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Saturday, November 2, 2024
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FLASH FRIDAY: Introducing Citadel Securities’ Gen Zers

By
Editorial Staff
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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.

For the past few weeks, we’ve been meeting Generation Z financial/fintech professionals from Clear Street, Robinhood Markets and T. Rowe Price.

Today, we continue this journey with five more up-and-coming specialists from Citadel Securities.

Mohammad Haveliwala, Options SRE, Citadel Securities

Mohammad Haveliwala

Briefly describe your educational background and work experience, including your current role/responsibilities.

I went to UNC Chapel Hill, where I double majored in computer science and statistics. During college, I interned at a major tech company before realizing that finance was the field for me. I ultimately applied to Citadel Securities and joined the firm shortly after graduation as a site reliability engineer. I work very closely with our trading, quantitative, business, and software engineering teams to support, operate, and build our core trading applications.

How did you get interested in the world of finance?

I didn’t know much about finance until a mentor of mine – an upperclassman at UNC – interned in the field. He thought it would be a great fit for my interests and abilities, so I pursued it and he was right.

What were some of the key factors you considered as you were deciding where to launch your career?

I was very focused on the rigor of the work. I knew I wanted to learn a lot, I wanted to be challenged, and I wanted to be able to have multiple areas of focus as I began my career; I didn’t want to be siloed from the start. Citadel Securities has provided me with all of that and more. The ownership I’m able to have, the impact I’m able to make – and the speed at which we move – is very exciting and very different from what I’d experienced in big tech.

What do you like most about your job?

The people. There’s a great culture here and my team members come from so many different backgrounds. Everyone brings different perspectives and different experiences, and I feel very fortunate to be part of such a talented, well-rounded team.

What role has mentorship played in your career? Are there any notable mentors, past or present, that you’d like to recognize?

Mentorship has played a big role in my career. In college, my department was more research focused, so a lot of what I learned about industry standards or going through the job process came from upperclassmen, including the one who introduced me to finance in the first place. He helped me home in on what it was that I really wanted to do and it’s through the conversations that I had with him that I came to see that if making an impact and continuously enhancing my skillset was a priority, Citadel Securities was the place for me.

What do you like to do outside work?

You can often find me playing sports with friends in the park, biking, or lifting weights. I’m also a big foodie, so I love exploring restaurants in New York and grilling and roasting in my backyard fire pit. I also like to spend time knitting for my friends; it helps force me to sit in one place, and seeing people wear things I’ve made makes me super happy.

What’s next for you?

One of the things that drew me to Citadel Securities was the opportunity for open-ended learning. There are always problems to solve, so I’m looking forward to continuing to identify and address those that are particularly compelling and, over time, building a highly specialized skill set in the areas that interest me most.

How optimistic are you in your generation’s ability to step up and lead (companies, industries, governments) when the time comes?

The platforms on which people in my generation can stand on to lead have solidified over time, and a lot of people in my generation are primed to step up. I see that in the world at large and I certainly see that at Citadel Securities, where the best idea always wins regardless of title or tenure. Even people very early in their careers like me are spearheading projects or taking on managerial roles. That’s exciting to see and it makes me very optimistic about our ability to take the reins.

Dana He, Options Trader, Citadel Securities

Dana He

Briefly describe your educational background and work experience, including your current role/responsibilities.

I graduated from Caltech in 2020 with a major in bioengineering and a minor in computer science. During college, I had internships in both technology and finance and worked at another trading firm for about two and a half years before joining Citadel Securities as an options trader last fall. I work on our single stock options desk and am mostly focused on software and consumer symbols.

How did you get interested in the world of finance?

I didn’t know much about trading until fairly late into my time at Caltech. My tech internship had been fairly slow paced and I knew I wanted something more dynamic. The roles I had in finance weren’t the right fit either, but I really enjoyed the trading games I participated in during one of those internships and that’s what put me on the path to where I am now. Trading provides the fast pace I had been looking for and also capitalizes on my long-standing interest in game theory and probability, so it’s been a very natural fit.

What were some of the key factors you considered as you were deciding where to launch your career?

Coming out of college, I knew I wanted to be a trader and I knew I wanted to live in New York. Over time, I’ve also come to appreciate the importance of working in a collaborative, team-oriented environment, and that’s exactly what I’ve found at Citadel Securities.

What do you like most about your job?

I love being a trader. When friends ask what it’s like, I tell them I’m basically playing a strategy game for a living, only it’s not a game. The stakes are real and that makes it even more exciting. I also really enjoy the people I work with. We spend time together both in and out of the office and it’s a very cool community to be a part of.

What’s next for you?

I’m at the point now where I really understand the nuances of the markets I’m trading and the tools that are available to me – and that’s exciting. I’m looking forward to continuing to enhance my skillset and to taking on more responsibility. Citadel Securities provides people even early in their careers with the opportunity to make a real impact and I’m focused on becoming more involved in desk-wide challenges versus just my individual symbols.

How optimistic are you in your generation’s ability to step up and lead (companies, industries, governments) when the time comes?

I am proud to be a member of Gen Z. The world is changing very fast – and I think the fact that my generation has grown up with technology and understands its impact gives us a unique vantage point that allows us to be very strong leaders. I appreciate the increased levels of transparency and frankness that it’s helped usher in and think the current environment will support and benefit from the emergence of new leaders.

