St. Louis, New York – 16 September 2024 – Exegy, the leading provider of market data and trading technology for the capital markets, is announcing today the hiring of Yewande Sobola and Thomas Gallo to spearhead its Client Success Initiative. This signifies the successful integration of Enyx and Vela with Exegy, where FPGA technology underpins Exegy’s core offerings. With this milestone, a new brand is introduced along with an expanded client success initiative.
The program’s main goal is for Exegy to become an extension of clients’ technology and operations teams, enabling them to achieve better business outcomes than they could on their own. The two new senior team members are a crucial part of Exegy’s leadership team and are overseeing the optimization of global support and delivery functions as part of the client success initiative.
Yewande Sobola, Global Head of Solutions Consulting, brings 15+ years of global experience in the trading technology space. Prior to joining Exegy, she held roles as a Senior Network Engineer at G-Research, Network Engineer at Trading Technologies, and most recently spent six years as Executive Director of Sales Engineering at Pico. Her vision for the Client Success Initiative is to develop a team that will be acting as expert technology consultants and an extension of internal client teams, helping them extract maximum value from Exegy solutions and accelerating deployments of new trading infrastructure.
Gallo’s experience lies within client success management, having joined Exegy from Pico where he was Vice President, Client Success Management & Delivery for over three years. He previously held roles at ITG and Virtu Financial, driving support and coverage across their global product suite. He is now Vice President, Head of Client Success at Exegy, a role in which he will be spearheading client engagement with the initiative. With their combined expertise, Exegy’s new leaders will enable Exegy to consistently align its solution delivery and ongoing services to the business goals of its clients.
David Taylor, CEO of Exegy, said: “The successful integration of three major capital markets technology players into one company is an accomplishment not to be underestimated. We brought together not only the technology, but also the cultures and processes that enable us to bring the most value to our clients. We are delighted to have Yewande and Tom on our team to maximize value delivery to our clients. To mark this achievement, we are rolling out a new look and feel of the brand, which embodies the unification of the three companies – Exegy, Vela, and Enyx.”
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About Exegy Inc.
Exegy is a global leader in intelligent market data, advanced trading and execution systems, and future-proof technology and infrastructure. Backed by Marlin Equity Partners, Exegy serves as a strategic partner to the complete ecosystem of the buy-side, sell-side, exchanges, and ISV/technology firms around the globe.
IEX Group Takes Next Step in Growth Journey with the Announcement of Its First Options Exchange
NEW YORK – 9/16/24 – IEX Group, Inc. (IEX), today announced that it will launch a U.S. options exchange to partner with liquidity providers to uniquely tackle risk management challenges experienced in the options markets, pending regulatory approvals. This new options exchange will bring IEX’s suite of order protection innovations to better address the needs of market makers.
IEX President, Bryan Harkins, commented on the planned launch, “We are focused on understanding the challenges of our Members and having discussions with market participants to guide our entry into the options market. IEX’s experience and expertise in understanding the needs of liquidity providers provides a great foundation as we begin to offer options market makers a set of tools designed to drive performance.”
The proposed options exchange will be an electronic venue that will provide access to the entire multi-listed options market while relying on a pro-rata model. This will be the first time that IEX’s proprietary solutions for risk management and markout optimization will be available for U.S. options trading, after achieving success in equities.
“IEX spent the last decade innovating to build technology that is designed to protect liquidity providers, and we have now added a team of leaders with deep multi-asset expertise that can help guide IEX through our next stage of growth,” said IEX Founder and CEO Brad Katsuyama. “We have been encouraged by the conversations this team has had with market makers about moving into the options market which underscores the opportunity for us to deepen our relationships with clients and to further improve execution quality in US markets by expanding into options.”
Proven Industry Leaders Join IEX to Drive Next Era of Growth
This launch builds on IEX’s announcement of several key leadership appointments earlier this year, including the addition of Bryan Harkins as IEX Group president and John Palmer to lead its efforts to build out its offerings and technology to serve new markets. Palmer will serve as head of options and lead the new exchange. He will continue reporting to President Bryan Harkins, who will oversee both IEX’s equities exchange and the new options exchange.
IEX also announced today that it has brought on another senior capital markets operator, Ivan Brown, who will play a key role in IEX’s plans to bring a highly differentiated trading venue to the options market. Brown will lead business development and product design for the new options exchange. He joins IEX after 15 years in financial markets leadership at the New York Stock Exchange (NYSE), where he most recently served as head of options and business development. In that role, Ivan led the NYSE’s options business, including overall strategy and development, product development, and trading floor operations, and was ultimately responsible for driving revenue and market share growth for the NYSE Options platform during his tenure.
“Bryan, John, and Ivan are proven operators who have built successful trading platforms across asset classes,” said IEX Co-Founder and COO Ronan Ryan. “We are committed to bringing together the best people in the trading industry to disrupt the status quo in options trading with a unique market architecture, highly differentiated products, and deep commitment to client relationships.”
