Cash market volumes up a third YoY at Deutsche Börse

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May 3, 2024

Cash market trading volumes were up 33% YoY in April 2024 at Deutsche Börse, generating a turnover of €119.45 billion. This marks a slight drop from March 2024, however, which saw €121.13 billion in turnover.

The cash market was dominated by equities, equalling €99.27 billion across Xetra and Frankfurt. ETFs, ETCs and ETNs produced €18.9 billion, and bonds just €750 million.

Of the total €119.45 billion, €115.82 billion were attributed to the firm’s electronic stock exchange Xetra. This proportion has held steady both YoY and month-on-month, remaining at approximately 97% of overall turnover.

Xetra ADV over April was €5.35 billion, up slightly from April 2023’s €4.62 billion and down slightly from March’s €5.86 billion.

Börse Frankfurt recorded trading volumes of €3.63 billion, a 39% increase YoY from €2.44 billion and, again, a small drop from March’s €3.97 billion.

©Markets Media Europe 2024

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Reshuffle at IEX: Ronan Ryan steps into COO role

By

Lauren McAughtry

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May 3, 2024

US-based alternative exchange IEX (Investors’ Exchange) has made a number of new appointments to strengthen its leadership team, with former president Ronan Ryan moving into the COO role as Bryan Harkins takes up the leadership reins.

Harkins, who is taking over from Ryan as president of IEX, was previously head of markets at Cboe Global Markets, overseeing equities, derivatives, and foreign exchange trading. He has held numerous other senior roles including as president of BIDS trading, head of markets at BATS Global Markets, COO of Direct Edge, and chief revenue officer at Trumid. He also co-founded Wall Street Rides FAR (for autism research) with his wife in 2015 and serves on the board of directors for the Autism Science Foundation.

“I have watched and admired IEX’s innovation and unique approach in a competitive market. They have built a great business, and I am honored to bring my experience to help them execute on the next chapters of their growth and evolution,” said Harkins.

“Bryan brings tremendous leadership experience across a number of asset classes which is extremely valuable given IEX’s potential for growth both now and into the future,” noted IEX co-founder and CEO, Brad Katsuyama. “He has built trusted relationships with a wide variety of market participants, and we could not be more excited to have him be a part of our executive team and what we are building at IEX.”

IEX co-founder Ronan Ryan, one of the original “flash boys” who set up the exchange in 2012 in protest against the perceived impact of high frequency trading, has held the role of president for the past eight years, ever since the firm launched as a national securities exchange in 2016. He now moves to the role of COO, where he will focus on corporate development, strategic planning, and guiding long-term initiatives aimed at promoting IEX’s growth and profitability.

“Ronan and I have been at the heart of driving IEX forward since we co-founded the company over a decade ago,” said Katsuyama. “This move will allow IEX to expand the breadth of our executive team as we enter an important competitive period with pending regulatory and market structure changes. Ronan and I look forward to working closely with Bryan to take IEX to new heights.”

IEX has also appointed Florian Seifferer as its chief strategy officer (CSO), responsible for sourcing new market opportunities and partnerships. Seifferer was previously COO of IEX Digital Assets.

Head of market structure leaves Barclays

By

Lauren McAughtry

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May 3, 2024

The global head of cross asset market structure at Barclays Investment Bank has left the firm, following a round of cuts made by the bank across its markets, investment and research divisions.

Matt Coupe has been director of market structure at Barclays for nine years, prior to which he was director of regulation and market structure at NICE Actimize.

He is the EMEA co-chair of the FIX Trading Committee, and a member of the Global Market Structure Sub-committee for the US Commodity Futures Trading Commission (CFTC).

The departure comes as Barclays embarks upon a reshuffle of its investment bank, with hundreds of jobs cut as part of a cost-cutting program from CEO CS Venkatakrishnan.

Barclays declined to comment on the move. However, it provided a statement which said:

“We regularly review our talent pool to ensure that we can invest in talent and deliver for clients. This is difficult, but necessary, to ensure we position ourselves for long-term success as we execute against our strategy.”

Energy and equities drive strong growth for ICE in Q1

By

Lucy Carter

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May 3, 2024

Intercontinental Exchange (ICE) continued to see growth in Q1 2024, driven by activity in the energy and equities sectors.

The firm, which owns the NYSE, reported record revenue of US$2.3 billion in Q1 2024 – up from US$2.2 billion in Q4 2023, and US$1.9 billion in Q1 2023. 73% of this was contributed by exchanges, which recorded US$1.2 billion over the first quarter.

ICE net income was US$767 million, up 15% from US$655 million in Q1 2023.

Within the exchanges, cash equities and equity options saw a 4% rise in revenue YoY, from US$95 million to US$99 million. This figure remains static from Q4 2023.

The energy segment rose most dramatically YoY, up by a third YoY to US$375 million in revenue. However, it fell by almost 10% from Q4 2023’s US$414 million.

