Traditional asset managers, quantitative hedge funds, investment banks and other financial firms are coming up with innovative ways, such as coding competitions and data challenges, to attract technology talent.
The way bond sales and purchases are reported globally could be standardized to help regulators understand what is going on in the markets, the International Organization of Securities Commissions said in a report. The inability to compare data from different countries complicates efforts to evaluate the effect of regulations on trading, the report said.
The three-year trend of falling Wall Street bonuses has reversed, according to data from New York state Comptroller Thomas DiNapoli. The average bonus received by employees of New York City securities firms rose 1% to $138,210 in 2016.
Nearly 50% of buy-side market participants think artificial intelligence has the most potential to disrupt their industry, compared with 12% who think that about blockchain, according to a survey by BackBay Communications and Osney Media.
Nasdaq CEO Adena Friedman said an existing tech partnership with Saudi Arabia's exchange might help facilitate a linkup with Saudi Aramco for its proposed IPO. "Every exchange in the world right now is competing to be considered as an exchange for the Aramco listing, including us," Friedman said.
Some banks have been slow to adopt data technology, but they are finding next-generation technology makes derivatives sales teams more effective. "Banks are just waking up to this opportunity and realizing it can deliver an improvement in profitability in the long term," said Nomura's Craig Butterworth.
Just as the internet forever altered the way consumers access news and information, blockchain and cryptocurrencies could prove a game changer for finance. "Like the internet, this technology is designed to be decentralized, with 'layers,' where each layer is defined by an interoperable open protocol on top of which companies, as well as individuals, can build products and services," write Joichi Ito, Neha Narula and Robleh Ali.
Market-changing technology, including artificial intelligence, smart data analytics and distributed-ledger technology, presents a reinvention opportunity for the financial-services industry, says Steve Gibson, CEO of NEX Group investment arm Euclid Opportunities. Euclid looks for financial-technology companies that transform markets when making investment decisions.
Federal Deposit Insurance Corp. Vice Chairman Thomas Hoenig proposed legislation Monday to ease stress tests for banks that set apart their capitalized banking and investment businesses. JPMorgan Chase, Wells Fargo and Citigroup are among firms that will see major effects if the initiative passes.
J. Christopher Giancarlo, President Donald Trump's nominee to head the Commodity Futures Trading Commission, called for the review and simplification of the agency's rules with the intention of reducing financial firms' regulatory burden. The plan does not move to repeal or rewrite legislation, but rather would streamline regulatory data submission and eliminate outdated or redundant requirements.
The industry is moving to a shorter settlement cycle from trade date plus three business days (T+3) to T+2 in the US for most securities with a target date of Sept. 5, 2017. Join us on March 29 at the T+2 Settlement Conference in NYC for a deep dive into the next phase of the industry's migration to T+2. The conference will address behavioral, systems, operational and regulatory changes necessary to meet the T+2 implementation date. This is a must-attend event for Compliance, Regulatory, Operations, Technology, and Business Leaders within the sell-side, buy-side, trading, exchange, service provider, and vendor communities. Reserve your seat today!
SIFMA's Regulatory Tracker outlines SIFMA's ongoing contributions to the legislative and regulatory rule-making processes. The chart lists select regulatory actions and deadlines as well as areas of key priority for SIFMA, including taxes, municipals securities, Dodd-Frank implementation and more. The Pipeline includes links to SIFMA comment letters filed within the calendar month, and the respective SIFMA committee and SIFMA staff contact are listed for further information.