John Palmer joins IEX

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June 6, 2024

IEX Group has appointed John Palmer to lead its efforts to build out new markets.

Palmer is tasked with leveraging IEX’s core system and technology to develop new markets and expand the firm’s product provisions, creating more value for clients.

Palmer has almost 20 years of industry experience and joins IEX from Cboe Digital, where he was vice president. He also spent more than five years with Cboe Global Markets in a number of senior positions, including vice president of derivatives and head of options, before joining Web 3 technology company CrossTower as global head of product strategy.

Earlier in his career, Palmer was director of product management at ISE Holdings after serving as a senior business analyst and product manager at the company.

Commenting on his appointment, Palmer said: “IEX is renowned for its innovation and unique approach to addressing customer challenges. I am excited to join the team and help drive IEX’s growth strategies forward.”

Bryan Harkins, president of IEX Group, added: “I have seen firsthand John’s experience across a number of asset classes. We are excited to have him on our team as we execute growth plans and continue to bring our unique and innovative solutions to all market participants.”

©Markets Media Europe 2024

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Sean Shanker swaps Citi for BTIG

By

Lucy Carter

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June 6, 2024

Sean Shanker, managing director for electronic trading, BTIG

Financial services firm BTIG has appointed Sean Shanker as a managing director for electronic trading.

In the New York-based role, Shanker will lead new initiatives and projects as the firm expands its electronic and portfolio trading services.

Shanker has more than 20 years of industry experience and joins BTIG from Citi, where he has been Americas product lead for equities since 2021. Earlier in his career he was an equities product manager at the firm, before leaving to join Bank of America Merrill Lynch as a director and senior trading analyst.

Commenting on the appointment, Thomas Smykowski, co-head of securities at BTIG, said: “Sean joins us at an exciting time as we continue to invest in the latest technology and talent to stay ahead of industry trends. BTIG is fully committed to developing advanced trading solutions to satisfy the liquidity needs of our most demanding clients.”

Stephen Ponzio, head of electronic trading at the firm, added: “With [Shanker’s] guidance and expertise, we will be well-positioned to enhance our technology capabilities, drive growth, and maintain our reputation as a leader in the electronic trading space.”

©Markets Media Europe 2024

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Neil Hosie to lead global execution services at UBS

By

Lucy Carter

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June 5, 2024

Neil Hosie, global head of execution services, UBS

UBS has appointed Neil Hosie as global head of execution services. He replaces Brent Johnson, who has held the position since 2021.

Hosie has two decades of industry experience, and has held the role on an interim basis since the beginning of March. He joined UBS as a managing director in September 2023, following the company’s takeover of Credit Suisse. He spent more than six years with Credit Suisse, as head of equities in APAC, APAC and EMEA, and globally.

Prior to this, Hosie was head of equity trading for APAC at Deutsche Bank.

©Markets Media Europe 2024

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Bloomberg Data License Plus made available via Arcesium

By

Lucy Carter

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June 5, 2024

Alex Dobson, US head of product, Arcesium

Bloomberg’s Data License Plus (DL+) solution is now available through data and operations technology provider Arcesium’s advanced operations platform.

By integrating DL+ content into their daily workflows through the Arcesium platform, mutual clients will benefit from more efficient and streamlined data management capabilities, Arcesium said.

Users will be able to provide their downstream consumers with data acquired from multiple delivery channels and linked together, Arcesium explained, gaining access to more than 275 Bloomberg Bulk Data License datasets.

DL+ includes information on more than 70 million securities and 40,000 data fields across areas including reference, pricing and regulatory.

Alex Dobson, US head of product at Arcesium, commented: “Today’s investment managers are working with copious amounts of market data. By eliminating the need to manage data, mutual clients of Bloomberg and Arcesium will be able to save valuable time, reduce the risk of errors, and optimise the cost of ownership of their technology stacks.”

Don Huff, global head of client services at Bloomberg data management services, added: “Our commitment to providing our customers with transparency and accessibility when it comes to their use of data includes working with advanced operational platforms such as Arcesium. This [collaboration] eliminates time and resource expenditure for future data consumption efforts, enhancing the value of this data throughout the enterprise.”

©Markets Media Europe 2024

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Alexander Altmann joins Barclays

By

Lucy Carter

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June 5, 2024

Alexander Altmann, global head of equities tactica strategies, Barclays

Barclays has appointed Alexander Altmann as global head of equities tactical strategies. He reports to Ronnie Wexler, global head of equities distribution.