Jerry Li, Quantitative Research Analyst, Citadel Securities

Jerry Li

Briefly describe your educational background and work experience, including your current role/responsibilities.

I studied computer science and statistics at Berkeley. During college, I also did medical and computational research and completed internships, including one in software engineering at Google, before interning at Citadel Securities as a quantitative research analyst. After graduating last year, I joined the firm full time and generate insights that inform the firm’s systematic trading.

How did you get interested in the world of finance?

Even before college, I had an interest in the financial markets. During undergrad, I got involved with a quantitative finance club called Traders at Berkeley, but it wasn’t until my internship at Citadel Securities that I found a role that tapped into that interest and my background in computer science.

What were some of the key factors you considered as you were deciding where to launch your career?

In some of my previous internships, I felt that my impact was limited and the pace was somewhat slow. I knew that in a full-time role, I wanted the opportunity for ownership, responsibility, and impact. I also wanted to be surrounded by inspiring colleagues – truly talented people that I could learn from – and I wanted a dynamic environment. It became clear to me during my interviews at Citadel Securities, and certainly during my internship, that I would find all that and more at the firm.

What do you like most about your job?

I really enjoy gathering information and pieces of evidence from the markets and other data sources and consolidating that into a story. I see a lot of behavior that you wouldn’t necessarily expect, and I iterate and create a hypothesis and then I work to validate it. Explaining what we see by using empirical data and going from an idea about why something happens to a real conviction about it is very rewarding. Working with colleagues who are as passionate about this work as I am is gratifying as well. We’re all looking to find the best ways to approach a problem or launch a strategy, and we really enjoy bouncing ideas off one another. The spirited discussions we have are great.

What do you like to do outside work?

I play a lot of golf and I like to travel. My girlfriend and I have been exploring a lot of the national parks in the middle of the country and we have a big trip to Asia planned for later this year. I also enjoy spending time with my dog and reading, especially non-fiction like “Thinking, Fast and Slow.”

What’s next for you?

I’m focused on developing a deeper understanding of the nuances of the financial markets. In particular, I’m excited about diving deeper into the microstructure of different exchanges and financial spaces.

How optimistic are you in your generation’s ability to step up and lead (companies, industries, governments) when the time comes?

I don’t have any doubt in my generation’s ability to step up. I see it every day right here at Citadel Securities. Our culture is one where if you are capable and have great ideas, your age doesn’t matter. The founder of our firm, Ken Griffin, was in his early 20s when he launched Citadel and the idea of meritocracy – of being completely age agnostic – is part of the firm’s DNA. Even just in my own business – on the systematic team – I’ve seen people early in their careers step up and exceed expectations. I am very confident that those in my generation will make a big impact in business and beyond.

Agnibho Roy, Quant Trader, Citadel Securities

Agnibho Roy

Briefly describe your educational background and work experience, including your current role/responsibilities.

I graduated from Berkeley in 2022 with a degree in computer science and applied math. The summer after my freshman year in college, I had a software engineering internship and I gradually moved toward trading from there. By the time I interned at Citadel Securities two years later, I was very involved with a quantitative finance club called Traders at Berkeley and have stayed connected to that group, including by representing our firm at various competitions and information sessions. It’s fun to tell current students about my role as a semi-systematic quantitative trader focused on domestic ETFs and the great experiences I’ve had in the industry.

How did you get interested in the world of finance?

I was in an investing club in high school, but my real passion was mathematics. As I pursued that, I explored a variety of different paths and ended up really gravitating toward trading.

What were some of the key factors you considered as you were deciding where to launch your career?

Career progression was something that was very important to me. I knew I wanted to work at a firm where there was an opportunity for advancement and where the path to it was pretty clear. Ownership was important to me too. I liked the idea of being able to trade my own book and have full ownership over my positions pretty quickly. During my internship at Citadel Securities, it became clear to me that I’d be able to reach my potential faster there than anywhere else and that’s why I ultimately decided to join the firm full time.

What do you like most about your job?

I never know what problems I’m going to encounter, what trades are going to pop up, and what risks I’ll need to manage. That’s exciting. As a trader, I’m really at the whim of the market – and that context-switching, that dynamism keeps me on my toes.

What role has mentorship played in your career? Are there any notable mentors, past or present, that you’d like to recognize?

I’ve been fortunate to have some great mentors, including my first manager at Citadel Securities and my current manager, who is the head of the desk. I’ve learned a lot from them and appreciate how invested they’ve been in putting me on the right path and their willingness to answer my questions. And, let me tell you, I’ve had a lot of questions.

What do you like to do outside work?

I played tennis in high school and college and try to play once or twice a week. I also play soccer and basketball when I can. I don’t play the violin as much as I used to, but I still dabble. I also really enjoy exploring New York and spending time with friends. A number of classmates have ended up in the city as well, so I have a great community here.

What’s next for you?

I’m excited about increasing my focus on new trade ideas versus just managing the day to day. Over time, I want to assume more ownership of the desk and start to trade different asset classes, like equities and bonds, to further develop my trading acumen.

Riccardo Santoni, Low Latency Software Engineer. Citadel Securities

Riccardo Santoni

Briefly describe your educational background and work experience, including your current role/responsibilities.

