MSCI urges investors to consider ESG in decisions

Liz Kiesche, SA News Editor – “Portfolio managers should integrate ESG in portfolio management, including security selection, portfolio construction, risk management, performance attribution, and client reporting.”

MSCI Website

MSCI Principle’s Of Sustainable Investing

Trend Analytics – The New Pre-Trade

Michael Mollemans TABB Group – ” “Traditional approaches are not fit for purpose in today’s markets,” said Dr. Darko Matovski, CEO of causaLens. “Using technology that autonomously adapts to dynamic changes and embeds causality is the only way to discover alpha in execution.” “

Also see: The IEX D-Limit Proposal: It’s Good…But What If It’s TOO Good?

Redefining the US Consolidated Tape

Larry Tabb TABB Group – “with a new governance structure, a new and better consolidated tape could tackle some major issues: … Reducing the latency associated with how data is aggregated, normalized, and redistributed. … Increase the depth-of-book levels incorporated in the consolidated tape … Fix or revise the professional versus non-professional definitions that determine how much a firm needs to pay the SIP per user. … Putting odd-lot quotes into the consolidated quote. “

SEC Proposes Amendments to Governance of Market Data Plans

Steven Lofchie, Cadwalader – “Under the proposed Order, market participants would be required to submit a “single, new equity data plan” (aka: the “New Consolidated Data Plan”) in which all of the exchanges would participate. A governance committee for the new plan would be formed. One-third of the votes would be held by entities other than the exchanges.” … “Having one market system plan rather than three is not going to change the reality that the exchanges and the broker-dealers have interests that are fundamentally averse to one another: Each wants to “own” as much data (intellectual property) as possible, give away as little data as possible, and either charge as much as possible or pay as little as possible.”

The Strange Economics of Exchange Management

Kurt Dew Northeastern University – “The markets are evolving toward a two trading-space system. The first: exchanges trading SEC-regulated publicly held corporate equity and debt; the second: exchanges trading more generic non-SEC-regulated markets.” … “There is a growing opportunity for a new blockbuster exchange to seize the volume going to generic futures and OTC instruments by a single exchange with spot trading capability. But to be successful, this spot market must be at least as efficient as the existing futures markets, reducing trading costs to a minimum, thereby attracting volume.

Palantir to Help Integrate Army Data Under Other Transaction Agreement

GovCon Wire“The problem for Army’s leaders and commanders at every level is you’re trying to make decisions off of accurate data but the data is stored in so many places, it’s often very hard to figure out what’s going on,” said Doug Philippone, lead of global defense at Palantir. “What we did was integrate thousands and thousands of different data tables together so that you can make better decisions.”

The Problem with Algo Wheels

Michael Mollemans – TABB Group “The problem with algo wheels, however, is that they tend not to account for the risk factors underlying the fat-tail distribution of algo returns, and algo wheel selection processes often turn into a game of guessing the finer points in the algo wheel’s logic. The better the guess, the better the fit to the algo wheel, the better the ranking.

All in all, algo wheels need to go beyond gross median cost calculations to include standard deviation risk factors, as well as netting out market and sector betas, or the end result likely will be broker algo rankings that just oscillate between best to worst and then from worst to best along a mean reverting system over time.”

Click here for other articles on the wheel.

Grafiti, A Search Engine For Charts, Raises Nearly $1.6M In Pre-Seed Funding

Jason D. Rowley Crunchbase – “Headquartered around the corner from a diabolically delicious pizza shop in Brooklyn, New York, Grafiti is a startup aiming to solve just that. Its stated goal, to build the leading search engine for charts and data visualizations, belies a broader mission: to help people surface insights from a mass of mostly-structured, increasingly visual information sources.


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