Waters Wavelength

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

Oliver Harris, head of JPMorgan’s In-Residence program, joins the podcast to discuss the fintech space, how these firms are proving disruptive, and how the bank is adjusting its strategy as a result. Also, James and Anthony discuss developments pertaining to the Target2-Securities platform. Finally, the two nerd out on TV and sports. Oliver Harris 3:10 Oliver joins the podcast and defines how JPMorgan views the fintech space, and how it has evolved in recent years. 5:15 He next explains how the JPMorgan’s in-residence unit plays into the bank’s broader fintech endeavors. 10:30 Next, he looks at two specific success stories to come out of program. 15:45 What’s in it for the bank? 20:00 Oliver gives his thoughts on machine learning and blockchain. T2S 22:15 What is the T2S platform and how did we get here? 25:45 While this is the final migration phase from the original plan, it’s not the end of T2S’s growth. 27:00 Have there been any tangible benefits stemming from the first implementation in 2015? 28:45

Bryan Harkins, head of US equities and global FX at the CBOE, joins the podcast to discuss how the merger with Bats Global Markets is going, some of the projects underway at the exchange, and how people can join the Wall Street Rides FAR bike tour, which will raise money for autism research. Then, James and Anthony discuss the recently announced hack at the Securities and Exchange Commission (SEC), the European Commission’s call to give the European Securities and Markets Authority (Esma) greater powers, and James’ love of sci-fi. Bryan Harkins 2:00 Just over six months since the acquisition of Bats by CBOE, Bryan talks about how the integration is going. 4:00 A look at how the exchange is attempting to launch a bitcoin futures contract. 6:00 CBOE has introduced anonymous FX deliverable forwards trading. 8:30 Following the acquisition, what’s the strategic plan for Bats and CBOE moving forward? Are they going to remain a pure markets business, or is there interest in expanding to other areas, like listings?

On the podcast, Anthony and James first preview Waters’ first-ever fintech event, before discussing James’ trip to Chicago. Then they look at how phase-three firms are preparing to comply with Standard Initial Margin Model (SIMM) guidelines for the mandatory exchange of initial margin on non-cleared derivatives trades. Finally, they wrap things up by discussing all things European soccer. 1:00 A look at the inaugural London Fintech Innovation Summit and why you should care. 6:15 James talks about his trip to Chicago to cover the SS&C client conference: the hunt for talent, regulation, rebalancing and disaster recovery prove to be areas of interest for many in attendance. 14:00 New initial margin rules that will go live next year. 17:30 A Brit talks about the English Premier League and Champions League, with a focus on Chelsea—yet another reason to dislike James. http://www.waterstechnology.com/events/3422546/waterstechnology-unveils-inaugural-london-fintech-innovation-summit http://www.waterstechnology.co

On the podcast, James first interviews Joakim Strid, head of European surveillance at Nasdaq, about how the exchange is incorporating machine learning into its surveillance program. They then discuss how AI is set to change surveillance as a whole in the years to come. After that interview, Emilia David, US reporter for Waters, joins James and Anthony to discuss how T+2 came about in the United States. Then finish things up by discussing must-watch TV for the fall now that Game of Thrones is over. Nasdaq & Machine Learning 2:30 Joakim first talks about how Nasdaq is using machine learning to surveil its Nordic marketplace. http://www.waterstechnology.com/exchanges-trading-venues/3420051/nasdaq-boosts-surveillance-with-machine-learning 5:15 He then looks at how the machine-learning algorithms work. 7:30 Why are machine-learning techniques useful when compared to existing techniques? 8:45 Joakim explains the genesis of the project. 10:45 Finally, he looks at what the possible future of machine learning hold