IEX plans to work closely with options industry participants to address the unique risk management-related challenges that currently exist in the options market. It will also require minimal effort for current Members of its equities exchange to be onboarded to this new venue.
“We are excited to enter this space and work with some great brands to deliver unique value and make better markets,” said John Palmer, IEX’s new head of options.
Founded by the buyside, IEX built the first U.S. equities exchange to power its order types with a machine learning-based mathematical formula, known as the Signal, that is designed to drive order protection. IEX also introduced D-Limit, the only displayed order type designed to obtain pre-trade price improvement, enabling Members to achieve prices better than their initial limit price. Over $3.5 trillion of notional value has been traded using D-Limit since inception. Among U.S. equities exchange operators today, IEX captures 2.5-3% market share and offers superior performance thanks to its unique features and order types. By many industry metrics, IEX offers best-in-class performance for liquidity providers.
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ABOUT IEX
IEX (IEX Group, Inc.) is an exchange operator and technology company dedicated to innovating for performance in capital markets. Founded in 2012, IEX launched a new kind of securities exchange in 2016 that combines a transparent business model and unique architecture designed to protect investors. Today, IEX applies its proprietary technology and experience to drive performance across asset classes, serve all investors, and advocate for transparent and competitive markets. Learn more at iex.io.
Women on the Move is JPMorgan Chase’s global diversity effort to support women, both inside and outside of the firm. Through working to expand women-run businesses, increase access to financial health tools and empower women’s career growth, JPMorgan Chase is taking even more steps to drive equity and advancement in their offices — as well as communities. Globally, nearly half of the firm’s employees are women.
Sam Saperstein
“When we launched Women on the Move in 2018, we realized the need for a more coordinated and centralized effort to continue supporting women globally,” recalls Sam Saperstein, Global Head of Women on the Move.
“Our initiative focuses on areas where we, as a bank, can drive impact,” Saperstein said. “Those areas are women’s entrepreneurship, financial health and literacy, and career development.”
Since launching, Women on the Move has been committed to creating equitable pathways to opportunities that will enable women to achieve financial well-being, grow their skills and businesses, and advance their careers.
According to Saperstein, in the area of women’s entrepreneurship, they developed the Curated Coaching for Entrepreneurs program to help small business owners to “really get better at running their businesses in areas like cash flow management, operations, branding, and vendor management.”
“This is something that we’re really proud of,” Saperstein told Traders Magazine, adding that to date they reached more than 5,000 entrepreneurs through the program. “It’s something that just continues to thrive, and we know we reach a very diverse group of women in doing that,” she added.
Saperstein also highlighted Women on the Move’s careers and skill development programs: “We’ve reached thousands of our employees and help them understand what it is they want, for themselves and their careers. We encourage them to set high aspirations for themselves and achieve them through a goal-oriented approach.”
She added that in terms of financial health, they have supported several financial literacy programs in collaboration with many different nonprofits and educational institutions outside of the firm.
“A combination of all those efforts over the years has helped us to reach tens of thousands of girls and women by providing education and tools when it comes to areas such as savings, budgeting and ultimately investing, so that they can build their own wealth and lead independent financial lives.”
According to Saperstein, many of the Women on the Move’s initiatives are events driven, with some being virtual. “The Curated Coaching for Entrepreneurs program is virtual, so we are able to meet with business owners all around the country in small group sessions.”
One of the biggest events that JPMorgan Chase hosts for employees and clients is their annual Women’s Leadership Day, a conference that brings together thousands of attendees in-person in New York City as well as virtually around the globe.
“For nine years now, Women’s Leadership has given us an opportunity us to come together, to celebrate women’s progress, discuss leadership, and energize our community through the ups and downs women face,” she stressed.
This year, the event will be held on October 25: “We’re really excited to bring together a fantastic lineup of speakers, along with women employees, men, allies and clients all coming together as one community.”
Saperstein said that like many companies, JPMorgan Chase has business resource groups, providing a collaborative forum for all employees to come together to support and uplift various communities and topics.
“The Women on the Move Business Resource Group is one of 10 throughout the company and comprised of tens of thousands of employees globally,” said Saperstein, adding that the initiative is an important part of the organization, allowing it to drive greater impact.
“Members of the Women on the Move Business Resource Group go into communities in cities and countries around the world to network among each other, do volunteer efforts, and host events for girls and young women, inspiring and showing them what’s possible in their careers.”
She emphasized the importance of men and allies: “Men and allies are integral to Women on the Move, and crucial to the progress we’ve made and continue to make to ensure women thrive in their professional and personal lives.”
