Friday, March 14, 2025

Women in FIX: Celebrating Journeys, Facing Challenges

As electronic trading continues to evolve, the value of diverse perspectives has never been more critical.

Recognizing this, the FIX Trading Community’s New York Regional Meeting on January 23 featured a panel titled “Women In FIX: Celebrating Their Journeys and Impact on the Evolution of Electronic Trading,” which convened industry leaders to discuss their experiences, the challenges they’ve navigated, and the opportunities ahead.

Amy May, Morgan Stanley
 Amy May, Morgan Stanley

Hosted at Accenture’s New York office and co-sponsored by Women in FIX, the panel was moderated by Yulia Kuksina, Global Head of Sales at Markets Media Group. The conversation included Amy May, Executive Director of Electronic Trading at Morgan Stanley; Elizabeth Molash, Associate Director at SS&C Eze; and Saira Shariff, Managing Director at Accenture, covering career growth, diversity, equity, and inclusion (DEI), and the evolving role of FIX in financial markets.

For May, FIX has been central to her nearly three-decade career at Morgan Stanley. “FIX is inescapable when you’re doing electronic trading,” she said, reflecting on her transition from Tokyo to New York during the early days of algorithmic trading. A pivotal career shift came after returning from maternity leave, when she took on vendor management—a role that broadened her exposure to FIX and deepened her understanding of market infrastructure. “That move shaped the way I view not just technology, but how we collaborate across the industry,” she noted.

 Elizabeth Molash, SS&C Eze

Molash’s path into FIX was less conventional. “I didn’t really know what I was getting into,” she admitted, recalling her start in a support role at SS&C Eze. Drawn to the technical challenges of FIX troubleshooting, she advanced into roles focused on certification and algorithm development. “It’s funny how sometimes the things you stumble into end up defining your career,” she said, emphasizing the importance of staying open to unexpected opportunities.

Shariff’s connection to FIX stemmed from her leadership in DEI at Accenture. “My involvement with FIX came through DEI,” she explained, highlighting how industry partnerships can drive both business and personal development.

 Saira Shariff, Accenture

DEI wasn’t just a talking point—it was woven throughout the panel, with Shariff emphasizing that inclusion goes beyond representation. “It’s about creating environments where every voice is heard, where diverse perspectives aren’t just present—they’re valued,” she said.

Molash reinforced the importance of proactive engagement in DEI efforts. “I just try to always sign up for DEI initiatives, make them work with my schedule, and encourage others to get involved,” she explained. Creating spaces where people feel heard is one part of the equation; navigating personal growth within those spaces is another. Reflecting on their own journeys, the panelists shared career advice that shaped their paths. “Bring your authentic self,” May said without hesitation.

She also challenged the long-standing belief that success means excelling in every area simultaneously. “The worst advice I’ve heard is that you can be everything, that you can have it all at once. But the reality is, you don’t have to do it all at once. Choose your path, set defined goals, and over time, you will achieve everything.”

Shariff highlighted the importance of self-advocacy. “You have to advocate for yourself and build relationships with people who will speak up for you when you’re not in the room,” she said, encouraging professionals to cultivate networks of mentors and sponsors. Molash added a practical insight: “If there’s contentious back-and-forth over email or Slack, just pick up the phone. Direct conversations often cut through the noise and build stronger connections.”

The panel also addressed the evolving dynamics of the workplace, particularly in light of shifts brought about by the pandemic. May observed that many firms now have a significant number of new hires, creating knowledge gaps. “Leaders should sit among different teams, not just at the head of the table,” she noted, emphasizing the value of informal interactions for fostering collaboration.

Addressing imposter syndrome, Shariff shared candid reflections. “I used to walk into rooms and think, ‘Am I good enough?’ But then I realized none of my male colleagues were thinking that. So why should I?” May reframed this as an opportunity: “People will remember you. Use that visibility to your benefit.”

Kuksina closed the discussion by reinforcing the panel’s key message: “Diversity isn’t just about representation—it’s about participation.” The Women in FIX panel made it clear that creating a more inclusive industry requires more than just opening doors; it requires active engagement, authentic leadership, and a commitment to elevating every voice.

TECH TUESDAY: Why NBBO Economics Have Become Distorted

TECH TUESDAY is a weekly content series covering all aspects of capital markets technology. TECH TUESDAY is produced in collaboration with Nasdaq.

