Latest Blog Posts

The Potential Implications of the ECB’s Stress Test Results

Peter Farley

Jul 28, 2016
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The results of the latest ECB stress tests on European banks, due on 29 July, will determine whether the banks have sufficient capital buffers to withstand theoretical adverse swings in asset prices, interest rates and other macro-economic variables. At its heart these stress tests are designed to “assess banks’ ability to meet applicable minimum, and any additional, capital requirements under stressed conditions”, according to the European Banking Association, which is co-ordinating the exercise. read more

The Rise of #Fintech Asia

Chris Skinner

Jul 28, 2016
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I just spent a weekend in Thailand at the Techsauce Summit.  It was a great conference, and it reminded me of the time I’ve spent in Asia lately.  After the books Digital Bank and ValueWeb were translated into Korean, Chinese and soon to be Japanese, I guess the region is interested in my thinking.  Or maybe it’s more a reflection of the rise of FinTech Asia, the Silicon Dragon. Interestingly, it’s a very different flavour of FinTech though. We probably already know about how Alibaba is different, and the heavyweight battle between them and Tencent. read more

Mexico blues

Steve Grob, Fidessa

Jul 27, 2016
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Back from a couple of weeks in Mexico where it seemed the whole world was going steadily insane (or maybe that was just the tequila). Anyways, it was reassuring to start the week with another “wow is that what they really meant?” moment whilst gorging on the never-ending box set known as MiFID 2. This time it’s about the obligations on brokers to report annually their top venues of execution. A sensible(ish) pointer towards disclosure and best execution, but there’s a catch. The wording means that brokers will need to disclose if they outsource their order flow to one of the big boys as this could easily be classified by the lawyers as an “execution venue” just as much as BATS, Turquoise, LSE and others are. read more

Managing Big Data After Brexit

Ivy Schmerken, FlexTrade

Jul 26, 2016
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The UK’s Brexit vote threw traders and investors off-balance and disrupted global financial markets. After the UK’s June 23 referendum to leave the European Union, traders and investors awoke to a global sell off in stocks, a surge in U.S. equity trading volumes, and volatility in foreign exchange rates as the British pound sterling fell to historic lows against the US dollar. Despite the uncertainty, U.S. stocks – the blue-chip Dow and the S&P 500 — recovered and hit new highs since then. read more

Light relief for dark pools – but for how long?

Christian Voigt, Fidessa

Jul 22, 2016
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The dark pool debate has raged across the globe for some time now and, in every jurisdiction, it’s more often than not accompanied by a smattering of assumptions on almost everything and certain knowledge of almost nothing. Fair enough, in the absence of hard facts, the term dark pool doesn’t really instil a great deal of trust from the outside world. But this lack of reliable information has been significantly reduced by the recent publication of the FCA’s thematic review on equity dark pools. read more

No summer break for MiFID II

Anne Plested, Fidessa

Jul 18, 2016
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You may have noticed that the MiFID II Regulatory Technical Standards (RTS) continue to roll off the press at a steady pace signalling finalisation of the Level 2 detail. Last week alone seven RTS documents were adopted by the European Commission, including the long-debated RTS 2 on non-equity transparency and also an RTS on registration of third country firms which could become the focus of significantly more interest in light of the Brexit vote. Only a few documents now remain outstanding. The next stage following the Commission’s adoption is the European Parliament/Council scrutiny of the standards and thereafter – subject to agreement – I’d anticipate that Level 2 could be completed and published in the Official Journal as early as the end of August. read more

Hong Kong-London Market Relay on Price Discovery

Gabriel Kan, Bloomberg Tradebook

Jul 15, 2016
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On June 10, 2016 right before 15:00 in Hong Kong, HSBC (5 HK) was trading between HKD 49.8 and HKD 50.15, which represents a volatility of about 0.7%. When the London market started at 15:00 Hong Kong time, the HSBC stock price dropped as much as 1.2% (HKD 49.85 to as low as HKD 49.25) together with the dual listed shares (HSBA LN) until market close at 16:00. Rewinding back 4 months, on February 5, HSBC (5 HK) was trading between HKD 52.15 and HKD 52.75 for the whole day, which represents a volatility of about 1% volatility. read more

A Look Back and Ahead with President and CEO Vijay Kedia

Ivy Schmerken, FlexTrade

Jul 12, 2016
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Vijay Kedia has been CEO of FlexTrade Systems since 1996. Over the past two decades, FlexTrade has evolved from a startup to a major FinTech organization providing multi-asset EMSs and OMSs, TCA, advanced analytics and algorithmic trading technology solutions to leading institutions around the world. While FlexTrade started with equities, the company has steadily expanded its coverage across foreign exchange, options, futures, ETFs and fixed-income.  With nearly 420 employees, FlexTrade serves clients in more than 20 countries, and operates offices in 18 cities in 10 countries. read more