In the New York-based role, Altmann is tasked with identifying new opportunities through thematic idea generation. Taking key themes and ideas from diverse channels across the bank, he will deliver actionable market content with a focus on exotics, quantitative investment solutions and flow products to equities clients and the broader global markets client base.

Altmann has two decades of industry experience and joins Barclays from Millennium, where he was a global equity macro portfolio manager. Prior to this, he spent close to 10 years as managing director and head of equity trading strategy at Citi. Earlier in his career, Altmann was a portfolio manager on the Royal Bank of Scotland’s equities team.

Commenting on the appointment, Wexler said: “Alex has a deep history of thought leadership across the equities landscape complemented by a stellar track record in generating actionable ideas across the markets space. Working in partnership with a wide range of teams within Global Markets and Research, we are confident that our clients will benefit from Alex’s expertise as we focus on deepening client relationships and delivering first class market content.”

©Markets Media Europe 2024

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AFME voices concern over FCA’s research rebundling stance

By

Lucy Carter

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June 5, 2024

Responding to the FCA’s consultation on payment optionality for investment research, AFME has warned that the association’s proposed approach risks misalignment with other financial centres.

While sharing the opinion that an optimal regime for investment research payment optionality grants buy-side firms the flexibility to decide how they obtain and purchase research, AFME has shared its concerns on the proportionality and workability of the FCA’s proposed framework.

The association stated that the framework has unnecessary operational complexity, which it believes would make the UK take a “significantly different” approach to other financial centres.

AFME’s primary area of concern centres around the FCA’s proposed guidelines, which it says are more detailed than those required in the US or under MiFID in the EU. If these are adopted, it warns, firms may be deterred from using the new payment optionality and increase cross-border frictions.

Adam Farkas, AFME CEO, commented: “AFME supports the principle of payment optionality. However, the FCA’s proposed framework may not be optimal because it is not sufficiently flexible compared to existing structures or structures available in other jurisdictions.

“Overall, our view is that the proposed regime would not underpin the Government’s wider commitment to enhance the UK’s ability to attract companies to list and to grow. While we support the FCA’s accelerated timeframe for this policy file, it is equally important that appropriate time is taken to consider industry feedback and that the regime delivers on the intended outcomes.”

©Markets Media Europe 2024

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CFTC advances Basel III endgame and variation margin processes recommendations

By

Lucy Carter

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June 5, 2024

The Commodity Futures Trading Commission’s (CFTC’s) Global Markets Advisory Committee (GMAC) has advanced two recommendations. The first looks at the impact of proposed US bank capital requirements, while the second discusses improvements to collateral and liquidity management for non-centrally cleared derivatives.

These recommendations were approved without objection at a meeting held in New York on June 4th.

The first recommendation considers the US Basel III endgame bank capital proposals, and provides suggestions to examine the impact of US bank capital proposals on end users, central clearing and derivatives markets more closely.

The Global Market Structure Subcommittee, which issued the recommendation, states that the proposals as they currently stand will reduce liquidity in derivatives markets, limit the capacity of US banks to offer clients access to derivatives markets and increase systemic risk.

Hedging costs will increase for end users, the subcommittee continued, subsequently increasing costs for customers. This will disproportionately harm smaller end users and non-public companies, it said, and will contribute to an unlevel playing field for market participants.

The second recommendation was presented by the Technical Issues Subcommittee, and considers variation margin processes in non-centrally cleared markets.

In light of exponential growth of margin call and settlement volumes, following the global implementation of margin requirements for non-cleared derivatives, the report recognises the importance of streamlining variation margin practices. It advises that the CFTC supports and facilitates the streamlining of variation margin practices, in line with recommendations from the Basel Committee on Banking Supervision and the International Organisation of Securities Commissions.

Following a review of margining practices and an assessment of market participants’ preparedness for high margin call and settlement volume during market volatility events, the two organisations published recommendations for the streamlining of variation margin practices in January 2024. The organisations suggested that firms consider the legal and operational challenges that could prevent seamless margin and collateral call exchange, and how they could increase flexibility in bilaterally agreed acceptable collateral. They also suggested that firms look at the advantages of standardisation, automation and third-party services in non-centrally cleared margin processes.

Commenting on the recommendations, Caroline Pham, CFTD commissioner and GMAC sponsor, said: “The GMAC continues to make great progress developing thoughtful recommendations and insightful work product to aid the CFTC, other policymakers, and participants in global markets.

“In less than a year, the GMAC has now adopted 13 recommendations on a broad array of issues to promote and bolster market integrity and resiliency. These recommendations continue to have a tangible impact, not only on rulemakings here at the CFTC, but also among our counterparts and international standard setters.”

