Broadridge Financial Solutions has announced significant enhancements to OpsGPT across fails research, inventory optimization and email integration automation.
Quentin Limouzi
With these enhancements OpsGPT delivers real-time operational intelligence and execution, enabling firms to better manage risk, capital, and drive greater operational efficiency.
“We are continuously innovating and evolving OpsGPT to optimize how clients can better operate and grow, particularly by unlocking Agentic capabilities to better manage risk, capital, and operational efficiency in today’s rapidly evolving trading environment,” said Quentin Limouzi, Global Head of Post Trade at Broadridge.
“In response to shortened settlement cycles, escalating operational risks and increased cost of capital, firms need to invest in simplifying complex technology ecosystems and harmonize data to enable AI-powered automation.
Key enhancements to OpsGPT include:
Fails Research: Diagnoses root causes of settlement fails, providing instant, actionable insights and significantly reducing resolution timelines.
Inventory Optimization: enables real-time global inventory management, proactively identifies mismatches and suggests asset transfers to maximize capital efficiency and save firms millions of dollars.
Email Integration Automation: Interprets inbound operational emails, extracts context, retrieves relevant data from internal systems — drastically reducing response cycles.
OpsGPT has integrated agentic capabilities, where AI agents support Operations teams by converting data into actionable insights; improving decision-making, recommending optimal actions and executing workflows.
By incorporating AI into its processes and harmonized data platform, Broadridge is establishing a foundation for comprehensive workflow orchestration throughout the post-trade lifecycle.
OpsGPT unlocks tangible benefits for clients, such as accelerated fail resolution, optimized capital deployment, and reduced operational expenses. By automating traditional manual processes, OpsGPT enhances productivity, strengthens risk management through real-time intelligence, and simplifies the user experience with intuitive interfaces and AI-powered communication tools. More information on the new enhancements can be found in the Broadridge’s report.
A strong data foundation is central to implement successful AI powered automation throughout the trade lifecycle.
Broadridge’s investments in BRx, a harmonized data ontology that standardizes and consolidates information globally across asset classes and systems, enables consistent interoperable data to flow seamlessly between front, middle and back-office functions – eliminating silos and laying the foundation for advanced analytics, automation and reporting across the global trade lifecycle.
OpsGPT leverages BRx harmonized data model to unlock the next level of Agentic capabilities to automate AI enabled operations, optimize capital, reduce risks and improve reporting.
For more information on how OpsGPT delivers real-time operational intelligence and execution that enables the future of post-trade processing now, please see here.
The opening afternoon of the annual Options Industry Conference is always good for a deep data dive, and Henry Schwartz, Vice President, Market Intelligence at Cboe Global markets didn’t disappoint.
Moderating the Tuesday afternoon “State of the Industry” panel at OIC in Palm Beach Gardens, Florida, Schwartz opened with a high-level look at options volume since 1973. The first 25 years showed mostly nothing happening in what was a sleepy monopoly-type business; options volumes meaningfully increased over the next dozen years before being largely flat in the 2010s; followed by exploding volume in the 2020s with annual double-digit growth rates.
Cboe, which operates its eponymous exchange and three others with a combined US options market share of more than 30%, has seen more new users of options, and the average trade size on its exchanges has more than quadrupled since 2020. The “size, scale, and velocity” of options trading are all higher, Schwartz said.
Arianne Adams, Chief Strategy Officer & Head of Derivatives at retail options brokerage Webull, said one driver of growth is that retail traders have become more comfortable with options as mobile phone technology has enabled market access more seamlessly and interactively.
Steve Sosnick, Chief Strategist at Interactive Brokers, cited an inflection point and said the options industry in a sense can thank the sports betting industry for getting users interested in speculating on outcome-based scenarios – because when the sports world temporarily shut down in 2020 amid the early days of the COVID pandemic, some sports bettors took to puts and calls and have stuck with it.
Sosnick described Interactive Brokers’ customer base as professional retail, or “protail.”
Matt Amberson, Principal at Options Research and Technology Services (ORATS), said technological advances over the years are “mind-blowing” in terms of the evolution from institutional traders using paper tickets, to now retail investors using smartphone apps with advanced functionalities.
Schwartz said that short-dated options have increased from about one-third of the market eight years ago to two-thirds today, a “paradigm shift.” Amberson said short-dated business really took off starting in 2022 when brokerages and exchanges realized they could make a business out of it.
With regard to market structure, the panel noted there are now 18 US options exchanges, with two more on the way. “Everyone is doing decent of volume – there are no exchanges there for absolutely no reason,” Schwartz said.
Panelists noted that the large exchange field presents operational, risk, and compliance challenges for market participants, and the liquidity fragmentation caused by the number of exchanges increasing out of proportion to the increase in liquidity providers. How many different exchange model tweaks are necessary?
Adams of Webull said there should be exchange consolidation, but “that argument has been put to the wayside with the growth we’ve seen in the industry.”
