https://tabbforum.com/opinions/revised-sec-rule-606-shines-a-light-on-order-routing-disclosures/ Ivy Schmerken FlexTrade Systems - "Currently, an OMS has the primary level information, and gets the last market where the order was executed, including whether it added or removed liquidity, and it can calculate execution costs based on known fees, explained Chu. “But, if those algo providers routed the order to another venue or exchange, and that gets routed out further, we don’t have that secondary or third-level or fourth-level of information today,” said Chu. “There’s no structure to get that information today,” he said. Gathering the information on these downstream orders has been a challenge, especially if brokers utilize more than one OMS or have an EMS, said Chu. “If our clients use us solely for their trading, we have all the data in the OMS, so we would provide the data over to the 606 [data] vendor,” said Chu. “When some clients use another OMS or EMS, we have no visibility.” "
https://www.finextra.com/blogposting/18200/due-diligence-2o-how-vendor-risk-assessment-will-evolve Alex Golbin IHS Markit - "Due diligence transformed ... Redesigning due diligence with control objectives makes the process more logical and the outcomes more applicable to assessing and managing third-party risk. ... Notably, the process is more efficient for financial institutions and vendors alike, time to market is faster for firms making risk-based decisions, and firms can have much more confidence that their assessment and monitoring procedures produce actionable insight. ... All of these combine to improve the overall risk posture of the industry. ... It will be a journey, but the faster we start, the better off we will be."
https://tabbforum.com/opinions/sixs-bid-to-acquire-bme-will-ultimately-prevail-creating-a-new-pan-european-exchange/ David Tabaka - Burton-Taylor International Consulting "A combination of the two exchange operators would reach Pro Forma 2019 revenues totaling $1.2 billion, with the largest revenue impact in the Trading, Clearing & Settlement segment, increasing SIX’s existing revenues by more than 35% as it brings equity, fixed income, and derivatives trading revenue to the combined entity. The deal would also further bolster SIX’s information services efforts that include data sold by SIX’s Securities & Exchanges unit as well as data, indices and other services from SIX’s Financial Information unit. The acquisition would give SIX a new data footprint in the EU, and significantly expand its ability to offer Spanish datasets and index products."
https://tabbforum.com/opinions/mifid-ii-the-blocks-are-back/ Tim Cave TABB Group - "October also was a record month for dark trading overall under MiFID II. Dark MTFs accounted for 10.4% of on-exchange volumes and dark average daily notional was €4.4 billion, up 26% on September and the highest since February 2018"
https://www.nasdaq.com/articles/routing-201%3A-some-of-the-choices-an-algo-makes-in-the-life-of-an-order-2019-11-14 Phil Mackintosh - "One benefit of exchange mid-point orders is that Exchange mid-point orders should execute faster, especially when that exchange has shares on the NBBO. That’s because sellers on the exchange will trade with the mid-point order as they try to hit lit bids. Data shows some exchanges have quite a lot of mid-point liquidity." ... "With over 50 different places to source liquidity, including around 30 dark pools, it’s tricky for an algorithm to know where to route first, especially for dark pool orders." ... " Routing 101: Identifying the Cost of Routing Decisions https://www.nasdaq.com/articles/routing-101-identifying-cost-routing-decisions-2018-12-14
https://tabbforum.com/opinions/ai-washing-is-it-machine-learning-or-worse/ Dr. Bimal Roy Bhanu AiXPRT - "In terms of regulatory compliance in financial services – for example, automating the KYC processes for AML and CTF – the utopia is an AI solution system that harnesses machine learning and natural language algorithms. The AI engine should not be static; rather, it should be trainable to understand any regulation regardless of geography. Also, once the system has learned a regulation, it should be simple – using a straightforward text input interface – to teach the engine to understand any differences or changes in regulation. It might take a person weeks to understand and be trained for changing regulations, whereas the AI solution can do it in a matter of hours. Given that it can take months to manually complete compliance assurance processes, the business case for embracing the automated efficiencies, cost savings and analytics delivered by AI compliance solutions is undeniable. Such platforms are available and are infinitely superior to the illusory masquerade of the AI-washing brigade."
http://l.emails.history.com/rts/go2.aspx?h=732621&tp=i-H43-9I-A3l-sn3lr-1c-1cOYb-1c-smb6f-1QHxpi&x=hist-tdih-2019-1115%7c11152019%7ca0193d46a649b89283c4a61eef74e904402343d967d48482b5ada6bbeb3243c3%7c809614715%7c38673%7chist-tdih-2019-1115%7c11152019%7ca0193d46a649b89283c4a61eef74e904402343d967d48482b5ada6bbeb3243c3 On November 15, 1867, the first stock ticker is unveiled in New York City. The advent of the ticker ultimately revolutionized the stock market by making up-to-the-minute prices available to investors around the country. Prior to this development, information from the New York Stock Exchange, which has been around since 1792, traveled by mail or messenger. The ticker was the brainchild of Edward Calahan, who configured a telegraph machine to print stock quotes on streams of paper tape (the same paper tape later used in ticker-tape parades). The ticker, which caught on quickly with investors, got its name from the sound its type wheel made. Wikipedia https://en.wikipedia.org/wiki/Ticker_tape?wprov=sfti1
https://www.thetradenews.com/factset-deploys-data-platform-openfin/ Hayley McDowell - "The move means that clients will be able to use the FactSet workstation alongside proprietary, internally-developed desktop applications, and integrate third-party applications that are accessible via the OpenFin ecosystem into FactSet workflows."
https://alphacution.com/schwab-and-others-confirm-status-as-casinos-purveyors-of-financial-opioids/ Paul Rowady - "Ok. So, in order to avoid one of those vein-popping rants, I just want to remind that there is no such thing as a free lunch, that the retail brokerages are not charities, and that they will absolutely make up lost commission revenues in other ways, usually obfuscated way down in the guts of their workflow process where few people notice."
https://www.businesswire.com/news/home/20191106005638/en/ BUSINESS WIRE - State Street MediaStats scours more than 100,000 media sources as well as other big data sources to estimate future price changes and risks pertaining to individual equities, country equity indexes, and foreign exchange rates. The indicators use natural language processing and machine learning algorithms to account for biases and helps filter out noise in the media based on an extensive body of founding partners’ research.