FLASH FRIDAY is a weekly content series looking at the past, present and future of capital markets trading and technology. FLASH FRIDAY is sponsored by Instinet, a Nomura company. The broker-dealer space is undergoing significant transformation with the number of U.S. brokerage firms continuing to shrink. There were 3,378 firms registered with FINRA in 2023, a decrease of 16 firms from 2022, 229 firms from 2018 and 1,448 firms from 2017, according to the regulator’s 2023 Industry Snapshot report. David Choate David Choate, COO at CAPIS said that fixed costs continue to rise, while the ove ..read more

Cboe Global Markets Realigns Digital Asset Business, Leveraging Strength and Expertise in Derivatives and Clearing Company plans to transition digital asset derivatives trading and clearing into existing derivatives and clearing business lines Plans to wind down Cboe Digital Spot Market in third quarter 2024 CHICAGO, April 25, 2024 – Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced plans to refocus its digital asset business to leverage its core strengths in derivatives, technology and product innovation while reali ..read more

Continues product innovation in anticipation of client risk and regulatory mandates CHICAGO, April 25, 2024 – Sterling Trading Tech (‘Sterling’), a leading global provider of technology in order management, risk and margin, and trading, today announced plans to support fixed income securities by the end of Q2 2024. As Sterling grows its OMS and Risk & Margin System offerings, this latest in a series of strategic initiatives across the product suite advantages clients by extending Sterling Risk & Margin’s (SRM) already broad and deep asset coverage. Current covered assets include U ..read more

The growth rate of active ETFs has been surging by over 20% annually since 2019, pushing total market share in the ETF industry to 8.5% Morningstar, a leading provider of independent investment insights, published “Morningstar’s Guide to U.S. Active ETFs,” a new landscape report that covers advantages, challenges, approaches, and trends of actively managed exchange-traded funds (ETFs). Overall, the report found that active ETFs can be a cost-effective, tax-efficient approach to active management for investors, but as with any active investment, can carry risk over the long term. “Active ETFs h ..read more

FIA cautions CFTC on regulation of AI FIA recommends “technology-neutral” approach to regulation FIA says CFTC should focus on “outcomes and use cases” rather than AI itself FIA letter joined by CME, ICE and FIA PTG  Washington, D.C. – FIA today responded to a request for comment from the Commodity Futures Trading Commission on the uses of artificial intelligence in derivatives markets.  FIA welcomed the CFTC’s decision to seek feedback from the public before determining whether additional regulation is needed, and encouraged the agency to contin ..read more

SIFMA Statement on FTC Non-Compete Rule Finalized Today Washington, D.C., April 23, 2024 – SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. regarding the final Federal Trade Commission (FTC) non-compete rule: “We are carefully reviewing the final rule released today and appreciate that the FTC carved out the sale of businesses and the existing agreements for senior executives. We however, remain concerned that the near-categorical prohibition on non-compete clauses would hurt competition and the economy by terminating long-established practices of ..read more

+++ NORWALK, Conn., April 23, 2024 – FactSet, a global financial digital platform and enterprise solutions provider, today announced a major enhancement to its portfolio management solutions with PM Hub. PM Hub empowers institutional portfolio managers with an innovative solution that streamlines portfolio management and seamlessly integrates with research and trading workflows. With PM Hub, users can view real-time updates on multi-asset class portfolio performance, risk, and composition; compare pre- and post-trade analytics; monitor external research, including news, upcoming events, and be ..read more

By Katia Falina, Head of Buy-Side Post Trade Product, Bloomberg The deadline for T+1 regulation in May 2024 for US markets has caused a flurry of activity in the media and amongst regulators, but signs indicate inactivity at the firms who will need to comply with the regulations is still widespread.  Statistical data drawn by the Bloomberg AIM Post Trade product team suggests that perhaps only a minority of firms have fully integrated straight-through processing (STP) and automation required for T+1 compliance. TC Recommender, Bloomberg’s keystroke technology that helps firms understand h ..read more

On April 22, 2024, DTCC issued the following statement: The implementation of a T+1 settlement cycle in the U.S. is a little over one month away, and market participants continue to prepare for the May 28, 2024, deadline. As firms consider their implementation approach, many are focusing on the importance of achieving same-day affirmation. Our latest analysis shows that in March 2024, 74.95% of transactions were affirmed by the DTC cutoff time of 9:00PM ET on trade date, an increase from 74.5% in February. When considering specific market segments as of the end of March 2024: Prime ..read more

Copenhagen, New York, London, Singapore – 23 April 2024 – SimCorp today announced the introduction of its new flagship integrated platform solution for the global buy-side, SimCorp One. SimCorp One includes Dimension, Axioma, Client Communications, Data Management Services, Business Services as well as SimCorp’s ecosystem of third-party solutions — all connected to the industry-leading Investment Book Of Records (IBOR).   Combining the technology company’s best-in-class software and services into one integrated platform enables faster and more cost-effective business solutions and d ..read more