On the podcast, Wei-Shen Wong, Waters’ Asia editor, joins to discuss the dispute unfolding between the Singapore Exchange (SGX) and India’s National Stock Exchange (NSE) over index licensing.

Before that, though, Anthony and James look at how the European Securities and Markets Authority (Esma) has come down on reporting platforms, saying that the data they make available to the public is often not exactly in line with what the regulator wanted when it rewrote Europe’s trading rulebook.

Esma v Reporting Platforms

2:00 What is the problem that Esma is looking to address?

3:15 What is Esma asking reporting platforms to do?

4:30 What are the main concerns for the reporting platforms?

6:00 What are politicians and market participants saying?

https://www.waterstechnology.com/regulation-compliance/3672661/apas-under-pressure-as-esma-cracks-down-on-data-tangle

NSE v SGX

10:30 Wei-Shen joins and begins by laying out the groundwork for how we got to this point, which started with the Securities and Exchange Board of India (Sebi) asking the three main exchanges in India to terminate their existing market data licensing agreements with foreign partners.

https://www.waterstechnology.com/regulation-compliance/3672661/apas-under-pressure-as-esma-cracks-down-on-data-tangle

16:00 The resolution to this fight might have roots in a case that was settled a few years ago in the United States.

https://www.waterstechnology.com/exchanges-trading-venues/3610416/singapore-exchange-hits-back-at-indias-data-pull

17:30 What happens next?

18:00 Sebi’s decision is viewed by some as a political move and by others as a last resort. Either way, there are concerns all around that its decision will not achieve the desired results.

20:00 What are the greatest concerns going forward?

22:30 MSCI is also not pleased about Sebi’s decision.

Misc

24:00 Wei-Shen and Tony discuss their summer plans.

This week, Chris Isaacson, the chief information officer of Cboe Global Markets, joins the podcast to discuss the exchange operator’s mass migration of its futures and options exchanges to a brand-new technology base. Ever since Cboe acquired Bats in 2017—and, as Chris tells James, even before the ink was on the page—the plan had been to move to Bats’ proprietary technology, and the firm completed its latest migration on May 14th with the C2 Options Exchange. Chris discusses the challenges of moving an entire exchange’s the base while keeping it running, and looks ahead to the big project in 2019, when Cboe will be moving its flagship options exchange to the new foundation.

Before that, though, a quick look at the General Data Protection Regulation (GDPR), which went live on May 25.

GDPR

2:15 GDPR is now live—here’s what you need to know.

6:15 Who will be the first to get hit with a fine?

7:30 A rule that snuck up on everyone.

9:45 What this means for the future.

https://www.waterstechnology.com/regulation-compliance/3429116/gdpr-the-next-big-regulation

Chris Isaacson

11:30 An update on Cboe’s tech migration after the Bats acquisition.

15:15 What were the particular challenges involved in these migrations?

18:15 Why was it important to make the decision to switch to Bats’ tech right at the beginning?

20:00 What’s next?

22:30 New trading terminals to be rolled out on the floor of the exchange later this year.

Wavelength Podcast Episode 121: An Examination of CQRS; Coinbase’s Institutional Play

This week, Dave Remy, the chief technology officer for Linedata’s asset management vertical, and Chris Condron, principal software architect in the asset management unit, join the podcast to discuss developments in the CQRS-ES space. For those not in the know, CQRS is a data architecture pattern that stands for Command Query Responsibility Segregation, and ES is Event Sourcing. While that might not jump out as being the sexiest of topics, it’s actually a very interesting development in the tech world that is seeping into the capital markets. Dave and Chris discuss the benefits and challenges of the pattern and provide their insights as to how firms can start to experiment with it.

But before that, James gives an update on some big news coming out of the crypto space and then at the end, Anthony and James pick an easy target to make fun of—the MTA.

https://www.waterstechnology.com/exchanges-trading-venues/3642886/crypto-markets-continue-breakneck-pace-of-development

Cryptocurrencies

0:00-4:00 An update on the Waters Rankings, and other housekeeping notes.

4:00-10:00 Coinbase is launching Coinbase Markets to appeal to institutional investors. While encouraging, there’s still a worry that development is being pushed forward too quickly.

CQRS-ES

11:00 CQRS: What it is—a brief history of the pattern and how it got started in algorithmic trading.

15:15 How does blockchain—and distributed-ledger technology as a whole—play into the CQRS space?

17:30 How can CQRS add risk and complexity if not monitored closely?

