Waters Wavelength

On Wednesday, the Commodity Futures Trading Commission (CFTC) had a meeting of its Technology Advisory Committee (TAC). Anthony and James look at three keys themes that arose during the day-long discussion. 1:00 A quick reminder to enter the Sell-Side Technology Awards. 2:00 Anthony provides some metrics around previous TAC meetings, which have once again become rare occurrences. 5:00 US regulators are falling behind other countries in the fintech space, according to some. 11:00 The TAC gave little insight as to Regulation Automated Trading’s fate. 17:00 One commissioner says that the cryptocurrency industry should form a self-regulatory organization. James examines whether that’s a good idea or not (hint: not). 22:00 Sometimes Anthony and James like to use the podcast to get some things off their chest. In this case, they talk about gun control in America. Feel free to skip their meandering conversation.

Dan Schleifer, co-founder and CEO of charting specialist ChartIQ, joins the podcast to discuss some of the challenges that he and fellow co-founder Terry Thorsen faced when they created the company out of a barn in Charlottesville, Virginia, in 2012. 1:00 Dan talks about some of the early growing pains. 3:00 Did you know that, not only did they start out of a barn (just like Markit), but that the barn had been renovated previously by the Dave Matthews Band to be a recording studio? 5:00 Some more advice on traps to avoid early on. 7:00 Oh, and the long sales cycle—always remember that. 9:30 What were the advantages in starting in a suburban area, as opposed to New York or London? 11:30 What about finding talent outside of tech hubs? 14:00 Why is the fintech sector becoming more viable—relatively speaking—than it was a decade ago? 17:30 Is the market becoming so flooded with niche firms now that having a startup grow into a Wall Street giant is impossible? (Dan managed to hold out saying, “ChartIQ for the gr

Inside Data Management editor Max Bowie—who has been covering the data space for 15 years—joins the podcast to give his insights as to what the Thomson-Blackstone tie-up could mean for the industry going forward. Then, naturally, they talk about the best breweries and beer bars in Brooklyn and Queens. https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3482206/thomson-reuters-blackstone-agree-20-bn-financial-risk-unit-spin-off 2:00 To start, a quick update as to the specifics of the deal. 3:45 Amid the uncertainty that this acquisition brings, Max gives his initial impressions as to what some of the main questions will be going forward. 7:00 Then, some speculation as to whether some of the pieces of Thomson Reuters’ Financial & Risk business unit will get sold off, or built upon. 8:30 Some examples of big acquisitions that went sour and some examples of big acquisitions that worked out. 11:45 What happens to the companies that Thomson Reuters is invested in, such as Tra

Anthony and James examine a new report about how the buy side is lagging behind when it comes to blockchain development, and how K-12 education is lagging when it comes to teaching coding. 2:30 A new report takes a deep-dive examination of distributed-ledger technology (DLT) development on the buy side. https://www.waterstechnology.com/infrastructure-technologies/3459571/buy-side-bands-together-on-blockchain-vision-in-landmark-paper 5:00 Hasn’t the sell side always taken the reins when it comes to new, industry-wide technologies? For example: cloud. Why should the buy side be proactive when it comes to DLT? 12:00 What should be the way forward for buy-side firms as they start to get into the business of blockchain? 13:30 Schools in America are failing at teaching kids how to code early in their education development. Why is that a problem? 25:30 The problem with movie critics.

For the third time ever—a record!—private equity giant Blackstone’s chief technology officer Bill Murphy joins the podcast. Anthony and James joined him at Blackstone’s new offices in midtown Manhattan to hear about what went into building the space and the benefits gained. To listen to his two previous appearances on the podcast here: https://www.waterstechnology.com/waters/opinion/2461751/waters-wavelength-podcast-episode-22-blackstone-cto-bill-murphy and here: https://www.waterstechnology.com/exchanges-trading-venues/3056376/waters-wavelength-podcast-episode-60-bill-murphy-blackstone-cto 1:00 In April, Blackstone’s innovations team moved into its new office on the 22nd Floor at 601 Lexington Avenue. Murphy explains the move and how they went about designing the space. 3:00 The key to sound: While the trend is going toward open-floor plans, Murphy explains the need for “quiet,” hence why they build “little neighborhoods,” as he calls them. 8:00 Blackstone is growing in size and complexity, and they wil

