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The Trading Mesh

Looking Ahead to FIX’s Nordic Trading Briefing

Tue, 05 Sep 2017 07:24:25 GMT           

FIX Trading Community’s Nordic Trading Briefing will soon be returning to Sweden for its eighth year, with an innovative line-up of the key topics of relevance to this region’s financial services professionals. As such, I am delighted to be joining them for the day and am looking forward to serving alongside Morten Lindeman, CTO of Infront, as we will be co-chairing the event together this year. I am also particularly looking forward to hearing this year’s keynote address, which will be given by Klas Granlund, Director of the Market Analysis department, Finansinspektionen.

Understand the challenges

MiFID II will of course dominate the agenda once again, but with the start date fast approaching this event will provide an invaluable opportunity to learn about many of the finer, yet vital, details of this major regulatory change. Together with Morten, we will jointly host the first session of the day with a session on “What’s Happening in the Nordics” where we will be discussing this and the other challenging topics which will be tackled by panels throughout the day.

It also gives us a chance to look back at the key trends which were identified by last year’s session – and discuss whether any of the forecasts made about the direction of trading in the Nordics have come to pass. We will also be looking at the year ahead and at the wide range of issues that are, and will be, having an impact on our industry. Together we’ll be exploring the specific impact that these will have on the region, including a look at M&A activity, start-ups and emerging technologies. In addition, we will also be discussing whether there’s evidence of greater consolidation in the region and what the expected impact of this might be. This will also be a great opportunity to look at the development of new firms in the Nordics, how they can be supported and the challenges facing new entrants to the market.

Electronification of OTC trading

Later in the day I will also be joining the panel to look at the opportunities and issues related to electronification in OTC trading. Again, regulatory change is going to have a marked impact on market structure, most notably MiFID II. But I believe the trick will be to pre-empt, know the direction of travel and start adapting your operations now in readiness for the impact of these upcoming changes.

As I’ve discussed in a previous blog post, one of the most effective ways for firms to both meet new regulatory requirements and retain their competitive edge will be to embrace hybrid trading technology, which combines the best of voice and electronic trading. In particular, it will be very interesting to hear from my fellow panelists how they think MiFID II is affecting the OTC business and where electronification is taking place in the industry. There are also issues to be addressed around gaining efficiency in new required workflows and in automating OTC trading, which I believe can improve performance at a wider level and create exciting new opportunities for growth.

Following the afternoon break, I will also be moderating the panel discussion on clearing. Again, MiFID II is going to have a lasting impact on the industry and it will be interesting to hear what the panel believes the future will hold for CCP’s and GCM’s – and if the market is really ready for pre-trade limit checks. The pros and cons of interoperability will also make for a lively debate, coupled with a frank look at the very real issues around margin costs and clearing fees.

Innovative content

The day also includes an in-depth review of MiFID II, which will be useful for everyone as there is still much to do before January 2018, and a look at how regulation is creating changes in market structure. There are also a number of very interesting sessions to attend, including panels on systematic internalisers (SIs), block trading and the expected impact of liquidity as a result of the incoming MiFID II reporting obligations.

The final two streams of the day are also extremely useful – one addresses the regulatory agenda around surveillance and the other will take a look at the exciting and innovative area of artificial intelligence and machine learning. As all the content is industry-driven and formulated by senior representatives from across the Nordic region, the event will undoubtedly provide a number of valuable insights and perspectives on the direction of travel in our industry. And if you’d like more details about this event, or are interested in joining us, please visit FIX’s Nordic Trading Briefing 2017 for more information.