Waters Wavelength

On the podcast, Anthony and James read the tealeaves after William Hinman, head of the division of corporation finance for the Securities and Exchange Commission (SEC), said that “current offers and sales of ether are not securities transactions,” and what that could mean for cryptos, including bitcoin, going forward (2:45). Then they shift their attention to the concept of privacy and how lawyers (including James’ wife!) are addressing the issue today, and what that could mean for capital markets firms going forward (10:00). Finally, they wrap things up by giving their World Cup predictions and what that could mean for world peace in the future (23:00).

This week on the podcast, Anthony and James first look at the London Stock Exchange’s outage that resulted from “technical issues” with its auction system, and why the industry should expect more glitches—across the world—in the future. Then they turn their attention to both failed blockchain projects and projects that were announced last year that have actually gone fully live. They wrap the show up talking about the state of mainstream magazines (because we all know that Waters magazine is the finest magazine covering fintech in the world). Outages 1:45 What happened at the LSE? https://www.waterstechnology.com/exchanges-trading-venues/3685356/issue-with-auction-system-led-to-lses-morning-blackout 5:00 The regulators are starting to care more about outages. https://www.waterstechnology.com/exchanges-trading-venues/3529391/nyse-fined-14-million-by-sec-for-reg-sci-violations 6:00 Why we should expect more outages across the industry. Blockchain 8:15 First, a look at some of the failed blockchain projects th

On the podcast, Wei-Shen Wong, Waters’ Asia editor, joins to discuss the dispute unfolding between the Singapore Exchange (SGX) and India’s National Stock Exchange (NSE) over index licensing. Before that, though, Anthony and James look at how the European Securities and Markets Authority (Esma) has come down on reporting platforms, saying that the data they make available to the public is often not exactly in line with what the regulator wanted when it rewrote Europe’s trading rulebook. Esma v Reporting Platforms 2:00 What is the problem that Esma is looking to address? 3:15 What is Esma asking reporting platforms to do? 4:30 What are the main concerns for the reporting platforms? 6:00 What are politicians and market participants saying? https://www.waterstechnology.com/regulation-compliance/3672661/apas-under-pressure-as-esma-cracks-down-on-data-tangle NSE v SGX 10:30 Wei-Shen joins and begins by laying out the groundwork for how we got to this point, which started with the Securities and Excha

This week, Chris Isaacson, the chief information officer of Cboe Global Markets, joins the podcast to discuss the exchange operator’s mass migration of its futures and options exchanges to a brand-new technology base. Ever since Cboe acquired Bats in 2017—and, as Chris tells James, even before the ink was on the page—the plan had been to move to Bats’ proprietary technology, and the firm completed its latest migration on May 14th with the C2 Options Exchange. Chris discusses the challenges of moving an entire exchange’s the base while keeping it running, and looks ahead to the big project in 2019, when Cboe will be moving its flagship options exchange to the new foundation. Before that, though, a quick look at the General Data Protection Regulation (GDPR), which went live on May 25. GDPR 2:15 GDPR is now live—here’s what you need to know. 6:15 Who will be the first to get hit with a fine? 7:30 A rule that snuck up on everyone. 9:45 What this means for the future. https://www.waterstechnology.com/regulation

Wavelength Podcast Episode 121: An Examination of CQRS; Coinbase’s Institutional Play This week, Dave Remy, the chief technology officer for Linedata’s asset management vertical, and Chris Condron, principal software architect in the asset management unit, join the podcast to discuss developments in the CQRS-ES space. For those not in the know, CQRS is a data architecture pattern that stands for Command Query Responsibility Segregation, and ES is Event Sourcing. While that might not jump out as being the sexiest of topics, it’s actually a very interesting development in the tech world that is seeping into the capital markets. Dave and Chris discuss the benefits and challenges of the pattern and provide their insights as to how firms can start to experiment with it. But before that, James gives an update on some big news coming out of the crypto space and then at the end, Anthony and James pick an easy target to make fun of—the MTA. https://www.waterstechnology.com/exchanges-trading-venues/3642886/crypto-ma