Trading options with shorter times until expiration has been a significant driver of growth in the options market in recent years. Keeping options markets open overnight may be a big driver of future growth.
The US Securities and Exchange Commission is broadly constructive on both trends, SEC Commissioner Hester Peirce signaled on Tuesday.
Hester Peirce, SEC
Speaking Tuesday afternoon in a ‘fireside chat’ at the Options Industry Conference in Palm Beach Gardens, Florida, Peirce said same-day options, commonly known as 0DTEs, have been a positive addition to the marketplace, but there are caveats. “Retail investors should be entering with eyes wide open,” and concurrently the options industry needs to continue to provide education about the relatively new contracts.
Peirce noted the SEC has given the go-ahead for 24-hour trading in options, but she said there needs to be additional collaboration between regulators and industry to hash out potential issues and questions.
The longest-serving current SEC Commissioner, Peirce was appointed by President Trump during his first term and she has served since January 2018.
When asked about the SEC’s direction under newly sworn-in Chair Paul Atkins, she said an early priority is to determine which proposals from the previous Gary Gensler-led SEC should be moved forward and which should be scrapped, and which areas have been comparatively neglected and need attention.
Equity market structure had lots of focus from the previous two SEC administrations, while capital formation can use a fresh look, especially to the question of why more companies aren’t going public. “I don’t think there’s an easy one answer to that, but regulation does play a role,” she said.
Peirce acknowledged the SEC lost some good staff members with recent job cuts, “but we have a deep bench, people willing to step up and fill gaps. We have people committed to investor protection” and well-functioning markets, she said.
To the topic of artificial intelligence, Peirce noted that AI isn’t new to the financial industry, but the recent rate of innovation has moved it to the forefront of people’s minds. “I’m optimistic about what AI can do in terms of making firms more efficient and giving more people access to financial services,” she said. “To the extent that we see a problem, let’s figure out how to tackle it. But let’s not assume problems with AI just because it seems big and scary.”
Lastly, Peirce was less constructive on the topic of the consolidated audit trail (CAT), which is widely acknowledged to have not met expectations. “I understand the rationale behind it and I thought it was originally a good plan, but I don’t think if you do a cost-benefit analysis now it would come out positive,” she said, adding that the CAT needs a rethink and likely a new way forward.
GREENWICH, CT, May 6, 2025 – Interactive Brokers, an automated global electronic broker, today announced the launch of expanded trading hours for Forecast Contracts. Eligible clients can now trade Forecast Contracts nearly 24 hours a day, Sunday through Friday. This provides the flexibility to manage risk and express market views on economic, government, and climate events whenever opportunities occur.
Steve Sanders
Forecast Contracts provide a straightforward and cost-effective way to take a position on the outcomes of significant economic, government, and environmental events. Each contract is a “Yes” or “No” question, such as, “Will the United States economy enter a recession by the end of Q2 2025?” and allows investors to buy a position depending on their outlook.
“Today’s markets react instantly to events happening across geographies and time zones,” said Steve Sanders, EVP of Marketing and Product Development, at Interactive Brokers. “By extending trading hours for Forecast Contracts, we’re offering clients the flexibility to act on critical market developments as they unfold, regardless of when they happen.”
Forecast Contracts are available on multiple IBKR trading platforms, including IBKR Mobile, IBKR Desktop, Trader Workstation (TWS), Client Portal, and IBKR ForecastTrader, a dedicated web-based platform. Contracts are priced between USD 0.02 and USD 0.99 based on the market’s assessment of each event’s probability. A correct prediction settles at USD 1.00; an incorrect one settles at zero, providing a transparent, real-time indicator of investor sentiment.
Forecast Contracts are offered by ForecastEx LLC, a CFTC-regulated and wholly owned subsidiary of Interactive Brokers. They are available to eligible clients of Interactive Brokers LLC (US), Interactive Brokers Canada Inc., and Interactive Brokers Hong Kong.
To view live market prices and begin trading, visit:
Regulation Stock Market Oversight Rules Laws Trading Ticker 3d Illustration
U.S. equity markets remain a global benchmark for transparency, liquidity, and resiliency. But even the strongest market structures must evolve with the times. In its recently released white paper, Enhancing Competition and Innovation in U.S. Financial Markets, Citadel Securities outlines a measured path forward—one that avoids sweeping changes in favor of smart, targeted reforms.
The paper underscores the success of recent updates such as T+1 settlement and enhanced execution quality disclosures, which have delivered billions in savings and improved retail access to liquidity. But it also highlights emerging threats: opaque trading practices, inefficient fee structures, and outdated regulatory assumptions that no longer reflect today’s markets.
One of the most debated reforms has been the SEC’s new rule on tick sizes and access fees. Intended to stimulate competition, the rule shrinks quoting increments and slashes access fees across the board. But Citadel argues that the Commission has cast too wide a net. “The Commission defined the universe of ‘tick-constrained’ symbols too broadly,” the paper states, calling it a “risky, ill-conceived, and poorly designed experiment.” Instead, it proposes a limited pilot involving 200 liquid names with narrow spreads—supported by proportionate access fee adjustments—to avoid market-wide disruption.