We recently studied how trades speed around the marketplace — typically starting from a broker order in Secaucus, traveling at the speed of fiber to take orders on exchanges around the market, then causing a reaction function at the speed of microwave.

Today, we are looking at how quote updates typically flow around the market. 

What we find is that primary listing exchanges set the new National Best Bid and Offer (NBBO) most of the time. Then, most venues see orders arriving at a fairly consistent rate over time, but some venues have a rapid increase in quotes at the new NBBO within the first millisecond.

Whether that’s good or bad for market structure and routers is an interesting question.

Listing venues set the most NBBOs

We look at who sets new NBBOs using venue timestamps across all exchanges. That removes any delays reporting new trades back to the SIP. 

We see that primary exchanges set the new NBBO the majority of the time. That shouldn’t be surprising, as primary exchanges also need to compete for company listings, and companies compare them based on things that reduce their costs of capital, such as consistent quotes and tight spreads.

For example, Nasdaq market makers set quotes in Nasdaq-listed stocks close to 58% of the time. In contrast, all other exchanges combined improve the NBBO for Nasdaq stocks less than 43% of the time.

Chart 1: More than half of the time new NBBO price is set by the primary listing exchange 

More than half of the time new NBBO price is set by the primary listing exchange

Other venues join NBBO at different rates and speeds

What does tend to happen more consistently is that other venues join (or copy) the NBBO prices that have been set on the primary.

Importantly, we don’t see all venues rushing to copy the NBBO quotes at exactly the speed of light. Instead, most exchanges see a consistent arrival of new orders as time (x-axis) progresses.

But there are a few interesting exceptions:

  • Sharp jumps show a rapid copying of new quotes. LTSE, and later IEX, stand out, with both having a sharp jump in copy quotes both well within 1 millisecond.
  • Height of the line shows that IEX stands out, especially for more liquid stocks in the Nasdaq-100 (Chart 2a), where it has more quotes copying the NBBO than any other exchange — by a significant margin — despite several other exchanges actually providing the market with more liquidity (ARCA, EDGX and BATS).
  • Line thickness shows the breadth of stocks in the universe where quotes are copied. IEX and LTSE stand out again, with copy-quotes on far more stocks, giving the appearance of widespread liquidity to investors, especially versus their trading market share (Chart 3).

Chart 2a: IEX send orders copying NBBO quotes for liquid (Nasdaq-100) stocks

IEX send orders copying NBBO quotes for liquid (Nasdaq-100) stocks

Interestingly, the patterns change very little when we look at less liquid stocks.

Given there are about 3,300 companies in the chart below (versus just 100 in the chart above), the increase in total quotes is relatively small. It’s probably true that, with these smaller companies, they are also less profitable to quote. But these are also the tickers that need liquidity support the most. Even the SIP revenue allocation formula is tilted in favor of quotes in these stocks.

What the data shows is that for these less liquid stocks, IEX and LTSE experienced an even sharper jump in the number of copying quotes. However, as you will see in Chart 3, these large numbers of quotes don’t eventually lead to trades.

Chart 2b: There is less interest in copying quotes for less liquid, smaller-cap, stocks

There is less interest in copying quotes for less liquid, smaller-cap, stocks

Is this good or bad for market structure?

This matters in different ways to different participants.

For brokers and traders, it reduces the exclusive need for speed to be at the top of the queue. That’s because, as long as you can find a venue with no order on that venue, you can be at the top of their queue. That, in turn, helps increase spread capture and profitability for traders on those exchanges. 

But fragmentation adds other costs for brokers, including more connections and more complicated routing. It also adds costs to investors through higher opportunity costs.  

There are other costs of diluting queue priority, too.

The system doesn’t reward competitive quotes that lead to trades

More importantly, fragmentation of quoting is bad for the market makers actually setting the quotes in the first place. Their business is to profit from spread capture, but copy quotes make that less likely.

Perhaps even worse, the way regulated data economics works in the U.S. adds to inefficiencies. The SIP revenue allocation formula was designed to reward quotes and trades “equally” regardless of who set those prices more often. Back before there were over a dozen exchanges, with some protected quotes using speed bumps, it was set up to reward all quotes equally. 