On the podcast, Anthony and James first talk industry issues as they look at the New York State Department of Financial Services' new cybersecurity regulation, which hit a major milestone on Tuesday and has another big deadline looming. Then, because it's a slow week, they shift gears and explain the things that PR people do that drive them crazy. Finally, of course, they discuss the Game of Thrones season finale and Anthony gives his final thoughts on the Floyd Mayweather-Conor McGregor fight. 3:00-12:00 A rundown of the NYSDFS Cybersecurity Regulation and broader cyber issues 14:00-30:00 PR Dos and Don’ts, Part III 31:00-38:00 Game of Thrones Finale Recap 38:00-End Recap of Floyd Mayweather-Conor McGregor

The podcast is back and with an even better sound as the gang tests out proper recording equipment. First, Wei-Shen Wong joins the podcast to talk about quantum computing. After that, James and Tony look at a possible emerging trend: the combination of the investment book of record (IBOR) and blockchain technology. They then rant about the most recent episode of Game of Thrones and finish up by discussing Saturday’s Floyd Mayweather-Conor McGregor “fight”. Quantum Computing 3:35 Wei-Shen Wong calls in from Hong Kong to discuss her feature examining quantum computing. 5:05 What differentiates quantum computing from today’s traditional high-performance computers? 7:30 Which areas of finance could QC impact over the next few years? 9:30 What security problems will this revolution pose for all firms? 12:15 What’s colder than cold? Well, quantum computing... 15:00 What’s the time horizon for quantum computing? 17:00 Wei-Shen talks about the challenges of reporting on such a complex topic. 18:15 Wei-Shen finishes

This week James and Anthony take a look at how the systematic internalizer regime is shaping up, and then examine the regtech sector. They wrap things up by delving into the most recent episode of Game of Thrones and then talk politics. Systematic Internalizers 1:20 What is a systematic internalizer (SI) and how are banks and large buy-side firms are gearing up to become SIs? 3:45 Moving forward, how will the SI market develop between the various banks and liquidity providers? 6:00 Are there any potential risks or concerns over this eventual explosion of SIs? RegTech 7:30 A quick look at capital market IT spending in 2017. 9:45 Why the regtech sector is poised for growth. 12:30 Who are some of the players in the space? Miscellany 15:30 The weekly Game of Thrones recap begins. 22:45 Then, naturally, an examination of why Nazis are bad.

Anthony returns to the podcast after a short vacation, and he and James discuss how capital markets firms are embracing the environmental, social and governance (ESG) sector. They then take a look at Regulation Systems Compliance and Integrity (Reg SCI) and examine whether or not the SEC is truly focused on the new mandate. Finally, they once again give their thoughts on the latest episode of Game of Thrones. 2:30 A primer on the ESG space, and why it’s unique. 4:30 Why invest in a company with high ESG standards? 11:15 When considering ESG investment, it’s important to look at peer groups. 15:15 This past week, Sen. Mark Warner (D-Va.) expressed his concerns over the SEC’s transparency—or lack thereof—when it comes to Reg SCI. 18:15 Does the SEC have their act together to be able to properly enact Reg SCI? 20:15 Internet of Things-related challenges will make Reg SCI all the more important in the future. 23:35 James says that Sunday’s episode of Game of Thrones was one of the greatest episodes of TV ever

This week Anthony is away on vacation so it’s up to James and Waters’ US reporter Emilia David to take the helm. They first look at the fintech space before moving on to Brexit movements and Game of Thrones. 1:00 Fintech and regulation—a primer. 02:30 Are sandboxes there to help fintechs, or to protect against them? 04:00 Miya and James examine whether it’s actually incumbent tech providers who might need more scrutiny. 07:20 They discuss Brexit, and how Frankfurt is emerging as a clear winner. 09:00 But what happens to London? 11:00 The guys try—and largely fail—to tackle the age-old question of whether German purity laws or American innovation produces better beer. 12:00 Miya and James wrap it up with the now-weekly post-mortem on this week’s Game of Thrones episode.