Saperstein stressed that JPMorgan believes that diversity of thought and backgrounds and experience is what makes them, a better firm. “At JPMorgan Chase, we believe that building a stronger, more inclusive economy that benefits everyone is good for people, business and society,” she concluded.
Northern Trust Corporation has announced a number of leadership changes, effective October 1, 2024. Peter B. Cherecwich, President of Asset Servicing, will become Chief Operating Officer. Cherecwich brings decades of experience in managing complex client relationships and global operations. Teresa Parker will defer her previously announced retirement and serve as President of Asset Servicing. Parker most recently served as President, Europe, Middle East and Africa (EMEA). Steven L. Fradkin, who has served in a wide variety of leadership roles including President of Wealth Management, President of Asset Servicing, Chief Financial Officer, and head of the international business, will be named Vice Chairman of Northern Trust. Chief Financial Officer Jason Tyler will assume the role of President of Wealth Management. In addition, David W. Fox Jr., President of the Global Family & Private Investment Offices Group, will serve as Chief Financial Officer.
Richard Oldfield
Richard Oldfield has been appointed as Group Chief Executive of Schroders, succeeding Peter Harrison, with effect from November 8 2024, subject to regulatory approval. In his 30 years at PwC, Oldfield held senior roles including Network Vice Chairman and Global Markets Leader. Since joining Schroders as Chief Financial Officer in October 2023, he has made an immediate and significant contribution, providing a fresh perspective on capital management, driving new initiatives such as the inaugural bond issue earlier this year and embedding commercial discipline across the Group.
John Vaccaro
The FINRA Board has elected Large Firm Governor — John Vaccaro, Chair and CEO, MML Investors Services; Head of MassMutual Financial Advisors; Mid-Size Firm Governor — James Crowley, CEO, Pershing Advisor Solutions; Senior Executive Vice President, Global Head of BNY Pershing; and Small Firm Governor — Jennifer Szaro, Chief Compliance Officer, XML Securities.
The Securities and Exchange Commission has announced six new members to fill vacancies on its Investor Advisory Committee: George Georgiev, Associate Professor of Law, Emory Law School; R. Craig Knocke, Principal, Turtle Creek Management; Amy C. McGarrity, Chief Investment Officer/Chief Operating Officer, Colorado Public Employees’ Retirement Association; Jennifer J. Schulp, Director of Financial Regulation Studies, Cato Institute’s Center for Monetary and Financial Alternatives; Andrea Seidt, Ohio Securities Commissioner; Alvin Velazquez, Associate Professor of Law, Indiana University Maurer School of Lawand. The new members, who will serve four-year terms, join 17 current committee members.
Franklin Templeton has announced the appointment of Todd Bitzer, Emily Cox and Andre Cuerington as Senior Vice President, Client Advisors, US Institutional. Bitzer is based in Atlanta. Cox, who additionally serves as an Alternative Specialist, is based in Southern California. Cuerington is based in Northern California. Bitzer has over 30 years of financial industry experience, most recently serving as Managing Director at Lucid Management & Capital Partners focused on institutional business development. Cox has over a decade of experience in the financial services industry, joining from Tetragon where she worked in business development focused on alternatives, including private credit strategies. Cuerington has over 27 years of financial industry experience, most recently serving as managing director for Makena Capital Management’s client strategy group.
Fausto Monacelli has joined Scotiabank as Managing Director, Head of U.S. General Industrials and Services – Consumer, Industrial & Retail (CIR) Investment Banking. Based in New York, he will report to Michael Mahoney, Managing Director & Head, Consumer Industrial Retail, Corporate and Investment Banking. Monacelli joins Scotiabank after more than 18 years at Goldman Sachs, including recent roles as Head of Automotive and AutoTech, and Head of Business Services.
Michele Foldenauer has joined ACA Group as a Managing Director and a leader of its tech-enabled Mock Examination Team. With over 20 years of experience in the securities industry, Foldenauer brings a deep well of knowledge and expertise. She held senior leadership roles at the U.S. Securities and Exchange Commission’s (SEC) within the Private Funds Unit.
Neuberger Berman has hired Jeff Blazek, a 25-year veteran of asset management and consulting, as Managing Director and Co-Chief Investment Officer for Multi-Asset Strategies, based in New York. Blazek brings more than 25 years of investment experience to his new role, having previously been a Partner and New York office leader at Cambridge Associates. Earlier, he served in senior investment roles with New York-Presbyterian Hospital and the Teacher Retirement System of Texas.
BNP Paribas Asset Management has appointed Carmine De Franco as Head of the Quant Equity portfolio management team. Based in Paris, Carmine reports to Olivier Laplénie, Head of Quant Portfolio Management. Carmine joins BNPP AM from Ossiam where he spent 12 years in various positions, first as Portfolio Manager and then as Head of Research and ESG, where he worked on the design, implementation, and management of quantitative strategies for global institutional clients.