21:30 What are the main drivers of CQRS? (Hint: cloud, microservices, open-source and blockchain are big drivers.)

25:00 Vector clocks are important.

26:00 Examples of how the pattern has been beneficial to the Linedata offering.

28:00 For companies that are just starting to look at CQRS, what are the pitfalls to avoid?

30:00 From a talent-acquisition perspective, what does the landscape look like?

31:30 In a nutshell, what are the benefits?

Misc

Anthony and James rant about the looming L train shutdown.

This week, Anthony and James examine the issue of clearinghouse management and the risk of non-default losses at a center counterparty clearinghouse (CCP). Essentially, how do these entities manage operational risks around cyber-attacks, fraud or disaster recovery. Futures Commission Merchants (FCMs) argue that they shouldn’t be responsible for risk they don’t introduce into the clearinghouse; CCPs argue that the whole point of a clearinghouse is to mutualize risk.

This topic is coming to a head because earlier this year the European Parliament proposed rules on how these should be managed, the first time anyone’s really codified it. Under this, the CCPs have to contribute 25 percent of what they put into the default fund—known as their “skin-in-the-game”—to cover these risks, before they dip into member money that is meant to be there to guarantee trades.

James discusses the main issues involved, how serious a non-default loss could be versus something like a member default, why everyone should care about this issue, and what we can expect going forward. Anthony just basically listens and nods.

The conversation starts at about the 3:45 mark and goes to about 17:00, where they transition—naturally—to a discussion of horror films.

On the podcast, Anthony and James examine the M&A space, specifically as it pertains to acquisition-hungry SS&C and its aborted bid for Fidessa. They also hit on all the features that have gone live in the last week and then have a discussion about data privacy and how much people are willing to give away.

0:00-4:30 Housekeeping notes and how to apply for this year’s Waters Rankings.

4:30 SS&C chief executive Bill Stone says the tech giant is still interested in making deals even after it declined to bid for Fidessa. But first, what’s going on with the Fidessa-Temenos-Ion saga now?

9:00 SS&C has cash to spend—will it spend it, should an attractive target present itself?

12:30 What can DST expect from being part of the SS&C family?

14:15 Some reckless speculation as to which company SS&C might look to gobble up next.

20:45 A look at the features that have gone live in the past week. (See below for links.)

30:00 A discussion about data (and DNA) privacy in an era where people don’t care about privacy.

May Features

May Cover Story: Charles Walters, Halcyon Capital Management

https://www.waterstechnology.com/people/3610436/the-hedge-fund-doctor-charles-walters-halcyon-capital-management

Wary Brokers Sound Alarm on Mifid II's RTS 28

https://www.waterstechnology.com/regulation-compliance/3608711/wary-brokers-sound-alarm-on-rts-28

Bond Trading Takes Steps to Resolve Voice and Screen Conflict

https://www.waterstechnology.com/regulation-compliance/3610411/bond-trading-takes-steps-to-resolve-voice-and-screen-conflict

India’s Data Takeaway Leaves Index Derivatives in a Pickle

https://www.waterstechnology.com/market-data-data-analytics/indexes-ratings/3585711/indias-data-takeaway-leaves-index-derivatives-in-a-pickle

Market Cops Turn to Crime-Fighting Robots

https://www.waterstechnology.com/trading-technologies-and-strategies/3602931/market-cops-turn-to-crime-fighting-robots

The Philosopher’s Drone: AI on a Social-Sciences Foundation

https://www.waterstechnology.com/industry-issues-initiatives/3595126/the-philosophers-drone-ai-on-a-social-sciences-foundation

Mind the Governance Gap: Data Key to SEC Modernization Compliance

https://www.waterstechnology.com/regulation-compliance/3585716/mind-the-governance-gap-data-key-to-sec-modernization-compliance

Anthony calls James from Raleigh, North Carolina, where he’s spending his vacation, to talk about happenings from the past week. Included is a look at both RTS 27 and RTS 28 in Europe, how exchanges are using AI to monitor their markets and how some are worried that so-called Big Tech providers like Google might start taking aim at the financial markets and squeeze out some of the more traditional players in the space. (See ‘The Lineup’ section below for more detail.)

