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The Trading Mesh

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Using Corporate Event Data to Navigate Low-Latency in Equity Options: Strategies for Institutional Traders and Market Makers

October 9, 2018 by Wall Street Horizon   Comments (0)           

Options remain the closest community of market participants, and the murkiest. Even to its veterans, the options market can seem uncanny; its trading has always been full of mystery. Rumors abound of big-wins and equally huge losses turning on a dime, and there is common sleight of hand. It evolves at its own pace. But wild swings and tectonic shifts can also be born of simple mistakes. Such was the case in 2015, when a pair of microprocessor manufacturers was first...

FinTech innovation and the power of keeping it simple

September 11, 2018 by James Maxfield   Comments (0)           

By James Maxfield & Ali Rutherford, Ascendant Strategy
Since it was coined by the US Navy over half a century ago, the ‘keep it simple’ mantra has been adopted by many other industries, including the capital markets FinTech sector.
However, when financial firms and institutions embark on a programme to introduce innovation to their existing legacy infrastructure, some firms instead opt to embark on a radical overhaul of their entire technology stack in one huge,...

What to expect at the FIX Nordic Trading Briefing

September 5, 2018 by Peter Fredriksson   Comments (0)           

By Peter Fredriksson, Chairman og Baymarkets AS, Norway
The 9th FIX Trading Community Nordic Trading Briefing is just around the corner and this year’s conference promises to live up to the event’s reputation for stimulating and informative discussion, with a Nordic twist. 

MiFID II is on everyone’s minds and we’ll be looking at what market participants need to know to thrive in a post-MiFID II environment. But the event covers much more than that,...

Bringing the World to Sydney

September 4, 2018 by Matthew Lempriere   Comments (0)           

By Matthew Lempriere, Head of Asia Pacific at BSO Networks
Advances in technology and connectivity have significantly accelerated global participation in Sydney’s liquid futures market.
Almost 15,000 kilometres of land and ocean lie between Chicago and Sydney, making the two cities about as far apart as any of the major financial centres. In previous generations, it would have been almost inconceivable that a Chicago-based trader could easily access Australian securities or vice...

Navigating low-latency trading technology in India

August 30, 2018 by The Realization Group   Comments (0)           

India has taken a big step forward in widening its low-latency trading community. The Securities and Exchange Board of India (SEBI) in March announced regulatory changes designed to let more firms trade via shared managed colocation services. The move, SEBI said, would benefit small- and medium-sized firms that may have been prohibited from such trading previously due to costs and lack of expertise.
Ahead of the 2018 FIX India Conference, The Realization Group spoke to some of the...

Connecting stock exchanges and global trading with China

August 29, 2018 by Matthew Lempriere   Comments (0)           

By Matthew Lempriere, Head of Asia Pacific at BSO Networks
Last month, BSO opened new offices in Hong Kong and Singapore, and I’m very excited to have joined the firm at this point in its journey to spearhead the Asia Pacific expansion.
It’s a great time to be joining, with the markets in Asia Pacific evolving so rapidly, and with so many opportunities opening up in the region.
One of the important developing areas is of course China.
Historically, the Chinese stock market has...

To realise the potential of AI in finance, users need to grasp the scale of the problem

August 26, 2018 by Michael Woodman   Comments (0)           

How the cloud will help AI and machine learning systems flourish in the finance space.

In Douglas Adams' sci-fi novel The Hitchhikers Guide to the Galaxy, an alien invasion fleet arrives on Earth intent on ousting humanity.
But, owing to a vast underestimation of scale, the invader's entire fleet of mighty attack ships is swallowed … by a small dog.
I was reminded of this failure to grasp the size of the issue at hand when hearing some of the inflated, over-ambitious claims being...

Clearing without a guarantee fund?

August 22, 2018 by Peter Fredriksson   Comments (0)           

The need to provide a guarantee fund has long been a deal-breaker for frontier and emerging financial markets, given the sizeable investment required to create one. New approaches however, are allowing operators of these markets to implement the necessary clearing functionalities without having to put such a guarantee fund in place.


The “CCP-light” model

Recent developments in clearing applications now provide rich functionality such as real-time risk...

Why it’s time the finance sector ditched its legacy infrastructure

July 19, 2018 by Michael Woodman   Comments (0)           

Are you still running legacy infrastructure simply because it continues to work, not because it's the best way to do business today?

Ever known someone who insisted on driving a beaten-up old car until it pretty much fell apart?
You know the sort: as long as it works, they'd argue, why scrap it? Some finance organisations are doing something similar: running their middle and back office processes on legacy infrastructure simply because it continues to work, not because it's the best way to...

Many sources of liquidity, many sources of uncertainty

July 1, 2018 by Ollie Cadman   Comments (0)           

We are six months into a European trading and investment landscape redrawn by MiFID II. But it’s still too early to tell with any certainty where liquidity will flow. In truth, we may not have a clear picture even by the end of the year.
This is partly down to the sheer scale and scope of MiFID II, but also because of the staggered timetable for rolling out a central feature of this new landscape: systematic internalisers (SIs), the mandated mechanism for bilateral liquidity provision....