I graduated from Carnegie Mellon with a dual degree in computer science and information systems. I did a couple of internships in big tech before I turned to trading, and I joined Citadel Securities right out of college two years ago. I’m on the low latency team and am very involved in the work we do around order entry and triggering logic for equities and futures at the firm.

How did you get interested in the world of finance?

I followed the stock market from a young age but assumed that, as a software engineer, big tech would be my path. When I explored something outside of it – and interned at a trading firm – it was clear to me that finance was a better fit. I liked working at a somewhat smaller firm, I appreciated the faster feedback loops, and I found the problem space a lot more interesting.

What were some of the key factors you considered as you were deciding where to launch your career?

The problem space was number one for me: what am I going to be doing and what problems am I going to be solving. There is a lot of correlation between the low latency and distributed systems in the trading space and the concepts I studied in school, and getting to explore those further in a dynamic, stimulating environment was of great interest. I was also looking for an opportunity to have some ownership and real responsibility right out of the gate – and I definitely found that at Citadel Securities. The people – and the availability of mentors – was important too. I wanted to be in an environment where I could learn from the people around me.

What do you like most about your job?

I really enjoy the freedom I have to think, explore, and create. From very early on in my time at the firm, I’ve been able to take ownership and make decisions about even critical components of the work we’re doing. At Citadel Securities, if you have an idea, you’re able to explore it and get buy in. It doesn’t work like that at many places.

What do you like to do outside work?

Anything that doesn’t require looking at a computer screen! I love my job, but I really like to shift gears in my free time. I enjoy being with friends, whether we’re biking, hiking, cooking, playing soccer, or throwing pottery.

What’s next for you?

I just recently returned to New York after several months in our Hong Kong office, so I’m looking forward to settling back in. My time in Asia did give me a better sense of where I want to focus my efforts going forward – and I’m very interested in further aligning myself with triggering logic, triggering code, and the quantitative development side of things in that space.

Warburg Pincus Backs Miami International Holdings with $100m

By
Anna Lyudvig
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Warburg Pincus Biography Portrait

Warburg Pincus, a global growth investor, has invested $100m in Miami International Holdings (MIH), a technology-driven leader in building and operating regulated financial markets across multiple asset classes

Subject to certain conditions, Warburg Pincus may expand its investment in MIH to support additional growth.

Lee Becker

“Our investment provides capital at a pivotal moment for MIAX,” said Lee Becker, Managing Director and member of the Capital Solutions team at Warburg Pincus.

“With MIAX’s strong, collaborative relationships with leading market participants, this investment supports our conviction in the entire MIAX management team and its strategy to drive continued growth and expansion across multiple asset classes in the exchange space.”

The growth investment will accelerate the next phase of MIAX’s global expansion as it executes on its strategy of building a diversified revenue stream across multiple asset classes and geographies.

Among other uses, the investment will fund the construction and fit-out of a physical trading floor in Miami, Florida for MIAX Sapphire, MIH’s fourth national securities exchange for trading U.S. multi-listed options.

MIAX Sapphire will operate both an electronic exchange and physical trading floor. The electronic exchange successfully launched on August 12, 2024, with the trading floor in Miami scheduled to go live in 2025.

MIAX Sapphire will be the first national securities exchange to establish operations in Miami. The new trading facility will include a next-generation trading floor, ancillary office space for MIAX employees and market participants, conference facilities and broadcast media space.

“We are pleased to welcome Warburg Pincus as a strategic partner and look forward to leveraging its highly respected expertise and deep network of relationships in global financial services. Together with our exchange member firms we believe we have assembled a group of the top financial partners in the world,” said Thomas P. Gallagher, Chairman and CEO of MIH.

“The investment will provide MIH with additional funding to expand strategic partnerships in financial futures and proprietary products and will also provide capital to pursue acquisitions in the U.S. and internationally to accelerate our continued growth.”

The investment will also support further growth and expansion of MIH’s agricultural and financial futures businesses on its two U.S. futures exchanges, Minneapolis Grain Exchange (MGEX) and MIAXdx including the development of new matching engine and clearing technology using MIH’s proprietary technology. Additionally, the investment will fund the Company’s expansion plans into international markets including the development and trading of new proprietary and other financial products.

“Tom Gallagher and the leadership team at MIAX have successfully engineered a technology-driven family of exchanges that set a new standard of reliability and excellence in the U.S. options trading industry. Our investment, along with ample dry powder to help support future growth, reflects our confidence in MIAX’s potential,” said Gaurav Seth, Managing Director, Head of Capital Solutions, Americas at Warburg Pincus. “We are thrilled with MIAX’s progress to date and excited about the significant opportunities for MIH.”

Lee Becker will join the board of directors of MIH. Mark Messing, Vice President at Warburg Pincus and member of the Capital Solutions team, will attend board meetings as a visitor.

Piper Sandler & Co. acted as financial advisor to MIH and Broadhaven Capital Partners acted as financial advisor to Warburg Pincus in connection with the transaction.

Davis Polk & Wardwell, LLP served as financing counsel to Warburg Pincus and Cleary Gottlieb Steen & Hamilton LLP served as financing counsel to MIH. Gallagher, Briody & Butler serves as corporate counsel to MIH.

Appleby (Bermuda) Limited served as special financing counsel in Bermuda to Warburg Pincus and BeesMont Law Limited serves as legal counsel in Bermuda to The Bermuda Stock Exchange (BSX), a wholly owned subsidiary of MIH.