This week, Anthony and James examine the issue of clearinghouse management and the risk of non-default losses at a center counterparty clearinghouse (CCP). Essentially, how do these entities manage operational risks around cyber-attacks, fraud or disaster recovery. Futures Commission Merchants (FCMs) argue that they shouldn’t be responsible for risk they don’t introduce into the clearinghouse; CCPs argue that the whole point of a clearinghouse is to mutualize risk. This topic is coming to a head because earlier this year the European Parliament proposed rules on how these should be managed, the first time anyone’s really codified it. Under this, the CCPs have to contribute 25 percent of what they put into the default fund—known as their “skin-in-the-game”—to cover these risks, before they dip into member money that is meant to be there to guarantee trades. James discusses the main issues involved, how serious a non-default loss could be versus something like a member default, why everyone should care about

On the podcast, Anthony and James examine the M&A space, specifically as it pertains to acquisition-hungry SS&C and its aborted bid for Fidessa. They also hit on all the features that have gone live in the last week and then have a discussion about data privacy and how much people are willing to give away. 0:00-4:30 Housekeeping notes and how to apply for this year’s Waters Rankings. 4:30 SS&C chief executive Bill Stone says the tech giant is still interested in making deals even after it declined to bid for Fidessa. But first, what’s going on with the Fidessa-Temenos-Ion saga now? 9:00 SS&C has cash to spend—will it spend it, should an attractive target present itself? 12:30 What can DST expect from being part of the SS&C family? 14:15 Some reckless speculation as to which company SS&C might look to gobble up next. 20:45 A look at the features that have gone live in the past week. (See below for links.) 30:00 A discussion about data (and DNA) privacy in an era where people don’t care about privacy. M

Anthony calls James from Raleigh, North Carolina, where he’s spending his vacation, to talk about happenings from the past week. Included is a look at both RTS 27 and RTS 28 in Europe, how exchanges are using AI to monitor their markets and how some are worried that so-called Big Tech providers like Google might start taking aim at the financial markets and squeeze out some of the more traditional players in the space. (See ‘The Lineup’ section below for more detail.) Then, at the end, a special pullout from a recent webinar that provided something of a “State of the Union” for the Consolidated Audit Trail (CAT) rollout in the US. Here are the speakers from the webinar, which was moderated by James: Tom Sporkin, Partner Buckley Sandler Joshua Beaton, CAT Program Manager and Head of US Regulatory Reporting CTB/Executive Director, Morgan Stanley Nathan Call, Director of RegTech Solutions, Protegent, Global Financial Services, FIS The Lineup 2:00 Exchange executives are not happy about requirements stemming

On the podcast, Anthony and James take a look at some of the topics that will be discussed at this year’s North American Innovation Summit, including artificial intelligence (AI), chatbots and fintech disruption. To hear the full interview, listen in the player above, or you can download it. 0:30 The North American Innovation Summit—register today. 2:30 Why are artificially intelligent tools gaining in popularity? 5:00 Some examples of AI being used in the capital markets. 12:00 Some thoughts on quantum computing. 15:30 Will chatbots become prevalent on the trading floor? 24:00 The benefits and challenges that fintechs offer. 26:45 What risks and opportunities do banks face by being so active in setting up innovation labs? 31:45 James tells us about his favorite dive bars in London.

On the podcast, Anthony and James first discuss the potential Temenos-Fidessa deal and what the entry of SS&C Technologies and Ion Investment Group means for Fidessa going forward (4:15). Then they turn their attention to bitcoin, but rather than look at it as an investment vehicle, they examine some of the byproducts of bitcoin, such as the energy it takes to mine for these coins and some of the real-world impact that’s already had, particularly in Tony’s old college town of Plattsburgh, NY (11:30). They also hit on the Anthony Joshua-Joseph Parker fight (30:30), and they give some TV picks to watch over the weekend (33:30). Also, the Women in Data and Technology Award write-ups are now live online and we have also posted a longer feature where eight of our winners give advice for advancement in what is a male-dominated world.