Looking at recent SIP revenue shows that some exchanges seem to earn a lot of quote revenues, without actually doing any trading. In some exchanges, there are clear costs to exchanges, like rebates, to reward market makers providing those quotes, but in other cases the cost to exchanges and benefits to market makers are less transparent.

Chart 3: LTSE and IEX send large number of orders copying the NBBO quotes 

LTSE and IEX send large number of orders copying the NBBO quotes

SIP quote revenues can add to tens of millions of dollars for some exchanges. This is an artificial incentive that supports fragmentation, without actually making the market more competitive and cheaper for investors.

We need to make sure the NBBO is good at protecting investors and issuers

Most of us seem to agree that the NBBO is important for investors and issuers. Academic research also suggests that tight spreads reduce costs of capital and increase liquidity. That, in turn, helps make the U.S. market more attractive than many markets around the world. 

We spend a lot of time arguing about the benefits of a “public” and affordable NBBO. Perhaps we also need to make sure that the economics also fairly reward the venues and traders setting those quotes. That could even help make markets more efficient. 

OneChronos to Launch Spot FX Venue for Institutional Clients

As the financial landscape continues to evolve, firms are increasingly looking for ways to expand their offerings while maintaining ease of use for clients. In an interview with Traders Magazine, Vlad Khandros, CEO of OneChronos Markets, has shared insights about their upcoming expansion into the spot foreign exchange (FX) market. 

Vlad Khandros

After successfully deploying cutting-edge technology in US equities, the company is now preparing to leverage its experience in a new asset class, aiming to bring the same level of sophistication and simplicity to FX trading, he said.

“We’re quite excited to take some of the lessons learned and technology that we’ve deployed in US equities and bring it into the spot FX space,” he said. 

“We’re months away from launching, and we want the experience to feel very similar to what our customers already know about US equities,” he said.

The company’s approach to launching its spot FX venue closely mirrors its strategy in equities, with a strong emphasis on simplicity, usability, and performance. 

By focusing on standard, existing order types and providing a seamless integration experience, they aim to ensure a smooth transition for clients.

Despite the allure of new features and cutting-edge tools, the company recognized the necessity of maintaining a user-friendly experience.

“As we launched US equities, we rolled out a whole bunch of exciting features,” Khandros reflected. “But we quickly realized that, for the sake of adoption, we needed to focus on making it as simple and accessible as possible for our customers. For the FX launch, we’re sticking with existing and standard order types so that it’s really easy for our customers to connect and the experience feels consistent with what they already know.”

This approach is a deliberate effort to minimize complexity from day one. Khandros explained that, while the company is eager to innovate, they want to ensure that clients are not overwhelmed by new technologies. “We will start with spot FX and, over time, add more currency pairs and products,” he said. “The key is to ensure that we meet the immediate needs of our clients without overwhelming them.”

The company has received strong support from its institutional clients, many of whom have been long-time customers in the US equities market. 

Khandros noted that the firm’s extensive network of global, cross-asset clients has positioned them uniquely to engage with the same firms—and sometimes even the same individuals—across both equities and FX.

“We’re really excited about the prospects of this expansion,” Khandros shared. “The feedback so far has been overwhelmingly positive. The engagement with top institutional brokers and money managers within the FX space has further validated the company’s decision to enter this market. “It’s a great feeling knowing that we’re bringing something new to our clients, and that it’s well-received,” he added.

The launch will initially support trading hours for the Americas and EMEA, with plans to extend to APAC in the future.

“We’re bullish on this,” Khandros said: ”The combination of simplicity, performance, and cross-asset integration is something we’re really proud of, and we’re excited to see how our customers will benefit when they’re able to bridge equities, FX, and other asset classes together.”

Richard Suth, OneChronos
Richard Suth

Richard Suth, co-founder at OneChronos, highlighted the importance of ease of integration for institutional clients. As firms in the FX space often deal with complex infrastructures, Suth emphasized that simplifying the integration process is critical to ensuring adoption.

“I can’t stress enough how important the ease of use and implementation is for this type of venue,” he explained. “People often think it’s going to be way too complex. But what we’ve actually done is shift all the complexity directly to our venue, making it super easy for brokers to plug in, just like they would with any dark pool or exchange.”

This approach has allowed the company to eliminate the barriers typically associated with complex trading venues. Suth continued, “It’s incredibly easy to integrate, and brokers get much better performance because of the design we’ve put together. If adoption isn’t easy, it just won’t happen.”