TD Takes Provision of US$2.6 Billion for AML Fines

By
Editorial Staff
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TD Bank Group has announced that the Bank continues to actively pursue a global resolution of the civil and criminal investigations into its U.S. Bank Secrecy Act (BSA)/anti-money laundering (AML) program by its U.S. prudential regulators, the Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Justice (DOJ).

In anticipation of a global resolution, which will include monetary and non-monetary penalties, the Bank has taken a further provision of US$2.6 billion in its third quarter financial results to reflect the Bank’s current estimate of the total fines related to these matters. The Bank expects that a global resolution will be finalized by calendar year end.

TD also announced today that it has sold 40,500,000 shares of common stock of The Charles Schwab Corporation. The share sale will reduce TD’s ownership interest in Schwab from 12.3% to 10.1%. In connection with this sale, TD has agreed not to sell any additional Schwab shares for a period of 45 days, subject to certain exceptions. TD has no current intention to divest additional shares.

Bharat Masrani

After giving effect to this provision, TD’s Common Equity Tier 1 (“CET1”) ratio will be 12.8% as of July 31, 2024.  In TD’s fourth fiscal quarter, the provision will have a further negative impact of 35 bps on its CET1 ratio from the increase in operational risk. Also in the fourth fiscal quarter, the Schwab share sale will increase TD’s CET1 ratio by 54 bps.

“We recognize the seriousness of our U.S. AML program deficiencies and the work required to meet our obligations and responsibilities is of paramount importance to me, our senior leaders, and our Boards,” said Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group.

“Our remediation program is well underway. TD has strengthened its U.S. AML program with the addition of globally recognized leaders and talent from across the industry, including experts from regulatory agencies, law enforcement and government. The Bank is also making important investments in data and technology, training, and process design. We are building stronger foundations for our U.S. business, where 30,000 colleagues proudly serve more than 10 million Americans from Maine to Florida,” added Masrani.

“TD continues to work constructively with our regulators and law enforcement towards resolution of our U.S. AML matters and looks forward to bringing additional clarity to our shareholders, clients and other stakeholders,” concluded Masrani. 

Siepe Raises $30m in Series B Funding Led by WestCap

By
Press Release
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Siepe, a provider of software and technology-enabled services for private credit and CLO managers, has raised $30m in a Series B funding round led by WestCap, a strategic operating and investing firm with $6 billion in assets under management (AUM).

The investment will drive a multi-product roadmap, including the expansion of its AI and Machine Learning capabilities, and strengthen strategic partnerships.

These initiatives will help support the accelerated capital flows, and eliminate inconsistent data and processes seen across the Collateralized Loan Obligation (CLO) and private credit ecosystem.

Since its founding in 2012, Siepe has designed solutions and services that enable strategic business and investment decisions for the front, middle and back office teams of private credit asset managers and CLOs.

Their solution suite brings entire investment lifecycles into perspective, providing customers with a single source of truth and full transparency into real-time, accurate data to increase oversight and streamline workflows. By leveraging AI technology, Siepe solutions also eliminate manual processes that can be used to drive bottom-line growth for its clients’ customers and optimize investments.

As private credit continues to be one of the fastest growing asset classes within the alternatives market, the firm is committed to enhancing the efficiency, data integrity, compliance support and scalability of CLO and private credit managers.

As a result, Siepe has seen significant growth across technology and service business lines in H1 2024 with private credit managers. This includes adding nineteen CLO and private credit deals with eight top-tier US CLO managers, which accounts for over $7.7BN in new assets under administration (AUA). The Company also onboarded two new front-office software clients, one with $80BN AUM in private credit assets and the other with $6BN in total AUM and launched a new private credit fund.

Michael Pusateri

“The new capital will help us continue our momentum in deploying integrated solutions and best-in-class service for fund managers in the private credit and broadly syndicated bank debt sector,” said Michael Pusateri, CEO and Founder of Siepe. “Our mission is to help credit managers better leverage their data to reduce operational risk and increase alpha.”

The Siepe team will leverage WestCap’s experience – as founders, operators and managers – in the private markets ecosystem, specifically around financial technology and data management workflows. The firm is also an early and material investor in private market-leading innovators iCapital and Addepar. 

WestCap’s support of Siepe will be led by: The firm’s founder, Laurence A. Tosi, former CFO of both Airbnb and Blackstone, and COO of Merill Lynch Investment Banking and Trading. As a founder and investor, he created several industry-changing platforms to solve some of the most pressing challenges in private markets, including Ipreo, TMC Bonds and iLevel; WestCap Partner, Co-COO and Head of Strategic Operators, Kevin Marcus, who will join the Siepe board and bring his experience as the Co-Founder and former President of iPreo (acquired by IHS Markit), a provider of market intelligence, data, and workflow solutions for global capital markets. Ryan Benevides, Principal at WestCap, who will also join the Siepe board, and previously held roles within Blackstone Credit. 

“The growth of private credit markets has outpaced investment in technology and innovation, causing inefficiency, lack of insight and control over private assets,” said Laurence A. Tosi, Managing Partner and Founder of WestCap. “These are the challenges that Siepe is addressing with a trusted solution that brings the entire investment lifecycle into perspective.”

