Forefront Fintech Digest Week in Review: April 29 – May 3
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Broker News
HSBC’s CEO Steps Down After More Than Four Years
Wall Street Journal | Elaine Yu & Josh Mitchell
HSBC Chief Executive Noel Quinn unexpectedly said he would retire, leaving one of the world’s largest banks without a clear successor as it navigates geopolitical tensions between the West and China. Quinn told HSBC’s board earlier this month he planned to leave after more than four years as CEO and decades with the bank. He said he wanted to devote more time to his personal life. He will remain in post until the board designates a successor.
JPMorgan’s ETF Head Poached by Goldman Sachs
Financial Times | Will Schmitt
The head of JPMorgan’s rapidly growing exchange traded funds business, Bryon Lake, is leaving the firm after steering the manager’s active ETF offerings to record heights. Lake is to take up a position with Goldman Sachs Asset Management, where Mike Crinieri, global head of ETFs, left earlier this year, according to a source close to Goldman. Goldman does not immediately plan to replace Crinieri, with Lake instead due to take up a “broader role across the asset management client business”, according to the source.
JPMorgan Hired Hudson River’s Head of Client Market Making
eFinancialCareers | Sarah Butcher
JPMorgan's electronic equities trading platform has become one of its big strengths. This might be why a former Goldman Sachs managing director who's spent the past few years touring hedge funds and high frequency trading platforms has chosen the US bank as his new home. Douglas Borden has joined JPMorgan's New York electronic equities trading team. He spent the past two and a half years at Hudson River Trading, as head of client market making. Prior to that, he was at Two Sigma for three years, at KCG for eight and a half years and at Goldman for nearly nine years. Borden is a big deal.
Northern Trust Building Internal Cloud Data ‘Marketplace’
WatersTechnology | Max Bowie
Custodian bank Northern Trust is building a cloud-based data marketplace for users within the bank that will increase its analytics capabilities while implementing more stringent controls on usage, and may over time make the marketplace available as a data source to external clients. The marketplace is currently being used by the firm’s asset servicing division, and is now being rolled out to its asset management and wealth management divisions, initially for analytics, risk, and reporting.
Exchange, ATS & Clearing News
Stocks Trade for 390 Minutes a Day. Increasingly, Only 10 Matter
Bloomberg News | Justina Lee
The regular market for US equities runs for 390 minutes on a standard trading day. But at the rate things are going, eventually the last 10 might be the only ones that matter. About a third of all S&P 500 stock trades are now executed in the final 10 minutes of the session, according to data compiled by BestEx Research, a developer of trading algorithms. That’s up from 27% in 2021.
Bitcoin ETF Bandwagon Heads to Australia After $53 Billion Haul in US
Bloomberg News | Richard Henderson?
Australia is set for a wave of Bitcoin exchange-traded fund launches, following in the footsteps of the US and Hong Kong, as issuers like Van Eck Associates Corp. and BetaShares Holdings Pty line up for listings. ASX Ltd., which handles around four-fifths of the country’s equity trading, is expected to approve the first spot-Bitcoin ETFs for the main board before the end of 2024, according to people familiar with the matter, who asked not to be identified as the information is private.
Start-Up Trading Venue Aims to Profit From SEC’s Market Shake-Up
Risk.net | Luke Clancy & Nathan Tipping
A start-up trading venue hopes to capitalise on weakening ties between retail brokers and non-bank market-makers, providing an early hint of how the SEC’s overhaul of US equity markets may disrupt existing practices. Blox Markets aims to exploit regulatory proposals that threaten to upend bilateral links between retail brokerages like Robinhood or Charles Schwab and wholesale market-makers such as Citadel Securities and Virtu Financial.
Bridgewater, Morgan Stanley Alum Makes Buying Bonds Easier With OpenYield, 'A Modern Marketplace'
Benzinga | Renato Capelj
While higher interest rates make bonds appealing, navigating the buying process may be challenging, especially for inexperienced retail investors. OpenYield emerges as a better way to capitalize on high interest rates. Founded by CEO Jonathan Birnbaum and CTO Hilton Lipschitz, this fixed-income trading platform caters to the resurgent interest in bond investments. It uses recent market structure innovations, including algorithm-enhancing liquidity, to facilitate easier access and trading.
Vendor News
FINBOURNE Technology and Droit Set to Partner on End-To-End Position Reporting Solution
The TRADE News? | Claudia Preece
FINBOURNE Technology and Droit are set to launch an end-to-end position reporting solution which will allow users to meet their regulatory obligations more efficiently and effectively, The TRADE can reveal. The joint, full-stack solution enables both the buy- and sell-side to manage shareholder disclosure obligations for long, short and takeover panel reporting. According to the firms, the offering reduces compliance costs and manual dependencies as well as enhancing users’ control via its intuitive interface which simplifies workflow.