If you have a new job or promotion to report, let me know at alyudvig@marketsmedia.com
TIME AND DATE: Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange Commission will hold an Open Meeting on Wednesday, September 18, 2024 at 10:00 a.m. (ET)
PLACE: The meeting will be webcast on the Commission’s website at www.sec.gov.
STATUS: This meeting will begin at 10:00 a.m. (ET) and will be open to the public via webcast on the Commission’s website at www.sec.gov.
MATTERS TO BE CONSIDERED:
The Commission will consider whether to adopt amendments to certain rules of Regulation NMS under the Securities Exchange Act of 1934 to amend the minimum pricing increments for the quoting of certain NMS stocks, reduce the access fee caps, and enhance the transparency of better priced orders.
CONTACT PERSON FOR MORE INFORMATION: For further information and to ascertain what, if any, matters have been added, deleted or postponed, please contact Vanessa A. Countryman from the Office of the Secretary at (202) 551-5400.
OTC Markets Group Announces Official Launch of OTC Overnight, Expanding Global Market Access
NEW YORK – September 12, 2024 –OTC Markets Group Inc. (OTCQX: OTCM; “the Company”), the operator of regulated financial markets for over 12,000 U.S. and global securities, today announced the official launch of OTC Overnight. A select group of active securities are now available for trading Sunday through Thursday between 8 PM and 4 AM Eastern Time.
The Company first announced OTC Overnight in May, noting proposed market hours and the type of securities to be eligible at launch. This month’s launch comes at a time of increasing client demand for OTC Markets’ unique set of global securities priced in U.S. Dollars. OTC Overnight provides trading capabilities that will significantly expand market accessibility, transparency, and comprehensive data coverage for the OTC markets. By using existing infrastructure and connectivity, broker-dealer subscribers can efficiently add overnight trading capabilities to meet their customer demand.
With OTC Overnight trading and reporting functionality now live on OTC Link NQB, an SEC-regulated Alternative Trading System, a select group of active securities are now eligible for trading in overnight sessions by broker-dealer subscribers in U.S. dollars. This includes liquid ADRs of global companies such as adidas, Heineken and Roche Holding, as well as ordinary shares of well-known companies like Bombardier and Air Canada Inc. While the initial launch applies to a limited group of securities, the Company plans to expand the offering to additional securities over the near term.
The Company continues to take steps to establish itself as a global market that meets the needs of investors, broker-dealers, and issuers. OTC Overnight signifies an evolution of the Company’s service, launched at a critical moment as innovative broker-dealers seek to enhance the trading experience for investors in the U.S. and Asia.
Matt Fuchs, Executive Vice President of Market Data at OTC Markets Group, commented, “We are excited to bring this innovative offering to fruition. OTC Overnight will provide transparent, competitive, and cost-effective markets to support the expanded needs of investors, broker-dealers, and issuers. It is an important step in furthering our company’s mission to create better informed and more efficient markets.”
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.
FLASH FRIDAY is a weekly content series looking at the past, present and future of capital markets trading and technology. FLASH FRIDAY is sponsored by Instinet, a Nomura company.
Summer was fleeting, and so was Traders Magazine’s whirlwind summer 2024 listening tour of getting to know Generation Z in our industry.
In today’s swan song, please meet a quintet of Zoomers from Virtu Financial.
Joe Ballai, Workflow Technology
Briefly describe your educational background and work experience, including current role/responsibilities.
I graduated from Stevens Institute of Technology in 2022 with a major in Quantitative Finance and a minor in Applied Mathematics. After interning with Virtu during my senior year, I joined full-time as an Electronic Trade Support Specialist on the Workflow Technology team, where I assist in managing our global trading hub.
How did you get interested in the world of finance/fintech?
Coming from a family of engineers, I’ve always been interested in problem-solving, math, and puzzles. On my 12th birthday, my grandma gifted me one share of Apple stock, sparking my interest in finance. I began creating my own portfolios with fake money and even gave my parents unsolicited trading advice as a teenager. Combining these interests led me to FinTech, where I found the perfect fit.
What is the best aspect of your job?
The culture. From day one, I’ve been encouraged to have a voice in team decisions and empowered to lead my own initiatives. Plus, I’m surrounded by some of the smartest people I’ve ever met, who are always eager to help me grow.
Any notable mentors, past or present, that you’d like to recognize?
My older brother. Watching him carve out his career path ahead of me and seeing the effort he put in to achieve his goals set a high standard for me.
What do you like to do outside work?
I love picking up new hobbies that engage both my body and mind. Whether it’s working out, trying to improve my golf swing, or learning a new song on the piano, I enjoy the challenge and looking back on my progress.
Kimberly Ding, Quantitative Strategist
Briefly describe your educational background and work experience, including current role/responsibilities.
