After much anticipation, it’s finally here — FIA Boca kicks off on Tuesday. We couldn’t be more excited to be there along with top industry leaders in the global futures, options and cleared derivatives industry, including featured speakers like CFTC Chairman Chris Giancarlo and U.S. Secretary of Agriculture Sonny Perdue. We’ll be joined by clients Dash Financial Technologies, HPR and OpenFin, so be sure to flag us down and say hello!
The event will occur on the heels of a flurry of intriguing people moves. According to a report from Alexander Osipovich of the Wall Street Journal, the planned Members Exchange, or MEMX, has made three key hires: Thomas Fay, a senior vice president at Nasdaq who oversaw a number of technology initiatives; Dominick Paniscotti, one of Fay’s right-hand men; and Colin Clark, a NYSE veteran. The fragmentation of the exchange space has been a hot topic of late; in addition to the implications for the markets, it’s caused quite a bit of employee mobility between the operators. In other hiring news, Credit Suisse brought on Julian Corner to serve as its electronic trading chief in Europe, while Deutsche Bank laid off several executives from its equities division.
Other headlines from the past week included Tradeweb filing for an IPO, Citadel closing its Aptigon stock unit and Democrats in congress seeking to introduce a financial transaction tax.
This week’s Week in Review features stories by Osipovich, Samuel Agini of Financial News, Bradley Saacks of Business Insider and Frank Chaparro of The Block, among others. Keep scrolling for more, and don’t forget to subscribe to the Forefront Fintech Digest if you’re not on our list already.
Credit Suisse Picks European Electronic Trading Chief
Financial News | Samuel Agini
Credit Suisse has picked an 18-year veteran of the Swiss bank to lead electronic trading in Europe, where new regulations have increased competition among brokers in the battle for fund managers’ business. Julian Corner will become head of Credit Suisse’s advanced execution services team in EMEA, according to a memo seen by Financial News. AES provides algorithmic trading strategies and analytics to fund managers and hedge funds that trade stocks, derivatives and currencies.
Exchange, ATS and Clearing News
Startup Stock Exchange Builds Executive Team With Nasdaq Hires
Wall Street Journal | Alexander Osipovich
A Nasdaq executive and one other key employee have left for Members Exchange, or MEMX, a startup with prominent Wall Street backers that plans to launch a low-cost stock exchange, people familiar with the situation said. Thomas Fay, a senior vice president who had overseen a number of technology initiatives, and Dominick Paniscotti, a vice president who worked with Mr. Fay, left Nasdaq last week, the company confirmed. Mr. Fay is set to join MEMX as chief operating officer later this year, while Mr. Paniscotti will become chief technology officer, a person familiar with the situation said.
TradingScreen To Relaunch Basket Trading
Markets Media | Shanny Basar
TradingScreen will relaunch its block trading functionality in the first half of this year. Last month the order and execution management system partnered with BIDS Trading to give clients more access to block trading, which has become more important since MiFID II went live. Surika Vosloo, European product manager at TradingScreen, told Markets Media: “A big focus for the first half of this year is relaunching our basket trading functionality. This will be revolutionary in providing visualisation of data to focus attention on relevant orders.”
Buy Side News
Citadel’s Aptigon Stock Unit to Close and Its Head Is Leaving
Business Insider | Bradley Saacks
Billionaire Ken Griffin is shutting down the Aptigon stock unit at his hedge fund Citadel a year after restructuring the group, according to a person with knowledge of the matter. Eric Felder, who has led Aptigon since last February, will leave the firm Thursday, said the person, who asked not to be named because the matter is private. Most of Aptigon’s money managers and their teams will join Citadel’s three remaining equity units: Citadel Global Equities, Surveyor Capital and Ashler Capital, said the person.