FactSet Looks to Build on Portfolio Commentary with AI
WatersTechnology | Nyela Graham
Chris Ellis has seen the waves of innovation in portfolio analytics up close. In the near 30 years he’s spent at FactSet, he’s witnessed offerings in the space evolve as asset managers and wealth managers, too, have broadened the range of asset classes in which they invest, and their portfolio considerations. “We started doing portfolio analytics in roughly 1997 to 1998, and one of the foundational tenets from the very beginning was achieving a deeper understanding, a more holistic understanding, of the portfolio,” Ellis tells WatersTechnology.
Appital Insights Integrates with FactSet Portware EMS
Markets Media | Staff
Appital, the peer-to-peer price discovery and liquidity sourcing technology for asset managers, ?announced that Appital Insights? is now fully integrated with FactSet’s Portware Execution Management System (EMS). This enables FactSet Portware asset management clients to access Appital Insights? liquidity with one click via their EMS. In addition, the new ‘Live Watchlist’ functionality available within FactSet Portware EMS allows buyside institutions to assess the viability of executing larger ADV orders without alerting the market.
The IMD Wrap: Beginning of the End for Data Audits?
WatersTechnology | Max Bowie?
These fortnightly editorial columns aren’t intended to break news; rather, they generally recap issues we’ve already written about, tying themes together and placing them in context with a little personal commentary. This time, however, is different. This time, I get to break some news, too. OK, so it may not be earth-shattering, but if, like many, you don’t like data audits, or if you’re concerned about tracking the data used by AI applications in large language models, read on.
Buy-Side News
Two Long-Time Walleye Capital Execs Are Retiring Amid Makeover at $5.7 Billion Fund
Business Insider | Alex Morrell
Two Walleye Capital partners who have been at the firm since the George W. Bush administration are retiring, the latest in a string of senior leadership changes at the multi-strategy hedge fund. In an update to investors on Wednesday, Walleye announced that Andrew Carney, CIO of volatility, and Mark Zeldis, chief technology officer, are retiring from the firm, according to a person familiar with the matter. They'll stay on during a transition period, the person said. Zeldis and Carney have been with Walleye since its earliest days as a Minnesota-based options market-making shop. They were each promoted to partner in 2015.
领英推荐
Weiss Multi-Strategy Hedge Fund Files Bankruptcy After Shutdown
Bloomberg News | Steven Church
Weiss Multi-Strategy Advisers LLC filed for bankruptcy about two months after the New York-based investment management firm announced it was winding down operations. The firm has between $10 million and $50 million in assets but owes creditors as much as $500 million, according to its Chapter 11 petition, filed in federal court in Manhattan. George Weiss founded the firm in 1978 and it managed $3.1 billion as of mid-2023, according to With Intelligence.
Ex-Millennium Hedge Fund Start-Up Poaches Head of Trading From JP Morgan
Global Trading | Lauren McAughtry
Jain Global, a new hedge fund founded by former Millennium CIO Bobby Jain, has confirmed JP Morgan alumnus Jeremy Wyatt as its new EMEA head of trading. The new investment management firm, which is expected to go live in July and already has around US$3bn in commitments, is widely seen as one of the biggest new launches on the hedge fund scene. Jain, who originally was aiming for the biggest ever hedge fund debut with hopes of raising US$8-10b (surpassing the US$8bn record of ExodusPoint Capital Management in 2017), tempered expectations back in January with new plans to launch with around US$5-6bn in capital.
T. Rowe Price's Executive Supports Autism at Wall Street Rides FAR and Beyond
Traders Magazine | Anna Lyudvig
Marc Wyatt, Vice President and Head of Global Trading at T. Rowe Price joined the Wall Street Rides FAR (For Autism Research) Board of Directors in 2021. At T. Rowe Price, Wyatt leads trading desks across North America, Europe and Asia. He also oversees a variety of internal groups, including those focused on portfolio modeling and market structure. As the father of an adult son on the spectrum, he was especially eager to have the opportunity to support the “incredible work and worthy mission” of the Autism Science Foundation (ASF), which funds research and supports families impacted by autism.
M&A / Investment News
Securitize Announces $47 Million Strategic Funding Round Led by BlackRock
PRNewswire | Staff
Securitize, the leader in tokenizing real-world assets, today announced the successful completion of a $47 million funding round led by BlackRock. The strategic investment also includes funding from Hamilton Lane, ParaFi Capital, and Tradeweb Markets. This investment underscores Securitize's industry pioneering efforts in digitizing capital markets with blockchain technology. The contributed capital will fuel Securitize's continued innovation and expansion as it further solidifies its position as a leader in the digital asset securities ecosystem.