I studied computer science at Princeton and interned as a software engineer before joining Virtu as an intern. Now, as a Quantitative Strategist, I improve our strategies through experiments, simulations, and assessing post implementation in production.
What is the best aspect of your job?
My coworkers. The collaborative culture here is fantastic—everyone is eager to help and excited to share their work.
Any notable mentors, past or present, that you’d like to recognize?
When I was a kid, my chess coach told me that if I was going to proceed with a particular plan, I shouldn’t pivot to a different plan halfway through. He was talking about chess, of course, but now when I decide to do anything, I commit myself fully to it.
What do you like to do outside work?
I’m trying, with limited success, to spend less time in front of a computer. I’ve been going to workout classes and dabbling in crafts, such as painting and sewing.
How optimistic are you about your generation’s ability to step up and lead companies, industries, or governments when the time comes?
I’m very optimistic. Can’t think of a reason not to be.
Angus Cowell, Agency Trading
Briefly describe your educational background and work experience, including current role/responsibilities.
After graduating with a degree in Economics from Harvard, I joined Virtu and spent a year in operations for our Options market maker. I then transitioned to the Agency desk, where I help develop and enhance the algorithms and routers we use for our client business.
How did you get interested in the world of finance/fintech?
In college, I was drawn to trading and the idea of a trade desk—a team of people with different skills working together in real-time. As a former collegiate athlete, this collaborative, fast-paced environment captivated me.
What is the best aspect of your job?
What I enjoy most about trading is the unpredictable nature of my day-to-day. At any given moment, I could be working on an analysis, a code change, or dealing with real-time situations. Each morning, you never know with absolute certainty what you will be working on.
What do you like to do outside work?
As someone who spends a considerable amount of time in front of computer screens, I like to spend my weekends outdoors, hiking, fishing, and working in vain towards becoming a mediocre golfer.
Flash forward 20 years: What does the finance/fintech industry look like?
I believe the industry will continue its push towards automation, further driving efficiency, and giving traders access to ever-improving tools.
Olivia Stein, Trading Analytics
Briefly describe your educational background and work experience, including current role/responsibilities.
I graduated from Northwestern University in 2023 with a B.S. in Mechanical Engineering. After attending Virtu’s Women’s Winternship in my sophomore year, I interned with Virtu’s Analytics group in 2022 and joined full-time in August 2023 as a Client Services Analyst. In this role, I support clients across our trading and portfolio analytics products, analyze trade data, and prepare reports and presentations on transaction costs and trends.
How did you get interested in the world of finance/fintech/asset management?
Though I pursued mechanical engineering, I found a passion for data science and coding. Fintech allowed me to apply these analytical and technical skills to the dynamic world of finance.
What is the best aspect of your job?
The people. I’m surrounded by supportive, curious, and collaborative individuals who keep me engaged and motivated. As a young woman in finance, I’m lucky to have amazing female role models around me.
What do you like to do outside work?
Outside of work, I am an avid runner. I ran my first half marathon this past April and I plan to run the NYC marathon in the next few years. I also enjoy trying new restaurants around New York City, cooking, and spending time with friends and family.
How optimistic are you about your generation’s ability to step up and lead companies, industries, or governments when the time comes?
I’m very optimistic! Our generation has proven to be innovative when facing challenges, and I believe we’re uniquely equipped to lead in a world driven by technology, AI, and data analytics.
Anita Mukherjee, Equities Trader
Briefly describe your educational background and work experience, including your current role and responsibilities.
I graduated from Vanderbilt in December 2022 with degrees in Applied Mathematics and Economics, along with a minor in Computer Science. During college, I conducted bioinformatics research and served as an editor for a magazine. The summer before graduation, I interned on the Sales and Trading floor at a bank, and upon graduating, I joined Virtu as an International Equities Trader.
How did you get interested in the world of finance/fintech?
I didn’t know much about trading or the financial markets until college, but I’ve always enjoyed math and strategy games. Trading has felt like a natural fit for me, and I really enjoy the fast-paced nature of the role.
Any notable mentors, past or present, that you’d like to recognize?
Virtu fosters a unique culture of collaboration and mentorship. Teams are always coordinating with one another and people are genuinely excited to share their expertise. I wouldn’t be where I am today without the extra effort my coworkers have put in to help me along the way.
What do you like to do outside work?
Lots of things! I’ve been training for a half marathon, so you can usually find me running. When I’m not running, I love cooking with friends or shooting film photography.
How optimistic are you about your generation’s ability to step up and lead companies, industries, or governments when the time comes?
I’m pretty optimistic. Gen Z has already shown its ability to effect change, and as one of the first generations to grow up alongside technology, I believe we have a unique perspective on how to leverage its power effectively. I’m excited to see how we continue to rise to the challenge.
