http://svdaily.com/refinitiv-appoints-news-industry-veteran-as-head-of-news-performance/ BUSINESS WIRE - "New role created in response to increased demand for trusted news in turbulent geopolitical environment." ... "Refinitiv has appointed Richard Mably as Head of News Performance to enhance the value of Refinitiv’s extensive news coverage to help power and advance the financial community." ... " Refinitiv has invested heavily to expand news coverage on the Refinitiv Data Platform in response to demands from customers for market moving insight across the globe. Refinitiv now carries news from over 10,000 sources up from 7,000 thousand sources two years ago."
https://tabbforum.com/opinions/blockchain-for-the-buy-side/ Monica Summerville TABB Group - "The areas of significant benefits in using blockchain-based solutions were overwhelmingly cited as improved clearing and settlement as well as increased operational efficiency. The areas in which respondents said blockchain would have a significant impact over the next five years were: Fees and costs. Compliance and regulation. Data management." Mutual fund giant Vanguard has partnered with Nasdaq Ventures-backed blockchain startup Symbiont to develop a trading platform for the $6 trillion currency market, the companies said. https://www.coindesk.com/vanguard-developing-blockchain-platform-for-6-trillion-forex-market
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://tabbforum.com/opinions/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: - https://tabbforum.com/videos/the-financial-desktop-of-the-future-james-wooster-glue42/
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/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"
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."