Forefront Communications

Forefront Week in Review: January 20, 2019

Forefront

Sam Belden

Sam Belden

We spent last week in the Windy City for the Security Traders Association of Chicago’s annual Mid-Winter Meeting, a compelling three-day agenda featuring top brokers, exchanges and buy-side firms. After a long flight, it feels great to relax at home on this holiday weekend. Still, the event was a tremendous success, and we’d like to extend our gratitude to the STAC, as well as all sponsors and speakers, for a top-notch program of industry-leading insights and valuable networking.

With the news cycle moving as quickly as ever, there was no shortage of current events to discuss, especially for those who stuck around for the end of the week. On Thursday, Philip Stafford of the Financial Times broke the story that Nasdaq is discussing a potential deal to acquire Oslo Bors, which would involve topping rival Euronext’s $711 million bid for the Norwegian exchange. With Nasdaq already owning the main exchanges in Sweden, Finland and Denmark, Oslo Bors would give them a kind of Scandinavian sweep. Now, a number of parties are waiting for a board recommendation from Oslo Bors before moving forward, so this story isn’t over — look out for the outcome in the weeks ahead.

Other top stories included BNP Paribas’ costly December, potential successors to CEO Larry Fink emerging at BlackRock, and Jefferies’ hiring lawsuit against Cantor Fitzgerald.

This week’s Week in Review features stories by Stafford, Meghan Morris of Business Insider and Frank Chaparro of The Block, among others. Keep scrolling for more, and don’t forget to subscribe to the Forefront Trading Digest if you’re not on our list already.

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Broker News

BNP Loses $80 Million on S&P 500-Linked Derivative Trades
Bloomberg News | Donal Griffin, Harry Wilson & Alastair Marsh

BNP Paribas lost $80 million in derivative trades linked to the U.S. stock benchmark late last year as turmoil gripped global markets, according to people familiar with the matter. Antoine Lours, the New York-based head of U.S. index trading, has yet to return to the bank since going on his Christmas vacation after positions he took on the S&P 500 Index went awry, the people said, asking not to be identified because the details are private. The majority of the losses came over several days in the run-up to the holiday, the people said.

[minti_button link=”https://www.bloomberg.com/news/articles/2019-01-15/bnp-said-to-lose-80-million-on-s-p-500-linked-derivative-trades” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Exchange, ATS and Clearing News

Routing Analysis Gets Real (-Time)
Markets Media | Terry Flanagan

Buy-side traders seeking to minimize the market impact of their transactions are overlaying venue analysis with a more dynamic methodology that presents a fuller picture of the market’s moves before, during and after their trades. Routing analysis takes the premise of venue analysis — determining where to execute trades and where not to — and factors in the interconnectedness of markets. Specifically, that a ping, cancel, replace, etc. to one venue can have profound implications for orders headed to another.

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Vendor News

LiquidityBook Reports 2018 as a Record Year
LeapRate | Valentina Kirilova

LiquidityBook, a leading SaaS-based provider of buy- and sell-side trading solutions, today announced that 2018 was a record year across multiple sales and client growth metrics tracked by the firm. This rapid growth was fueled by a continued rise in demand for its industry-leading POEMS platform, leading to impressive numbers in revenues, hiring and client base growth.

[minti_button link=”https://www.leaprate.com/forex/institutional/liquiditybook-reports-2018-as-a-record-year/” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Buy Side News

Meet the 6 Potential Successors to Replace Larry Fink as Head of the World’s Largest Asset Manager
Business Insider | Meghan Morris

BlackRock CEO Larry Fink isn’t going anywhere for now, but the 66-year-old is planning for his successor, and a major promotion announced last week fueled speculation about his eventual successor. In a memo, Fink hinted at more personnel changes to come, which sources say includes further executive shuffling beyond the 500 staff BlackRock said on Thursday it would lay off. BlackRock insiders identified six men who could eventually replace Fink.

[minti_button link=”https://www.businessinsider.com/blackrock-potential-ceo-successors-to-larry-fink-2019-1?r=forefront” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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M&A/Investment News

Nasdaq Discussing Potential Deal to Buy Oslo Bors
Financial Times | Philip Stafford

Nasdaq is discussing a potential deal to buy Oslo Bors, and rival Euronext’s €625m bid for the Norwegian exchange. The US exchanges operator, which also owns the main exchanges in Denmark, Sweden and Finland, is meeting the Oslo board today to discuss a possible combination, two people with knowledge of the process said. Nasdaq declined to comment. Oslo Bors could not be reached for comment. Oslo faces an unsolicited takeover from Euronext, which also owns the Paris, Amsterdam, Brussels, Dublin and Lisbon stock exchanges.

[minti_button link=”https://www.ft.com/content/bbd0ecee-1a6f-11e9-b93e-f4351a53f1c3″ size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More ($)[/minti_button]

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Regulatory & Legal News

Jefferies Sues Cantor in U.K. After Its Bankers Leave for Brokerage
Bloomberg News | Jonathan Browning

Jefferies Financial Group is going after Cantor Fitzgerald, the home of its former star banker Sage Kelly, suing the brokerage and three investment bankers who left the firm last year. The bank filed a lawsuit in London last month against Cantor and three bankers in its power, energy and infrastructure group. Jefferies lost 24 people in the energy coverage team to its New York-based rival last year. While brokers have regularly turned to the U.K. courts to combat poaching of their staff, it’s rarer for a bank to do so.

[minti_button link=”https://www.bloomberg.com/news/articles/2019-01-15/jefferies-sues-cantor-in-u-k-after-bankers-leave-for-brokerage” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

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Blockchain & Crypto News

BitGo Announces Partnership That Puts It Up Against the Largest Crypto Exchanges
The Block | Frank Chaparro

BitGo, the crypto custody provider, is teaming up with a trading firm to offer its institutional clients the ability to buy and sell crypto for the first time on its platform. The new offering, announced Wednesday, allows clients to trade the crypto held in their BitGo custody account without having to move it onto an exchange. Genesis Trading, as part of the deal, will execute trades on behalf of BitGo for its clients. BitGo clients will not have to open Genesis accounts to use the service.

[minti_button link=”https://www.theblockcrypto.com/2019/01/16/bitgo-announces-partnership-that-puts-it-up-against-the-largest-crypto-exchanges/” 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.