New Research: Advanced Technologies to Revolutionize Market Data Landscape
Zurich, September 12, 2024 – Technology is now the main factor shaping decisions concerning market data across both the buy-side and sell-side. This is a key finding of new research published today and conducted by SIX, the global financial information provider, and Coalition Greenwich.
The market data survey – carried out from April to July 2024 – spans 67 respondents at asset managers, wealth managers and broker dealers in the U.S., U.K., Europe, and Asia. First launched in 2023, this is the second in a series designed to better understand the trends and challenges of consuming market data.
Adoption of cloud technology has increased significantly, with half of respondents now opting to receive data across both public and private cloud hosting applications, compared to a 30% adoption rate last year. The application of other advanced technologies – including API delivery formats – is also set to become more widespread, with 70% of institutions expecting a greater shift to APIs over the next three to five years. Looking ahead, investors anticipate using emerging technologies at surprisingly robust levels, with three quarters of respondents citing Artificial Intelligence (AI)/Machine Learning (ML) as the lead factor to enhance market data delivery and consumption.
Compared to last year, this surge in interest can be attributed to real-time data becoming a competitive differentiator for market participants. While most respondents rely on multiple frequencies of data, including delayed, historical, and end-of-day, greater market demand for real-time information supports the adoption of more advanced technologies.
Unsurprisingly, spending on market data is projected to rise for the second year running, with growing budgets being allocated to equities, index, fixed-income, and ESG data sets. For some market participants, these increases could exceed 16%. However, survey participants continue to prioritize data quality, accuracy and reliability over all other considerations when deciding on market data types, frequency and vendor, building on the trend that emerged in 2023.
Commenting on the findings, Roy Kirby, Head of Core Products, Financial Information, SIX said: “New and emerging technologies are a transformative force. While the benefits are well known, market data delivery and access methods are shifting fast year on year. With a wide number and constantly evolving set of use-cases for market data, one thing is clear: access to quality, timely data is crucial. None of the benefits can be realized without a solid data foundation to build on – and this is where cloud and APIs will add greater value to market participants, and ultimately drive forward growth.”
“High-quality data is paramount to any type of data use, no matter how transformative it is. The use of generative AI by market data users is becoming increasingly apparent — especially for creating and supporting investment decision-making. This development is underscored by the shift toward higher frequencies of data and more efficient data delivery,” added David Easthope, Senior Analyst for Coalition Greenwich Market Structure & Technology and co-author of the paper.
WASHINGTON, DC, September 12, 2024 – The Foreign Exchange Professionals Association (FXPA) has published a white paper entitled Regulated FX Derivatives Trading Venues: Promoting Fair and Orderly Markets. The paper is the outcome of several months’ work by FXPA’s Trading Platforms Working Group and explores the potential risks posed by the current, uneven playing field that exists between regulated and unregulated trading venues operating in over-the-counter FX derivatives markets.
The paper focuses on the varying structures of trading venues, the potential impacts on market integrity, and the benefits of regulatory oversight for these venues. “While unregulated FX derivatives trading venues may, in some cases, offer higher leverage, lower deposit requirements to trade, lower fees for customers and less onerous onboarding requirements, when compared to regulated FX derivatives trading venues, those benefits may come at the expense of reduced customer protections resulting from lack of comprehensive regulatory oversight,” the report states.
“The presence of unregulated FX derivatives trading venues also introduces the possibility of regulatory arbitrage for FX markets. These dynamics raise concerns about fairness and market integrity around the operation of unregulated FX derivatives trading venues. Market participants should be aware of the regulatory status (or lack thereof) and attendant protections and risks of the platforms on which they decide to trade. The presence or absence of regulatory oversight can impact a range of issues, including the role of affiliated market makers, permitted trading practices, market surveillance, and overall market integrity,” the paper further states.
With the publication of this paper, FXPA aims to provide regulators, policymakers, and market participants with helpful insights into the industry, and promote informed decision-making.
–END–
Since 2014, the Foreign Exchange Professionals Association (FXPA) has been representing the collective interests of the institutional FX market to advance a sound, liquid, transparent, and competitive global currency market to policymakers and the marketplace through education, research, and advocacy. Current members include Bloomberg, Cboe Global Markets, CME Group, State Street Global Markets, Euronext, GlobalLink, Portware, Atlassian, CalPERS, Colorado PERA, Eaton Vance, Fidelity International, Insight Investment, Mesirow, and Microsoft. The white paper does not represent the specific individual opinion of any one particular member.
New exchange-traded solution designed to hedge against and capitalize on U.S. equity market volatility moves
Product debuts at a critical time as market participants navigate uncertain macro environment
Reflects Cboe’s ongoing efforts to expand access and functionality of its volatility product suite
CHICAGO, Sept. 11, 2024 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced that its new Cboe S&P 500 Variance Futures (Ticker: VA) are planned to begin trading on Monday, September 23, on the Cboe Futures Exchange, LLC (CFE).
