The Paradox of the Pre-Trade Cost Model

https://tabbforum.com/opinions/the-paradox-of-the-pre-trade-cost-model/

Robert Almgren – The most important consequence is the impossibility of distinguishing market impact from alpha. The trader sends a buy order because he or she anticipates that the market will rise; if it rises during execution of the buy order, was that because the execution pushed the market, or because the trader correctly anticipated the move? It is impossible to distinguish these two effects. Our model simply reports the combination of the two, assuming that whatever combination of alpha and impact prevailed in the past will continue to hold during future executions.

SEC Rule 606 Endgame: The Guidance Is Out

https://tabbforum.com/opinions/sec-rule-606-endgame-the-guidance-is-out/

Chris Montagnino, Jordan & Jordan – The SEC staff released the long awaited and heavily anticipated guidance on Rule 606 to assist broker-dealers and the industry with implementation of the new disclosure requirements that were issued back in November 2018 and are scheduled to go into effect on Oct. 1, 2019. There are 32 detailed questions and responses available for your reading pleasure on the SEC website, and if the thought of slogging through the minutiae of the requirements appeals to you, have at it (and please get yourself some help). If you prefer a five-minute read with a consolidated synopsis of the most salient aspects of the guidance and potential impact, you’ve clicked on the correct link.

Eze partners with Tokyo Metropolitan Government in Japan’s resurgent hedge fund market

https://www.marketscreener.com/SS-C-TECHNOLOGIES-HOLDING-6098270/news/SS-C-Technologies-Eze-partners-with-Tokyo-Metropolitan-Government-in-Japan-s-resurgent-hedge-fund-29094191/?utm_content=20190821&utm_medium=RSS

The Tokyo Metropolitan Government (TMG) has introduced the Emerging Manager Program, which includes initiatives such as operational cost subsidies for startups, real-estate accessibility following the hedge fund hotel mantra we saw in the U.S. in the past couple of decades, and more flexibility in terms of licensing for early-stage hedge fund managers-all with the idea of making it easier for a manager to seriously consider staying onshore instead of leaving to take their talents elsewhere. Additionally, to ensure hedge funds start off their operations on the right foot, TMG has launched a ‘Qualified Outsourcing Provider ‘ program to steer managers to the most reputable and knowledgeable providers around the industry while still maintaining cost control through the government subsidies.

FlexTrade Integrates ACA Technology Decryptex Surveillance

https://theindustryspread.com/flextrade-integrates-aca-technology/

By  – … Shoshana Wainer, Head of Compliance at Albar Capital, commented: “FlexNOW and Decryptex are stand-out products supported by highly-responsive and knowledgeable teams. Integrating Decryptex with FlexNOW allows us to review our trading from a compliance perspective quickly, reliably and with the granularity we need. …”

ACA Technology Decryptex Surveillance

https://www.acacompliancegroup.com/regulatory-technology/decryptex-trade-surveillance-technology

FactSet Joins Forces with DataRobot

https://investingnews.com/daily/tech-investing/fintech-investing/factset-joins-forces-with-datarobot/

FactSet (NASDAQ:FDS), financial analytics company announced that it has partnered with DataRobot, an enterprise AI company. DataRobot’s services integrate predictive analytic tools into investment workflows, extending from predicting macroeconomic events to applications for bond performance. As quoted in the press release: “Clients are looking for more effective data and AI tools that will help them …