By focusing on a seamless, plug-and-play integration model, the company aims to eliminate the resistance that often accompanies new technologies. “Anything that deviates from typical workflows often faces resistance,” Suth acknowledged. 

“That’s why we’ve spent so much time ensuring our platform integrates effortlessly with existing systems,” he concluded.

Retail Investors Keen on Alternative Investments

Eighty-six percent of private equity firms expect alternative investments to dominate retail portfolios in the next five years, says Apex Group

The latest research highlights growing retail demand for private markets and the role of technology in shaping the future of investment

Global, 25 February 2025

Apex Group, the leading global asset servicing provider, has launched a new report revealing 97% of asset managers see a strong retail interest in private markets, with private equity and real estate leading the demand.

The research paper called “Leading the shift: Transforming private markets in a retail-driven landscape,” was carried out by Global Custodian – an international securities services title. It is based on insights from senior leaders in funds with assets under management ranging from under $1bn to over $50bn; and explores how increasing retail investor engagement, technological advancements, and evolving industry strategies are reshaping the future of private markets.

Key findings of the report:

  • Retail demand on the rise: 97% of asset managers report strong or moderate retail interest in private markets, with private equity (67%) and real estate (55%) leading demand. Retail interest is expected to dominate alternative investments in retail portfolios within the next five years (86%).
  • Technology and innovation: The role of technology is critical in driving the retail shift. Almost 70% of asset managers see digital platforms as key enablers of retail participation, while 58% highlight blockchain and tokenisation as game-changing technologies for private market distribution.
  • Barriers to retail participation: Regulatory restrictions (59%) and liquidity concerns (43%) are identified as the top barriers to retail investor participation.
  • Outsourcing and lift-outs: 76% of firms have embraced outsourcing, with cost efficiency (70%) and time savings (71%) cited as the top benefits. Additionally, 65% of firms have engaged in lift-outs, transitioning in-house functions to third-party providers to drive better technology solutions and specialized talent.

Peter Hughes, founder and CEO of Apex Group, said

“These findings underscore the major shift we’re witnessing in private markets as retail investors are now driving significant demand across alternative asset classes such as private equity and real estate. Apex Group is at the forefront of this trend, helping alternative managers and retail investors interact digitally using innovative solutions that are also seamlessly linked to traditional asset servicing.”

The report is based on insights from 117 senior executives, including c-suite leaders, portfolio managers, and finance directors at global asset management firms. The study captures perspectives from major financial hubs, including the US, UK, Hong Kong, and Singapore, and offers a comprehensive analysis of the factors driving the transformation in private markets.

Newsroom

media@apexgroup.com

Notes to editors

About Apex Group

Apex Group is dedicated to driving positive change in financial services while supporting the growth and ambitions of asset managers, allocators, financial institutions, and family offices. Established in Bermuda in 2003, the Group has continually disrupted the industry through its investment in innovation and talent.
Today, Apex Group sets the pace in fund and asset servicing and stands out for its unique single-source solution and unified cross asset-class platform which supports the entire value chain, harnesses leading innovative technology, and benefits from cross-jurisdictional expertise delivered by a long-standing management team and over 13,000 highly integrated professionals.  

Apex Group leads the industry with a broad and unmatched range of services, including capital raising, business and corporate management, fund and investor administration, portfolio and investment administration, ESG, capital markets and transactions support. These services are tailored to each client and are delivered both at the Group level and via specialist subsidiary brands.

The Apex Foundation, a not-for-profit entity, is the Group’s passionate commitment to empower sustainable change.

www.apexgroup.com

SEC Announces Cyber and Emerging Technologies Unit to Protect Retail Investors

Laura D’Allaird appointed chief of the new unit

Washington D.C., Feb. 20, 2025 —

The Securities and Exchange Commission today announced the creation of the Cyber and Emerging Technologies Unit (CETU) to focus on combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space. The CETU, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit and is comprised of approximately 30 fraud specialists and attorneys across multiple SEC offices. 

