The securities industry is facing a growing digital divide as securities firms taking a leadership role are outpacing firms that are not, particularly when it comes to developing a strategy for attracting staff with advanced digital skills and talent. This is according to the “2024 Digital Transformation and Next-Gen Tech Study” conducted by Broadridge Financial… Read More >>
DDoS Attacks Soared in 2023: FS-ISAC Report
The financial services sector was the top target for distributed denial-of-service (DDoS) attacks last year, and attacks on this sector jumped 154 percent, according to a new report from industry consortium the Financial Services Information Sharing and Analysis Center (FS-ISAC). However, the report, “DDoS: Here to Stay,” emphasizes that firms “can mitigate the impacts of… Read More >>
CQG Toolkit Helps Predict Futures Market Moves
CQG has unveiled a predictive trading model toolkit that applies machine learning (ML) technology to live data and is intended to help traders better manage strategies and positions. The announcement follows what CQG officials say was a successful, “first-of-its-kind” proof-of-concept (POC) testing effort and then a reality check in a live-trading environment. In the live… Read More >>
Firms Brace for Expensive T+1 Settlement Failures
The industry is steeling itself for a turbulent period of adjustment with the imminent transition to shortened settlement in the U.S., Mexico, and Canada on May 28, amid analyst forecasts of a quadrupling of settlement failures. A recent Bloomberg Intelligence report has predicted a fourfold increase in settlement failures in T+1, costing a whopping $7.1… Read More >>
BBH’s Infomediary Expands Into Managed Services
Brown Brothers Harriman (BBH) is expanding its Infomediary data integration and connectivity offering into a broader set of data management services, now known as Infomediary Data Solutions. The updated suite of data offerings, part of BBH’s Investor Services division, targets asset managers and financial institutions with a combination of data management technology and managed services,… Read More >>
Wall Street’s Recordkeeping Culture Must Change: Q&A
(For the past two years, the Securities and Exchange Commission (SEC) has cracked down on 25 of the securities industry’s top firms for violating its recordkeeping rules. In fact, during fiscal year 2023 those 25 firms paid a total of $400 million in fines and penalties. The enforcement focus on recordkeeping rules, particularly about the… Read More >>
Citi & Wellington Explore the Disruptive Power of Tokens
Late last year, Citi, Wellington Management, WisdomTree, and DTCC officials conducted a proof of concept (POC) experiment to explore how tokenization could be applied to private funds and to test the capital markets capabilities of blockchain technology. “Tokenization is the process of issuing a digital representation of an asset on a blockchain,” according to a… Read More >>
A.I.’s Benefits for T+1 Are Within Reach
Artificial intelligence (A.I.) has the potential to automate tasks and boost operational efficacy within post-trade operations impacted by the transition to T+1. Accenture calculates A.I. could deliver a 30 to 40 percent improvement in efficiency within post-trade operations impacted by the move from T+2 to T+1 in May for the U.S., Canada, and Mexico. Meanwhile,… Read More >>
Buy Side Seeks FX T+1 Settlement Workarounds
Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC) descended upon a European Commission workshop on T+1 settlement last week to urge regulators to include foreign exchange (FX) in their efforts to reduce settlement times in coordination with central banks, the Bank for International Settlements (BIS), and CLS Bank. One trade association in… Read More >>
CFTC Asks for Input on A.I. & Derivatives
The Commodity Futures Trading Commission (CFTC) wants input from derivatives industry participants about the ways artificial intelligence (A.I.) might impact them. The regulator’s Divisions of Market Oversight, Clearing and Risk, Market Participants, and Data and the Office of Technology Innovation sent out a request for comment (RFC) “to better inform them on the current and… Read More >>
