Forefront Communications

Forefront Week in Review: November 18, 2018

Forefront

Sam Belden

Sam Belden

With Thanksgiving just around the corner, the trading and capital markets space is facing a short week, but that doesn’t mean there aren’t plenty of storylines to keep an eye on.

Perhaps the biggest one surrounds the Consolidated Audit Trail, or CAT, which passed a major milestone last week. As of November 15, major SROs and exchanges are required to send quote, order and trade information to the CAT central repository, allowing regulators to more easily pinpoint the forces behind large, sudden losses in trading value. Broker-dealers will begin sending their data next November. Reactions from across the industry have been mixed, and many of the biggest concerns surrounding the project are outlined in Rick Baert’s November 12 article for Pensions & Investments, which features quotes from three Forefront clients: Peter Maragos of Dash, James Dolan of Luminex and Jim Toes of the Security Traders Association.

Other top headlines included a major upgrade to AllianceBernstein’s bond trading robot and the continued fallout from Virtu Financial’s acquisition of ITG.

This week’s Week in Review features stories by Baert, Samuel Agini of Financial News 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.

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Broker News

Dash Financial Hires Former Credit Suisse Algo Trading Executive
The TRADE News | Hayley McDowell

Dash Financial Technologies has expanded its team with the addition of a twenty-year Credit Suisse veteran to lead its equity products. James Doherty has been appointed managing director and head of equity product at Dash Financial, after co-founding a machine learning-driven investment company. Prior to founding the company, Doherty spent twenty years at Credit Suisse, most recently as head of US equity trading product and co-head of the Advanced Execution Services (AES) business.

[minti_button link=”https://www.thetradenews.com/dash-financial-hires-former-credit-suisse-algo-trading-executive/” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Exchange, ATS and Clearing News

Tradeweb Chief Takes Stock of Electronic Bond Trading Revolution
Financial News | Samuel Agini

Tradeweb’s story goes back more than 20 years, to the trading floor of Credit Suisse First Boston, where founder Lee Olesky was chief operating officer for the bank’s fixed income Americas division. Tradeweb has grown a lot bigger since, and continues to attract powerful backers. Refinitiv, the data and analytics company previously known as Thomson Reuters Financial & Risk, owns a majority stake; the rest is shared among 10 banks. In September this year, banks, asset managers, pension funds and insurers traded an average of $592bn every day across rates, credit, money markets and equities through Tradeweb.

[minti_button link=”https://www.fnlondon.com/articles/tradeweb-chief-takes-stock-of-electronic-bond-trading-revolution-20181114″ size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More ($)[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Vendor News

When It Comes to Data, Time Is Money
Markets Media | Warren Breakstone (S&P Global Market Intelligence)

The most sophisticated corporations, banks and investment firms are harnessing the power of data to drive their businesses. But what they are increasingly finding is that the costs associated with data analysis go far beyond the cost of the data itself, to the point where businesses could end up spending up to 10 times more on data integration than for the underlying content. Therefore, purchasing premium priced data is likely the least expensive part of decision analytics and the research process. Before a single insight can be derived from this data, there are a number of steps that need to be taken.

[minti_button link=”https://www.marketsmedia.com/when-it-comes-to-data-time-is-money/” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Buy Side News

Meet the Robot Who Knows How to Trade Bonds Better Than You Do
Bloomberg News | Katie Linsell

AllianceBernstein upgraded its virtual assistant Abbie so she can now suggest the best bonds to buy and sell based on pricing, ease-of-trading and risk. Unlike any human, she can scan millions of data points to filter the universe of outstanding bonds in seconds and identify potential trades to portfolio managers using other electronic tools the firm has built. Abbie 2.0 can identify bonds that people may have missed and will be able to spot human error and communicate with chat bots like herself at other firms, according to Jeff Skoglund, chief operating officer of fixed income.

[minti_button link=”https://www.bloomberg.com/news/articles/2018-11-12/meet-the-robot-who-knows-how-to-trade-bonds-better-than-you-do” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

M&A/Investment News

High-Speed Trader Virtu Financial Aims to Prove It’s No ‘Bogeyman’
Bloomberg News | Nick Baker

Virtu Financial wants Wall Street to know it’s no fox poised to attack the $1 billion henhouse it’s acquiring. Virtu, originally founded to trade with its own money, agreed last week to buy Investment Technology Group, a broker-dealer that executes trades for more more than 1,000 firms, including mutual, pension and hedge funds. The ITG deal, valued at about $1 billion, has caused some to worry that Virtu will snoop on its soon-to-be clients’ orders, leveraging that knowledge to place winning trades before they do. Virtu denies it’ll do that and says it will erect barriers to keep those businesses separate and assuage critics’ concerns.

[minti_button link=”https://www.bloomberg.com/news/articles/2018-11-14/trader-virtu-seeks-to-erase-its-bogeyman-image-in-itg-takeover” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Regulatory & Legal News

Investors’ Focus Shifts to What Comes Next with CAT Data
Pensions & Investments | Rick Baert

While exchanges will start submitting equity and options data to the SEC’s consolidated audit trail on Nov. 15, institutional investors will be more concerned about what’s coming a year later. That’s because on Nov. 15, 2019, broker-dealers will be required to submit data to the CAT on trades they execute on behalf of clients, adding a much larger amount of information to the audit trail that will specify how their clients — including institutional investors — trade equities and options. That huge data repository could attract the attention of cybercriminals, sources said.

[minti_button link=”https://www.pionline.com/article/20181112/PRINT/181119978/investors-focus-shifts-to-what-comes-next-with-cat-data” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

Blockchain & Crypto News

3 Major Execs Have Left Mike Novogratz’s Galaxy Digital as the Firm Makes a Big Pivot
The Block | Frank Chaparro

Galaxy Digital, the merchant bank run by famed trader Mike Novogratz, announced on Friday evening that two major executives are stepping down from their positions as the firm shifts its focus to larger institutions.It is not clear why the shift led to a number of major executive departures. Still, The Block reached out to its sources to get a full picture of what’s going on. Here’s who is out: Richard Tavoso, David Namdar and Michael Maloney.

[minti_button link=”https://www.theblockcrypto.com/2018/11/11/3-major-execs-have-left-mike-novogratzs-galaxy-digital-as-the-firm-makes-a-big-pivot/” size=”small” target=”_blank” lightbox=”false” color=”orange” icon=””]Read More[/minti_button]

[minti_divider style=”5″ icon=”” margin=”30px 0px 30px 0px”]

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