“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,” said Acting Chairman Mark T. Uyeda. “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”

Specifically, the CETU will utilize the staff’s substantial fintech and cyber-related experience to combat misconduct as it relates to securities transactions in the following priority areas:

  • Fraud committed using emerging technologies, such as artificial intelligence and machine learning
  • Use of social media, the dark web, or false websites to perpetrate fraud
  • Hacking to obtain material nonpublic information
  • Takeovers of retail brokerage accounts
  • Fraud involving blockchain technology and crypto assets
  • Regulated entities’ compliance with cybersecurity rules and regulations
  • Public issuer fraudulent disclosure relating to cybersecurity

ON THE MOVE: OCC Names Matt Rathbun; Isobel van Daesdonk, Scott Willard to Barclays

Matt Rathbun

Matt Rathbun has joined OCC as Chief Security Officer-Elect and will succeed current CSO Mark Morrison following his upcoming retirement. Rathbun has more than 25 years of experience in information technology and systems engineering, most recently as CSO for Two Sigma. Once Rathbun officially takes over the CSO role, he will be responsible for OCC’s Cyber Operations, Security Governance, Cyber Risk, Security Business Operations, Security Architecture and Engineering, and Security Red teams.

Isobel van Daesdonk

Isobel van Daesdonk and Scott Willard have joined Barclays as Managing Directors within the Americas Financial Sponsors Group. Van Daesdonk is a seasoned Investment Banker with 25 years of experience. She joins Barclays from Guggenheim Securities, where she was a Senior Managing Director in Financial Sponsors Investment Banking. Willard has over 20 years of experience in Investment Banking. He has served the Private Equity and Alternative Asset Manager client base in Advisory, Capital Markets and Leveraged Finance roles at Deutsche Bank, UBS, and most recently Nomura Securities.

Rob Showers

Derivative Path has appointed Rob Showers as Chief Revenue Officer (CRO). Most recently, he served as Chief Revenue Officer at Coherent, where he led growth initiatives across their global capital markets and banking services division. His prior senior roles included BNP Paribas, SS&C, UBS, and Barclays.

Liquidnet has expanded its Multi-Asset Services team with the addition of Patric Okumi and Samuel Lowres to lead Multi-Asset Sales. Okumi has spent 11 years within TP ICAP Group, with a multi-faceted background in broking and trading. He was part of ICAP’s Equity Trading desk before building out the Single Stock Equity and ETF RFQ offering on Fusion, the firm’s market-leading electronic platform. Lowresjoined Liquidnet three years ago as part of the Liquidity Partnerships team.

BGC Group, a global brokerage and financial technology company, has named Stephen Merkel
as Chairman of the Board of Directors. Howard W. Lutnick, who was confirmed by the United States Senate as the 41st Secretary of Commerce, has stepped down as Chief Executive Officer and Chairman of the Board of BGC.

Brian Young will serve as Commodity Futures Trading Commission’s Director of Enforcement. Young has been serving in an acting capacity since January 22, and previously was the Director of the Whistleblower Office. He is a distinguished federal prosecutor with nearly 20 years of service at the Department of Justice, including Acting Director of Litigation for the Antitrust Division and Chief of the Litigation Unit for the Fraud Section of the Criminal Division, and has successfully tried some of the most high-profile criminal fraud and manipulation cases in the CFTC’s markets. 

If you have a new job or promotion to report, let me know at alyudvig@marketsmedia.com
.

DriveWealth Expands Overnight Coverage to Include Multiple Venues to Support 24-hour Trading Cycle

Launch with OTC Markets MOON ATS™ will enable DriveWealth to review pricing from multiple overnight venues to determine best option for investor’s orders

NEW YORK – February 20, 2025 – DriveWealth, a leading financial technology platform providing Brokerage-as-a-Service, today announced the expansion of its overnight trading capabilities through a collaboration with OTC Markets Group Inc. (OTCQX: OTCM), an operator of regulated markets for U.S. equity securities. Set to roll out in March, this new offering will establish DriveWealth as a pioneer in multi-venue overnight trading, and meet increasing demand from retail and institutional investors. 

Leveraging its proprietary technology, DriveWealth will provide investors with improved routing across multiple overnight trading venues, taking real-time pricing and liquidity into account. Additionally, DriveWealth will manage the complexity of transitioning any unexecuted orders from overnight trading venues to traditional market centers when the U.S. pre-market session begins.

With this new capability, DriveWealth will offer an overnight trading experience for all NMS securities that is similar to daytime trading in the U.S.. With this collaboration, DriveWealth augments its current overnight market center access with connectivity to  OTC Markets MOON ATS™.

