Waters Wavelength

This week, Anthony and James look at CME Group’s potential acquisition of NEX Group, with a focus on what this deal entails from a trading-platform perspective, how it might affect the fintech venture capital space, and how Brexit plays into this deal (2:00-11:00) and then Anthony talks about this weekend’s fight between Anthony Joshua and Joseph Parker (11:00-19:00). https://www.waterstechnology.com/organization-management/alliances-mergers-acquisitions/3558686/nex-ceo-sees-opportunity-for-opportunities-after-cme-deal

Fresh off his trip down to Florida for the FIA Boca conference, James Rundle talks to (a very jealous) Anthony Malakian about some of the key topics of discussion from the event. 2:00 FIA Boca is increasingly becoming a tech conference. 4:00 How the DTCC plans to evolve in a post-blockchain world. 6:30 What other blockchain/DLT stories came out of Boca? 8:00 Cryptocurrencies were getting the most play at the conference. 13:15 Artificial intelligence is also increasingly becoming a point of interest for even non-technologists. 15:30 People are excited about the Financial Desktop Connectivity and Collaboration Consortium (FDC3). 18:00 The Commodity Futures Trading Commission is not happy about the European Commission’s clearing proposals. 23:30 Data security, data privacy, and Facebook-Cambridge Analytica.

Jesse Lund, head of blockchain solutions for IBM’s Financial Services unit, joins the podcast to discuss the evolution of blockchain. 2:30 Jesse gives a quick look at the IBM Blockchain Platform. 5:00 Real use cases for blockchain in the capital markets. 8:30 How do cryptocurrencies come into play with blockchain’s development? 12:00 Which sectors are the most ripe for blockchain adoption? 15:30 Can distributed ledgers help with the development of industry utilities? 18:00 What are some of the lessons learned during proofs-of-concept? 21:00 What are some of the next steps in blockchain’s development? 24:00 What needs to happen to improve blockchain’s processing times? 26:30 What skills will be necessary for the jobs of the future?

After a bit of a lackluster performance last week (apologies), Anthony and James return with renewed vigor to discuss fintechs. We know, we know… you’ve heard this conversation before. Well, our hosts point to several news events to highlight what they believe is a true sea change in the fintech discussions. That goes on for about 36 minutes, and then they ramble about the Oscars. We do recommend the first 36 minutes. 1:30 Check out this profile of JPMorgan Asset & Wealth Management CIO Mike Urciuoli. https://www.waterstechnology.com/people/3524061/hurricane-mike-urciuoli-storms-jpmorgan-awm 3:30 A quick look at the SEC handing out its first Reg SCI fine. https://www.waterstechnology.com/exchanges-trading-venues/3529391/nyse-fined-14-million-by-sec-for-reg-sci-violations Fintech Disruption 4:30 European authorities have published a wide-ranging strategy designed to formalize the bloc’s response to and efforts in the fintech sector. https://www.waterstechnology.com/industry-issues-initiatives/3530876/euro

This week, Anthony and James look at some of the challenges that utilities face getting off the ground and look at whether or not emerging technologies like artificial intelligence and blockchain can help their efforts to gain momentum (3:00). They then hit on some of the features from the latest issues of both Waters and from Inside Data Management (14:30). Finally, they chat about the upcoming Fifa World Cup (20:30). https://www.waterstechnology.com/regulation-compliance/3523881/emerging-tech-could-help-push-utilities-forward

This week it was announced that Temenos is set to buy Fidessa, in yet another major acquisition in the capital markets space during the first two months of 2018. Victor Anderson phones in from London to chat with James Rundle about the deal and what it might mean for M&A going forward into 2018. Victor—who has been covering this space for over 16 years—has some funny anecdotes about Fidessa employees, past and present. 2:45 Victor joins and explains why he’s not too surprised by this recent pairing. 5:30 Some examples of past successful acquisitions. 8:00 While Fidessa being bought isn’t surprising, what about the fact that it’s Temenos doing the acquiring? 12:45 Is there a risk of Fidessa losing its London fintech heritage? 18:00 The market seems to be splitting between massive all-singing, all-dancing corporations and startup fintech firms. Does that mean that there’s no room for mid-sized vendors? 24:30 Victor has a few funny stories to tell about Fidessa, and certain fintech figures who appeared on Top

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