In conjunction with the new funding, Siepe has appointed Mark Schultis as President. Schultis joined Siepe as an Advisor in October 2023, bringing nearly two decades worth of experience focused directly in the credit and CLO world. Previously, he was CEO at SE2 LLC, and a Partner and Senior Vice President at IHS Markit running the Wall Street Office (WSO) business.

“I’m thrilled to join Siepe at this pivotal moment in their journey. Michael and team have always taken a technology first approach to building products and services for their customers, which is a key differentiator in the market today,” said Mark Schultis. “This new funding will accelerate our ability to scale our business, better support our customers and drive innovation in the industry, particularly around connectivity, quality and data transparency.”

The new executive and board membership line-up complements Siepe’s deep bench of senior leadership and extensive industry experience. Prior to founding Siepe, Michael Pusateri served as Chief Technology Officer at Carlson Capital and Highland Capital Management. The Company’s board members also include Robert Tomicic, a former Founder of Virtus Partners, and Ann Kono, former Chief Information and Risk Officer for Ares Management Corporation.

Source: Siepe

TNS Expands Connectivity to all 18 U.S. Equity Options Exchanges with MIAX Sapphire

By
Editorial Staff
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Transaction Network Services (TNS) has expanded access to US equity options with connectivity and market data support for the newly launched MIAX Sapphire Options Exchange.

“We’re proud to extend access for those seeking to trade on MIAX Sapphire from day one,” said Tom Lazenga, General Manager, TNS Financial Markets.

Tom Lazenga

“TNS’ managed service approach streamlines everything from connectivity to market data support, allowing institutional traders to focus on their core activities.”  

This addition to TNS’ existing service offering signifies its unwavering commitment to comprehensive coverage of the US listed options marketplace. 

TNS will provide market data and order routing access to customers in an ultra-low-latency trading environment. 

With the addition of MIAX Sapphire, traders using TNS can now gain access to all 18 US equity options exchanges.

This provides several key benefits including enhanced market data services, resilient connectivity and streamlined operations.  

Real-time market data from MIAX Sapphire and all other connected exchanges provided by TNS’ dark fiber connectivity gives traders ultra-high-speed access to full depth of book, raw market data feeds for informed decision-making.  

MIAX Sapphire will be MIAX’s fourth national securities exchange for US multi-listed options and will operate both an electronic exchange and physical trading floor to be located in Miami, Florida.  

“The launch of the MIAX Sapphire electronic exchange will be followed by the opening of a state-of-the-art physical trading floor in Miami in 2025 which will allow our market participants to access 100% of the multi-listed options market,” said Matthew J. Rotella, Executive Vice President and Chief Technology Officer of MIAX.

“We are pleased TNS is offering connectivity to MIAX Sapphire and TNS now provides access to all of our options and equities exchanges through its comprehensive and reliable network.” 

Technologists See Benefits of Interoperability 

By
Markets Media
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People joining cog wheel on the black desk. Concept of the teamwork, partnership and cooperation.

Interoperability is expanding its reach.

Historically best known for its front-office utility in saving traders from ‘swivel-chair’ workflows, having applications seamlessly work together is increasingly valued in the middle office, by the people behind financial firms’ technology.

Dan Schleifer, interop.io

“Interoperability has been key for enabling business users to streamline workflows and gain efficiency, but the technologists inside the organization face their own set of challenges,” said Dan Schleifer, President and Co-founder at interop.io. “Interoperability is becoming a core piece of architecture that technologists use to streamline and simplify the way that they build, maintain, and eventually retire technology.”

Schleifer noted that many investment managers, hedge funds and brokerage firms need to replace ‘legacy’ technology that might be 20 or 30 years old, but they can’t pull the plug until new technology that fully covers all functionality is up and running. Interoperability enables enterprises to carry on their business while incrementally upgrading technology.

“Firms have to basically build whole new systems – OMS, EMS, CRM, risk analytics – from scratch, in parallel with maintaining the legacy systems,” Schleifer told Markets Media. “Interoperability is being used as a way to bridge the gap between legacy and modern, allowing them to rebuild the technology piece by piece instead of having to do it all at once.”

interop.io, created in June 2023 with the merger of Finsemble and Glue42, recently published an ebook entitled Unlocking Innovation in Financial Services with Interoperability that examines the benefits of interoperability for technologists.

Schleifer said the 24-page PDF aims to fill an informational gap: “There was no clear message to technologists that their success in solving business problems could carry over to solving problems for themselves. We wanted to put together this ebook as a plain-language guide for technologists to better understand what interoperability can do for them.”

The ebook covers four areas: the investments financial services firms make toward technology; the industry problem of hindered innovation, and how interoperability can help solve these problems; and real-world use cases and examples.

Global IT spending in financial services firms was projected to reach $547 billion in 2023, though fewer than half of industry executives reported satisfaction with the results of their technology investments, the ebook noted. Interoperability can break barriers to innovation and boost return on investment by clearing a path from legacy to modern technology, creating a refined and integrated application management strategy, and increasing IT velocity by eliminating duplicate efforts and streamlining development.

Mark Gibbons, Global Head of Information Delivery & Solution Architect at BNY, offered this perspective in the ebook: “Collaborating with interop.io meant we could build the platform on our own global enterprise technology while leveraging interop.io’s user experience. Together, we’re delivering value for clients by freeing up colleagues to focus on higher impact work.”