“DriveWealth’s global partners, particularly in Asia, seek to invest in U.S. companies 24 hours a day, but need a solution that combines convenience and immediacy with simplicity and resiliency,” said Michael Blaugrund, CEO of DriveWealth. “Adding MOON ATS to our brokerage platform allows DriveWealth to facilitate access to multiple overnight execution venues and across trading sessions with a single order.”

This collaboration with OTC Markets represents a significant milestone that will position DriveWealth as a connected broker to multiple overnight venues. As a trusted and publicly traded company, OTC Markets Group serves individual users and firm clients, including all of the top U.S. and global brokerage firms, processing more than 100,000 trades and receiving 120 million quotes daily.

“The expansion of DriveWealth capabilities into the Asia-Pacific markets will unlock new opportunities for investors in this region,” said Cromwell Coulson, President and CEO of OTC Markets. “We are proud to partner with them to broaden access to America’s capital markets for global investors. The MOON ATS platform is designed to offer redundancy and system scalability, ensuring that investors can trade a diverse range of stocks at any time, from anywhere in the world.”

This latest innovation reflects DriveWealth’s dedication to delivering exceptional trading experiences while maintaining impartiality and flexibility in venue partnerships. DriveWealth will continue to add new venues to bolster connectivity, liquidity and resiliency. To learn more about how DriveWealth is breaking down the barriers to investing, visit www.drivewealth.com

About DriveWealth

DriveWealth is a global B2B financial technology platform. Our core business is providing Brokerage-as-a-Service, powering the investing and trading experiences for digital wallets, broker dealers, asset managers, and consumer brands. DriveWealth’s APIs provide our partners with a modern, extensible and flexible toolkit to develop everything from traditional investment workflows to more innovative techniques like rounding up purchases into fractional share ownership. For more information, visit www.drivewealth.com.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

KYC and Adverse Media Screening: What Risks are Lurking in the Shadows?

By Steve Marshall, Director, Advisory Services, FinScan, an Innovative Systems Solution

In the ever-evolving world of business risks, Know Your Customer (KYC) remains the cornerstone of uncovering reputational and financial harm that may occur in the future. But as information sources become increasingly diverse KYC verification methods might not be enough, and “set it and forget it” doesn’t work anymore. Enter adverse media screening—KYC’s secret weapon for uncovering hidden risks and bolstering your anti-money laundering (AML) defenses.

Adverse media screening is all about avoiding risky business relationships. But it’s not always easy. With the flood of information out there, not only can the initial process feel like finding a needle in a haystack, but continuous monitoring can be overwhelming. Luckily, technology is stepping in to make the process smoother and more effective.


Adverse media screening: shining a light on customer risk

Imagine a customer who passes all the standard KYC checks: ID verified, address confirmed, source of funds seemingly legitimate, etc. Yet, beneath the surface lurks a direct or indirect web of past financial or criminal misconduct documented only in news articles. Adverse media screening steps in, systematically scanning a vast array of sources—news websites, regulatory databases, public records—to unearth negative information that traditional KYC checks might not capture as customers don’t self-report. This may include:

  • Financial impropriety: Embezzlement, corruption, fraud, sanctions violations
  • Civil or criminal investigations: Links to organized crime, money laundering schemes, past incarcerations
  • Regulatory actions: Fines levied for non-compliance; licenses revoked
  • Reputational damage: Associations with PEPs, individuals or businesses involved in illegal activities

By uncovering such red flags, adverse media screening offers invaluable insights into a customer’s true risk profile, empowering firms to make informed decisions.

Adverse media screening also helps organizations comply with international sanctions regimes, as they may assist in identifying individuals or entities that are in some way related to the customer or transaction.  Those individuals or entities may be sanctioned and, therefore, may impact the risk associated with the customer or transaction. Both the Financial Action Task Force (FATF) and the Office of Foreign Assets Control (OFAC) advocate for these searches as an effective approach to managing risks in this domain.

The challenges of adverse media screening

Adverse media screening sounds simple, right? Just check the news for anything shady about a client or a company during onboarding. But in reality, it’s much more complicated. Customers are living organisms, and what might seem fine during initial checks can change as questionable dealings could surface months later.

