Forefront Fintech Digest Week in Review: Dec 16 – 20
Forefront Communications Group Inc.
Propelling fintechs and financial institutions with specialized marketing and communications.
Your free weekly roundup of everything happening in fintech and capital markets. Sign up here to receive our Forefront Fintech Digest in your email inbox every weekday at 9:00 am ET.
Broker News
Kepler Cheuvreux Launches Asia-Pacific Direct Market Access
The TRADE News | Annabel Smith
Kepler Cheuvreux has announced the launch of new direct market access (DMA) capabilities in the Asia-Pacific markets. Following the launch, clients can execute orders using algorithms in Australia, Hong Kong, Indonesia, Japan, Malaysia, New Zealand, Singapore, and Thailand. Kepler said the development marked a significant step forward in its “global execution strategy” in an update on social media.
Bill Pulte Pushes for Virtu Sale, Prompting CEO to Fire Back
Bloomberg News | Katherine Doherty & Patrick Clark
Bill Pulte is arguing for the sale of market maker Virtu Financial, contending its chief executive officer, Doug Cifu, spends more time tweeting than focusing on his business. Cifu isn’t “focused on building a materially bigger business and spends precious time tweeting on items not related to the core operations of the company,” Pulte, chairman of activist investor Pulte Family Office, said Tuesday in a statement. “As such, it now makes sense to put the Company in the hands of professional owners.”
Interactive Brokers Enhances IBKR Desktop Trading Platform
Traders Magazine | Staff
Interactive Brokers (Nasdaq: IBKR), an automated global electronic broker, announced updates to IBKR Desktop, a modern trading platform for investors who demand simplicity but value Interactive Brokers’ advanced technology. With no platform fees and a user-friendly interface packed with advanced features, clients can easily facilitate simple trades across asset classes and complex order types.
BofA’s Moynihan Hints That He’s Just Getting Started 15 Years In
Bloomberg News | Katherine Doherty
As he turned 65, Bank of America Corp.’s Brian Moynihan took the stage at a town hall meeting and sent a jolt through the crowd, saying he wants to still be CEO when the stock eclipses $100. The comment, delivered with a wry smile, turned heads not only because the share price is currently $45. It underscores how long the man on track to become the industry’s senior statesman plans to savor his status.
Rates Desks Less Profitable Despite Trading Boom
IFR | Natasha Rega-Jones
Bank trading desks are struggling to capitalise on the record volume passing through interest rate derivative markets this year, as fierce competition is tightening bid-offer spreads and compressing profit margins. Interest rate derivatives traded notional reached around US$312trn in the first nine months of 2024, according to trade repository data collated by the International Swaps and Derivatives Association, a 21% increase from the previous year. But this flurry of activity hasn't translated into higher profits, with most major banks reporting declines in rates trading revenues this year.
Exchange, ATS & Clearing News
London Stock Exchange Suffers Biggest Exodus Since Financial Crisis
Financial Times | Rafe Uddin, Marianna Giusti & Ian Smith
The London Stock Exchange is on course for its worst year for departures since the financial crisis, as fears mount that more FTSE 100 businesses will quit the UK in favour of New York. A total of 88 companies have delisted or transferred their primary listing from London’s main market this year with only 18 taking their place, according to the London Stock Exchange Group. This marks the biggest net outflow of companies from the main market since 2009, while the number of new listings is also on course to be the lowest in 15 years as initial public offerings remain scarce and bidders target London-listed groups.
BLOX Markets, Inc. and OptimX Markets Enter into Early-Stage Partnership
Morningstar | Staff
BLOX Markets, Inc. is excited to announce an early-stage partnership with OptimX Markets, an innovative liquidity management platform designed to enhance interactions between institutions and their broker counterparties. This partnership represents the first institutional liquidity management platform set to integrate with BLOX Markets' upcoming retail-focused US equities trading venue.
Consortium-Backed FMX Eyes Push for FX Unit
FX Markets | Cole Lipsky
When interdealer broker BGC revealed its electronic trading business, FMX, with a consortium of 10 global investment banks and market-makers, all eyes were on the creation of a new US interest rate futures exchange. Within the new unit, however, its established foreign exchange platform could emerge as a major beneficiary of the reorganisation. Formerly Fenics FX, the rebranded FMX FX has doubled average daily volume year-on-year to roughly $12 billion across spot and non-deliverable forwards.
Tradeweb Names Co-Heads of Global Markets
Markets Media | Staff
Tradeweb Markets, a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, announced that Enrico Bruni and Troy Dixon have been named to the newly-created roles of Co-Heads of Global Markets effective January 2025. Mr. Bruni is presently Managing Director and Head of Europe and Asia business for Tradeweb. Mr. Dixon is presently Founder and Chief Investment Officer of Hollis Park Partners LP.
