Forefront Fintech Digest Week in Review: Sept 11 – Sept 15
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Broker News
Barclays to Cut Hundreds of Jobs Across Trading, Investment Bank
Bloomberg News | Jan-Henrik Foerster, Harry Wilson & Irina Anghel
Barclays Plc is preparing to cut hundreds of jobs as soon as next week as the firm looks to trim costs amid quieter markets. The lender is planning to dismiss about 5% of client-facing staff in the trading division as well as some dealmakers globally as part of the cuts, according to people familiar with the matter. Separately, the firm is also preparing to restructure teams within its UK consumer-banking unit, the people said, asking not to be named discussing personnel information.
Bank of America Welcomes Three New Equities Hires
The TRADE News | Claudia Preece
Bank of America has made three new appoints to its EMEA equities distribution business, according to an internal memo seen by The TRADE. The appointments are: Matt Watson as global head of structured issuance for equities, Maxime Menard, as new head of EMEA X-Asset third party distribution sales, and Vincent Charvin as EMEA head of delta one sales. The hires, set to begin in their new roles in the coming months, follows a period of increased activity for the area, according to the memo, which highlighted the strong momentum enjoyed by the business over the last 12 months.
Deutsche Bank Tests Out AI to Detect Rogue Traders’ Phonecalls
Bloomberg News | William Shaw & Aisha S Gani
Deutsche Bank AG is testing out artificial intelligence tools that aim to detect possible signs of misconduct from the tone of traders’ phone conversations. Germany’s largest bank is examining Google Cloud’s machine learning as part of a wider exploration of uses for AI, Bernd Leukert, chief technology, data and innovation officer, said in an interview. The firm declined to say how soon the system could be rolled out. It’s part of a wider drive into AI at the bank, which is also exploring how large language models, or generative AI, can help support client and employees and assist with coding.
Exchange, ATS & Clearing News
London Stock Exchange Promotes From Within for New Deputy CEO
The TRADE News | Wesley Bray
The London Stock Exchange has appointed Charlie Walker as deputy chief executive officer, where he will support the daily running of the exchange and oversee the Group’s primary markets business. Walker originally joined LSEG in 2018 and has since served as head of equity and fixed income primary markets. Before joining LSEG, Walker worked within JP Morgan Cazenove’s equity capital markets team, where he was responsible for originating and executing equity transactions. Walker will report to Julia Hoggett, chief executive of LSE, and will join the firm’s board, subject to regulatory non-objection.
Aquis Exchange Opens Up Platform To High Frequency Trading
Financial News | Jeremy Chan
Aquis Exchange is amending its rules to allow high-frequency traders to use its trading venue. Chief executive Alasdair Haynes said the change to Aquis’s market structure was made in response to client demand. “Liquidity providers were saying it was taking too long to execute orders because [Aquis] didnt have the aggressive flow for proprietary trading firms,” he told Financial News. High-frequency trading is otherwise known as non-client proprietary trading in official parlance. The multilateral trading facility that Aquis runs has banned high-frequency traders from using the MTF since 2015, to reduce signalling risks and market impact of liquidity providers trading against one another.
European Exchanges Launch JV for CTP Tender
The TRADE News | Claudia Preece
A JV between major exchanges across Europe have today announced the incorporation of the new company, EuroCTP, through which the participants aim to bid to become the EU’s equities and ETF consolidated tape (CT) provider. EuroCTP is a project which arose in response to the European Commission’s previously published proposal for an equities tape and aims to tender as the CT provider in the EU’s future selection process. In the initial announcement declaring the exchanges’ intention to collaborate on a CT back in February , EuroCTP asserted that “the participants are recognised specialists in supplying reliable and high-quality market data and are well-positioned to deliver a CT quickly, efficiently, and to the highest operational standards”.
ICE to Offer Ultra-Low Latency Data Between the US and Europe
WatersTechnology | Nyela Graham
Intercontinental Exchange’s ICE Global Network is rolling out a trans-Atlantic data service that will offer ultra-low latency data between the United States and Europe. The offering will combine the current wireless services of the network with low latency fiber to create a market data offering between Aurora, Illinois, and Europe. The ICE Global Network offers data delivery and execution services over fiber and wireless networks. It also provides hosted and managed services and cloud offerings to give customers flexible options for accessing data. “
Vendor News
The Next Era Approaches: Industry Leaders, Market-Wide Participation and Relationship-Building Opportunities to Highlight STA’s 90th Annual Market Structure Conference
TabbFORUM |?Ryan Kwiatkowski
It’s hard to believe that summer is already coming to a close. The days are getting shorter, kids are back at school and your trading desk is likely more fully staffed than it has been in weeks. The end of Q3 is fast approaching, and strategies and tactics for a productive Q4 are being refined and finalized as we speak.nbsp;It also means that in just a few short weeks (October 11-13), our industry will return to Washington, D.C. for the 90th Annual STA Market Structure Conference. We are thrilled with the program we have put together, which features prominent senior executives and thought leaders from some of the most innovative firms in the business.