Here are a few hurdles organizations face:

  • Information overload: There’s a never-ending stream of news, blogs, social media, and other sources. Sorting through this mountain of information to find relevant details on an ongoing basis can be overwhelming.
  • False positives: Organizations regularly encounter irrelevant information, casual news mentions, or worse, poor contextual mentions identified as red flags. False positives waste time and slow down the process, making it harder for compliance teams to focus on real risks.
  • Language and local differences: News comes from all corners of the world, in many languages, and at different frequencies. If tools aren’t set up to handle multiple languages or regional news on a continuous basis, important information can slip through the cracks.
  • Changing risks: Business risks are always evolving. Keeping adverse media screening up to date with the latest global developments can be tough, especially against the backdrop of rising geopolitical tensions and a complex regulatory landscape.


How adverse media screening strengthens business practices

Addressing these challenges with a strong adverse media screening solution can help organizations spot risks early on, enabling them to proactively detect red flags before they become major problems, as well as facilitating continuous monitoring of clients to catch any emerging risks. Companies are also aided in their compliance efforts, with global regulators expecting firms to do more than just basic background checks. Going beyond compliance, adverse media screening helps companies protect their reputation by steering clear of risky business partners—even if regulations allow them to do business.

Adverse media screening should integrate seamlessly with KYC processes that unveil hidden risks byexposing associations with criminal activity or terrorist financing, allowing organizations to take necessary precautions. These processes should enhance due diligence by providing information that clients themselves don’t provide for KYC verification, ensuring a more comprehensive customer profile. And of course, they should also meet regulatory requirements by emphasizing the need for ongoing monitoring of customers.

Elevate KYC by building trust

A strong KYC program is no longer just about ticking boxes. By incorporating adverse media screening into AML and KYC frameworks, firms gain a powerful tool to proactively identify risks, enhance due diligence, and ultimately, safeguard institutions from financial crime. A robust KYC program with adverse media screening at its core is not just about AML compliance—it’s about building trust and protecting the integrity of the financial system.

EDS Launches Nexus: A Next-Generation Risk and Portfolio Management Solution

February 20, 2025 09:00 AM Eastern Standard Time

NEW YORK–(BUSINESS WIRE)–Equity Data Science, Inc. (“EDS”), a leading investment process management (IPM) software provider, today announced the launch of Nexus, a risk and portfolio management solution that integrates Factor Risk, Internal Research, and Performance Attribution workflows into a single, seamless interface. Building on EDS’s existing capabilities, Nexus enhances how investment teams interact with critical data, creating a more efficient and streamlined experience.

Nexus leverages real-time, aggregated data from the EDS platform to provide investment teams with a centralized, configurable dashboard of portfolio risk and opportunities. Developed in collaboration with clients and industry leaders, it addresses common challenges in risk management by seamlessly incorporating fundamental and market data, internal research insights, and valuation metrics into decision-making.

“Nexus brings together the most critical aspects of risk, research, and performance analysis—allowing investment teams to analyze exposures, optimize strategies, and gain a holistic view of their portfolios,” said Sandeep Varma, CEO and Co-founder at EDS. “While our workflow solutions have been utilized for years, Nexus transforms how clients interact with aggregated data, delivering a modern, highly efficient experience designed for today’s investment teams.”

Key features include:

  • Integrated Risk and Performance Analysis – Combines factor risk, expected returns, and fundamental data, including valuation and growth metrics, into a unified view.
  • Trade Simulation and Optimization – Models portfolio adjustments in real time, optimizing for idiosyncratic risk and Sharpe ratio, with or without a factor model.
  • Exposures and Performance Tracking – Provides visibility into risk drivers, portfolio sensitivities, and historical performance trends.
  • Consensus Comparison – Enables users to view fund positioning relative to market consensus for better decision-making.
  • Research Integration – Incorporates internal research, including price target scenarios, IRR, DCF, and other valuation methodologies.

Nexus optimizes workflow by reducing reliance on multiple applications and data sources, providing configurable workflows and scalable architecture to support diverse investment strategies.

About Equity Data Science
Equity Data Science (EDS) provides investment process management (IPM) solutions that empowers leading hedge funds and asset managers through greater insights and productivity for decision-making. Trusted since 2012, EDS integrates proprietary and third-party data and research on a modern platform configured to each client’s unique investment vision. The EDS platform supports idea generation, research management, portfolio construction and analytics, risk management, performance attribution and ESG. Visit www.equitydatascience.com.