This week, Anthony and James look at CME Group’s potential acquisition of NEX Group, with a focus on what this deal entails from a trading-platform perspective, how it might affect the fintech venture capital space, and how Brexit plays into this deal (2:00-11:00) and then Anthony talks about this weekend’s fight between Anthony Joshua and Joseph Parker (11:00-19:00). https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3558686/nex-ceo-sees-opportunity-for-opportunities-after-cme-deal

Fresh off his trip down to Florida for the FIA Boca conference, James Rundle talks to (a very jealous) Anthony Malakian about some of the key topics of discussion from the event. 2:00 FIA Boca is increasingly becoming a tech conference. 4:00 How the DTCC plans to evolve in a post-blockchain world. 6:30 What other blockchain/DLT stories came out of Boca? 8:00 Cryptocurrencies were getting the most play at the conference. 13:15 Artificial intelligence is also increasingly becoming a point of interest for even non-technologists. 15:30 People are excited about the Financial Desktop Connectivity and Collaboration Consortium (FDC3). 18:00 The Commodity Futures Trading Commission is not happy about the European Commission’s clearing proposals. 23:30 Data security, data privacy, and Facebook-Cambridge Analytica.

Jesse Lund, head of blockchain solutions for IBM’s Financial Services unit, joins the podcast to discuss the evolution of blockchain. 2:30 Jesse gives a quick look at the IBM Blockchain Platform. 5:00 Real use cases for blockchain in the capital markets. 8:30 How do cryptocurrencies come into play with blockchain’s development? 12:00 Which sectors are the most ripe for blockchain adoption? 15:30 Can distributed ledgers help with the development of industry utilities? 18:00 What are some of the lessons learned during proofs-of-concept? 21:00 What are some of the next steps in blockchain’s development? 24:00 What needs to happen to improve blockchain’s processing times? 26:30 What skills will be necessary for the jobs of the future?

After a bit of a lackluster performance last week (apologies), Anthony and James return with renewed vigor to discuss fintechs. We know, we know… you’ve heard this conversation before. Well, our hosts point to several news events to highlight what they believe is a true sea change in the fintech discussions. That goes on for about 36 minutes, and then they ramble about the Oscars. We do recommend the first 36 minutes. 1:30 Check out this profile of JPMorgan Asset & Wealth Management CIO Mike Urciuoli. https://www.waterstechnology.com/people/3524061/hurricane-mike-urciuoli-storms-jpmorgan-awm 3:30 A quick look at the SEC handing out its first Reg SCI fine. https://www.waterstechnology.com/exchanges-trading-venues/3529391/nyse-fined-14-million-by-sec-for-reg-sci-violations Fintech Disruption 4:30 European authorities have published a wide-ranging strategy designed to formalize the bloc’s response to and efforts in the fintech sector. https://www.waterstechnology.com/industry-issues-initiatives/3530876/euro

This week, Anthony and James look at some of the challenges that utilities face getting off the ground and look at whether or not emerging technologies like artificial intelligence and blockchain can help their efforts to gain momentum (3:00). They then hit on some of the features from the latest issues of both Waters and from Inside Data Management (14:30). Finally, they chat about the upcoming Fifa World Cup (20:30). https://www.waterstechnology.com/regulation-compliance/3523881/emerging-tech-could-help-push-utilities-forward