The remaining 38% of total revenue came from fixed income and data services, which saw US$568 million in revenue – a minor YoY increase from Q1 2023’s US$563 million. Fixed income execution fell by 15% YoY and by 29% QoQ to US$26 million; fixed income data and analytics rose by 4% YoY to US$288 million.

Jeffrey Sprecher, chair and CEO of ICE, said: “We are pleased to report strong first quarter results that extend our track record of revenue and earnings per share growth. Our customers continue to rely on our mission-critical data and technology to manage risk and capture workflow efficiencies, reflecting the all-weather nature of our business model.

“As we look to the balance of the year and beyond, we remain focused on innovating for our customers, investing in future growth and creating value for our stockholders.”

Warren Gardiner, chief financial officer at ICE, commented: “In the first quarter, we generated record revenues and record operating income. This performance not only reflects the strength of our balanced and diversified business but also the strategic investments that we have made to drive long-term profitable growth and to create value for our stockholders.”

©Markets Media Europe 2024

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Pardeep Cassells promoted at AccessFintech

By

Lucy Carter

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May 3, 2024

Pardeep Cassells, head of client experience, Access Fintech

Pardeep Cassells has changed roles at AccessFintech, becoming head of client experience.

Cassells has 15 years of industry experience, and has been part of AccessFintech since 2019. Most recently she was head of buyside customer experience, before which she held roles including head of securities and claims products and head of financial products.

Prior to this Cassells spent close to a decade with BNP Paribas, holding a series of analyst roles before being appointed third party relationship manager in 2013 and manager of trade processing and third-party relationships in 2018.

Cassells has been on the Fintech Scotland Advisory Board since 2021, and is a member of the UK Accelerated Settlement Task Force.

Commenting on her appointment via LinkedIn, Cassells said: “Bringing together multiple functions to provide full lifecycle, cross-market support through pre-sales, network growth, customer success and user adoption as part of the broader Sales organisation is an exciting next step. I look forward to working with my amazing team to maximise value for our clients in the months to come.”

©Markets Media Europe 2024

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JSE and Saudi Tadawul Group sign MoU

By

Lucy Carter

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May 3, 2024

The Johannesburg Stock Exchange (JSE) has signed a memorandum of understanding (MoU) with the Saudi Tadawul Group, a capital markets company seeking to diversify the Saudi economy.

The MoU considers the feasibility of dual-listing stocks, the firms explained, with the goal of enhancing liquidity and greater access to capital markets in both jurisdictions.

Through the agreement, the firms aim to bolster growth, innovation and technological advancement across both markets, they stated.

Leila Fourie, CEO of JSE Group, commented: “The MoU with the Saudi Tadawul Group will enable targeted client cross-selling engagements to foster secondary market trade activities and support new issuances, broadening the trading universe for investors and issuers alike.”

She continued: “Building on the success of Africa’s first Shari’ah-compliant sustainability-linked Sukuk and the issuance of Rand-denominated Al-Ijarah Sukuk certificates by the South African government, the MoU also seeks to facilitate the development of new financial products and expedited listing processes that cater to the unique needs of both markets.”

Khalid Alhussan, CEO of the Saudi Tadawul Group, added: “Our MoU with the JSE will unlock opportunities across listings, fintech, sustainability and more. We are committed to connecting with global capital markets, in line with our goal to advance the Saudi capital market and Vision 2030’s Financial Sector Development Programme. We look forward to creating solutions that will benefit both the Saudi and African markets.”

©Markets Media Europe 2024

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Trade reporting penalties rise for JP Morgan

By

Lucy Carter

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May 3, 2024

After the announcement of a US$350 million penalty earlier this year, following investigations into its provision of incomplete data to trade surveillance platforms, JP Morgan expects to see a further US$100 million fine from a third US regulator.

In March, JP Morgan shared that resolutions had been entered into with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Bank of New York’s (FRB) Board of Governors on the matter. These require the firm to pay aggregate civil penalties of approximately US$350 million.

In its quarterly SEC report, published 1 May, the firm added that it expects to enter into another resolution with a third US regulator, currently unnamed, to pay a civil penalty of US$100 million after offsets for amounts paid to the OCC and FRB.

The trade surveillance issue was initially identified internally, JP Morgan stated, with certain trading and order data through the CIB not being fed into the requisite trade surveillance platforms. This caused a “significant” data gap on one venue, the firm reported.

As a result, enhancements have been made to the CIB’s venue inventory and data completeness controls, the firm shared. Other remediation strategies are also in place.

In the quarterly report, JP Morgan reassured that “the firm does not expect any disruption of service to clients as a result of these resolutions.”

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Ex-Millennium hedge fund start-up poaches head of trading from JP Morgan

By

Lauren McAughtry

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May 2, 2024

Jain Global, a new hedge fund founded by former Millennium CIO Bobby Jain, has confirmed JP Morgan alumnus Jeremy Wyatt as its new EMEA head of trading.

