Forefront Communications

Forefront Week in Review: July 22, 2018

Forefront Communications

Sam Belden

Sam Belden

Welcome 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.

In a space where news moves so quickly, it can be hard to find the time to stay on top of the latest developments. Whether you’re a trader, a portfolio manager or simply a news junkie, we hope you’ll join us every Sunday for a look back at the week’s essential headlines.

Don’t forget to subscribe to the Forefront Trading Digest to receive headlines like these in your inbox every weekday morning at 8:00 sharp. Now, let’s get to the latest batch of can’t-miss stories from across the industry in each of the seven segments we track each day.

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Broker News

Equity Traders are Crushing It as Big Banks Celebrate a Huge Six Months
Business Insider | Alex Morrell

Wall Street banks have followed up their stellar 2018 debut in stock trading with another robust performance in equities in the second quarter. JPMorgan Chase, Citigroup, and Bank of America Merrill Lynch all saw strong second-quarter earnings in the past week, with each reporting a second consecutive standout performance from their equities divisions. Derivatives trading, which has particularly benefited from the rebound in volatility, has played a key role in the first half of the year.

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Exchange, ATS and Clearing News

SIP Operating Committees Welcome Three New Advisory Committee Members
Traders Magazine | John D’Antona

The SIPs’ Operating Committees announced the addition of three new members to the Advisory Committee: Chris Nielsen, Managing Director at Charles Schwab; W. Todd Watkins, Director at E*TRADE and Matt Billings, Managing Director at TD Ameritrade. The SIP Advisory Committee meets quarterly with the CTA and UTP Operating Committees and the SEC to review SIP performance and discuss policy matters. The 11-member Advisory Committee represents the diverse viewpoints of the marketplace, with representatives from the retail investment community, the vendor community, the institutional brokerage community and the ATS community.

[minti_button link=”http://www.tradersmagazine.com/news/technology/sip-operating-committees-welcome-three-new-advisory-committee-members-117976-1.html” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Vendor News

Former Hotspot FX Financial Chief Joins TradingScreen
The TRADE News | Hayley McDowell

TradingScreen has made two new appointments in its senior management team and hired the former CFO of Hotpsot FX for the same role. Rishi Gupta has more than 20 years’ experience working in finance, accounting and operations. He most recently worked as the CFO at a private equity firm and prior to that was CFO for Hotspot FX, the institutional FX trading platform now known as Cboe FX. Alongside TradingScreen’s appointment of Gupta as its new CFO, the OEMS specialist’s current chief strategy officer, Varghese Thomas, will take on an additional role as COO.

[minti_button link=”https://www.thetradenews.com/former-cboe-fx-financial-chief-joins-tradingscreen/” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Buy Side News

Ex-Point72 Portfolio Manager to Launch Macro Hedge Fund Entheos
Reuters News | Kate Duguid

Erik Cetrulo, a former portfolio manager at Steven Cohen’s Point72 Asset Management, is raising funds for a global macro discretionary hedge fund and is targeting a launch in the first quarter of 2019, two sources familiar with the situation said. Entheos Capital Advisors formed its limited partnership in recent weeks, and is in early stage negotiations with potential seed and anchor investors, the sources said.

[minti_button link=”https://www.reuters.com/article/us-usa-hedgefunds/ex-point72-portfolio-manager-to-launch-macro-hedge-fund-entheos-sources-idUSKBN1K82U1″ size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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M&A/Investment News

State Street to Acquire Charles River Development for $2.6 Billion
Press Release

State Street announced that it has entered into a definitive agreement to acquire Charles River Development. Under the terms of the agreement, State Street will purchase Charles River Development in an all cash transaction for $2.6 billion. The acquisition is expected to be completed in the fourth quarter of 2018. When integrated with State Street’s existing front, middle and back office capabilities, Charles River Development’s front-office systems will enable State Street to deliver a global front-to-back platform for asset managers and asset owners that will be unique in the investment servicing industry.

[minti_button link=”https://www.businesswire.com/news/home/20180720005132/en/State-Street-Acquire-Charles-River-Development-2.6″ size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Regulatory & Legal News

Wall Street Dark Pools to Come Out of Shadows Thanks to SEC
Bloomberg News | Benjamin Bain

Wall Street banks will have to cough up more details on the private stock markets they run, which roughly account for an estimated one-seventh of all U.S. equities trading. SEC members unanimously approved rules Wednesday that force trading venues known as dark pools to disclose more data and reveal potential conflicts of interest. The SEC proposed the regulations — some of which resemble requirements for public stock exchanges — in 2015 after firms including UBS Group paid tens of millions of dollars to settle allegations that they allowed practices that benefited high-frequency traders without properly informing other clients.

[minti_button link=”https://www.bloomberg.com/news/articles/2018-07-18/wall-street-dark-pools-set-to-come-out-of-shadows-thanks-to-sec” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Blockchain & Crypto News

Some of Bitcoin’s Biggest Traders are Teaming Up to Lure Wall Street Money to Crypto
Business Insider | Frank Chaparro

A group of bitcoin’s biggest traders have teamed up with a small crypto firm to build out two new pricing indices for bitcoin and ether. TrueDigital, the digital currency trading firm led by Wall Street vet Sunil Hirani, the founder of interest rate swaps exchange trueEx, announced the two new reference rates on Thursday. Those rates, which can serve as a basis for derivative products such as futures or an exchange-traded fund, take in data from market making firms. Some of the firms that partnered with trueDigital on the project include Goldman Sachs-backed Circle and a number of Chicago proprietary trading shops, including DV Trading and Hehmeyer Trading.

[minti_button link=”http://www.businessinsider.com/bitcoin-price-reference-rate-based-on-market-maker-data-2018-7″ size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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That’s all for this week. Don’t forget to subscribe to the Forefront Trading Digest for more headlines like these.