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


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.

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.

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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What Is Fintech? Uses and Examples in 2019


What Is Fintech?

– Fintech is a term used to describe financial technology, an industry encompassing any kind of technology in financial services – from businesses to consumers. Fintech describes any company that provides financial services through software or other technology, and includes anything from mobile payment apps to cryptocurrency.

Top 10 Fintech Companies to watch in 2019


As of 2019, there are 39 VC-backed fintech companies worth $1 billion – with a combined valuation of $147.4 billion, according to CB Insights.

The 11 Biggest Fintech Companies In America 2019