On the podcast, Anthony and James first examine how regulators and market participants are increasingly warning that the complexity of artificially-intelligent tools could hold hidden risk. The then look at SS&C Technologies’ acquisition of DST Systems and what it could hint at for M&A in 2018. 2:30 A discussion about how regulators should begin dealing with AI. 17:00 SS&C gobbles up DST Systems after buying DST Global Systems in 2014. https://www.waterstechnology.com/trading-technologies-and-strategies/3469436/artificial-intelligence-from-winter-to-spring https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3469306/ssc-technologies-acquires-dst-systems

On January 3, the revised Markets in Financial Instruments Directive (Mifid II) officially went live. Anthony and James take a look at some of the key challenges and concerns ahead. Then, for those interested in entering the inaugural Women in Data & Technology Awards, they provide something of a FAQ. Finally, Tony rants and raves about how people not shoveling their sidewalks is a sign of society’s decay. Mifid II 2:30 Mifid II is live: A health check as to how it’s going. 4:15 What happens over the next few months? 6:00 A quick history. 8:30 Are regulations too slow to keep up with tech? (Hint: Yes.) 10:15 Are we done with big, bulky regulations like Dodd-Frank and Mifid II? (Hint: No.) 12:00 A look at the global nature of regulation, and the problems that creates. Women in Data & Technology Awards 15:00 How to apply for the Women in Data & Technology Awards. Misc 19:45 Tony rants about people who don’t shovel their sidewalks. (Note: Strong language is used… liberally.)

Anthony and James go through their favorite pieces of longform journalism from 2017. These stories appeared in publications other than WatersTechnology.com. To read the best of Waters in 2017, you can read those here: https://www.waterstechnology.com/people/3451351/2017-a-year-in-profiles https://www.waterstechnology.com/industry-issues-initiatives/3464501/waters-wavelength-podcast-episode-101-the-top-10-stories-of-2017 https://www.waterstechnology.com/industry-issues-initiatives/3456881/best-of-2017-the-top-trends Weinstein’s Complicity Machine New York Times https://www.nytimes.com/interactive/2017/12/05/us/harvey-weinstein-complicity.html?src=longreads Harvey Weinstein’s Army of Spies Ronan Farrow (New Yorker) https://www.newyorker.com/news/news-desk/harvey-weinsteins-army-of-spies?src=longreads London Bridge is Down Sam Knight (The Guardian) https://www.theguardian.com/uk-news/2017/mar/16/what-happens-when-queen-elizabeth-dies-london-bridge PPE, the Oxford Degree that Runs Britain Andy Beckett (Th

Emilia David, US reporter for Waters, joins Anthony and James to look at the 10 biggest topics and the news stories built around these trends. 1:45 Before the list, an update on next year’s Women in Technology and Data Awards. 3:30 (10.) Market Structure: ECB to Examine Closer Target2 and T2S Integration https://www.waterstechnology.com/operations/clearing-settlement/3427426/ecb-to-examine-closer-target2-and-t2s-integration 5:45 (9.) T+2: T2 Settlement Begins in US Markets https://www.waterstechnology.com/industry-issues-initiatives/3419486/t2-settlement-begins-in-us-markets 9:00 (8.) Brexit: Tech Challenges Loom as Europe Eyes London’s Clearinghouses https://www.waterstechnology.com/operations/clearing-settlement/3386981/tech-challenges-loom-as-europe-eyes-londons-clearinghouses 10:50 (7.) Cybersecurity: SEC Company Information Database Attacked https://www.waterstechnology.com/organization-management/3425396/sec-company-information-database-attacked 14:15 (6.) Quantum Computing: JPMorgan and

For Episode 100, Anthony and James welcome back the creator of the Waters Wavelength podcast, Dan DeFrancesco, who now writes for Waters’ sibling publication, Risk.net as the publication’s commodities reporter. [Editor’s note: This episode was recorded in a conference room close to the street, we apologize for any disturbance of background noise. Dan is a busy man and we had to fit him in, so we blame him entirely.] 2:45 - 8:45 Dan has been covering developments in the bitcoin futures space very closely for Risk and he provides a lay of the land. https://www.risk.net/commodities/5371031/fcms-look-to-top-up-initial-margin-on-bitcoin-futures 10:00 Dan and Anthony take a stroll down memory lane and look back at the reasons for starting this podcast and the value of using a podcast to reach readers. 18:45 Finally, what to binge on during the last few weeks of December.