As investors continue to navigate an uncertain macroeconomic environment, the new Cboe S&P 500 Variance Futures will aim to provide market participants with an additional tool to calculate implied volatility of the U.S. equity market as measured by the S&P 500 Index, and to manage volatility risks and express directional views. The futures are designed to offer a streamlined approach to trading the spread between implied and realized volatility, enabling market participants to take advantage of discrepancies between market expectations and actual outcomes.
“Cboe’s suite of proprietary products, including the highly popular SPX options and VIX options and futures, has served the needs of market participants globally for many decades,” said Catherine Clay, Head of Global Derivatives at Cboe. “As investor needs for hedging, trading, diversification and asset allocation continue to evolve, we are committed to expanding our offerings to meet their demands. We look forward to launching the next generation of volatility products – including Cboe S&P 500 Variance Futures and options on VIX futures coming later in October, subject to regulatory review – which we expect will further equip our customers with new and efficient tools to trade volatility.”
“The launch of Cboe S&P 500 Variance Futures comes at a crucial time when risk management is top of mind for many market participants, amid the backdrop of the upcoming U.S. election, shifting monetary policy and ongoing geopolitical tensions,” said Rob Hocking, Head of Product Innovation at Cboe. “As demand for hedging and income generation rises, our goal is to broaden access to the derivatives markets by simplifying complex, capital-intensive strategies and making them more easily tradable in an exchange-listed, centrally cleared environment. For those looking to hedge against or capitalize on volatility moves, we believe this new product will offer an accessible and capital-efficient way to replicate the exposures of OTC variance swaps.”
Cboe S&P 500 Variance Futures are expected to appeal to a wide range of market participants with diverse investment objectives, including volatility traders and hedge funds seeking capital efficiency and transparency, institutional investors managing equity volatility risk and expressing directional views, portfolio managers aiming for enhanced diversification and risk premia capture, and dealers and market makers transitioning from OTC variance swaps to standardized products.
Noel Smith, Managing Partner and Chief Investment Officer at Convex Asset Management, said: “The introduction of Cboe S&P 500 Variance Futures will be a useful and welcome addition to the volatility toolkit. Variance futures have a convex payoff structure compared to a linear payout with volatility. If long variance, holders might enjoy the benefits of enhanced tail convexity, and if there are liquidity issues at distant out-of-the-money strikes, long variance could continue to mitigate risk. Variance futures fill a useful gap in dispersion trading, tail hedging and relative value volatility arbitrage.”
Keith DeCarlucci, Chief Investment Officer at Melqart Asset Management, said: “Having traded variance since 2002, being able to trade a simple cleared variance product will be a very welcome addition to our portfolio.”
Bill Looney, Head of Global Business Development at X-Change Financial Access (XFA), said: “XFA is encouraged by the relaunch of the Cboe S&P 500 Variance Futures contract and its ability to provide the marketplace a listed alternative for trading variance. As a committed TPH holder, XFA, with its trading floor and electronic execution capabilities, looks forward to helping our clients – in all customer segments – access this innovative product.”
The Cboe S&P 500 Variance Futures contracts will settle based on a calculation[1] of the annualized realized variance of the S&P 500 Index. The realized variance will be calculated once each day from a series of values of the S&P 500 Index beginning with the closing index value on the first day a VA futures contract is listed for trading and ending with the special opening quotation (SOQ) of the S&P 500 Index on the final settlement date of that contract.
The contracts will quote and trade directly in variance units, offering a simplified approach to managing and trading variance exposure. With a contract size of $1[2] and settlement aligned with standard SPX options (generally settling the third Friday of the month), these futures are designed to integrate seamlessly into market participants’ existing trading strategies.
Additionally, Cboe expects to introduce trading in options on VIX Futures starting October 14, subject to regulatory review. The planned launch of these products underscores Cboe’s ongoing efforts to expand the accessibility and functionality of its SPX and VIX product suite to meet growing customer demand. For more information about Cboe S&P 500 Variance Futures and product use cases, please visit the product page here.
About Cboe Global Markets
Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.
Cboe®, CFE®, Cboe Futures Exchange®, VIX®, and Cboe Global Markets® are registered trademarks of Cboe Exchange, Inc. All other trademarks and service marks are the property of their respective owners. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”), and the S&P 500 Index has been licensed to Cboe Exchange, Inc. for the purposes of creating the Cboe S&P 500 Variance Indicator. “Variance Indicator” means a series over time of realized or implied variance values, which series uses as input for its calculation, among other values, one or more of the following values: the value of one or more Standardized Options Contracts based on an Underlying S&P Index, the value of another financial interest based on an Underlying S&P Index, or the value of an Underlying S&P Index. S&P®, S&P 500®, SPX®, DSPX®, DSPBX, US 500 and The 500 are trademarks of S&P DJI or its affiliates, and have been licensed by Cboe Exchange, Inc. for certain purposes. Cboe S&P 500 Variance Futures settling into the Cboe S&P 500 Variance Indicator are not issued, marketed, sponsored or promoted by S&P Dow Jones Indices or its affiliates, and S&P DJI will have no liability with respect thereto.
