This week is a departure from the norm for me as I report on the Finance Magnets’ London Summit. Held at The Brewery in The City of London, the focus of this B2B financial industry conference is FX, trading, investing and capital markets. Daily Fintech Advisers were there as aRead More
Post Tagged with: "trading"
By Efi Pylarinou “The current fixed income trading environment is creating a ‘perfect storm’ for fixed income trading technology” from Mark Watters, Director of AxeTrading. I spoke about the fatal combination of regulatory changes, record low interest rates, continued strong bond issuance, and fragmented liquidity as the continuing challenges forRead More
Did one high frequency trader in London – the guy in his pajamas in a suburban home – single handedly nearly bring down the global equities markets in the May 2010 Flash Crash? TL:DR – the broker model is dead. The broker model is the heart of what we call WallRead More
Quantopian, founded in 2012 in Boston, started in the Algorithmic trading space. It offered a web-based platform to write algorithms for US equities trading. In addition, Quantopian offered the capability to paper trade against live stock market data and – most importantly – to back-test the algorithm against historical data. So far, that describes most competent algo trading systems. Quantopian differentiates by adding a crowd-sourcing dimension. The coder of the strategy can invite other collaborators that can use or enhance the code. This is the open source aspect that Quantopian brought to an otherwise highly secretive market (proprietary algorithmic trading).
By Efi Pylarinou The fixed income market is huge (approaching $100 trillion) but it doesn’t have the liquidity and transparency of the Currency markets and is very different than the equity markets. Three key facts help to understand this massive market: – Only 1.5% of outstanding bonds actually trade every day. – Very few bonds tradeRead More
The equities broker model has been slammed by two waves of change: End of fixed commissions. This happened decades ago and simply opened the market up to competition. Internet. This is what enabled the human broker to be replaced by servers and led to e-brokerage firms such as eTrade, Charles Schwab and many others. Which brings…Read more RobinHood Freemium could enable a lot of new Low Cost Active Alpha services
The Broker model is the heart of Wall Street. Brokers take a risk-free fee for executing a transaction. It has been a wonderful cash cow. As this book asks, “where are the customer’s yachts?” So why have many foreign exchange brokers gone bankrupt (and others lost most of their equity)Read More
The general Fintech category of Personal Financial Management (PFM) has two main sub categories: Tools to help you save and spend smarter. This as the personal P&L. Tools to help you invest smarter. This as the personal Balance Sheet. Within the latter, there are two main approaches: Passive, Beta. This is whereRead More
In the wake of the financial crisis in 2008, the US Government mandated machine-readable financial reports via XBRL. That was a wonderfully progressive move that could dramatically change the efficiency and reliability of the capital markets by bringing financial reporting into the 21st century. (If you are new to XBRL,Read More
Saxo Bank is low profile unless you have been deep into currency trading, but check out these numbers: 2011 Revenue: US$594m (3,526.9m DKK at 5.94) 2011 Profit: US$104m (617.8m DKK at 5.94) Apply a similar revenue multiple that is applied to a hot VC funded company and you get to north of that $1 billion […]