On the podcast—which was recorded on Wednesday—Victor Anderson, editor-in-chief of Waters, joins Anthony and James to discuss some of the major themes from Monday’s Waters USA event in New York, including the rise of fintechs and women in technology. 1:45 How should we define fintechs? 4:00 Fintech startups: What challenges do they face? 11:00 Large banks: How do they go about embracing the nimbleness and innovation of fintechs? 17:30 Women in Technology and Data: Key themes taken from the breakfast briefing at Waters USA and a look ahead at next year’s awards program. 21:15 Keys to innovation and innovation centers—and are banks technology firms? 30:30 A rant about Brexit. 40:00 Trends for 2018.

On the podcast, Wei-Shen Wong joins Anthony and James. Wei-Shen, who is based in Hong Kong, covers Asia for Waters and Inside Data Management. The trio discuss some of the biggest topics affecting APAC, including cryptocurrencies, Mifid II, foreign expansion and disaster recovery. They also look at two of the bigger news events from the week: Xavier Rolet stepping down at the London Stock Exchange, and Nasdaq’s plan to enter the bitcoin futures market. 3:00 Xavier Rolet out in LSEG shake-up. 6:45 Nasdaq plans bitcoin futures for 2018 that will track 50-plus reference prices. 9:00 Wei-Shen breaks down how various APAC countries are getting into the cryptocurrency game. 17:00 She then gives her insights on how firms in the region are preparing for Mifid II. 23:00 Next she examines some of the challenges that exist for non-APAC firms looking to set up shop in Asia. 24:30 Wei-Shen is also working on a story looking at disaster recovery in APAC and how it compares to the US and Europe. 28:45 Finally, the three

Since it’s the week of Thanksgiving in the US and there’s little news to be found, this week on the podcast we’re going to do a “Best Of” episode from interviews we’ve conducted on the podcast over the last six months. (3:00) First we have Bryan Harkins, head of US equities and global FX at Cboe Global Markets, talking about the firm’s acquisition of Bats and how the exchange is attempting to launch a bitcoin futures contract. (6:50) Next, Oliver Harris, head of JPMorgan’s In-Residence Program, explains why the bank launched this fintech accelerator, and he gives two specific success stories to come out of the program. (17:45)Batting third, Marc Andrews, vice president of Watson Financial Services Solutions for IBM, explains how cognitive computing can help answer some of Mifid II’s regulatory challenges and then gives his thoughts on if an all-encompassing industry utility for AML/KYC is on the horizon. (23:30) Finally, Neal Pawar, chief technology officer at AQR, talks about the impact and growth

On the podcast, Anthony and James talk about how the Consolidated Audit Trail (CAT) is facing pushback, but the US Securities and Exchange Commission (SEC) ain’t having it. They then turn their attention to the idea that big tech companies like Google and Apple could eventually challenge traditional asset managers for business. They wrap things up by giving their thoughts on the best albums to be released in 2017. 2:00 Industry Tight-Lipped on CAT Status as Deadline Hits 10:30 Big Tech May Take a Bite out of Asset Management 18:30 The Best Music of 2017 https://www.waterstechnology.com/exchanges-trading-venues/3447016/industry-tight-lipped-on-cat-status-as-deadline-hits https://www.waterstechnology.com/industry-issues-initiatives/3446596/big-tech-may-take-a-bite-out-of-asset-management

On the podcast, Anthony and James look at four of the bigger stories from the past week before turning their attention to politics. Strap in. 1:45 A quick round-up of upcoming events 3:30 BNP Paribas Gets into 40 Act Business with Janus Henderson Deal 8:10 Chicago Catches Crypto Fever with Barrage of Bitcoin Developments 13:15 R3, SIA Partner for Faster Blockchain Deployment 14:45 IHS Markit Sets Sights on Post-Trade Derivatives Automation 18:15 Politics https://www.waterstechnology.com/operations/clearing-settlement/3443751/ihs-markit-sets-sights-on-post-trade-derivatives-automation https://www.waterstechnology.com/infrastructure-technologies/3443066/r3-sia-partner-for-faster-blockchain-deployment https://www.waterstechnology.com/exchanges-trading-venues/3444861/chicago-catches-crypto-fever-with-barrage-of-bitcoin-developments https://www.waterstechnology.com/trading-technologies-and-strategies/3445401/bnp-paribas-gets-into-40-act-business-with-janus-henderson-deal https://www.waterstechnology.com/