Contacts

Contact: Theresa Elamparo, Equity Data Science
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Email: theresa@equitydatascience.com

Technology is the Backbone of Modern Trading

Artificial Intelligence (AI) and Machine Learning (ML) were recognized as the most influential technology for trading for the third year in a row, according to J.P. Morgan’s E-Trading Edit survey.

According to Patrick Whelan, head of FICC Digital Markets, AI and machine learning topped the list of technological advancements expected to impact the industry in 2025. “AI and machine learning came out on top once again,” he said, underscoring the pivotal role these technologies will play in automating processes, improving efficiencies, and driving innovation across the financial sector.

Source: J.P. Morgan

In the latest episode of Market Matters on J.P. Morgan’s Making Sense podcast, Patrick Whelan and Gergana Thiel, global co-head of Macro Sales, discussed this year’s survey findings.

The conversation centered around how technology, particularly advancements in AI, ML, and e-trading, is reshaping the trading landscape and influencing market participants’ strategies and predictions.

J.P. Morgan has been at the forefront of investing in these technologies, as Whelan noted. “We’ve already invested a lot in that space, and we continue to do so. We’re looking to leverage the data we have to drive more efficiencies and automate more of our processes,” he explained. While the firm continues to explore how to create commercial value from AI, the long-term potential for AI to revolutionize trading is clear. “I think we’re still learning about how we can create commercial value through the use of LLM and large-scale AI efforts, but by 2025, we’re going to see more of that coming into the day-to-day of both our sales traders and clients.”

Another key insight from the survey was the unanimous agreement among respondents that e-trading will continue to grow in 2025. “It was the only part of the survey where we had 100% agreement,” Whelan revealed. This signals a strong industry-wide shift toward digital platforms and highlights the need for firms to continue innovating in e-trading solutions.

As Whelan pointed out, areas such as emerging market rates and credit will experience significant electronification in the coming years. “They were pointing to EM rates and credit as being two of the areas that will continue to grow in terms of electronification in 2025,” he said. For J.P. Morgan, this represents a key investment focus, and the firm is committed to expanding its e-trading offering worldwide.

In line with growing demands for seamless digital trading experiences, J.P. Morgan is looking to develop new solutions that integrate technology more effectively with client needs. Whelan emphasized the importance of offering robust direct API solutions across asset classes. These solutions enable better connectivity with clients, making it easier for them to access liquidity and data in real-time.

“These types of solutions allow us to provide more competitive pricing, better analytics, and ultimately reduce information leakage,” Whelan explained. By continuing to enhance their single dealer platform, Execute, J.P. Morgan aims to help clients achieve more efficient trading while reducing costs. “Reducing brokerage and execution costs is an important focus area for 2025,” he added, noting how technology will continue to play a critical role in meeting this objective.

Gergana Thiel

A critical aspect of technological advancement discussed in the podcast was the increasing demand for real-time data and analytics. Thiel noted that clients are increasingly relying on instant access to large data sets to make informed trading decisions. “Real-time data and analytics has become central to the investment process and the way clients engage with the market,” she remarked.

Whelan agreed, emphasizing that J.P. Morgan is focused on delivering better analytics and more innovative solutions to meet client needs. “Working with large data sets and providing real-time data both to our sales and traders as well as to our clients is a continued focus,” he said. However, he also acknowledged the challenges in some asset classes that are still transitioning toward full electronification. “In certain asset classes, it’s much more highly developed, but in others, we have to come up with more innovative analytics that clients are looking for,” he explained.

As the trading world moves toward more sophisticated data consumption methods, Whelan noted the need for both visual and API-based delivery systems to ensure that clients have access to the information they need when they need it.

As the conversation drew to a close, Whelan and Thiel shared their predictions for 2025 in three words. Whelan’s key terms were “data, connectivity, and growth.” “Data” reflects its crucial role in decision-making, while “connectivity” highlights the firm’s commitment to enhancing digital platforms and fostering better connections between clients and markets. “Growth” encapsulates the ongoing expansion of e-trading solutions across various asset classes.

Thiel, on the other hand, chose “tariffs, technology, and the U.S. dollar.” She highlighted how tariffs will continue to shape the global market outlook, while technology remains at the core of the trading transformation. Thiel also pointed to the U.S. dollar’s significance in signaling market sentiment.

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