Broadridge Appoints Paul Simpson as Vice Chairman of Global Technology and Operations Business
Press Release | N/A
Broadridge Financial Solutions, Inc. today announced the appointment of Paul Simpson as Vice Chairman of Broadridges Global Technology and Operations (GTO) business. In this newly created role, Simpson will work closely with Broadridges GTO business to enhance the companys client focus and accelerate go-to-market initiatives for targeted product lines. As Broadridge continues to enhance the trading innovation and capabilities of its Capital Markets business and is now delivering a suite of innovative, market-ready component solutions to wealth management clients across North America, Simpson will serve as an advisor, reporting to Broadridge President Chris Perry and GTO President Tom Carey.
Causality Link Integrates Generative AI Into Its Groundbreaking AI-Driven Research Platform
Press Release | N/A
Causality Link, an advanced, artificial intelligence (AI)-driven financial information technology provider, today announced the introduction of generative AI into its AI-driven research platform. With this new version of Causality Link, the ground-breaking platform delivers an even clearer, more readable picture of important industry news.To promote industry awareness of the new technology and enhanced functionality, Causality Link is offering free trial access to investors, finance and business professionals, researchers and others. Users can select up to five public companies to track, and Causality Link will deliver a daily personalized update including short summaries of the most salient news published in the prior 24 hours.
OpenYield Welcomes Gabe Vallejo as Head of Operations
OpenYield | Staff
Today, OpenYield is thrilled to welcome Gabe Vallejo, CAIA as Head of Operations. Gabe brings over 15 years of experience in operations and capital markets, having held senior roles across fintech and institutional finance. His track record of success and commitment to maintaining the highest operational standards make him an ideal addition to our team. At OpenYield, we are dedicated to making it easier for broker-dealers, advisors and fintechs to offer compelling bond investing solutions to retail clients. With Gabe at the helm of our operations, we are confident in our ability to deliver the industry’s biggest transformation yet.
Buy-Side News
Exclusive: European Buy-Side Traders are Slashing Their Algo Usage and Cutting Their Brokers
Best Execution | Laurie McAughtry
The buy-side is relying less on algo usage, while US bulge bracket firms are grabbing market share, according to the latest European Equity Trading Survey from Bloomberg Intelligence. Liquidity and regulation remain top-of-mind topics, while concerns increase around cyber-security and AI. BEST EXECUTION sat down with market structure analyst Nicholas Phillips to discuss the results in detail. The second annual European Equity Trading Survey from Bloomberg Intelligence, seen by BEST EXECUTION, reveals that European buy-side traders cut their use of algorithmic providers by 43% in 2023, driven by a notable decrease from small fund providers.
Integration Looms Large for Buy-Side Firms Deciding on Whether to Buy or Build
WatersTechnology | Theo Normanton & Wei-Shen Wong
It’s the age-old question for technology professionals at financial firms: buy or build? Buying systems off-the-shelf gives standardization and economies of scale; whereas, building in-house provides customization and potentially greater performance. For years, either answer meant compromising on either cost or performance. But now, it seems that the buy side is gradually beginning to converge on an answer: both. A study released today by research firm Coalition Greenwich suggests that asset managers are increasingly opting for a hybrid approach, starting off with third-party solutions and integrating proprietary systems as their businesses grow.
领英推荐
Deutsche Bank Forms Private Credit Fund Manager
Markets Media | Staff
Deutsche Bank has announced the launch of DB Investment Partners (DBIP), a new investment manager established to give institutional and high net worth clients access to private credit investment opportunities. The entity will operate independently of Deutsche Bank, and Deutsche Bank will retain its existing balance sheet-driven private credit business. DBIP will be independently chaired by Jon Aisbitt, the former Chairman of Pension Insurance Corporation and Man Group plc. It will be run day to day by CEO Raheman Meghji.
M&A /Investment News
Helix Raises $2 Million to Connect Crypto Investors With Private Credit Yields
The Block | Ryan Weeks
Helix, a startup incubated by Singapore-based private credit business Helicap, raised $2 million in pre-seed funding for its real-world assets protocol. Saison Capital and Superscrypt led the round, with participation from Emurgo Ventures, Comma3 Ventures, Outlier Ventures, Emoote and others. No valuation was disclosed. The project aims to enable blockchain-based lending to businesses across Southeast Asia, according to an announcement today. Its platform pairs proprietary credit assessment tools with a pipeline of credit opportunities spanning a range of sectors.
BMLL Secures Investment from Snowflake Ventures
Markets Media | Staff
BMLL, the leading, independent provider of harmonised, historical Level 3 data and analytics across global equity and futures markets, announced that the company has secured investment from Snowflake Ventures and entered into a partnership with Snowflake to deliver granular data and analytics to market participants globally. The news follows the $26m Series B investment from Nasdaq Ventures, FactSet and IQ Capital in Q4 2022.The Snowflake partnership delivers against the BMLL mission to broaden access to its granular order book data and analytics on a global scale.