Hong Kong Stock Exchange to Reduce Minimum Price Changes to Boost Liquidity
South China Morning Post | Yulu Ao
Hong Kong stocks rose as investors cheered the introduction of guidelines to help state-owned companies boost their values and the halving of service fees for dividend payouts. The Hang Seng Index gained 0.8 per cent to 19,864.55 at the close on Wednesday, the first gain in two days. The Hang Seng Tech Index added 1.8 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index strengthened 0.6 per cent.
Vendor News
OptimX and BTON Partner on AI Analytics for Block Liquidity
The TRADE News | Claudia Preece
OptimX Markets and BTON have unveiled a new collaboration to deliver AI analytics for European block liquidity. As collaboration continues to be a driving force in institutional trading, this move is set to provide the market with a new solution for equity block trading. BTON will now offer financial institutions a ‘seamless’ way to receive cutting-edge quantitative and qualitative analysis tools. BTON is AI-powered, developed specifically to assist buy-side trading desks using collaborative data.
Avelacom Boosts Connectivity Between Mexico & US Markets
Markets Media | Staff
Avelacom – the low latency network solutions provider for global financial markets – announces the expansion of its network infrastructure to enhance interconnectivity between the Mexican and US financial markets. The initiative is driven by the growing demand for cross-border trading, particularly for algorithmic strategies and FX hedging. The company has deployed new points of presence (PoPs) in the KIO data center in Mexico and the 165 Halsey data center in New York.
Band-Aids vs Build-Outs: Best Practices for Exchange Software Migrations
WatersTechnology | Heetesh Rawal
Infrastructure migration can be one of the most daunting and demanding endeavors for an exchange and can leave them in a catch-22 situation. On the one hand, they know their aging infrastructure can no longer support newer instruments or future growth. On the other hand, the prospect of planning and completing a migration to a new system can be so fraught with risks that it can lead to inaction. This is the dilemma faced by businesses across all domains amid the general movement to cloud.
Versana Grows Leadership Team with Three Key Senior Hires
Press Release | N/A
Versana today announced the hiring of industry veterans Amrita Ganguly as Head of Strategy and Corporate Development, Julia Kingsbury as Product Strategist and Melissa Magner as Head of Legal. As new members of Versana’s leadership team, all three will work closely with Founding CEO Cynthia Sachs to help drive Versana’s ongoing digital transformation of the $8 trillion broadly syndicated loan and private credit markets.
IPC’s C-Suite Shuffle Signals Bigger Changes for Trader Voice Tech
WatersTechnology | Anthony Malakian & Emma Hilary Gould
At the start of this year, private equity firm Strategic Value Partners acquired the final 40% of IPC, taking full ownership of the network services and trading communication company. SVP has owned 60% of the company since 2021. It would stand to reason that SVP was pleased with IPC’s results if it decided to take full control. Private equity firms have a history of investing in technology companies, but what makes the IPC-SVP deal interesting is the flurry of executive moves that followed and the significance it could have for the technology.
Buy-Side News
Lawrence Named Head of European Equities Trading at UBS AM
The TRADE News | Claudia Preece
Stuart Lawrence has been appointed head of European equities trading at UBS Asset Management four and a half years after he joined the firm in June 2019. He was most recently head of UK equity trading at UBS Asset Management, having previously served as a high touch equity sales trader at Kepler Cheuvreux. London-based Lawrence has extensive experience working across both the sell- and buy-side, working across asset classes.
Point72 Adds PhDs and HFT Quants to Systematic Trading Arm
Hedgeweek | Staff
Point72 Asset Management’s systematic arm, Cubist Systematic Strategies, is ramping up its recruitment efforts, investing tens of millions of dollars to attract PhD graduates, quants from hedge funds, and high-frequency trading (HFT) experts, according to a report by Business Insider. Recent notable additions to Cubist include Aayush Sharma, a senior quantitative trader, who joined from Tower Research Capital after 12 years working on HFT strategies. Sharma previously developed high-frequency algorithms at Deutsche Bank.
Hedge Funds Wait to See If Trump Campaign Vows Become Realities
Bloomberg News | Natalia Kniazhevich
Hedge funds navigated through a volatile stock market to post strong returns in 2024. But they’re on edge heading into 2025 as uncertainty swirls around President-elect Donald Trump’s policies. Wall Street’s smart money crowd successfully monetized gains on high-flying technology stocks this year and made timely bets around the US presidential election. That has helped the group post a gain of more than 14% in 2024, according to the PivotalPath US Equity Diversified Index, which tracks the performance of long-short portfolio managers investing in US stocks. That would be their best calendar-year return since 2020.
From No Chance to No Brainer: Inside Outsourced Trading’s Buy-Side Charm Offensive
WatersTechnology | Eliot Raman Jones
Investment management firms, facing ever-increasing overhead and personnel costs, are embracing opportunities to outsource their trading operations to a range of specialist providers, including custodians, prime brokers, and independents. This follows a surge in popularity of the cost-saving trading method, which was itself notable because until recently, outsourced trading was regarded with skepticism in some investment management circles.