The paper also takes aim at private rooms within Alternative Trading Systems (ATSs). These increasingly resemble single-dealer platforms, allowing firms to selectively choose counterparties without meeting the fair access standards required of public exchanges. “One-to-one or one-to-many private rooms do not appear to satisfy those requirements,” the paper warns. It calls on the SEC to enforce ATS rules more rigorously, require consistent disclosures, and eliminate loopholes that let ATSs sidestep Rule 605 reporting by defaulting orders as “not held.”
Citadel also renews criticism of the Consolidated Audit Trail (CAT), citing runaway costs and opaque oversight. Originally projected to cost under $50 million per year, CAT has ballooned to over $250 million annually and more than $1 billion in total. “The CAT system is expensive and essentially funded by the public but operates outside the direct oversight or authorization of Congress,” noted Commissioners Peirce and Uyeda in comments cited by the paper. Citadel urges the SEC to freeze CAT fee collection and expansion pending a full audit of its governance, cost structure, and cybersecurity controls.
Execution quality transparency remains a key focus. While the SEC has enhanced disclosure rules, the paper recommends further refinements—clarifying how “good-til-cancelled” orders are treated under Rule 605, and repealing the burdensome 606(b)(3) requirement that forces brokers to retain large volumes of routing data rarely used by investors.
The white paper also addresses an increasingly contentious issue: exchange liability. Despite operating as for-profit entities that compete directly with brokers and trading firms, exchanges continue to enjoy outdated monthly liability caps, often no more than $500,000. Citadel calls for meaningful increases to these limits and for unused allowances to roll forward—arguing this would better protect market participants and promote more resilient infrastructure.
Another notable recommendation: implement a “professional customer” classification in equities, mirroring the approach already used in the options market. Without this, the paper warns, “professional traders can masquerade as retail customers and obtain execution priority,” diluting the benefits intended for true retail investors.
The paper also confronts the economic distortions created by exchange proliferation. “There are significant costs associated with this proliferation, including those related to connectivity, physical infrastructure, and operational complexity,” it notes. Citadel supports revising the SIP revenue-sharing formula to prioritize executed trades over displayed quotes and establishing a minimum volume threshold for fee eligibility. Until new exchanges meet a 2% market share threshold, they should face hard caps on data and connectivity fees.
Intentional delay mechanisms—once explicitly barred under Regulation NMS—have also crept back into the market under the guise of “de minimis” delays. These systems allow asymmetric “last look” advantages, undermining price discovery and increasing investor costs. The paper urges the SEC to return to the original standard: protected quotes must be immediately and automatically accessible, with no exceptions.
The burden of Section 31 fees is another longstanding issue. These costs have risen sharply and are levied almost exclusively on equities and options—despite the SEC’s expanding purview across asset classes. The recommendation: stabilize the fee and distribute it more equitably across all markets the Commission regulates.
Perhaps most fundamentally, Citadel calls for greater transparency in how rules are made. The SEC has recently proposed multiple overlapping reforms with siloed economic analysis, leaving market participants to piece together the cumulative impact. “The Commission issued four separate equity market structure proposals… without even attempting to consider the effects these proposals would have on each other,” the paper points out. Moving forward, the SEC should be required to assess the combined economic effects of related proposals and align policy goals across rulemakings.
Additional recommendations include repealing Dodd-Frank provisions that allow exchanges to implement fee filings without SEC approval, raising listing standards to limit the growth of speculative penny stocks, and ensuring a consistent regulatory framework for 24-hour trading. As more exchanges and ATSs move into overnight sessions, the paper stresses that “key market infrastructure” such as NSCC, trade reporting, and settlement protocols must be ready to support this activity.
In all, the white paper provides a thoughtful, data-backed framework for modernizing equity markets without overreaching. It argues that targeted reforms—focused on transparency, fairness, and cost discipline—are both necessary and achievable.
For market participants navigating today’s complex regulatory landscape, the message is clear: smart regulation can support innovation, safeguard investor protections, and preserve the competitive edge that defines U.S. markets.
In addition to equities markets, the paper also provide policy recommendations for: Equity Derivatives, U.S. Treasuries, Credit, and Digital Assets.
SIFMA and Arteria AI have partnered to provide all US Treasury clearing participants a data-driven documentation platform to streamline and scale the onboarding, legal compliance, and operational systems integration with respect to the mandated central clearing of US Treasury securities repurchase transactions, as required by new rules out of the Securities and Exchange Commission (SEC).
Kenneth E. Bentsen
“Since the finalization of the rule in December 2023, SIFMA has been working with our members, both buy side and sell side, and key infrastructure providers to develop voluntary standardized documentation, a considerations report, accounting clarity, and legal enforceability opinions to facilitate the transition to mandated central clearing. Our partnership with Arteria AI, and this new platform, represents an important efficiency and provides a crucial resource as the industry works toward compliance,” said Kenneth E. Bentsen, Jr., SIFMA president and CEO.
