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.

What Is Fintech? Uses and Examples in 2019

https://www.thestreet.com/technology/what-is-fintech-14885154

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

https://www.thestreet.com/technology/fintech-companies-14891479

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

https://www.forbes.com/sites/jeffkauflin/2019/02/04/the-10-biggest-fintech-companies-in-america-2019/

Unintended Consequences: Conflicting Regulations, the SEC and MiFID II Requirements

https://tabbforum.com/opinions/unintended-consequences-conflicting-regulations-the-sec-and-mifid-ii-requirements/

Douglas Christensen – Investment firms are moving more and more toward a situation in which they will be paying for research from profit and losses (P&L) instead of using client money. This isn’t necessarily due to firms seeing unjust value in using client money, but more likely a reaction to conflicting regulations across regions and requirements. Inconsistent regulations across regions have forced firms to dip into P&L to pay for research services instead of paying out of expenses of the fund. Investment firms, particularly the large and global, cannot be seen as treating clients differently based on their location. These changes have reverberated across the industry and are potentially doing more harm than good.

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.

Meet Crowdfunding 2.0: Micro-Stock Deals for Small-Fry Investors

https://tabbforum.com/opinions/meet-crowdfunding-2-0-micro-stock-deals-for-small-fry-investors/

By Foster Winans – Meet crowdfunding 2.0, a sophisticated, regulated, entrepreneurial version of platforms like GoFundMe that facilitate donations for people and projects. Instead of donating to a fund to help a local employer whose business was flooded out, it’s now possible for that employer to sell stock which could become more valuable as the firm recovers.

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