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Category Archives: JLN Subgroups

Parent category for JLN subgroups from the newsletter

Nasdaq: Q&A with Oliver Albers – Data Is Revolutionizing Markets Standard

Three Changes to Enhance Fairness, Transparency and Competition Editors note: Nasdaq shared with John Lothian News an internally produced question and answer interview with Oliver Albers, SVP and Head of Strategic Partnerships for Nasdaq’s Global Information Services. Note from Nasdaq: Here at Nasdaq, we often say, “information is the lifeblood of markets.” That’s especially true in today’s digital era, and it’s not hyperbole. Market data is far more than simply a collection of buy and sell orders communicated on stock-trading platforms. It’s the collection and curation of billions of individual data points that are the essential fuel for the entire market in…

ErisX Enters the Crypto World With New Spot and Futures Platform Standard

It looks like there is a growing market for regulated exchange trading of cryptocurrencies. ErisX, the U.S. futures exchange best known for offering listed interest rate swap futures, just announced plans to launch a derivatives exchange (DCM) and clearing organization (DCO) that will offer digital asset futures and spot contracts on one platform. The exchange plans to offer contracts on bitcoin, bitcoin cash, ethereum and litecoin. This is going a step beyond the CME and the Cboe, which began offering cryptocurrency futures in December 2017. Eris needs a DCO license to clear its crypto contracts; that application is pending with…

ESMA Keeping Tight Leash On EU Trading Venues Standard

Steven Maijoor, chair of the European Securities and Markets Authority (ESMA), said MiFID II rules launched in January are indeed living up to expectations of pushing more trading onto exchanges, but more work may be required. In remarks before the World Federation of Exchanges annual meeting in Athens, Maijoor said less trading volume is flowing to dark pools and onto exchanges and so-called systematic internalisers (SIs), used by banks and algorithmic trading firms to fill customer orders. The use of ongoing periodic auctions for contracts, however, is coming under greater scrutiny, Maijoor said. These millisecond auctions may not being adhering…

Build or Buy? Exchanges Continue to Branch Out For Revenues Through Acquisition Standard

Exchanges are continuing to look at two areas for revenue growth – consolidation and acquisition of non-exchange service firms, according to a new report from Burton Taylor. The report, presented at the World Federation of Exchange’s General Assembly and Annual Meeting in Athens and authored by Andy Nybo, shows that ICE topped exchanges in revenue in 2017 with $4.6 billion, followed by CME with $3.6 million, Deutsche Boerse with $2.7 billion, LSE Group with $2.5 billion and Nasdaq with $2.4 billion. Global revenues from the 15 top exchanges totaled $30.7 billion last year, up 8.1 percent from 2016. The sector…

Tech firms looking to change the technology stack Standard

The question for the industry today is whether firms have hit the technology breaking point. In other words, can firms continue to maintain and sustain the technology they’ve built over the past 20-plus years? A new breed of tech firms is emerging to help address this challenge. There are increasing signs that the so-called “technology stack” at various firms is not economically sustainable, nor is it necessarily more efficient. For years, various technology vendors have been expanding their product mixes to handle front, middle and back office responsibilities for firms. The industry is seeing a mix of established tech vendors…

The Mothering Type: JPX’s index suite shows strong July numbers and new-contract growth Standard

JPX

It’s been a solid year for exchanges with some welcome volatility and enough economic moves to keep it interesting. Those are common themes most markets have been able to capitalize on, and the Japan Exchange Group is well in that mix. July futures volumes showed some solid strength across its index suite with its Topix futures up 22 percent in July with an average daily volume of 1.15 million contracts. Its Nikkei 225 futures volume rose almost 40 percent for the month to 72,820 contracts traded daily. The other notable is its fledgling TSE Mothers Index futures, up 263 percent…

YCharts Seeks to Turbocharge Growth; Adds TT’s Michael Kraines to the Board Standard

When YCharts sought to fill their open board seat, they were looking for someone who could help this Chicago Fintech success story continue its robust growth and maybe help turbocharge it. They found the answer in an executive from another Chicago fintech success story, Michael Kraines, President and CFO of Trading Technologies. YCharts sits in a sweet spot competitively: less expensive than some of the dominant players like Bloomberg and Thomson Reuters, and having more functionality for its wealth advisor clientele than the free offerings from Google or Yahoo Finance. With an easy to use, intuitive interface, as well as…

EU Parliament and ECB Taking a Look At Cryptocurrencies Standard

Thom Thompson 475x300

Last week, which admittedly was a slow financial markets news week, headlines in the cryptocurrency press announced that a new EU report told officials not to ban bitcoin. Blockchain News said the report “. . . blasts economists who criticize cryptocurrencies.”  There was no blasting. While the report prepared by an EU policy department did provide some sound bites, it was one of five reports about central bank monetary policy toward virtual currencies that the EU Parliament had requested. If the briefing papers do guide the discussions, there is no reason to expect shifts in today’s slowly evolving bank regulatory…

NFX Basis Point Value Contracts; One quarter hubris, three quarters details Standard

The hubris is mine, not Nasdaq’s. Over 20 years ago I came up with the idea for an innovative new futures contract that would improve hedging and engage speculators in new ways in fixed income trading. The idea was basis point value futures. Today, Nasdaq announced just that: a new U.S. Treasury futures product that builds on their cash Treasury market and allows customers to use “the dollar value of one basis point” to more accurately hedge a portfolio of cash Treasurys. The proper name of the contracts is: U.S. DV01 TREASURY FUTURES. I have shared this idea with many…