“We are delighted to partner with SIFMA to provide the industry with an effective AI-powered solution for US Treasury clearing. This partnership combines SIFMA’s unparalleled institutional knowledge as the foremost trade association for financial services in the US with the Arteria platform, the leading AI technology specifically designed for financial services. At this time of rapid technological change, it is more important than ever for financial institutions to have a comprehensive understanding of their documentation. We look forward to enabling the whole market to do this via our joint offering with SIFMA,” said Abrar Huq, Arteria AI Co-founder & CRO.
The SIFMA Arteria AI Treasury Clearing Solution starts with translating the voluntary standard documentation into a data driven exercise to:
Assist market participants in leveraging the documentation’s built-in optionality to address and accommodate individualized negotiations and terms.
Streamline and scale negotiations and enable the tracking of terms across stakeholders.
Operationalize the content to drive client onboarding, record critical client details, and provide a platinum data source for margin management and other systems.
Optimize legal, accounting, and compliance both with respect to key business terms and enforceability consistent with legal opinions and other guidance being sourced by SIFMA.
The compliance dates for the relevant SEC rules are Dec. 31, 2026, for eligible cash market transactions, and June 30, 2027, for eligible repo market transactions.
The options trading world turns its focus to the PGA National Resort this May as the 43rd Annual Options Industry Conference (OIC) convenes from May 6–8, 2025. Drawing a wide array of participants—from exchanges and brokerages to regulatory experts and fintech innovators—the event is poised to tackle some of the most pivotal topics shaping the future of derivatives markets. Traders Magazine caught up with Ed Modla, Executive Director, Investor Education, and Mat Cashman, Principal, Investor Education at OCC, to learn more.
What are the primary objectives of the 2025 Options Industry Conference, and how do they reflect the current trends in the options market?
Ed Modla
Ed Modla: As usual, OIC will bring together the brightest and most innovative minds in the options industry. Speakers and attendees will have the opportunity to connect while sharing perspective on the latest factors that are driving volatility and offer their expectations of the next influential headlines that will impact the markets.
Mat Cashman: The 2025 conference is centered around the key theme of innovation in the options markets. As the industry evolves with advancements in big data, AI, and retail investor participation, the conference aims to highlight how technology, market structure, and education are shaping the future. Compared to previous years, there’s a stronger emphasis on emerging technologies and adaptive strategies, reflecting the industry’s focus on not just growth, but sustainable innovation.
Can you provide an overview of the keynote speaker, Maurice Conti, and how his insights into emerging technologies will benefit attendees?
Mat Cashman
Ed Modla: In addition to being a world traveler and highly respected innovator, Maurice is at the forefront of Futurism. The world is always moving and changing quickly, but there could not be a more perfect time to gain insight and wisdom from one of the most creative and inspiring minds in the world today.
Mat Cashman: Maurice Conti is a visionary leader in the fields of AI, immersive reality, advanced robotics, and sustainability-focused technologies. Given our focus this year on technological innovation, Maurice’s insights will provide attendees with a broader, future-facing perspective that directly ties into how the options industry is evolving.
Can you highlight some of the most anticipated panel discussions?
Ed Modla: As an educator, I am drawn to “Shaping the Future of Options Education.” The appetite for options knowledge has never been greater, and this panel will provide the audience with speakers from different sides of the industry who will discuss their characterization of today’s options user and how to connect with them.
Mat Cashman: Several sessions stand out to me this year. “The State of the Industry” will focus on how firms are using big data, AI, and analytics to shape trading and risk management strategies. The Emerging Technologies, Advanced Analytics and Automation in Options Trading session will be a deep dive into how innovations are impacting decision-making and ethics in options trading.
How does the conference address the evolving role of retail investors in the options market?
Ed Modla: The presence and influence of the retail investor in the market continues to expand. OIC will address this topic directly by kicking off day 2 with a panel discussion, “The Evolution of Retail Options Trading,” which will be on the increasing sophistication level of retail participants along with their behavioral tendencies during periods of market stress.
What impact do Defined Outcome ETFs have on options and futures markets, and how will this topic be explored during the conference?
Ed Modla: Defined Outcome ETFs can provide a path for investors to gain indirect exposure to the derivatives markets. A key feature of these products is the calculated risk-reward profile which is largely accomplished using options contracts. OIC will highlight this topic in the morning of day 2 in “The Rise of Defined Outcome ETFs” when a panel of industry experts will weigh the benefits of simplicity against the extent to which investors should understand the construction of these products to help determine their comfort level.
How are advancements in big data, artificial intelligence, and automation transforming trading strategies and risk management in the options industry?
