Why You Are Probably Using the Wrong Technology in Capital Markets


Steve Grob – Some firms have already seen the writing on the wall. Hg’s Director of research, David Toms, points out that Goldman Sachs has increased its spend on technology by 48% while simultaneously reducing staff expenditure by 13% over the past 5 years.

Statement On Status Of The Consolidated Audit Trail, SEC Chairman Jay Clayton



I believe that the next six to twelve months will be critical for moving the CAT from concept to reality.  I urge the SROs to continue their efforts to work cooperatively with each other and with the industry to fulfill their obligations under the CAT NMS Plan as promptly as practicable, always keeping front of mind the importance of cybersecurity and the protection of sensitive data.

Here’s How Outsourced and Supplemental Trading Solutions Reduce Operational Risk and Cost


Daniel DispignaAmid these challenges, one of the standout pain points is the sheer amount of work involved in running operations on the buy side, particularly as it relates to managing relationships with brokers. Liquidity fragmentation means it is now essential for firms to have relationships with a wide variety of brokers globally in order to diversify into new markets, instruments and regions, while also making it possible to participate in hard-to-trade names. But addressing one issue sometimes creates another; building and maintaining lengthy broker lists creates work of its own, from trade settlement to the complexities involved with managing such a wide network of counterparties. And if investors opt to keep their broker lists short, they are effectively limiting their access to invaluable sources of information and liquidity.

The LTSE Wants To Be Tech Startups’ Stock Exchange


Ryan Duffy – LTSE bills itself as a better venue for startup IPOs. … Emerging tech startups could be interested in the LTSE route because it’s designed to withstand public markets’ short-termism and the obsession over quarterly performance. After all, companies focused on advanced technology usually have longer product roadmaps, heavier R&D spending, and the habit of putting off profitability for as long as possible. 

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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.