The new investment management firm, which is expected to go live in July and already has around US$3bn in commitments, is widely seen as one of the biggest new launches on the hedge fund scene. Jain, who originally was aiming for the biggest ever hedge fund debut with hopes of raising US$8-10b (surpassing the US$8bn record of ExodusPoint Capital Management in 2017), tempered expectations back in January with new plans to launch with around US$5-6bn in capital.

According to reports, the fund has been attracting investors with the promise of lower fees (10% for US$250m or more) and has already hired over 100 employees across London and New York.

Wyatt, who joins as EMEA head of trading, was formerly director of prime and investor services sales for hedge funds and alternatives at JP Morgan, a role he held for three years. He was previously EMEA head of trading for quant asset manager WorldQuant, a Connecticut-based hedge fund owned by Millennium.

He started his career as an algorithmic equity trader with Merrill Lynch.

nuam exchange and Devexperts launch trading interface

By

Lucy Carter

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May 2, 2024

nuam exchange, an integration of the Lima, Santiago and Colombia Stock Exchanges, has partnered with financial software development firm Devexperts to create a unified trading interface for the equities and derivatives markets.

Devexperts will provide order execution and data information, and its front-end will be integrated with Nasdaq’s trading systems. The interface will evolve in line with regulatory frameworks in its countries of operation, the firms explained, and will cater to the specific industry requirements in each market.

Through the project, the organisations aim to enable market access for regional and international brokers.

Juan Pablo Córdoba, CEO of nuam, said: “Through our systems, there will be people conducting transactions from different parts of the world for companies valued in different currencies. This has enormous value and potential for investors, but it also poses operational complexities. Through developments like [this one], we can overcome this. We value [Devexperts’s] market understanding and their willingness to adapt it to our requirements.”

Michael Babushkin, CEO of Devesperts, added: “We are proud of participating in the nuam technology integration. This newly established exchange will bring great development to Latin America’s capital markets and help millions of people create durable wealth.

“This project signifies our entry to Latin America, and we hope to make a decisive contribution to the success of this initiative and furthermore to the development of the regional financial markets.”

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Janus Henderson to acquire Tabula Investment Management

By

Alex Pugh

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May 2, 2024

Janus Henderson to acquire Tabula Investment Management, an independent ETF provider in Europe with a focus on fixed income and sustainable investment solutions.

The deal, the details of which have not been disclosed, is expected to close in Q2 2024. The firm is also set to acquire NBK Wealth, the wealth management arm of the National Bank of Kuwait Group.

Ali Dibadj, CEO, Janus Henderson, said: “These transactions represent strategic steps to amplify existing strengths and diversify where clients give us the right to win. The M&A pipeline remains active, and these bolt-on acquisitions reflect only the beginning of what we believe will be several future partnerships to meet our clients’ needs and support the growth of Janus Henderson.”

The acquisition will build on Janus Henderson’s successful active ETF business in the US, the firm said, where it is the fourth largest global provider of active fixed income ETFs by assets under management (AUM). The deal will also allow Janus Henderson to meet client demand for investment strategies to include an ETF wrapper, the firm added.

Established in 2018, Tabula operates an institutional-grade investment management and ETF platform with funds listed across 10 European exchanges, serving clients across 15 countries.

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Cash market trading volumes were up 33% YoY in April 2024 at Deutsche Börse, generating a turnover of €119.45 billion. This marks a slight drop from March 2024, however, which saw €121.13 billion in turnover.

US-based alternative exchange IEX (Investors’ Exchange) has made a number of new appointments to strengthen its leadership team, with former president Ronan Ryan moving into the COO role as Bryan Harkins takes up the leadership reins.

The global head of cross asset market structure at Barclays Investment Bank has left the firm, following a round of cuts made by the bank across its markets, investment and research divisions.

Intercontinental Exchange (ICE) continued to see growth in Q1 2024, driven by activity in the energy and equities sectors.

Pardeep Cassells has changed roles at AccessFintech, becoming head of client experience.

The Johannesburg Stock Exchange (JSE) has signed a memorandum of understanding (MoU) with the Saudi Tadawul Group, a capital markets company seeking to diversify the Saudi economy.

After the announcement of a US$350 million penalty earlier this year, following investigations into its provision of incomplete data to trade surveillance platforms, JP Morgan expects to see a further US$100 million fine from a third US regulator.

Jain Global, a new hedge fund founded by former Millennium CIO Bobby Jain, has confirmed JP Morgan alumnus Jeremy Wyatt as its new EMEA head of trading.

nuam exchange, an integration of the Lima, Santiago and Colombia Stock Exchanges, has partnered with financial software development firm Devexperts to create a unified trading interface for the equities and derivatives markets.

Janus Henderson to acquire Tabula Investment Management, an independent ETF provider in Europe with a focus on fixed income and sustainable investment solutions.

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