Another client said that by using interop they will save more than ten person years of development effort as they modernize their technology stack.

“We have clients that have hundreds of applications deployed to thousands of different users in different mixes, across different asset classes, different functions, front, middle and back office, built in a dozen different technologies,” Schleifer said. “Those organizations are held back by that baggage.”

“Interoperability lays out the path for them to rationalize their portfolio of applications, streamline, simplify, and reduce duplication, all to innovate faster – which is really what technologists want to do,” Schleifer continued. “They want to build new, valuable things, and they’re being held back. We want to show them the path that our other clients have taken toward unleashing that innovation.”

Schleifer said overall, interoperability for buy-side, sell-side, and wealth management technologists is in its “middle innings,” with some firms far along and others still early in their journeys.

A bit more than a year after its own transformational merger, interop.io is poised to drive the expansion of interoperability.  “It’s been a good merger – we’ve been having a good time bringing the cultures together, and it has allowed us to accelerate the innovation that our clients want,” Schleifer said.

A Rides FAR Sponsorship Lets You Do Well by Doing Good

By
Editorial Staff
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By Mark Dowd, co-founder and Managing Partner of Forefront Communications

Mark Dowd

Flashback to 2017 – fidget spinners were all the rage, Bitcoin was rocketing to the moon ahead of its (first) HODL decline and both Forefront and Rides FAR were just beginning to take off. Seeing the potential synergies of these two endeavors, PR vet and all-around good guy Randy Williams connected Eric Soderberg and me with Rides FAR co-founders Bryan and Melissa Harkins to talk about how we could support one another. The trading industry firms that comprised Rides FAR’s earliest supporters were the precise ones Forefront was attempting to reach, while the services we offered – capital markets-focused marketing and PR – were exactly what the nascent event required to create the brand Bryan and Melissa envisioned. The synergies were blindingly obvious, and so with that, a partnership was born.

Over the last seven years, we’ve worked tirelessly to help each other grow. I am incredibly proud that Forefront’s pro bono publicity efforts helped the Ride become one of the most prominent capital markets charity events today, and even prouder that many of our clients – firms like Talos, DASH, Tower, CTC, Eventus, STA, and others – have all become key supporters of the cause.

On the flip side, Rides FAR has been instrumental in Forefront becoming a well-known brand in its own right, with our logo displayed prominently each year alongside industry leaders like Cboe, Goldman Sachs, T. Rowe Price, and XTX. We’ve accrued other benefits as well. Our tight-knit staff has gotten even closer by bringing significant others, children, and even parents to the event, creating bonds among our team that I suspect will last for years. I’ve gotten closer with many industry peers I’ve met at the event and have gone on to become a Rides FAR board member, a role that I am grateful and humbled to serve in. And after getting to know the small-but-mighty Autism Science Foundation staff over the years, my wife even joined them for a year as ASF’s Director of Community Relations during her transition from journalist to therapist. 

While Rides FAR’s impact on Forefront has been profound, we are by no means an exception. Look around at the events in White Plains, Toronto, Baltimore, Chicago and (for the first time this year) Miami and you will see hundreds of individuals – colleagues, clients, partners, and competitors – strengthening relationships in a unique and intimate way. As DriveWealth CEO Mike Blaugrund noted, “a tough client or fierce competitor seems a little less daunting when they’re wearing bike shorts.”

Team Forefront

And the biggest industry benefit of Rides FAR may be this: the knowledge that you’re helping an organization committed to battling a disorder that impacts millions of people across the globe. The prevalence of Autism Spectrum Disorder (ASD) continues to rise, with the CDC announcing last year that 1 in 36 children are on the spectrum. And while many of those cases are in individuals fortunate enough to lead fairly typical lives in a society that has thankfully embraced the idea of neurodiversity, about 1 in 4 autism cases are those on the severe end of the spectrum who will require 24-hour care for the rest of their lives. That latter group is where ASF (which worked tirelessly behind the scenes to help codify the “profound autism” diagnosis) really shines, providing the family support, research funding, and advocacy needed to help. (ASF founder and president Alison Singer, whose brother and older daughter live with profound autism, has written movingly on the topic).

This year’s events are right around the corner, occurring throughout three Saturdays this Fall – September 21st in Miami, September 28th in Chicago and Baltimore, and October 5th in New York and Toronto. There’s still time to register a full corporate team or just yourself, with the events catering to folks of all interests and abilities (multiple course lengths, on-site bike rentals and even a walking route for those who prefer two feet to two wheels). Feel free to reach out to me or any of my fellow board members if we can help get you involved, or if that’s too much, please consider simply making a donation. 

Nearly all of us in this industry are fortunate enough to do well. Let’s come together to do some good, too.

KRM22 Selects PortfolioScience RiskAPI to PowerRisk Manager

By
Editorial Staff
-

PortfolioScience, a provider of on-demand risk management systems, has announced that KRM22 Group, a provider of corporate and trading risk solutions, has selected the company’s RiskAPI platform to power Value at Risk calculations in its Risk Manager application.

“The risk management requirements of the sell-side brokerages served by KRM22 are challenging and complex. We are pleased that they selected RiskAPI to power the VaR calculations available in the Risk Manager product with dynamic quantitative risk calculations”, said Ittai Korin, PortfolioScience’s founder and President.