This week there were several big announcements surrounding bitcoin and digital currencies. Anthony and James delve into those stories and look at James’ all-encompassing feature—which was published on Thursday—that looks at some of the issues hindering the cryptocurrency space. James next gives a breakdown of the FCA’s announcement that it will phase-out the Libor benchmark and what it will mean for the industry. They then talk about the dramatic scene that played out in the US Senate in the wee hours of Friday morning, and end things by discussing episode two of Game of Thrones. 1:00 First, an amusing story about how James got “scooped” by the SEC. 3:30 A quick tutorial on how digital currencies are traded. 6:00 A look at the biggest challenges facing adoption. 9:30 Circuit breakers and order limits—are those the solutions? 11:00 What does the SEC announcement mean for future bitcoin investment? 14:00 The CFTC approves LedgerX Bitcoin CCP. 16:00 FCA puts Libor on notice for 2021 phase-out. 20:00 What’s t

This week, Anthony and James look at two major announcements coming out of IBM and then turn their attention, once again, to the review of the Markets in Financial Instruments (Mifid II) and how the Financial Conduct Authority (FCA) is concerned about industry preparedness as January draws near. They end things by giving their thoughts—sans sophistication—on the first episode of Game of Thrones’s seventh season. 1:00 The Waters Rankings winners have been announced.  1:30 LSE partners with IBM on blockchain. 6:30 IBM debuts full encryption with z14 mainframe release. 9:30 A broader discussion of how IBM has been aggressively targeting the financial services sector in 2017. 13:00 FCA worried by lack of readiness for Mifid II reporting. 16:30 Questions remain around Legal Entity Identifier (LEI) rules. 18:30 A quick bar recommendation (hence, why all the cursing). 19:30 A recap of Sunday’s Game of Thrones season premiere (with apologies to Ed Sheeran).

This week, Anthony and James look at Anthony’s feature on the proliferation of JavaScript frameworks. They then discuss the CFTC’s announcement this week that it is going to conduct a review of its swaps data reporting rules. Finally, they wrap things up by discussing Donald Trump Jr., and his disclosure of emails linking him to a Russian lawyer. While James is basically a socialist, Anthony is a conservative—and even he is losing his mind about where his country is heading, politically speaking. 1:00 A quick update on next week’s Waters Rankings announcement, and the Mifid II event in London. 1:45 How the JavaScript feature came about. 3:45 The problem: Too many frameworks and libraries to choose from 8:00 The balancing act of keeping both young and older programmers happy and engaged. 10:00 Lessons learned for CTOs. 12:25 The CFTC announcement and what it means. 14:00 What the revision process will look like. 15:00 A timeline of what is supposed to come next, though James and Anthony are skeptical. 18:00

This week James and Anthony look at recent regulatory developments in Europe as the Financial Conduct Authority (FCA) has releases its long-awaited study of the asset management industry and the UK, and final policy notes relating to Mifid II. They next turn their attention to this month’s Waters magazine cover story—a profile of Cheyne Capital’s Josh Jacobson—and examine how some vendors are entering the behavioral analytics space. 1:55 James gives an overview on recent FCA announcements and guidelines. 4:45 Change is coming for the way asset management is done in the UK. 7:00 Timeline for Mifid II developments going forward. 11:00 James and Anthony switch gears and look at this month’s cover story on Josh Jacobson. 13:45 What’s the case for behavior analysis of portfolio managers and traders. 18:30 James rants about Major League Soccer (MLS).

This week, Michael Radziemski joins Anthony and James on the podcast to discuss tech evolutions taking place in financial markets. Radziemski has 30 years of experience in the industry, with stints at Bankers Trust, Citigroup and Lord Abbett, where he was chief information officer from 2003 to 2016. 1:30 Radziemski looks at the problem of convenience overshadowing need in technology. 4:00 How has the industry evolved in his time as a technologist? 6:30 How do you take advantage of new tools such as machine learning without creating spaghetti infrastructures—and where do firms tend to fail when implementing new technologies? 10:30 The industry’s infrastructure isn’t up to snuff, according to Radziemski, but that’s also helping to drive public cloud infrastructure adoption. 13:00 How has the public cloud space evolved? 18:30 What skills do developers need to have in today’s environment? 22:45 Radziemski’s predictions for the top three trends in 2018: Robotic process automation; Machine learning; Public cloud