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LMAX Group launches FX NDF trading in Singapore and London

By

Alex Pugh

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June 5, 2024

LMAX Group has launched FX Non-Deliverable Forwards (NDFs), available to trade in two matching centres, Singapore (SG1) and London (LD4).

The FX NDFs are traded on a central limit order book (CLOB), and will initially target Asia Pacific, where there is growing demand for FX NDF trading and access to deeper institutional liquidity as well as enhanced FX market structure.

David Mercer, CEO, LMAX Group, said: “As demand for institutional liquidity for Asian currencies continues to grow, adding NDFs to our global FX offering is a logical next step following the launch of our matching engine in SG1 in 2022. We recognise the significant potential that remains untapped in the Asian FX market and will continue to broaden our product suite, expand our distribution capabilities globally, and build the leading institutional FX marketplace.”

Matt DellaRocca, head of liquidity and analytics, APAC, LMAX Exchange, added: “We are delighted to go live with this offering, which will provide local FX market participants with access to an expanded pool of NDF liquidity through a regulated exchange venue and a CLOB model that delivers efficient market structure and transparent, precise, consistent execution.”

LMAX Group said Singapore is “paramount” to its growth. Asia accounts for three of the top four NDF currencies by volume, globally. Overall, trading in NDFs almost doubled globally between 2016 and 2022 from $134 billion to $266 billion, owing to greater electronification of NDF markets and increasing numbers of market participants.

FX NDF trading on LMAX Exchange via Singapore and London will initially offer top Asian USD crosses including Indian Rupee (INR), South Korean Won (KRW), New Taiwan Dollar (TWD), Chinese Yuan (CNY), Indonesian Rupiah (IDR), Philippine Peso (PHP) and Malaysian Ringgit (MYR) with LATAM crosses to follow.

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Texas Stock Exchange expected to register with SEC this year

By

Lucy Carter

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June 5, 2024

Plans are in motion to launch the Texas Stock Exchange (TXSE), with the company sharing its intentions to file registration documents with the SEC in H2 2024. It will be headquartered in Dallas.

The national securities exchange will serve as an entrance point for US and global companies to access US equity capital markets, TXSE explained, and as a venue to trade and list both public companies and exchange-traded products.

Backers of the project include BlackRock and Citadel Securities, with TXSE chairman and CEO James Lee stating that the group has “more than two dozen investors” and has raised approximately US$120 million in capital.

Commenting on the news via LinkedIn, Lee said: “TXSE is expected to be the most well-capitalised exchange entrant to file a registration with the SEC.”

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US stocks suffering historic fragility shocks, BoA reports

By

Lucy Carter

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June 4, 2024

Benjamin Bowler, head of global equity derivatives research, Bank of America

US stocks have recently experienced historic fragility shocks, according to insights from the Bank of America, with tech and US megacaps hitting 30-year frequency and magnitude extremes.

BofA warned that while these shocks have, so far, been idiosyncratic, “borderline erratic” price action signals a shift towards more market fragility. It went on to say that there is a risk of a correlated shock across such powerful companies, which control a significant portion of US and global equity indices. Index volatility is continuing to underprice this risk, “thus offering value as a fragility or broader market hedge”, it added.

ESTX50 long-dated volatility is at a long-term low, BofA reported, with the European Central Bank expected to begin easing financial conditions in the near future and US tech tailwinds continuing to drive equity momentum globally. While the ESTX50 reached within 10% of its all-time high in the first half of the year, “investors could be forgiven for being optimistic about further upside”, the bank concluded.

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IEX Group has appointed John Palmer to lead its efforts to build out new markets.

Financial services firm BTIG has appointed Sean Shanker as a managing director for electronic trading.

UBS has appointed Neil Hosie as global head of execution services. He replaces Brent Johnson, who has held the position since 2021.

Bloomberg’s Data License Plus (DL+) solution is now available through data and operations technology provider Arcesium’s advanced operations platform.

Barclays has appointed Alexander Altmann as global head of equities tactical strategies. He reports to Ronnie Wexler, global head of equities distribution.

Responding to the FCA’s consultation on payment optionality for investment research, AFME has warned that the association’s proposed approach risks misalignment with other financial centres.

Plans are in motion to launch the Texas Stock Exchange (TXSE), with the company sharing its intentions to file registration documents with the SEC in H2 2024. It will be headquartered in Dallas.

US stocks have recently experienced historic fragility shocks, according to insights from the Bank of America, with tech and US megacaps hitting 30-year frequency and magnitude extremes.

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