Ed Modla: Sophisticated trading systems have incorporated the element of AI for quite some time. However, the speed and capability of this technology is expanding at a rapid pace today. Traders and investors are always looking for ways to gain an edge, and being at the cutting edge of this remarkable evolution will be critical to the long-term success of any business.
Mat Cashman: This year’s panels are packed with conversations on this topic, particularly in “State of the Industry” and “Emerging Technologies in Options Trading.” These sessions will address how data-driven modeling, automation, and AI tools can enable market participants to trade more efficiently, manage risks more dynamically, and even approach market analysis in new ways.
How is the 2025 Options Industry Conference advancing the conversation around options education, and why is this important for the future of the market?
Mat Cashman:Education has always been critical to the health and growth of the options market, and this year’s conference is placing an even greater spotlight on it. The panel “Shaping the Future of Options Education” will explore how innovative educational platforms, AI-driven learning tools, and expanded outreach efforts are shaping a new generation of options traders, both retail and institutional. Compared to 2022-2024, when education was a secondary theme, it now has a central place in the conference agenda, reflecting the industry’s recognition that sustainable growth depends on empowering investors with better knowledge and tools.
Beyond the sessions, what networking opportunities and social events are planned to facilitate connections among industry professionals?
Ed Modla: The OCC & Exchange Welcome Reception at OIC is always unforgettable. With live music and delicious hors d’oeuvres served within the magnificent facility at PGA National Resort, this will surely be another night to remember.
Mat Cashman: This year, there will be several formal and casual networking opportunities, including the “Surf’s Up” Networking Event on Wednesday, and the golf outing and a pickleball mixer on the final day.
OCC, the world’s largest equity derivatives clearing organization, has appointed Stephen Luparello as Chairman, succeeding Craig Donohue, who resigned to pursue another career opportunity. Luparello is a Public Director on OCC’s Board of Directors, most recently serving on the Compensation and Performance Committee (Chair) and the Regulatory Committee (Chair). He will serve as Chair for the remainder of Donohue’s term, which runs through April 2026. Luparello’s career in financial markets includes stints as Managing Director and General Counsel for Citadel Securities, and Director of the U.S. Securities and Exchange Commission’s Division of Trading & Markets. In addition, he spent 16 years at the Financial Industry Regulatory Authority (FINRA) where he served in a number of senior regulatory roles, including Vice Chairman.
Jason Schwarz
Wilshire has appointed Jason Schwarz to Chief Executive Officer. He succeeds current CEO, Andy Stewart, who will assume the role of Executive Chairman and continue to provide strategic guidance and support to the executive team, focusing on long-term vision, M&A, and growth initiatives. Schwarz most recently served as President and Deputy CEO at the firm. Additionally, Hanna Valva and Jason Hubschman will assume the roles of Co-Chief Operating Officer. They succeed Scott Condron who will be moving to a Senior Advisor role, providing support to our executive team before he retires later in the year.
Craig Donohue
Cboe has appointed Craig Donohue as its new CEO, effective May 7, 2025. He will succeed Fred Tomczyk who will step down as CEO and remain on the Board. Donohue is a seasoned global derivatives market executive with more than 30 years of experience, including two decades at CME Group where he spent eight years as CEO before departing in 2012. Over the last decade, he has served as Chairman of the Board at OCC, the world’s largest equity derivatives clearing organization, where he also spent three years as CEO from 2016 until 2019.
State Street Corporation has appointed John F. Woods to Chief Financial Officer (CFO). Woods, who will join State Street in late August, succeeds Mark Keating who has served as interim CFO since February. Upon joining State Street, Woods will report to Ron O’Hanley, State Street’s chairman and chief executive officer. Woods joins State Street from Citizens Financial Group where he is currently Vice Chair and Chief Financial Officer.
Standard Chartered has appointed Noelle Eder as Group Head, Technology & Operations, subject to regulatory approval. Eder will be reporting to Group Chief Executive, Bill Winters, and will be based in Singapore. Noelle joins from The Cigna Group, where she was the Executive Vice President and Global Chief Information Officer. She was responsible for leading the digital, technology, data & analytics and operations strategy, aligning with the organisation’s goals to drive innovation and transform healthcare.
René Paula has joined Nasdaq Private Market (NPM) as Chief Legal and Chief Financial Officer, and Samantha Tortora has joined NPM as Chief Growth and Chief Marketing Officer. In addition, Amanda Gold has been named Chief of Staff and Chief People Officer; Andrew Kroculick, who has been with NPM since 2017, has been named Chief Operating Officer; Bill Spoor has been named Head of Capital Solutions; and Parul Dubey has been named Head of SecondMarket. In addition, Marc Perkins has been named Senior Vice President of Product.
FINBOURNE Technology, has appointed Toby Glaysher as Chairman of the Board, alongside the formation of a new Advisory Board to enhance client focus and support continued growth. Glaysher brings extensive experience in global financial services, most recently serving as President of Global Fund Services at Northern Trust, where he played a key role in advancing the firm’s digital and data transformation.