This week it was announced that Temenos is set to buy Fidessa, in yet another major acquisition in the capital markets space during the first two months of 2018. Victor Anderson phones in from London to chat with James Rundle about the deal and what it might mean for M&A going forward into 2018. Victor—who has been covering this space for over 16 years—has some funny anecdotes about Fidessa employees, past and present. 2:45 Victor joins and explains why he’s not too surprised by this recent pairing. 5:30 Some examples of past successful acquisitions. 8:00 While Fidessa being bought isn’t surprising, what about the fact that it’s Temenos doing the acquiring? 12:45 Is there a risk of Fidessa losing its London fintech heritage? 18:00 The market seems to be splitting between massive all-singing, all-dancing corporations and startup fintech firms. Does that mean that there’s no room for mid-sized vendors? 24:30 Victor has a few funny stories to tell about Fidessa, and certain fintech figures who appeared on Top

On Wednesday, the Commodity Futures Trading Commission (CFTC) had a meeting of its Technology Advisory Committee (TAC). Anthony and James look at three keys themes that arose during the day-long discussion. 1:00 A quick reminder to enter the Sell-Side Technology Awards. 2:00 Anthony provides some metrics around previous TAC meetings, which have once again become rare occurrences. 5:00 US regulators are falling behind other countries in the fintech space, according to some. 11:00 The TAC gave little insight as to Regulation Automated Trading’s fate. 17:00 One commissioner says that the cryptocurrency industry should form a self-regulatory organization. James examines whether that’s a good idea or not (hint: not). 22:00 Sometimes Anthony and James like to use the podcast to get some things off their chest. In this case, they talk about gun control in America. Feel free to skip their meandering conversation.

Dan Schleifer, co-founder and CEO of charting specialist ChartIQ, joins the podcast to discuss some of the challenges that he and fellow co-founder Terry Thorsen faced when they created the company out of a barn in Charlottesville, Virginia, in 2012. 1:00 Dan talks about some of the early growing pains. 3:00 Did you know that, not only did they start out of a barn (just like Markit), but that the barn had been renovated previously by the Dave Matthews Band to be a recording studio? 5:00 Some more advice on traps to avoid early on. 7:00 Oh, and the long sales cycle—always remember that. 9:30 What were the advantages in starting in a suburban area, as opposed to New York or London? 11:30 What about finding talent outside of tech hubs? 14:00 Why is the fintech sector becoming more viable—relatively speaking—than it was a decade ago? 17:30 Is the market becoming so flooded with niche firms now that having a startup grow into a Wall Street giant is impossible? (Dan managed to hold out saying, “ChartIQ for the gr

Inside Data Management editor Max Bowie—who has been covering the data space for 15 years—joins the podcast to give his insights as to what the Thomson-Blackstone tie-up could mean for the industry going forward. Then, naturally, they talk about the best breweries and beer bars in Brooklyn and Queens. https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3482206/thomson-reuters-blackstone-agree-20-bn-financial-risk-unit-spin-off 2:00 To start, a quick update as to the specifics of the deal. 3:45 Amid the uncertainty that this acquisition brings, Max gives his initial impressions as to what some of the main questions will be going forward. 7:00 Then, some speculation as to whether some of the pieces of Thomson Reuters’ Financial & Risk business unit will get sold off, or built upon. 8:30 Some examples of big acquisitions that went sour and some examples of big acquisitions that worked out. 11:45 What happens to the companies that Thomson Reuters is invested in, such as Tra

Anthony and James examine a new report about how the buy side is lagging behind when it comes to blockchain development, and how K-12 education is lagging when it comes to teaching coding. 2:30 A new report takes a deep-dive examination of distributed-ledger technology (DLT) development on the buy side. https://www.waterstechnology.com/infrastructure-technologies/3459571/buy-side-bands-together-on-blockchain-vision-in-landmark-paper 5:00 Hasn’t the sell side always taken the reins when it comes to new, industry-wide technologies? For example: cloud. Why should the buy side be proactive when it comes to DLT? 12:00 What should be the way forward for buy-side firms as they start to get into the business of blockchain? 13:30 Schools in America are failing at teaching kids how to code early in their education development. Why is that a problem? 25:30 The problem with movie critics.