annual Golf Tournament June 7, 2002 Toronto, Ontario
    CSTA 9th Annual Traders Convention August 22-25, 2002 Mont Tremblant, Quebec
    International Traders Forum September 23 - 26, 2002 Amsterdam


     

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    WHO'S WHERE? THIS AND THAT

    Congratulations and best wishes to the following individuals who have recently made moves:

    Member From To
    Perry Catellier HSBC National Bank
    Sean Delaney HSBC National Bank
    John Esteireiro HSBC CIBC
    Michael MacMenamin TD Newcrest Domenick and Domenick
    Elif McDonald Synergy Stone Asset Management
    Scott Munro HSBC Raymond James
    Bob Standing HSBC Raymond James
    Vidis Vaiciunas Thomson Kernaghan CIBC World Markets
    Doug Van Peteghem HSBC Paradigm
    Amanda Van Veen Jones Heward Sceptre
    Lindsay Wood Sprott Jennings Capital Inc
         



     

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    Welcome to New Members

    We would like to take this opportunity to welcome the following new members to the Association:

    New Member Company Location
    Elizabeth (Lisa) Abraham Acuity Investment Management Toronto, Ontario
    Alain Chow Thomson, Kernaghan Toronto, Ontario
    Curt Cumming Goodwood Inc. Toronto, Ontario
    Terry Grosjean Toronto Stock Exchange Toronto, Ontario
    Scott Jaffe JP Morgan New York, NY
    Jamie Miles Refco Futures (Canada) Ltd. Toronto, Ontario
    David Neale Thomson, Kernaghan Toronto, Ontario
    Ken Rathgeber Scotia Capital Toronto, Ontario
    Robert Weppler JP Morgan New York, NY
    Sherry Usami Scotia Capital Toronto, Ontario
    Don Vukson Refco Futures (Canada) Ltd. Toronto, Ontario
    Chris Zownir Refco Futures (Canada) Ltd. Toronto, Ontario



     

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