Trading in futures and options on futures is not suitable for all market participants and involves the risk of loss, which can be substantial and can exceed the amount of money deposited for a futures or options on futures position. You should, therefore, carefully consider whether trading in futures and options on futures is suitable for you in light of your circumstances and financial resources. You should put at risk only funds that you can afford to lose without affecting your lifestyle. For additional information regarding the risks associated with trading futures and options on futures and with trading security futures, see respectively the Risk Disclosure Statement Referenced in CFTC Letter 16-82 and the Risk Disclosure Statement for Security Futures Contracts. Certain risks associated with options, futures, and options on futures and certain disclosures relating to information provided regarding these products are also highlighted at https://www.cboe.com/us.
Cboe Global Markets, Inc. and its affiliates do not recommend or make any representation as to possible benefits from any securities, futures or investments, or third-party products or services. Cboe Global Markets, Inc. is not affiliated with S&P, Convex Asset Management, Melqart Asset Management or X-Change Financial Access (XFA). Investors should undertake their own due diligence regarding their securities, futures, and investment practices. This press release speaks only as of this date. Cboe Global Markets, Inc. disclaims any duty to update the information herein.
Nothing in this announcement should be considered a solicitation to buy or an offer to sell any securities or futures in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction. Nothing contained in this communication constitutes tax, legal or investment advice. Investors must consult their tax adviser or legal counsel for advice and information concerning their particular situation.
Cboe Global Markets, Inc. and its affiliates make no warranty, expressed or implied, including, without limitation, any warranties as of merchantability, fitness for a particular purpose, accuracy, completeness or timeliness, the results to be obtained by recipients of the products and services described herein, or as to the ability of the indices referenced in this press release to track the performance of their respective securities, generally, or the performance of the indices referenced in this press release or any subset of their respective securities, and shall not in any way be liable for any inaccuracies, errors. Cboe Global Markets, Inc. and its affiliates have not calculated, composed or determined the constituents or weightings of the securities that comprise the third-party indices referenced in this press release and shall not in any way be liable for any inaccuracies or errors in any of the indices referenced in this press release.
Cautionary Statements Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “might,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” and the negative of these terms and other comparable terminology. All statements that reflect our expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Some factors that could cause actual results to differ include: the loss of our right to exclusively list and trade certain index options and futures products; economic, political and market conditions; compliance with legal and regulatory obligations; price competition and consolidation in our industry; decreases in trading or clearing volumes, market data fees or a shift in the mix of products traded on our exchanges; legislative or regulatory changes or changes in tax regimes; our ability to protect our systems and communication networks from security vulnerabilities and breaches; our ability to attract and retain skilled management and other personnel; increasing competition by foreign and domestic entities; our dependence on and exposure to risk from third parties; global expansion of operations; factors that impact the quality and integrity of our and other applicable indices; our ability to manage our growth and strategic acquisitions or alliances effectively; our ability to operate our business without violating the intellectual property rights of others and the costs associated with protecting our intellectual property rights; our ability to minimize the risks, including our credit, counterparty, investment, and default risks, associated with operating a European clearinghouse; our ability to accommodate trading and clearing volume and transaction traffic, including significant increases, without failure or degradation of performance of our systems; misconduct by those who use our markets or our products or for whom we clear transactions; challenges to our use of open source software code; our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; our ability to maintain BIDS Trading as an independently managed and operated trading venue, separate from and not integrated with our registered national securities exchanges; damage to our reputation; the ability of our compliance and risk management methods to effectively monitor and manage our risks; restrictions imposed by our debt obligations and our ability to make payments on or refinance our debt obligations; our ability to maintain an investment grade credit rating; impairment of our goodwill, long-lived assets, investments or intangible assets; the impacts of pandemics; the accuracy of our estimates and expectations; litigation risks and other liabilities; and risks relating to digital assets, including winding down the Cboe Digital spot market and transitioning digital asset futures contracts to CFE, operating a digital assets futures clearinghouse, cybercrime, changes in digital asset regulation, and fluctuations in digital asset prices. More detailed information about factors that may affect our actual results to differ may be found in our filings with the SEC, including in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings made from time to time with the SEC.
We do not undertake, and we expressly disclaim, any duty to update any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
1 For more information on the calculation of the final settlement value, please refer to the Product Specifications for Cboe S&P 500 Variance Futures on Cboe’s website here. 2 Multiplied by the futures price
