Three Predictions for the Future of the Desktop Automation

Three Predictions for the Future of the Desktop James Wooster Glue42 - "A major trend we are witnessing right now is what is labelled as “Digital Transition” – that is to say, the common-sense alternative to a multi-year application rewrite. The key steps are: Host the applications in a desktop workspace alongside the other (non-legacy) applications. Deploy user-behavior analytics to identify the areas of the legacy applications that are most used and/or would benefit from a rewrite. Provide external access to these areas via simple interop data-sharing techniques and expose as discoverable micro-applications . These micro-applications can then be used as is or selectively replaced with new and/or more functional replacements. Critically, all of this can be done while preserving the user experience before, during and after change." Related video: -
Due Diligence 2.O: How Vendor Risk Assessment Will Evolve Automation

Due Diligence 2.O: 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."
SIX’s Bid to Acquire BME will Ultimately Prevail, Creating a New Pan-European Exchange Data

SIX’s 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."
Outsourced Trading Goes Viral BuySide

Outsourced Trading Goes Viral Michael Mollemans TABB Group - "Beyond the basic features of outsourced trading services, many firms try to differentiate themselves by emphasizing services such as technology and analytics, access to a wide broker network, regulatory reporting, flat monthly fee pricing options, prime brokerage services, and more. While the firms that have been providing outsourced trading services for many years argue that they benefit from experience, newer entrants in the space say they gain from leapfrog effects in trading and process technology"
MiFID II: The Blocks Are Back Data

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"
Routing 201: Some of the Choices an Algo Makes in the Life of an Order Data

Routing 201: Some of the Choices an Algo Makes in the Life of an Order 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  
AI-Washing: Is It Machine Learning … Or Worse? ArtificialIntelligence

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."
Commission-Free Trading Puts Payment for Order Flow Under the Microscope Research

Commission-Free Trading Puts Payment for Order Flow Under the Microscope Julie Evans MagnifyMoney -  "Pros: There is certainly an argument to be made that market makers are important to the industry. They provide liquidity in the market, making sure there are enough buyers and sellers at any given time to execute the trades people want to execute. The payments to brokers are a way for the market makers to attract orders and compete. Cons: The biggest downside to payment for order flow is that it could potentially interfere with customers getting the best deals possible. It doesn’t necessarily lead to abuse, but it creates the opportunity for it. Pay for order flow is banned in Canada, and it is under review in the UK."
1867: First stock ticker debuts Data

1867: First stock ticker debuts 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
Two Sigma launches portfolio risk management solution for institutional investors BuySide

Two Sigma launches portfolio risk management solution for institutional investors Users looking for more robust, portfolio level analytics can take advantage of Venn Pro, a solution that is offered on a SaaS subscription model and includes additional features such as custodial integrations and portfolio optimisation and special access to product specialists on the Venn team at Two Sigma.