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Tag Archives: FCMs

Putting on My Broker Hat About Bitcoin Blog,Commentary,Fintech,Mwiki,Regulation,Tech / HFT

Everyone is asking about bitcoin. A journalist called and asked to interview me. A magazine called and asked me to write something. A brokerage firm chief risk manager called to ask me my opinion about bitcoin and bitcoin futures. Two weeks ago, a former employer I have not seen in 10 years called me out in Coindesk.com for my bitcoin qualms. At the dinner table my son Robby opened up about owning not just bitcoin, but bitcoin cash, ether and monero. This is a full-fledged mania. As I was driving home last night and thinking about bitcoin (as opposed to…

Other Voices: An Open Letter on Bitcoin Futures Blog,Commentary,Feature,Fintech

A lot of ink has been spilled over bitcoin and its variants. Lately, the conversation seems to be focused on whether trading bitcoin futures is a good idea. For what it’s worth, my view is that it isn’t a good idea – it’s a great idea.  Consider the following;  The futures industry exists to facilitate the transfer of risk. What asset (if that is what bitcoin is) could be more in need of risk management tools? Applying rigorous risk management to bitcoin can only help stabilize and legitimize crypto-markets.  Bitcoin and all of its variants can benefit from some supervision….

Impact: Navigating Regulation and What Comes Next, Part 3 Feature,Mwiki,Regulation & Enforcement,Video,video

At FIA Expo 2016, JLN spoke with a variety of participants in today’s markets about the ongoing effects of regulation and what those mean for the future of their businesses.   In Part 3 of our three-part series, Matt Rees, chief relationship officer at R.J. O’Brien; Justin Llewellyn-Jones, COO of Fidessa; Geoff Sharp, managing director and head of sales at Eris Exchange; David Widerhorn, CEO of Neurensic; and Alex Lamb, head of business development Americas and head of marketing with Technancial, spoke about the increasing complexity and cost of regulations, in particular for FCMs, and the opportunities to be had…

How Now and What’s Next for Retail Forex? Blog,Commentary,Regulation

Doug Ashburn

As the self-proclaimed regulatory expert at John Lothian & Co., with my first three years here spent building our regulatory database MarketsReformWiki, I am generally the go-to person on stories involving rule changes. But when I was asked about the June 1 letter from Phillip Capital CEO Lynette Lim informing customers that the firm would be no longer be offering retail forex, due to a recent ruling by the Securities and Exchange Commission, the conversation went something like this: John: “So, what is this SEC ruling all about, and is there a story here?” Doug: “Uhh…uuh…I don’t know.” So, how…

One Step Ahead: Can Silicon Valley Help, Compliance? Blog

If you are chief compliance officer at a firm – brokerage or fund – what if you could tell if the customer or one of your traders was about to do something bad, wrong or illegal? The operative words are “about to.” Chicago-based start-up Neurensic says its can do this now using artificial intelligence technology to identify behaviors that could threaten a firm’s well-being and prevent that firm, bank or broker from incurring regulatory actions that trigger hefty fines. Last fiscal year, the Commodity Futures Trading Commission reported a record $3.14 billion in civil monetary penalties with a focus on…

Utility Player: FIS’ John Avery Sees the Derivatives Utility as a Driver of Innovation Interview,Tech / HFT,Video

In June of 2015, SunGard, now part of FIS Global, launched its post-trade derivatives utility, which aims to standardize back and middle office operations and technology, with Barclays as its first customer. According to FIS’ John Avery, it is not about commoditization so much as specialization. “If we look at the clearing market as an example, firms are really there to provide their balance sheet and client service, and use that as a differentiation tool,” says Avery. “What we don’t see is a need for those same firms to maintain a book of proprietary technology.” In other words, banks and…

John Lothian Newsletter: Ranks of commodities brokers dwindle as U.S. futures industry evolves; Wall Street’s Leap Second Concern Saw Minor Hiccups, But No Chaos; Euro’s Salvation Lies in Its Political Appeal John Lothian Newsletter,Newsletter

First Read Intercontinental Exchange Announces ICE Data Services Appointments; Lynn Martin Named President and COO, David Goone Named Chairman MarketWatch Intercontinental Exchange,the leading global network of exchanges and clearing houses, announced two appointments at ICE Data Services, Intercontinental Exchange’s global data business comprising ICE and NYSE’s exchange data, analytics and connectivity services. Lynn Martin has been named President and COO of ICE Data Services, where she will manage the global data teams and platforms including ICE and NYSE market data, SuperDerivatives, the SFTI network and colocation business. She previously served as COO of ICE Clear U.S. Martin joined NYSE Euronext…

Pipelines: Nick Solinger Talks Market Infrastructure for SEFs Regulation,Video

It’s been a historic year for swap execution facilities as more were launched in the wake of Dodd-Frank rulemaking by the Commodity Futures Trading Commission. Nick Solinger, head of product strategy and chief marketing officer of Traiana, said that its been a good year for firms getting connected to SEFs and for SEFs getting off the ground. The firm connected 16 FCMs to 16 SEFs with six more on the way. “The typical FCM has been able to clear, three, four, five, six different venues with that one connection to our hub,” Solinger said. “Buy-side firms can similarly trade across…

Extreme Makeover: Gary DeWaal Says FCM Landscape has to Change Interview,Regulation,Video

Gary DeWaal

The futures commission merchant (FCM) space is likely to change dramatically in the coming years. How is the question. John Lothian News sat down with Gary DeWaal, of Gary Dewaal Associates, for his views on the shape of the brokerage industry in the coming years. “For years FCMs have tried to be everything to everybody,” DeWaal says. “Frankly, except for two or three of the big FCMs, that is not a reasonable prospect going forward. I think that FCMs are going to really have to figure out what its niche is.” DeWaal, the longtime general counsel for Newedge, said the…