United Fintech has appointed Deepak Nair as Chief Operating Officer (COO), joining the company’s Executive Leadership Team. Nair’s career spans over two decades including senior roles at Virgin Media O2, McKinsey & Company, UBS, JPMorgan and Goldman Sachs.
Sir Mark Tucker has advised the Board of HSBC of his intention to retire as Group Chairman before the end of 2025. The Board’s Nomination and Corporate Governance Committee has commenced the process to select Sir Mark’s successor as Group Chairman. This process is being led by Ann Godbehere, Senior Independent non-executive Director.
If you have a new job or promotion to report, let me know at alyudvig@marketsmedia.com
Amid extreme market volatility and shifting global dynamics, investment banks must rethink risk and resilience. By modernizing data infrastructure, they can unlock operational efficiency and gain a critical edge in uncertain times.
The Cboe VIX Index soared to 60 on April 7 as the trade war flared. As of this writing, the “fear gauge” measuring investor sentiment on volatility stands just under 30, still well above the <20 target. Our financial markets are currently experiencing a period when even the volatility index is volatile, fluctuating wildly. Investment banks have collected the spoils of the bear market rally with record equities trading and rising activity in commodities, currencies, and bond markets. Of course, this doesn’t mean that wild market fluctuations are the sell-side golden goose. Banks are still trying to solve a decade-plus-old problem of low trading margins due to the high costs of regulatory compliance, technology modernization, and talent wars.
Erratic trade policy, the recent US Treasuries sell-off, and the weakening US dollar are precursors to a new world order in which global goods and capital flows will undergo significant changes. This is a risk management game for which the playbook is still being written. Extreme volatility in U.S. market is creating significant challenges for treasury desks, with implications for managing liquidity, hedging, and risk. There are so many forces that sell-side institutions cannot control right now.
However, institutions can control how they navigate short-term volatility while adapting to structural shifts in market dynamics to build resilience, by modernizing data strategy.
A new world order in global finance
CNBC reported that, “Rather than wagering house money on bets, they (Wall Street’s top trading desks) have leaned more to facilitating trades and providing leverage for clients.”[i] The sell-side is protecting its books while speeding trade ordering to grab enormous volumes. However, inefficiencies in operations can skim considerable income off their take. Recently, the US Treasuries sell-off to the tune of $2 trillion per day in early April kinked up some post-trade systems, causing about two hours of downtime and “slowness in reporting to clients in T+0 and T+1.”[ii]
Sell-side institutions are operating in a unique environment and must be prepared for anything from credit losses to recession. We’ve transitioned from a decade of low-cost capital and growth to a regulatory supercycle with a rising rates environment – to 2025’s uncertain period of tumult with less onerous compliance. Right now, big banks are in good shape, generally. But if a credit driven event, valuation driven, or liquidity driven event occurs, it will signal that assets have been re-priced to reflect a new world order. Sell-siders can ill afford outages, delays, or errors in liquidity, collateral, and capital management. Any delay in spotting exposure, especially from leveraged clients like hedge funds, can lead to crippling losses.
Chief information and chief technology officers are taking various approaches to upgrade their operating models and optimize the data flowing through their pipelines. This tumultuous period focused on risk management is a good time to unlock middle- and back-office operational efficiency, turning oceans of unstructured data into actionable assets of standardized, structured data.
Make capital work smarter
If the data flows well, the money will flow well. If institutions can reduce manual errors and make their moves with up to the moment, accurate data, they can optimize cash management, asset-based financing agreements, and cross-currency surplus balances. Prime brokers can determine ideal risk-management tactics by executing what-if stress testing for any potential situation if they use independent margin calculators to compute interest accruals across all clients in one place. With real-time visibility into client inventory, cash balances, and liquidity requirements, treasurers can deftly roll with whiplashing market movements. They can manage collateral across clients and rehypothecate collateral as necessary and activate idle cash. Of course, all of these advantages depend on access to a centralized information source. Smooth flow of data means everybody can see it – and it makes sense.
Data democratization for faster decision-making
Institutions that don’t have a modern data ecosystem that makes the current and reliable data accessible across risk, compliance, operations, and trading are dog-paddling upstream. Some brokers and banks have encountered friction and inertia in their digital transformation initiatives. Unquestionably, there is complexity in standardizing and centralizing data across regions, currencies, and asset classes, while complying with data localization requirements. Many data scientists and IT leaders may have adopted closed data infrastructure but struggle with moving accurate data upstream for compliance, reporting, risk management and market oversight, client metrics, and AI initiatives. Data from sources like reference data masters, cash ledgers, collateral systems, and deposits platforms get bottlenecked in legacy systems impeding siloed data integration, resulting in poor data quality, including incorrect and missing information. Consequently, answers come slowly.
Data infrastructure and operating models should enable greater commonality across asset classes and business functions. Deloitte predicts that the future of investment banking is cloud-based architecture, centralized data management, consolidated operations processes and activities across asset classes. Institutions can then automate and customize data operations. These approaches transform an upstream doggie paddler into an Olympic kayaker slicing through whitewater.