Bitget Unveils $100 Million Fund to Invest in Exchanges, Data Analytics and Media
The Block | James Hunt
Crypto derivatives and copy-trading exchange Bitget has unveiled its EmpowerX Fund, a $100 million initiative designed to expand the platform's ecosystem. Bitget’s new fund will seek to invest in regional exchanges, data analytics firms, media organizations and other entities, according to a statement coinciding with Bitget's fifth-anniversary summit in Singapore today. Bitget said the key to expanding its ecosystem was diversifying its services to cater to the varying needs of its 20 million global customers. It also said it aimed to create “a comprehensive trading ecosystem encompassing trading, investment, research, DeFi, media and other functions.”
Regulatory & Legal News
SEC Sues Virtu Financial for Misleading Customers About Security of Their Information
Reuters | Jonathan Stempel & Chris Prentice
The U.S. Securities and Exchange Commission on Tuesday sued Virtu Financial (VIRT.O), a broker-dealer that handles 25% of all market orders placed by retail investors in the U.S., for misleading customers into believing it properly safeguarded their confidential information. In a complaint filed in federal court in Manhattan, the SEC said Virtu repeatedly and falsely told customers that it used "information barriers" and "systemic separation between business groups" to protect their material nonpublic information.
Vendors Under New Scrutiny in CFTC Due Diligence Push
WatersTechnology | Luke Clancy
Suppliers of trading technology are nervous of the effect of an impending cyber security rule that would force swaps dealers to tighten due diligence standards, with some vendors suggesting service contracts may be thrown into doubt. The issue of cyber security in cleared trades rose to the fore earlier this year when trading tech giant Ion Group was compromised by hackers, leaving 42 customers unable to access key services and supervisors demanding answers for the outages which held up regulatory reporting.
CME Group and DTCC’s Enhanced Treasury Cross-Margining Arrangement Receives SEC and CFTC Approval
The TRADE News | Wesley Bray
CME Group and The Depository Trust & Clearing Corporation (DTCC) have received Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approvals for their enhanced cross-margining arrangement. Expected to launch in January 2024, the development will help create capital efficiencies for clearing members that trade and clear both US treasury securities and CME Group interest rate futures.?
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US SEC Fines 9 Investment Firms Over Marketing Rule Failures
Reuters | Kanishka Singh & Chris Prentice?
The U.S. Securities and Exchange Commission on Monday ordered nine investment advisory firms to pay a combined $850,000 in civil penalties for advertising hypothetical performance without implementing new policies required by regulators. The SEC found the firms had not met requirements of a 2020 rule that bans advisers from touting hypothetical performance to investors unless they have policies designed to ensure that it is relevant to the intended audience, among other things.
Crypto?& Digital Asset News
Franklin Templeton Files for Bitcoin ETF, Joins Race for Crypto ‘Holy Grail’
Fortune | Ben Weiss
Yet another legacy firm from Wall Street is entering the fray for a Bitcoin spot exchange-traded fund, following early applications from BlackRock and Fidelity. Franklin Templeton, a financial heavyweight that dates its founding back to the mid–20th century, submitted an application for what it calls the “Franklin Bitcoin ETF” on Tuesday morning, according to a Securities and Exchange Commission filing. Franklin Templeton’s application says it would list the Bitcoin ETF on the Cboe BZX Exchange, and like BlackRock, lists Coinbase as its Bitcoin custodian.
Binance US CEO Departs as Crypto Platform Cuts Third of Staff
Bloomberg News | Olga Kharif
Binance.US Chief Executive Officer Brian Shroder has left the crypto trading platform and been replaced on an interim basis by Chief Legal Officer Norman Reed, according to a company spokesperson. The departure comes as the company controlled by embattled digital entrepreneur Changpeng “CZ” Zhao is eliminating about one third of its workforce, or more than 100 positions, as a regulatory crackdown erodes its business. The exchange, which is formally called BAM Trading Services Inc., was started in 2019 for US users, who are prohibited from using Binance Holdings.
Crypto Safekeeping Specialist Fireblocks Introduces Non-Custodial Wallet Service
CoinDesk | Ian Allison
Cryptocurrency custody firm Fireblocks is offering its long list of fintech and corporate clients a non-custodial wallet service, so that the end consumers using firms like Revolut and Nubank can entirely control their own assets – something of a market requirement following the blow-ups of various crypto firms last year. The move frees up fintechs from inherently acting as custodians, and makes it easier for their end users to access exotic crypto offerings such as decentralized finance (DeFi) and other Web3 applications, according to Fireblocks CEO Michael Shaulov.
Fake Trades Are Common on Decentralized Crypto Exchanges, Report Says
The Wall Street Journal | Alexander Osipovich
Backers of the growing breed of "decentralized" crypto exchanges say they're more trustworthy and transparent than markets such as FTX and Binance. A new report suggests they suffer from some of the same problems. The report from software firm Solidus Labs focused on wash trading—transactions orchestrated by a single trader or group to generate the appearance of trading activity and, typically, manipulate prices. In its simplest form, wash trading involves selling an asset back and forth between two accounts controlled by the same person.?
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