RiskAPI is a cloud-based, on-demand portfolio risk analysis service that includes coverage of global equities, options, currencies, and fixed income, as well as global physical, listed and OTC commodity derivatives.

Dan Carter, KRM22

KRM22 Risk Manager is a web-based GUI that allows firms to achieve trading control by bringing real-time P&L & exchange margin, Parameterized Stress Risk and Value at Risk (VaR) alongside each other with other account credit metrics in one place.

“We are delighted to have partnered with Portfolio Science’s RiskAPI® to bring full Value at Risk (VaR) calculations on account portfolios alongside KRM22’s real-time P&L, margin and stress results. This will allow risk managers full visibility across their client portfolios in one place. Which, when combined with the integration to KRM22 Limits Manager, allows full control of trading activity in a first for our industry”, said Dan Carter, KRM22 CEO.

RiskAPI offers a full range of multi-model Value at Risk, stress-testing and other quantitative analysis features, allowing execution providers, proprietary traders, asset managers, hedge funds, and commodity producers to easily generate dynamic risk calculations through multiple levels.

The cloud-based API service includes all data, computing, and analytics across a wide range of global equity, option, futures, FX, and fixed income markets, making it easier than ever for both sell-side and buy-side market participants to implement a comprehensive risk analysis infrastructure.

KRM22 Risk Manager helps firms achieve trading control through effective risk management
monitoring.

The indicators such as View Real-time P&L, Real-time Margin, Value at Risk (VaR) Calculations and Parameterized Stress Risk alongside account credit in one detailed time series chart can be used in ratios and metrics to grade and determine the financial health of any trading entity.

Users can drill into each indicator and perform analytics and take actions, including triggering alerts and messages to KRM22’s Limit Manager to help control and even halt trading activities.

Prop Firms’ Rising Demand for US Futures Technology Met by Devexperts

By
Press Release
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Jon Light, Devexperts

US futures on crypto, forex, indices, and commodities will add to DXtrade’s prop trading capabilities

New York, 21 Aug 2024 – Devexperts has announced the expansion of its flagship white-label trading platform for brokers, DXtrade, to meet growing proprietary firm demand for futures trading technology.

DXtrade XT, which is available off-the-shelf or as partly or fully customizable, will now enable prop firms to offer US futures to their clients around the world.

Prop trading firms allow traders to invest using the firm’s own capital. Successful traders can profit from their investments, with the firm taking a share. Firms often evaluate prospective traders by giving them virtual money to demonstrate their abilities in a challenge.

DXtrade’s trading simulator enables firms to run challenge accounts using their prop trading CRM/Portal, which can be integrated via API. Risk settings provided include maximum account position limits, custom trading day schedules, and open position auto liquidation at session end.

Traders’ performance and adherence to rules can be monitored in real time and the platform supports account creation, transactions, and group management.

It also offers access to dxFeed, Devexperts’ data solutions and index management provider. This includes Level 1 and 2 US and EU futures data, compliance, and subscription management support.  

DXtrade can be set-up within a few weeks, and includes a dedicated account manager.

DXtrade is available via web and mobile, with trading features including quick order entry, position monitors, trading journal, and advanced charting. Order types facilitated include stop market, stop limit, and trailing stop.

Jon Light, Head of OTC Platform, says: “There is high demand for futures trading technology, with the high growth prop segment exploring new horizons. As such, we are happy to be able to offer US futures contracts, in addition to our CFD capabilities. Devexperts is in a unique position, offering futures data from dxFeed in addition to trading functionality. We also stand out through our ability to guide clients into the brokerage business with advice and expertise.”

For further information, please contact:

Email: devexperts@moonlightiq.com

About Devexperts

Devexperts has been developing software for the capital markets since 2002. The company’s core expertise are multi-asset trading platforms, matching engines, and exchange solutions. Headquartered in Ireland, Devexperts’ development team consists of 900 engineers located in offices in the USA, Germany, Bulgaria, Singapore, Portugal, Turkey, and Georgia. Learn more at: https://devexperts.com.

STA Prepares for the 91st Annual Market Structure Conference

By
Anna Lyudvig
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Jim Toes, STA

Traders Magazine spoke with Jim Toes, President & CEO of Security Traders Association (STA) about the organization’s upcoming 91st Annual Market Structure Conference, which will be held on September 18-20 in Orlando, Florida. According to Toes, this year’s conference theme: “Shifting the Landscape”, illustrates where we are as an industry, and the imperative need for proactive adaption.

Jim Toes, STA
Jim Toes

Give us the rundown on STA’s 91st Annual Market Structure Conference – what do potential attendees need to know?

As always, our conference will include three days of compelling industry content featuring prominent speakers along with valuable relationship-building opportunities. It will take place September 18-20. What’s different this year is the location – instead of Washington DC, the conference will be held at the JW Marriott Grande Lakes, a massive and elegant resort in the heart of Orlando. It’s a beautiful venue that will open up some exciting new opportunities for our members and sponsors.

US market structure affects every corner of our industry, and our conference will reflect that reality. The panels and fireside interviews will cover topics ranging from retail investing, ETF liquidity and options market innovation to cyber-crime and the recent waves of SEC regulation. Our attendees will include industry professionals from leading exchanges, broker-dealers, market makers, buy-side firms, technology providers and more, as well as a number of government officials.