Prepare now for the next market cycle
During 5-Sigma events, a bank’s data becomes a mission critical bulwark against losses. High-performing back-offices will smartly process enormous transaction volumes with reduced errors. High-performing treasury desks will understand their exposures and their opportunities enough to fund their banks in the most efficient manner and capitalize on volatility. When clarity and cohesion return to global financial markets, sell-siders with digitally transformed systems will be ready to make money in the earliest stages of an up economic cycle, which can be some of the most profitable time windows. Banks and prime brokers have an opportunity to monetize vast amounts of data to generate intelligent observations that can be valuable to their clients.
Banks and their buy-side clients can no longer tolerate fragmented systems, slow reporting, and human-centric workflows that hamper decision-making and hurt client service. It’s time to finish the digital transformation. Moreover, AI / machine learning is predicted to be the most influential technology for trading over the next two years. To integrate transformative generative AI tools into higher value business functions requires advanced data infrastructure. Institutions that invest in a modern, open-architecture data ecosystem during the “regulatory ebb” will be the ones that avoid scrambling when the regulatory “flow tide” returns.
Vector greeting card template for May the 4th be with you holiday. Dark space background.
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.
A long time ago in a market not so far away, traders relied on visible order books, price ladders, and intuition to navigate the equity derivatives universe. Today, however, that trading universe has become fragmented, complex, and increasingly dominated by what can only be described as phantom liquidity — quotes that flicker in and out like holograms, volume that disappear on contact, and signals that deceive more than they inform.
Sylvain Thieullent
With Star Wars Day (May the Fourth be with you) just around the corner, it’s fitting to reflect on the growing disconnect between displayed liquidity and executable liquidity. Just as Jedi must distinguish between illusion and reality, modern derivatives traders must learn to see through the fog of fleeting quotes, synthetic liquidity, and venue fragmentation. For many, the force they must now rely on is not mysticism, but intelligent insights brought together by an informative approach to execution and order management, to bring transparency to a rapidly evolving galaxy.
The rise of electronic liquidity provision and ultra-fast quoting has undeniably deepened markets in theory. Yet in practice, the tradeable size at any given level can be far thinner than it appears. On-screen depth is often little more than a mirage, especially during volatile periods, which disappeared in early April when traders need reliability most. The problem is not just academic, it’s commercial. Traders are executing larger or more complex structures. Volatility strategies, delta-neutral baskets, or multi-leg options all face increasing slippage and higher reject rates, not to mention mounting execution costs.
Regulatory reforms like MiFID II have of course tried to enhance market transparency, but ironically, some of these efforts have led to unintended consequences. As more trading has shifted off-exchange, price discovery has become more scattered. For those without access to consolidated data and execution intelligence, the modern derivatives market can resemble a galactic empire, where the few with advanced systems thrive and the rest navigate blind.
This is where technology must play its part. A sophisticated approach to execution and order management is no longer a “nice to have” but the lightsabre of the modern trader. Smart order routing, real-time venue analytics, and liquidity aggregation are not just words only traders understand. They are essential in the fight against phantom liquidity. Execution algos tailored for equity derivatives, sensitive to implied volatility and cross-asset correlations, can significantly reduce market impact and improve hit rates.
The truth is that even the best technology needs a strategic mind behind it. Execution quality depends not just on speed, but on context. Is the quote firm or indicative? Is the venue showing size internally crossing flow, or merely recycling public data? Is it worth crossing the spread for immediacy, or working the order with patience? These are the decisions that separate padawans from Jedi masters— and ones that a well thought out approach to execution and order management support with intuitive tools and analytics.
As Star Wars fans mark May the fourth, let’s remember that equity derivatives trading doesn’t have to feel like navigating the trench of the Death Star. With the right execution infrastructure, traders can access genuine liquidity, reduce risk, and regain control in a market where illusion often masquerades as substance.
Navigating Market Mayhem: How Investment Banks Can Harness Data to Build Resilience
Amid extreme market volatility and shifting global dynamics, investment banks must rethink risk and resilience. By modernizing data infrastructure, they can unlock operational efficiency and gain a critical edge in uncertain times.
By Ted O’Connor, SVP and Head of Sell Side, Arcesium
The Cboe VIX Index soared to 60 on April 7 as the trade war flared. As of this writing, the “fear gauge” measuring investor sentiment on volatility stands just under 30, still well above the <20 target. Our financial markets are currently experiencing a period when even the volatility index is volatile, fluctuating wildly. Investment banks have collected the spoils of the bear market rally with record equities trading and rising activity in commodities, currencies, and bond markets. Of course, this doesn’t mean that wild market fluctuations are the sell-side golden goose. Banks are still trying to solve a decade-plus-old problem of low trading margins due to the high costs of regulatory compliance, technology modernization, and talent wars.
