Day: September 22, 2016

SmartTrade Launches Big Data Analytics Tool

SmartTrade Technologies has launched a new cross-asset big data analytics solution.

The new solution, smartAnalytics, is designed to enable firms to achieve a greater control and transparency by leveraging smartTrade’s ability to store, analyse and visualise all the data flowing through their trading infrastructure.

David Vincent, CEO of smartTrade, says that there are two distinct reasons why market participants need these tools.

“The first reason is because new in regulations such as Mifid II regulators are asking for much more transparency into the trading process. So for compliance purposes, it’s important to have the reporting capabilities to provide data explaining the way that they traded.

CFTC Takes Action Against FX CTA

The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against a CTA claiming to have grown 2,675% in two years with a 99.55% trade win ratio.

Jamal Vance and All City Investments (All City) are the defendants in the action, they are charged with solicitation fraud in connection with an FX scheme and with failure to register as Commodity Trading Advisors (CTAs). According to the CFTC’s complaint, the defendants solicited customers on their website to open and deposit funds into their own accounts with a brokerage services firm that provides an online forex trading platform, and to sign a limited power of attorney form, which designated All City as that customer’s agent and attorney-in-fact for the purpose of buying and selling margined FX transactions for the customer’s account.

Virtu’s Shay Takes New Role at Nasdaq

John Shay, most recently a partner at Virtu Financial, is joining Nasdaq as global head of fixed income, commodities and clearing, reporting to Hans-Ole Jochumsen, president of Nasdaq. Shay takes up his New York-based role in late October.

Shay spent most of his career with ICAP (Icap) before being recruited by Virtu’s founder, Vincent Viola, in 2007. At Virtu, Shay was responsible for managing all outside venue, vendor and trading relationships, including all prime and FCM counterparties, as well as all exchange, ECN and ATS relationships with a focus on fixed income, currencies and commodities.

Previewing Forex Network Chicago

With less than one week to go before the industry’s premier FX conference, Forex Network Chicago, Profit & Loss has recorded a special “Chicago Edition” of its podcast “In the FICC of It”.
The panel sessions will study all aspects of the current market structure with special focus on those areas most open to debate, this includes volatility levels, liquidity provision, the ubiquitous last look, and also the impact of the FinTech sector on the industry.
To preview the conference, P&L’s managing editor Colin Lambert and deputy editor Galen Stops, have been discussing what they see as the key issues facing the industry, as well as how they expect the panel sessions to go.
To access the preview, please click here, or go to the Media tab on the Profit & Loss website.

In the FICC of It – Chicago Edition

With less than one week to go before Forex Network Chicago, Profit & Loss has produced this podcast to preview the panel sessions on Day One. Listen to P&L’s managing editor, Colin Lambert, and deputy editor, Galen Stops, as …

Virtu’s Shay Takes New Role at Nasdaq

John Shay, most recently a partner at Virtu Financial, is joining Nasdaq as global head of fixed income, commodities and clearing, reporting to Hans-Ole Jochumsen, president of Nasdaq. Shay takes up his New York-based role in late October.

Shay spent most of his career with ICAP (Icap) before being recruited by Virtu’s founder, Vincent Viola, in 2007. At Virtu, Shay was responsible for managing all outside venue, vendor and trading relationships, including all prime and FCM counterparties, as well as all exchange, ECN and ATS relationships with a focus on fixed income, currencies and commodities.

Expecting the Unexpected in FX

The now infamous “SNB Day” forced a number of FX market participants to re-assess some of their long-held assumptions and business practices.

As liquidity evaporated fresh concerns were raised about the lack of risk taking experience and appetite amongst some sell side institutions and the impact of technology on liquidity in stressed market conditions.

As some firms reportedly attempted to re-paper certain trades it also added fuel to the ongoing debate about whether or not the practice of last look still has a place in the modern FX market. This is debate that has continued to rage on, notably at a very lively debate at Profit & Loss’ Forex Network New York conference in May.

Concerns Remain About Algo Adoption in FX

When discussing the future of the FX industry finding consensus amongst market participants about what the market will look like and how it will function can be challenging.

Yet one thing that appears to be broadly agreed upon is that the use of algorithms for executing trades is likely to continue growing in the coming years, as technology continues to evolve and firms look for new ways to minimise their market impact when trading.

Indeed, the use of algos is often prescribed as the answer to a market where it is becoming harder to execute in size and buy side firms are increasingly concerned about this issue of market impact.

Are FinTechs Really Going to Drive Change Financial Markets?

Along with “Blockchain” the most ubiquitous phrase in financial markets this year has been “FinTech”, which of course encompasses blockchain technology.

Venture capital (VC) money continues to pour into the space, innovation labs and accelerator programmes are sprouting up in banks across the globe and many established technology vendors within the financial services industry appear keen to adopt the FinTech label.

But is the FinTech that we’re seeing come to market now really anything new? Or is it just the continuation of an old trend that’s been given a more exciting and investor-friendly label?

And Another Thing…

We all know there has been a significant shift in recent years in FX markets towards the machine – events, especially in the legal and regulatory space, have helped drive the change – but is this shift now reaching a tipping point whereby traditional finance and economic theory is challenged? We talk a lot about the equitisation of the foreign exchange market structure but is the real issue, thanks to the growth in automated market making, the equitisation of FX market behaviour?