What is the significance of the conference title “Shifting the Landscape”?

Beyond the fact that we’ve quite literally shifted the landscape of our conference venue from DC to Orlando, this year’s theme represents the many technological and regulatory developments that have shaped our market structure this year and will continue to in the future. It also reflects our commitment to staying on top of the change and growth that affects our members. With the SEC pursuing its most ambitious agenda in years and the upcoming presidential election in November – which we now know will certainly result in a change in leadership in the White House – the regulatory landscape is facing even more uncertainty than usual. Our conference will see industry executives from all corners of the market discuss these topics, how their firms might respond and how they could impact our markets.

Why the new location in Orlando?

There were a few factors. In order to continue serving our members as effectively as possible, it’s important that we pay attention to the changes taking place in the industry. While we will maintain a strong presence and stage future events in DC, where we have long hosted our annual conference, the post-COVID world has seen the emergence of “Wall Street South” in Florida and the Southeast in general. Hosting our 2024 conference in Orlando is one of many ways we’re evolving alongside the industry. While we’ll be in a new location, attendees will enjoy the same high-caliber content they’ve come to expect from our events.

We’re also excited to offer an array of exciting onsite events for our attendees, including a golf tournament at the Ritz-Carlton Golf Club and an outdoor event at the JW Marriott’s incredible poolside Oasis Cabanas. Relationships are key in our industry, and we look forward to offering these exciting new networking opportunities.

During the early part of the program, former Florida Governor Jeb Bush will be interviewed alongside Thomas P. Gallagher, Chairman and CEO of Miami International Holdings. What can attendees expect from that discussion?

One of the things we’ve long prioritized is adding a local flavor to our conference program. We’re thrilled that we’ve been able to continue this commitment in our new location with a two-term governor of Florida and the longtime leader of one of our industry’s most important Florida-based businesses. Among other things, Governor Bush and Mr. Gallagher will discuss the financial services industry’s rapidly growing presence in Florida and the opportunities that lie ahead. They’ll also turn their attention to our nation’s shifting exchange landscape, recent SEC proposals and how the November elections could impact our markets. This is not one to be missed!

With the backdrop of an election year, there is perhaps more uncertainty than usual around the future direction of our market structure. How will this be addressed in the program?

This will be a recurring topic throughout our program. Most notably, we’ll have a Friday morning session highlighted by DC experts that will dive into the current state of legislative affairs, industry regulation and the short- and long-term impacts that each election outcome could have. But more generally, this uncertainty will provide the backdrop for just about every session in our program. Every challenge our members face has effectively doubled in size – they must be equally prepared for a Democratic administration and a Republican administration, not to mention any combination of outcomes in the House and Senate elections. Our speakers will address this uncertainty wherever it is necessary.

Any other program highlights people should be aware of?

While we’re in a new location, there will still be plenty of focus on happenings in our nation’s capital. SEC Commissioner Mark Uyeda will be interviewed on Thursday morning, offering his perspective on the commission’s recent activities. In addition, the program will feature a fireside chat with former SEC Commissioner Dan Gallagher and former Division of Trading and Markets Director Brett Redfearn. There will also be a panel discussing suggested priorities for future regulation featuring speakers from Robinhood, Morgan Stanley and GTS Securities. Finally, I’ll be interviewing Bryan Smith, Senior Vice President, Complex Investigations and Intelligence at FINRA, on how FINRA is detecting and combating cyber-crime. Mr. Smith is a former FBI agent with over two decades of investigative experience. If you’re interested in unique insights into how our leaders shape our market structure, you’ll find them in Orlando.

Beyond the industry-focused content, the STA Foundation will give out its annual awards at the conference – tell us about this year’s honorees.

Giving out our STA Foundation awards is always a highlight. This year, our Dictum Meum Pactum Award will be given to Chris Halverson, Director, Institutional Sales at CAPIS. The Dictum Meum Pactum Award recognizes individuals who have demonstrated an unwavering commitment to our industry and show integrity in all they do – the Latin phrase translates to “my word is my bond” and is STA’s founding principle. Chris is a past STA Chair who has faithfully served our organization and dedicates his time to various charities, both locally in Dallas and beyond. In addition, as part of our pre-conference Women in Finance Symposium, our 2024 Woman Mentor of the Year award will go to Patty Schuler, Senior Vice President of Business Development at BOX Options. Patty played an instrumental role in the initial launch of our STA Women in Finance initiative and has provided vital support and mentorship to female colleagues throughout her career.

Tell us about this year’s Charity of Choice, Brave Gowns, and the presence that organization will have onsite.

Philanthropy is an important part of STA’s mission – each year, we select a charity to partner with and give them the opportunity to attend our events, tell their stories and build relationships with our members and sponsors, in addition to supporting them financially. This year’s charity is Brave Gowns, an organization that provides customized hospital gowns to children struggling with illness. In doing so, they fulfill an important need for children in the hospital facing an unimaginably difficult experience. While it can’t eliminate every challenge for the children and their families, a new hospital gown with a vibrant design that reflects a child’s personality and interests can make each day that much brighter. We greatly look forward to welcoming Brave Gowns in Orlando and educating our members on the surprising and significant difference a hospital gown can make.

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