Tradeweb Markets, the bond and derivative platform co-owned by financial-data platform Refinitiv, filed for a U.S. initial public offering, kicking off plans to go public five months after being acquired as part of a $17 billion buyout. Tradeweb filed with an initial offering size of $100 million, typically a placeholder amount used to calculate fees that’s likely to change. The IPO is being led by JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley, according to a filing with the SEC Thursday.
Regulatory & Legal News
Rep. Peter DeFazio and House Democrats Are Reintroducing a Financial Services Tax with Alexandria Ocasio-Cortez as a Co-Sponsor
CNBC | Brian Schwartz
House Democrats are reintroducing their proposal of a financial transaction tax on stock, bond and derivative deals, and this time they’ve signed on a key new supporter: Rep. Alexandria Ocasio-Cortez. Rep. Peter DeFazio, D-Ore., is leading the effort to bring back a bill, titled the “Wall Street Tax Act of 2019,” which slaps a tax on securities transactions and could have a particular negative effect on high-frequency traders. Ocasio-Cortez, D-N.Y., is the lead co-sponsor. The Joint Committee on Taxation estimates a financial transaction tax could help reduce the budget by adding revenues of $777 billion over the course of 10 years.
Blockchain & Crypto News
‘They Are Not in a Hurry and They Want to Do This Right:’ Fidelity Is Kicking Off Crypto Custody with a Soft Launch
The Block | Frank Chaparro
The launch of Fidelity’s much-awaited crypto business is starting off small, according to several people briefed on the firm’s plans. To start, the firm will only offer its custody services to a select group of clients as part of a pilot period, the people said, declining to speak on the record as they agreed not to disclose information to the media. In October, the firm announced the new crypto business, dubbed Fidelity Digital Assets, which would offer services spanning custody and execution services.
Forefront Client News
Q&A: How Blockchain Can Reduce Automotive Industry Fraud
Digital Journal | Tim Sandle
Fusion (developer of the first open source cryptofinance operating system) has been selected by the Automotive eXchange Platform (AXP) to drive down fraud and accelerate innovative financing options in the auto industry. The auto industry has struggled with a lack of transparency together with widespread information inaccuracies, from titling to financing. The not-for-profit Fusion Foundation aims to tackle these issues through its blockchain technology. Chief Product Officer John Liu explains more.
Governance Concerns Still in Focus as Long-Term Stock Exchange Plans Launch
S&P Global Market Intelligence | Declan Harty
With support from the likes of Marc Andreessen and Peter Thiel, Long-Term Stock Exchange Inc., or LTSE, has its eyes set on becoming the 14th national securities exchange in the U.S., a process that started in November 2018 when it applied with the SEC. The relatively straightforward exchange application could put LTSE on a fast track for SEC approval, as the agency is not in the business of determining “winners and losers,” Security Traders Association President and CEO Jim Toes said in an interview. The SEC has until late July to issue a ruling on the application.
Confluence Offers BCL & CSSF Reporting Capabilities
Globe Newswire | Staff
Confluence, a global leader in investment data management automation for regulatory, financial and investor reporting, today announced that a more flexible and efficient response to BCL and CSSF regulatory reporting is now available within its Unity NXT® Regulatory Reporting Platform. BCL and CSSF reporting has traditionally been accomplished manually. Confluence’s new solution supports reporting to both the BCL and CSSF on eight critical forms and allows for variable mapping logic across fund complexes, data reuse across numerous forms and customizable business rules to supplement regulator checks.
Even If You Weren’t Before, We’re All CAT People Now
TABB Forum | James Dolan (Luminex Trading & Analytics)
Almost 10 years after the Flash Crash prompted regulators to call for the Consolidated Audit Trail, the change of CAT processors is expected to delay CAT reporting for broker-dealers to April 2020. So why should you care about the CAT? As the reporting initiative evolves, broker-dealers will be required to transmit to regulators data on who placed every order and made every trade. This, as much as anything, is why you need to pay attention.
That’s all for this week. Don’t forget to subscribe to the Forefront Trading Digest for more headlines like these.