On the podcast, Anthony and James examine the CME’s entrance into the bitcoin space and then take a look at the Financial Stability Board’s (FSB) report that delves into artificial intelligence (AI). Anthony then waxes poetic about his beloved Houston Astros. 1:55 A quick preview of Waters USA in December. 3:05 CME plans to launch futures on bitcoin in Q4 2017. 13:10 The FSB put out a report expressing concern about the proliferation of AI in the capital markets. 22:00 The Houston Astros are World Series champions… and that means Anthony gets to run his mouth. http://events.waterstechnology.com/watersusa https://www.waterstechnology.com/exchanges-trading-venues/3440966/cme-brings-bitcoin-into-mainstream-with-futures-launch https://www.waterstechnology.com/regulation-compliance/3441391/fsb-warns-artificial-intelligence-could-present-systemic-risks

This week on the podcast, Anthony and James look at the October conference scene, with recaps of Sibos in Toronto, Risk USA in New York, and Sifma in Washington DC. They wrap things up by looking at the World Series and the Yankees’ shocking decision to not re-sign Joe Girardi as manager. 2:00 James talks about Sibos and how the disruptors (fintechs) have been disrupted (by the banks). 4:15 James then gives his opinion as to whether or not it’s worthwhile to attend Sibos. (Sydney 2018!) 6:00 On to Risk USA, where—lo and behold—risk managers are learning about the importance of technology and data! They also talk about how banks all of a sudden DO want to be tech companies! (My, how things change.) 10:00 An interesting story from Risk USA: Vendors may have over-promised and under-delivered on their ability to provide accurate information for the fixed-income market, risk officers say, ahead of a looming go-live date in December 2018. 18:00 Down in DC, SEC chairman Jay Clayton heard from industry participants

On the podcast, James pretends like he actually did some work during a trip to Toronto this week, by sharing some excerpts from his interviews at the annual Sibos conference. First up, Alan Marquand, director of strategy at CLS, tells James about the risk-mitigation utility’s move into blockchain early next year. Next, James speaks with Paula da Silva, head of transaction services at SEB, about balancing innovation with the need to keep crucial business units running. Finally, William Carter of the Center for Strategic International Studies tells the audience at Sibos about one particularly unfortunate bank CEO’s encounter with Russian intelligence. 3:50 Why CLS is running a technology play with blockchain. 5:50 Partnerships and business cases, from da Silva. 8:20 Carter talks about how firms can’t rely on the government to protect them. You can find all of James’ articles from Sibos—including exclusive stories covering blockchain, AI, cybersecurity and robotics—here. https://www.waterstechnology.com/orga

On the podcast, James gives a preview of his trip to Toronto to cover Sibos. Then, he and Anthony look first at some recent M&A activity in the compliance/AI space, and then look at how some fully-live blockchain projects are finally starting to trickle into the market. Finally, Anthony—a lifelong fan of the Houston Astros—rants about why fans of the New York Yankees are the absolute worst. 2:00 A preview of the WatersTechnology Innovation Summit, which is on November 15—not November 28—like Anthony said on the podcast. 3:45 James previews his Sibos trip. 6:00 A look at M&A in the capital markets and, specifically, for regulation and compliance. 16:15 Is blockchain finally maturing with real, fully-live implementations? 19:30 Anthony explains why the Yankees suck.

This week Anthony and James were at the Buy-Side Technology North American Summit, which was held in midtown Manhattan on October 5. The second half of the podcast is a snippet from a panel that featured chief compliance officers talking about some of the biggest topics in the regtech space. But before that, Anthony and James talk about the chat clash between Symphony and Bloomberg. Symphony/Bloomberg 2:15 Anthony and James have a laugh at the timing of Bloomberg’s announcement that it is unbundling its chat service from its terminal. 4:20 Why is Bloomberg doing this? 6:00 A look at Symphony’s offering. 7:20 A death blow? 9:00 James and Anthony read some tea leaves. CCOs and Regtech 14:15 Would you trust machine-learning tools to interpret regulations or other legal data? 17:05 How soon until compliance is less reactionary and more proactive? 19:20 How have cyber threats changed a CCO’s job? 23:15 A question from the audience: If your firm has real-time data for trading are you not setting yourself up for