Then, at the end, a special pullout from a recent webinar that provided something of a “State of the Union” for the Consolidated Audit Trail (CAT) rollout in the US. Here are the speakers from the webinar, which was moderated by James:

Tom Sporkin,

Partner

Buckley Sandler

Joshua Beaton,

CAT Program Manager and Head of US Regulatory Reporting CTB/Executive Director,

Morgan Stanley

Nathan Call,

Director of RegTech Solutions, Protegent, Global Financial Services,

FIS

The Lineup

2:00 Exchange executives are not happy about requirements stemming from RTS 27.

https://www.waterstechnology.com/regulation-compliance/3608831/in-broadsides-and-brush-strokes-traders-call-for-lighter-regulatory-touch

4:30 RTS 28, on the other hand, has its own set of challenges as the deadline hits Monday.

https://www.waterstechnology.com/regulation-compliance/3608711/wary-brokers-sound-alarm-on-rts-28

7:15 Will Big Tech in the US and UK take aim at the financial marketplace similar to what we’ve seen in China?

https://www.waterstechnology.com/infrastructure-technologies/3610346/amid-rumors-google-denies-plans-to-enter-financial-markets

8:30 In that vein, Microsoft made some big announcements this past week—is it a sign that they’re worried about IBM and Google’s advancement in the public-cloud sector?

https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3604791/bny-mellons-eagle-inks-microsoft-cloud-partnership

12:30 Gemini Exchange is partnering with Nasdaq Smarts for surveillance. James takes a look at how exchanges are using AI to monitor for cheaters.

https://www.waterstechnology.com/trading-technologies-and-strategies/3602931/market-cops-turn-to-crime-fighting-robots

14:00 James previews what the CAT webinar is all about.

16:45 The webinar pullout begins. The discussion looks at how the US Securities and Exchange Commission has been oddly silent up to this point. Tom Sporkin (Buckley Sandler) spoke first, then Nathan Call (FIS) second, and then Joshua Beaton (Morgan Stanley). To listen to the full webinar, which is about 45 minutes long, click here.

https://webinars.on24.com/InfoproDigital/Getting_ahead_of_CAT

On the podcast, Anthony and James take a look at some of the topics that will be discussed at this year’s North American Innovation Summit, including artificial intelligence (AI), chatbots and fintech disruption.

To hear the full interview, listen in the player above, or you can download it.

0:30 The North American Innovation Summit—register today.

2:30 Why are artificially intelligent tools gaining in popularity?

5:00 Some examples of AI being used in the capital markets.

12:00 Some thoughts on quantum computing.

15:30 Will chatbots become prevalent on the trading floor?

24:00 The benefits and challenges that fintechs offer.

26:45 What risks and opportunities do banks face by being so active in setting up innovation labs?

31:45 James tells us about his favorite dive bars in London.

On the podcast, Anthony and James first discuss the potential Temenos-Fidessa deal and what the entry of SS&C Technologies and Ion Investment Group means for Fidessa going forward (4:15). Then they turn their attention to bitcoin, but rather than look at it as an investment vehicle, they examine some of the byproducts of bitcoin, such as the energy it takes to mine for these coins and some of the real-world impact that’s already had, particularly in Tony’s old college town of Plattsburgh, NY (11:30). They also hit on the Anthony Joshua-Joseph Parker fight (30:30), and they give some TV picks to watch over the weekend (33:30). Also, the Women in Data and Technology Award write-ups are now live online and we have also posted a longer feature where eight of our winners give advice for advancement in what is a male-dominated world.

This week, Anthony and James look at CME Group’s potential acquisition of NEX Group, with a focus on what this deal entails from a trading-platform perspective, how it might affect the fintech venture capital space, and how Brexit plays into this deal (2:00-11:00) and then Anthony talks about this weekend’s fight between Anthony Joshua and Joseph Parker (11:00-19:00).

https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3558686/nex-ceo-sees-opportunity-for-opportunities-after-cme-deal

Fresh off his trip down to Florida for the FIA Boca conference, James Rundle talks to (a very jealous) Anthony Malakian about some of the key topics of discussion from the event.

2:00 FIA Boca is increasingly becoming a tech conference.

4:00 How the DTCC plans to evolve in a post-blockchain world.

6:30 What other blockchain/DLT stories came out of Boca?

8:00 Cryptocurrencies were getting the most play at the conference.

13:15 Artificial intelligence is also increasingly becoming a point of interest for even non-technologists.

15:30 People are excited about the Financial Desktop Connectivity and Collaboration Consortium (FDC3).

18:00 The Commodity Futures Trading Commission is not happy about the European Commission’s clearing proposals.

23:30 Data security, data privacy, and Facebook-Cambridge Analytica.