Erratic trade policy, the recent US Treasuries sell-off, and the weakening US dollar are precursors to a new world order in which global goods and capital flows will undergo significant changes. This is a risk management game for which the playbook is still being written. Extreme volatility in U.S. market is creating significant challenges for treasury desks, with implications for managing liquidity, hedging, and risk. There are so many forces that sell-side institutions cannot control right now.
However, institutions can control how they navigate short-term volatility while adapting to structural shifts in market dynamics to build resilience, by modernizing data strategy.
A new world order in global finance
CNBC reported that, “Rather than wagering house money on bets, they (Wall Street’s top trading desks) have leaned more to facilitating trades and providing leverage for clients.”[i] The sell-side is protecting its books while speeding trade ordering to grab enormous volumes. However, inefficiencies in operations can skim considerable income off their take. Recently, the US Treasuries sell-off to the tune of $2 trillion per day in early April kinked up some post-trade systems, causing about two hours of downtime and “slowness in reporting to clients in T+0 and T+1.”[ii]
Sell-side institutions are operating in a unique environment and must be prepared for anything from credit losses to recession. We’ve transitioned from a decade of low-cost capital and growth to a regulatory supercycle with a rising rates environment – to 2025’s uncertain period of tumult with less onerous compliance. Right now, big banks are in good shape, generally. But if a credit driven event, valuation driven, or liquidity driven event occurs, it will signal that assets have been re-priced to reflect a new world order. Sell-siders can ill afford outages, delays, or errors in liquidity, collateral, and capital management. Any delay in spotting exposure, especially from leveraged clients like hedge funds, can lead to crippling losses.
Chief information and chief technology officers are taking various approaches to upgrade their operating models and optimize the data flowing through their pipelines. This tumultuous period focused on risk management is a good time to unlock middle- and back-office operational efficiency, turning oceans of unstructured data into actionable assets of standardized, structured data.
Make capital work smarter
If the data flows well, the money will flow well. If institutions can reduce manual errors and make their moves with up to the moment, accurate data, they can optimize cash management, asset-based financing agreements, and cross-currency surplus balances. Prime brokers can determine ideal risk-management tactics by executing what-if stress testing for any potential situation if they use independent margin calculators to compute interest accruals across all clients in one place. With real-time visibility into client inventory, cash balances, and liquidity requirements, treasurers can deftly roll with whiplashing market movements. They can manage collateral across clients and rehypothecate collateral as necessary and activate idle cash. Of course, all of these advantages depend on access to a centralized information source. Smooth flow of data means everybody can see it – and it makes sense.
Data democratization for faster decision-making
Institutions that don’t have a modern data ecosystem that makes the current and reliable data accessible across risk, compliance, operations, and trading are dog-paddling upstream. Some brokers and banks have encountered friction and inertia in their digital transformation initiatives. Unquestionably, there is complexity in standardizing and centralizing data across regions, currencies, and asset classes, while complying with data localization requirements. Many data scientists and IT leaders may have adopted closed data infrastructure but struggle with moving accurate data upstream for compliance, reporting, risk management and market oversight, client metrics, and AI initiatives. Data from sources like reference data masters, cash ledgers, collateral systems, and deposits platforms get bottlenecked in legacy systems impeding siloed data integration, resulting in poor data quality, including incorrect and missing information. Consequently, answers come slowly.
Data infrastructure and operating models should enable greater commonality across asset classes and business functions. Deloitte predicts that the future of investment banking is cloud-based architecture, centralized data management, consolidated operations processes and activities across asset classes. Institutions can then automate and customize data operations. These approaches transform an upstream doggie paddler into an Olympic kayaker slicing through whitewater.
Prepare now for the next market cycle
During 5-Sigma events, a bank’s data becomes a mission critical bulwark against losses. High-performing back-offices will smartly process enormous transaction volumes with reduced errors. High-performing treasury desks will understand their exposures and their opportunities enough to fund their banks in the most efficient manner and capitalize on volatility. When clarity and cohesion return to global financial markets, sell-siders with digitally transformed systems will be ready to make money in the earliest stages of an up economic cycle, which can be some of the most profitable time windows. Banks and prime brokers have an opportunity to monetize vast amounts of data to generate intelligent observations that can be valuable to their clients.
Banks and their buy-side clients can no longer tolerate fragmented systems, slow reporting, and human-centric workflows that hamper decision-making and hurt client service. It’s time to finish the digital transformation. Moreover, AI / machine learning is predicted to be the most influential technology for trading over the next two years. To integrate transformative generative AI tools into higher value business functions requires advanced data infrastructure. Institutions that invest in a modern, open-architecture data ecosystem during the “regulatory ebb” will be the ones that avoid scrambling when the regulatory “flow tide” returns.
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[i] https://www.cnbc.com/2025/04/16/wall-street-trading-revenue-trump-volatility.html April 16, 2025.
[ii] https://www.risk.net/risk-management/7961376/treasury-selloff-challenges-back-office-systems April 11, 2025.