Welcome back to the Forefront Week in Review, where we take another look at top recent stories from the action-packed world of trading and market structure.
Due to Memorial Day, the past week was a short one for most of us. While we hope you enjoyed the warm weather and gathered for good times with friends and family, we also hope that you took some time to reflect our service members throughout history who made the ultimate sacrifice for their country. The financial services industry has a long history with the military, with many military personnel going on to work on Wall Street, and vice versa. Though some of them may be gone, they are certainly not forgotten.
Even with the four-day week, there was plenty of news that broke. A lawsuit against Cboe’s VIX “fear gauge” was dismissed, Citadel Securities announced a plan to add Treasury bills to its client offerings as it pushes for primary dealer status, and KRM22 acquired Object+, a Dutch fintech. Meanwhile, Philip Stafford of the Financial Times wrote a trend story on the growing popularity of speed bumps, and a new report showed how major players used the so-called crypto winter to stockpile huge amounts of bitcoin.
This week’s Week in Review features stories by Stafford, Rachael Levy of the Wall Street Journal and John Brazier of The TRADE, 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.
Citadel Securities Adds Bills in Push for Primary Dealer Status
Bloomberg News | Liz Capo McCormick
Citadel Securities next month will add Treasury bills to its client offerings as it plows on with efforts to make markets in a full array of government debt products and ultimately become one of the Federal Reserve’s primary dealers. The market-maker has had a Treasury-market presence in the inter-dealer sector for over a decade, but in recent years has been deepening its reach into the client-to-dealer area, a longtime bastion of Wall Street banks.
Exchange, ATS and Clearing News
Futures Exchanges Eye Shift to ‘Flash Boys’ Speed Bumps
Financial Times | Philip Stafford
After years of trying to cater to their quickest customers, the world’s biggest futures exchanges are now looking to slow them down. Deutsche Börse’s Eurex will start a pilot scheme next week that introduces tiny delays, or “speed bumps”, to the trading of options on French and German stocks. The London Metal Exchange is also set to receive approval for a similar initiative, from UK authorities. Just two weeks ago US regulators approved Intercontinental Exchange, the second-largest US futures operator, to apply delays on trades of two precious metals contracts.
Refinitiv Expands Coverage of Fixed Income, Derivatives Markets with Yieldbroker Deal
The TRADE News | John Brazier
Refinitiv has announced a new deal to expand its coverage of Australian and New Zealand fixed income and interest rate derivatives markets. The data vendor will act as a global data distributor for Yieldbroker data and will be made available to users via the Elektron data platform or on desktops via the Eikon platform. Price data and analytics are sourced directly from Yieldbroker’s electronic trading platform which provides active liquidity across bonds, credit, interest rated derivatives, bank bills and repos, trading in excess of $2.75 trillion annually.
Buy Side News
Female Hedge-Fund Veteran Has Contemplated a Comeback
Wall Street Journal | Rachael Levy
Anne Dias, once one of the few women to run her own hedge fund, has been considering a return to money management. She has discussed a potential launch with Goldman Sachs and others in the industry, people familiar with the matter said. It is not known if she plans to move forward, and her plans could change. A Goldman Sachs spokeswoman declined to comment. Ms. Dias, 48, founded Aragon Global Management, a $200 million fund that returned money to clients roughly a decade ago. The stock-focused fund included investments from the billionaire Julian Robertson and her then-husband, Ken Griffin, founder of Citadel LLC.
KRM22 Acquires Dutch Fintech Object+
Global Investor Group | Louisa Chender
Fintech KRM22 has acquired Amsterdam-based tech firm Object+ in its latest purchase as it continues to expand its Global Risk Platform. The fintech run by former Ffastfill chairman Keith Todd said on Thursday it acquired Dutch risk management and post-trade technology firm Object+ in a £3 million deal that is expected to close in three days. Object+, which also has an office in Chicago, provides risk management technology including P&L and margin management, as well as pre-trade order limit management.
Regulatory & Legal News
Cboe Wins Dismissal of Wall Street ‘Fear Gauge’ Manipulation Lawsuit
Reuters News | Jonathan Stempel
A federal judge on Wednesday dismissed a lawsuit in which investors accused the parent of the Cboe of letting anonymous traders rig Wall Street’s main gauge of future stock market volatility at their expense. U.S. District Judge Manish Shah in Chicago said investors in the proposed class action failed to show that Cboe Global Markets Inc intended to defraud them by allowing manipulation of options and futures tied to the VIX, known as the U.S. stock market’s “fear gauge.”
Blockchain & Crypto News
Major Bitcoin Accumulation Was Underway by Big Money During Crypto Winter, Analysts Say
Cointelegraph | Marie Huillet
The number of wallets holding between 1,000 and 10,000 bitcoin has seen a sharp increase since the crypto market bottomed this winter, indicating significant accumulation during the price dip. The analysis was published in a new report from weekly crypto outlet Diar on May 28. Diar’s analysis begins by comparing bitcoin’s distribution landscape today with data from August 2018, when the top coin was last trading in a circa $8,000 price range. The analysis focuses on so-called “Firm Size” bitcoin wallet addresses and notes that such addresses now own over 26% of circulating supply, or $36 billion worth of BTC.
Forefront Client News
OpenFin Adds Data Privacy Layer for Operating System
Waters Technology | Josephine Gallagher
OpenFin has integrated Exate’s data privacy technology to help navigate global data protection laws. The built-in, end-to-end encryption is designed to control and manage data across applications on OpenFin’s operating system. The Exate technology functions to protect data and authorize access to users in line with internal policies and relevant global data protection regimes, including the General Data Protect Regulation (GDPR), which went into effect on May 25, 2018. As part of the security process, the data is tagged, scrambled, and then reconstructed, but it can only be reconstructed for authorized users.
Wavelength Episode 163: Tony Amicangioli on Cloud, Race to Zero
Waters Technology | Anthony Malakian
Tony Amicangioli, founder and CEO of HPR, formerly known as Hyannis Port Research, joins the podcast to chat about his career. Amicangioli has had an interesting ride in the world of technology. For the podcast, he talks about the lessons that he’s learned when it comes to building a company. We also talk about how the so-called “Race to Zero” conversation has changed. Additionally, we look at the arms race for cloud supremacy unfolding between Amazon Web Services, Google Cloud Platform, IBM Cloud and Microsoft Azure, and what that might mean for capital markets firms over the next decade.
TORA Awarded “Qualified Outsourcing Provider” Status By the Tokyo Metropolitan Government
Globe Newswire | Staff
Global Institutional trading and portfolio management systems provider TORA has today announced that it has been awarded “Qualified Outsourcing Provider” status from the Tokyo Metropolitan Government (TMG) as part of their wider initiative to support the growth of asset management companies located in the Japanese capital. TORA were awarded this status for their leading Portfolio Management System (PMS). TORA’s PMS system manages a fund’s software, hardware, data feeds and integrates it all into one system that enables the portfolio manager to make real-time, efficient and detailed trading decisions.
That’s all for this week. Don’t forget to subscribe to the Forefront Trading Digest for more headlines like these.