Modern Money SmartPod

Matt Judge, European Head of Sales for Singapore Exchange (SGX), helps power our road trip to the International Derivatives Expo (IDX) in London across the finish line. Matt touts SGX's continued effort to boost its emerging market currency offerings by sharing an update on the recent launch of Brazilian Real futures, in partnership with B3. Matt also highlights SGX's success with T+1 and outlines other initiatives aimed at providing clients with cross-border connectivity across various asset classes.

Our road trip to the International Derivatives Expo continues with this conversation with Chris Edmonds, President of Fixed Income and Data Services at Intercontinental Exchange. Chris highlights how markets have handled recent volatility, citing the impact of the Israel-Iran conflict and US tariff policies. Edmonds noted that the industry has managed volatility well, with processing reaching 1.3 trillion messages in a single session. Chris also looks back on the lessons learned from  FTX's clearing proposal and shares an update on the progress of ICE's Treasury clearing solution. Finally, Chris expresses what an honor it has been to serve as one of the co-heads of the Mission (Im)Possible Kilt Challenge that is rasising funds to benefit Futures for Kids.

Fresh off his panel at the International Derivatives Expo in London, Derek Sammann, Senior Managing Director and Global Head of Commodities Markets at CME Group, joins the show to discuss how markets are handling recent volatility events. CME Group has seen record volumes in energy markets and has also seen growth across agricultural and metals, with significant increases in EMEA and APAC regions. Sammann emphasized CME Group's dual focus on risk management and price discovery, and notes how retail participation -- particularly in gold -- is surging, driven by inflation hedges.

Day Two of International Derivatives Expo kicks off with a conversation featuring Chris Rhodes, President of ICE Futures Europe. Fresh off his appearance on the Exchange Leaders panel, Rhodes joins the show to outline how ICE Futures Europe continues to foster innovation amid a landscape of regulatory divergence. Rhodes explains how ICE leverages its global footprint to deliver products that meet regulatory standards across various jurisdictions. Rhodes also shares his views on how energy commodites and weather derivatives continue to evolve and present new market opportunities. 

Alun Green, EVP and Managing Director of Futures and Options at Trading Technologies, joins the show from the International Derivatives Expo in London to discuss the growing importance of integrating technologies like AI and cloud computing as markets adjust to new variables like the boom in energy demand. Green outlines the challenges of 24/7 trading, emphasizing the need for real-time risk management and consolidated platforms. Green also notes the trend towards unified trading tools that integrate best practices from various asset classes, aiming to streamline the trading experience for end users.

Iouri Saroukhanov, the Head of European Derivatives at Cboe Global Markets, checks in from the International Derivatives Expo to provide an update on the the trading landscape for options and other derivatives. Saroukhanov shared some of the highlights from a panel discussion he participated in at IDX about the Future of Options Markets in Europe. To that end, Saroukhanov also outlines some of the key points from a white paper titled "Policy Recommendations to Unlock Retail Participation in Europe's Options Markets"  that was published earlier this week by Cboe.

Charlotte Alliot, the Head of Financial Derivatives at Euronext, joins the show from the sidelines of the International Derivatives Expo in London to discuss trends that are shaping European markets. Alliot highlights Euronext's growth in equity options and explains the cultural differences in European derivatives trading. Alliot outlines Euronext's initiatives to enhance interest in retail trading, including educational programs in multiple languages and the launch of mini options for high-nominal stocks. Alliot also details the upcoming launch of mini futures on European government bonds, aimed at both retail and buy-side investors, to enhance liquidity and market access.

With some of the biggest names in the financial services industry gathering in London next week for the International Derivatives Expo (IDX), Futures Industry Association President and CEO Walt Lukken stops by the show to preview some of the highlights from the agenda. Lukken also shares his views on how the industry has performed during these times of increased market volatility and details some of the important work the FIA has undertaken in recent months related to issues like tokenization and regulation. 

More resources

FIA White Paper on Tokenization

Derivatives Market Institute for Standards (DMIST)

Usually, when guests on this show discuss forwards, futures and options, we're talking about financial derivatives products. But for this episode, we are shifting gears to spread the word about an organization that is helping young people around the world look forward to brighter futures with more options.

Futures for Kids is a charitable foundation that raises funds to support the lives of disadvantaged children and young people. Emma Davey is the Chair of the Board of Trustees at Futures for Kids and if her name is familiar to you, that’s because before her recent retirement, Emma was the Chief Commercial Officer at the Futures Industry Association (FIA). 

Emma is here to tell us more about the history of Future for Kids and share details about the important work the organization does around the world. She is also here to help promote a black-tie Gala Dinner to benefit Futures For Kids that the FIA is hosting at the conclusion of the International Derivatives Expo in London.

More resources

Futures For Kids

The Mission (Im)Possible Kilt Challenge

International Derivatives Expo

Technology has long been a key component of any operations strategy in financial services. But the recent rise of AI is changing the operations landscape at a rapid pace. Ryan Clare, Global Head of Capital Markets - Go To Market at ServiceNow, outlines how technology is powering today's markets and how AI is being leveraged to help operations evolve today - and in the future.

Key highlights (with timestamp)

What are the hottest topics in capital markets tech right now? (0:50)

What kind of impact is AI having on market infrastructure? (1:57)

How is AI reshaping trading? (3:01)

How is AI playing a role in risk management? (4:15)

What is the future of AI when it comes to compliance? (6:26)

How is increased automation changing the operations landscape? (7:54)

What are the biggest concerns around the deployment of AI and other technologies? (9:32)

Are there enough developers with the skills needed to create all these products? (10:37)

Aside from AI, what other technologies are you keeping an eye on? (12:11)

Do you have any bold predictions for what we're going to be talking about when it comes to technology and capital markets two or three years? (16:03)

How can operations professionals prepare for all this rapid change? (16:58)