AI permeates capital markets

https://www.finextra.com/newsarticle/34515/ai-permeates-capital-markets—study

Greenwich Associates report – With 44% already using AI and another 17% reporting plans to implement it in trading in the next 12 to 24 months, a solid majority of market participants — including buy-side institutions, sell-side firms, exchanges, and others — soon will be using AI in the securities trading process.

Unintended Consequences: Shrinking Sell-Side Research

https://tabbforum.com/opinions/unintended-consequences-shrinking-sell-side-research/

Douglas ChristensenTransparency has led to cost pressures and a reduction in research spending, which has had the unintended consequence of brokers and banks scaling back on the cost of coverage and ultimately has led to diminished output of published research.

Why You Are Probably Using the Wrong Technology in Capital Markets

https://tabbforum.com/opinions/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

http://www.mondovisione.com/media-and-resources/news/statement-on-status-of-the-consolidated-audit-trail-sec-chairman-jay-clayton/

Conclusion

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.

The Importance of Research and How You Pay for It

https://tabbforum.com/opinions/the-importance-of-research-and-how-you-pay-for-it/

Christopher Tiscornia – Westminster Research Associates, which is owned by Cowen Inc., has always been a strong proponent of allowing the use of client commissions to pay for research, particularly through commission sharing arrangements (CSAs). In the simplest form, trades are executed with a broker-dealer, generating commission credits that are housed in a CSA account with a broker-dealer such as Westminster, a pioneer in the business. These credits can then be used to acquire research from a variety of sources, including independent research boutiques as well as the research departments of larger investment banks in accordance with Section 28(e) of the Securities Exchange Act of 1934. As will be discussed here, we believe it is important that managers continue to have the flexibility to use commissions to acquire research.