Welcome back to the Forefront Week in Review, and a happy Presidents Day weekend to all. It was a busy week for our clients, from Dash Financial Technologies unveiling a suite of new analytics, visualization and reporting tools for its Dash360 platform, to OpenFin being featured in a spotlight piece by Tom Groenfeldt of Forbes. Needless to say, we’re all looking forward to taking an extra day to relax, as well as to honor the legacies of George Washington, Abraham Lincoln and all who served in our nation’s highest office.
The long weekend comes on the heels of a wild couple of days for our industry. On Thursday, the New York Stock Exchange announced it was suing the SEC in a federal appeals court to prevent it from carrying out the Transaction Fee Pilot, which was approved in December; one day later, both Nasdaq and Cboe Global Markets took similar action, setting up an unprecedented legal confrontation between the nation’s three largest exchanges and the primary regulator that oversees them. There’s no telling how quickly these legal challenges will progress through the courts, but this appears to be another sign that the maker-taker debate will rage for years to come.
This week’s Week in Review features stories by Groenfeldt, Nick Baker of Bloomberg News, Hayley McDowell of the TRADE and Alexander Osipovich and Dave Michaels of the Wall Street Journal, 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.
Dash Unveils Real-Time Transparency for Portfolio Trading
The TRADE News | Hayley McDowell
Agency execution firm Dash Financial Technologies has added real-time analytics, visualisation and reporting tools to its Dash360 platform to provide portfolio traders with further transparency on order routing. Dash launched its portfolio trading algorithm in September, which is available on a front-end agnostic basis. Users of the algorithm will have access to the Dash360 real-time analytics, which includes realised and unrealised performance tracking, duration and cash management visualisation, TCA reporting and venue and routing analysis.
Exchange, ATS and Clearing News
‘Flash Boys’-Style Speed Bump Planned for Futures Markets
Bloomberg News | Nick Baker
Intercontinental Exchange’s futures market wants to join the battle against the fastest traders. The Atlanta-based exchange plans a 3-millisecond trading delay, or speed bump, for its gold and silver futures contracts, according to a regulatory filing. The CFTC on Wednesday asked for public comment on the proposal. The delay would be introduced “initially” for gold and silver, areas where ICE currently does very little business. An ICE spokesman declined to say whether it would later be applied to other markets. ICE is a leader in other products such as oil futures.
OpenFin Builds An OS For Traders On High Performance HTML5
Forbes | Tom Groenfeldt
Mazy Dar thinks trading apps should be like mobile phone apps. “Think about what happens on phones, most users have an incredibly simple experience, says the CEO of OpenFin which lets trading apps approach the user-friendliness of an iPhone. Open Fin has been a hit with financial firms; Dar said it has been deployed to more than 1,500 firms, and runs over 1,000 apps on nearly 200,000 desktops. “Our mission is to have it on every desktop at every bank and buyside firm.”
Buy Side News
This Is What People on the Buy-Side Really Do All Day
eFinancialCareers | Beecher Tuttle
Changes in technology and greater oversight has altered how buy-side traders spend their day. If nothing else, working on the buy-side may have become less interesting. New research from Greenwich Associates shows that traders and portfolio managers are spending significantly more time trading electronically than they did a year ago – something that shouldn’t come as any sort of surprise. Growth of electronic trading on the buy-side has increased massively over the last five years. More than half (54%) of traders and PMs said they spent more time trading electronically in 2018 than they did the previous year, with only 5% cutting back.
A Blockchain Company That Works with Banks Like Barclays to Fight Financial Crimes Just Raised $30 Million
Business Insider | Madeline Shi
Chainalysis, which offers software that tracks cryptocurrency transactions, said on Tuesday it had raised $30 million in its Series B round led by venture firm Accel. Accel has invested in a slew of leading-edge tech companies like Dropbox, Spotify and Slack. In addition, Accel’s partners Philippe Botteri and Amit Kumar are also joining Chainalysis’ board. Jonathan Levin, cofounder and COO of Chainalysis, said that the new directors will help the company’s research and development plans and expand its European presence.
Regulatory & Legal News
In an unprecedented legal confrontation, the three biggest U.S. stock-exchange groups are taking on their own regulator to block an initiative that seeks to limit the fees they can charge for trading. Nasdaq Inc. and Cboe Global Markets Inc. on Friday sued the Securities and Exchange Commission in a federal appeals court to stop the regulator from carrying out the program, a day after the New York Stock Exchange filed a similar challenge. At stake is the Transaction Fee Pilot, which the SEC unanimously approved in December.
Blockchain & Crypto News
JP Morgan Is Rolling Out the First US Bank-Backed Cryptocurrency to Transform Payments Business
CNBC | Hugh Son
The first cryptocurrency created by a major U.S. bank is here — and it’s from J.P. Morgan Chase. The lender moves more than $6 trillion around the world every day for corporations in its massive wholesale payments business. In trials set to start in a few months, a tiny fraction of that will happen over something called “JPM Coin,” the digital token created by engineers at the New York-based bank to instantly settle payments between clients.
That’s all for this week. Don’t forget to subscribe to the Forefront Trading Digest for more headlines like these.