Anthony Scaramucci’s Son Leads ZK Protocol Hinkal’s Funding Round at $70 Million Valuation
The Block | Yogita Khatri
Hinkal, a zero-knowledge (ZK) protocol enabling institutional investors to trade on-chain privately, has raised $1.4 million in a strategic funding round. SALT Fund — an investment fund headed by Anthony Scaramucci's son AJ — led the funding round, Hinkal said Friday. Other investors included Draper Associates, SNZ Capital and Peer VC. Nika Koreli, co-founder and CTO of Hinkal, told The Block that the firm raised the strategic round due to increasing investor interest. "We received interest in March, and the round closed within two weeks," Koreli said.
Janus Henderson Enters European ETF Market With Tabula Investment Management Buy
Pensions & Investments | Sophie Baker
Janus Henderson Group is entering the European exchange-traded funds market with a deal to acquire Tabula Investment Management, the firms said in a joint statement. European independent ETF provider and investment-grade manager Tabula has more than $500 million in assets under management, with funds strategies listed across 10 European exchanges and a strong focus on fixed income and sustainability.
Regulatory & Legal News
Chinese Regulators Warn Against Silicon Valley Bank-Style Meltdown
Financial Times | Cheng Leng?
A rally in Chinese government debt has sparked alarm among regulators in Beijing, who warn that regional banks’ appetite for the bonds risks a crisis similar to the collapse of Silicon Valley Bank last year. The People’s Bank of China, which regulates the financial sector, has signalled its discomfort over the scale of the banks’ move into long-dated sovereign bonds, which are vulnerable to moves in interest rates — as was SVB’s portfolio of US Treasuries.
Here’s How EU Nations Are Preparing to Enforce MiCA
CoinDesk | Sandali Handagama
The European Union’s 27 member states are getting ready to enforce its landmark crypto laws this year – and businesses looking to operate in the bloc should be watching what national authorities are doing, policy watchers say. In a few months, the Markets in Crypto Asset (MiCA) regulation’s specialized rules for stablecoin issuers will take effect, followed by licensing and other requirements for crypto firms broadly in December.
Wall Street Seizes Opportunity to Gut SEC Trading Surveillance
Bloomberg News | Chris Dolmetsch
After 14 years of debate, the Securities and Exchange Commission is in the final stages of bringing a powerful new surveillance tool fully online. But Wall Street is seizing on the ideal political environment for a last-ditch attempt to kill it. The Consolidated Audit Trail is a database, one of the largest ever created, that is set to revolutionize how the agency monitors trading activity and spots potential misconduct.
Binance Founder Changpeng Zhao Gets Four Months in Prison
Bloomberg News | Ava Benny-Morrison
Binance founder Changpeng Zhao was ordered to spend four months in prison for failures that allowed cybercriminals and terrorist groups to freely trade on the world’s largest cryptocurrency exchange. Zhao, 47, was sentenced Tuesday by US District Judge Richard Jones in Seattle. Dressed in a dark suit with a light blue tie, the billionaire arrived in court flanked by half a dozen lawyers. His mother and sister watched his sentencing from the front row of the courtroom.
Crypto?& Digital Asset News
Token Launches Are Back as Startups Embrace Now-or-Never Mantra
Bloomberg News | Ryan Weeks
TokenUnlocks, a data tracker, noted 115 TGEs at centralized exchanges in the first quarter and 99 in the fourth quarter of 2023, collectively more than in the three preceding quarters put together, according to Tanawat Chiewhawan, the app’s founder. The listings spike is concentrated in projects involving artificial intelligence, real-world assets and Layer 2 applications, said Julia Zhou, Caladan’s chief commercial officer. The sheer number of launches has caused “a serious backlog” for exchanges, she added.
Binance and CZ’s Fortunes Are Set to Grow, Jail or no Jail
Bloomberg News | Olga Kharif & Muyao Shen
It’s “better to ask for forgiveness than permission” when it comes to complying with the law, the billionaire founder of the Binance cryptocurrency exchange once told his team, according to the US government. Now it’s time for Changpeng “CZ” Zhao to ask for forgiveness, yet prosecutors aren’t exactly in the mood to grant it. In a court filing before his sentencing hearing on Tuesday, they cited the flippant attitude on display in this and other remarks as one of the reasons they’re recommending the court give him three years in prison — longer than what guidelines prescribe — following his guilty plea to violating anti-money laundering laws in November.
Hong Kong’s Spot Bitcoin, Ether ETFs See Over $6.3 Million in Half-Day Volume Upon Debut
The Block | Timmy Shen
Hong Kong’s six new bitcoin and ether exchange-traded funds recorded a trading volume of around HK$49.4 million ($6.3 million) during the morning session on their first trading day on Tuesday, according to data from the Hong Kong Stock Exchange. Data from the HKEX showed that China Asset Management’s “ChinaAMC Bitcoin ETF” led in trading volume, logging HK$22.97 million in turnover during the first half of the trading day. The ChinaAMC Ether ETF recorded the second-largest turnover among the six ETFs, with a volume of HK$10.47 million.