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The Trading Mesh

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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....

Identifying outliers in equity trading – why it matters

July 1, 2018 by big xyt   Comments (0)           

Identifying outliers in equity trading – why it matters
By Mark Montgomery, Strategy & Business Development, big xyt
Enormous volumes of data might be the lifeblood of quantitative analytics, but for the typical trader, dealing with data in any asset class can be complex, costly and daunting. With the explosion of data in recent years and the continuing appearance of new data sources, the challenge for practitioners is growing all the time and they need the power to identify and...

Avoiding collateral damage: an intelligent approach to pre-trade risk

June 27, 2018 by Vela   Comments (0)           

By Gerry Turner - Global Head of Platform as a Service at Vela

For many financial trading firms, having a robust pre-trade risk system is likely to feel like one of those unpleasant but unavoidable costs of doing business. A fair amount of pain, not very much gain.
Consider the potential upside. Gaining any kind of competitive advantage from having an in-house pre-trade risk system can be extremely expensive. Anything that offers demonstrable benefits typically will involve FPGA...

Roundtable Report: Systematic Internalisers: Challenges and Opportunities in the MiFID II era

June 27, 2018 by The Realization Group   Comments (0)           

Discussion hosted by The Realization Group, led by Vela, Aquis Exchange and Hudson River Trading, on May 23, 2018
MiFID II is intended to deliver better outcomes for end-investors across Europe, by increasing transparency, consumer protection and competition, while reducing cost, risk and conflicts of interest. To achieve these aims, the new directive introduces some major reforms to Europe’s equity markets: common transparency and reporting rules; tougher best execution requirements;...

Managing eComms Compliance

June 25, 2018 by Shiran Weitzman   Comments (0)           

From tactical to strategic, from compliance to efficiency, from data capture to best execution.
Under MiFID II rules all communications that support the processing of order management and investment decision-making must be captured for the express purpose of understanding how and why decisions were made, regardless of whether those communications actually resulted in a trade.
This means that compliance officers have to sift through a haystack of digital information for the needles that...

Algo Wheels and Analytics – Are the Sell Side meeting the Buy Side's needs?

June 7, 2018 by Fidessa   Comments (0)           

Following on from my last article – Low Touch Trading – The Transition from Algos to Service, I had the chance to reflect on another area covered at the recent FIX Conference. During my panel on the changing needs of the Buy Side from the OMS/EMS perspective, we polled the audience to see if the Buy and Sell Side aligned regarding technology priorities.

Question: What is the Buy Side's top technology priority with respect to their order flow.

As you can see, the...

Driving the institutional Cryptocurrency market

June 4, 2018 by The Realization Group   Comments (0)           

Two key trends have come to the fore in the global currency markets, particularly in the last 12 to 18 months, with both potentially resulting in sweeping changes to how, where and even why FX is traded.
The second of these shifts, namely the growth of cryptocurrency, was explored in greater depth by a panel of FX industry professional held in May at The London Stock Exchange – hosted by The Realization Group and sponsored by BSO.
The Realization Group’s Mike O’Hara began...