More than six years ago I started talking about high frequency trading "eating itself" and the latest deal in this world seems to suggest the feast is well underway. Rather than seeing this, as many media outlets do, as being driven by lower volatility and volume in markets, I think it is more about competition. And nowhere is this competitive impact better highlighted than in the story of the planned building of two radio masts on the coast of England.
DeVere Group has founded the DeVere Digital Asset Funds, something it says is “a suite” of digital currency solutions for experienced investors, in association with Dalma Capital Management, a hedge fund manager in the Dubai International Financial Centre. The firm has revealed that its strategy will be largely arbitrage-based, as it has identified "durable inefficiencies" across trading venues in cryptocurrency markets that it can exploit using algorithmic trading.
The launch was announced the day after Bitcoin reached its 10th anniversary.
This week’s podcast sees Colin Lambert and Galen Stops discuss the latest lawsuit facing banks over their actions in FX markets, during which Lambert invokes the spirit of a film that he can’t remember the name of, by asking, “Could you ask me that question again Galen?”
Stops also has a series of questions relating to the Virtu-ITG tie up reported this week as our two podcasters discuss the evolution of the non-bank trading firm business model. Where do these firms expand? Lambert is fairly confident (is he ever not?) that it is not by buying other trading firms, but both men see opportunities away from trading.
They also discuss volatility in crypto markets and ask – at what stage does the institutional enthusiasm for crypto start to weaken?
This week’s podcast also highlights how Lambert giveth…and taketh away…as it is bookended by praise and ridicule for his colleague! Find out why by listening in to this week’s edition.