The Big Are Getting Bigger: Survival of the Fittest Among Multi-Strat Hedge Funds
Financial News | Bilal Jafar
Multi-strategy hedge funds have become a victim of their own success, as bloated assets under management and declining performance for many have made raising new money more difficult in recent months. It has been a change of fortunes for what was once the hottest sector within the $4tn hedge fund industry, with $30bn flowing out of multi-strategy funds in the year to June — the first outflows since 2016 — according to a September Goldman Sachs report.
M&A / Investment News
Databricks Raises Largest Venture Round in History
Markets Media | Staff
Databricks, the Data and AI company, announced its Series J funding. The company is raising $10 billion of expected non-dilutive financing and has completed $8.6 billion to date. This funding values Databricks at $62 billion and is led by Thrive Capital. Along with Thrive, the round is co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other significant participants include existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management.
Prometheum Raises $20M
Markets Media | Staff
Prometheum Inc., the leading market infrastructure provider for digital asset securities, announced it raised approximately $20 million in 2024 from a group of high-net-worth investors and institutions. The capital will support Prometheum’s continued hiring and development plans in 2025 as it completes the rollout of its vertically integrated, blockchain-enabled ecosystem for the trading, clearance, settlement, and custody of digital asset securities through its SEC-registered and FINRA member affiliate subsidiaries, Prometheum Capital and Prometheum ATS.
Chainalysis Scoops Up Blockchain Security Firm Hexagate Amid Surge in Crypto Hacks
Decrypt | Vismaya V
Blockchain analytics firm Chainalysis announced on Wednesday its acquisition of Hexagate, a Web3 security provider, in response to the growing threat of crypto hacks and exploits. “Together, Chainalysis and Hexagate provide a holistic risk solution that includes prevention, compliance, and remediation,” Chainalysis CEO Johathan Levin wrote in the announcement.
Crédit Agricole Buys Santander’s 30.5% Stake in CACEIS
Markets Media | Staff
Crédit Agricole S.A. and Santander have entered into an agreement for the acquisition by Crédit Agricole S.A. of Santander’s 30.5% stake in CACEIS, its asset servicing provider. Following the envisaged transaction, Crédit Agricole S.A. will control 100% of the share capital of CACEIS. Crédit Agricole S.A. confirms its strategic priority to continue strengthening CACEIS’ position as a major European asset servicing player, supporting its clients’ business development objectives.
Regulatory & Legal News
HSBC Sued Over Scam Failures by Australian Regulator
Financial Times | Nic Fildes & Kaye Wiggins
Australia’s markets regulator has sued HSBC for what it called “widespread and systemic failures” in protecting customers against scammers as governments around the world grapple with who should be held responsible for consumer fraud losses. The Australian Securities and Investments Commission said on Monday that scammers had cost HSBC Australia customers A$23mn ($14.6mn) between 2020 and 2024, with some customers losing more than A$90,000.
FINRA Fines UBS $2.98m for Failures Resulting in Unsuitable Stock Recommendations
FinanceFeeds | Rick Steves
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on draft Technical Standards (RTS) to establish an EU code of conduct (EU CoC) for issuer-sponsored research. The EU CoC sets out standards of independence and objectivity for research providers and specifies procedures and measures for the effective identification, prevention, and disclosure of conflicts of interest (COI), with a view to enhance the trust in and use of issuer-sponsored research.
Segantii Founder Sadler Pleads Not Guilty to Insider Trading
Bloomberg News | Bei Hu & Kiuyan Wong
Hedge fund firm Segantii Capital Management and its founder Simon Sadler have pleaded not guilty to insider trading, setting the stage for a high-profile criminal trial in Hong Kong. Former trader Daniel La Rocca also pleaded not guilty at a packed Hong Kong District Court room on Thursday. The trial is set to start on May 4, 2026, and last 25 days. Sadler and La Rocca face a maximum prison sentence of seven years if convicted. The court extended their bail terms.
ON THE MOVE: Erik Gerding to Depart SEC; Kevin Kennedy to CIRO
Traders Magazine | Anna Lyudvig
The Securities and Exchange Commission has announced that Erik Gerding, Director of the Division of Corporation Finance, will depart the agency effective December 31, 2024. Upon his departure, Cicely LaMothe will serve as Acting Director. Gerding joined the SEC in October 2021 as a Deputy Director of the Division of Corporation Finance, where he led Legal and Regulatory Policy. He became the Division’s Director in February 2023.
Trump’s Recruitment of Watchdog Chiefs Impeded by Talk of Regulatory Cuts
Financial Times | Brooke Masters, Stephen Gandel & James Politi
Republican enthusiasm for culling and combining the many US banking regulators is complicating efforts by the incoming administration of Donald Trump to find heads for those watchdogs. The problem is particularly acute for the Consumer Financial Protection Bureau, which focuses on the way lenders treat customers. The CFPB has been a target of hostility from Republicans since its creation after the 2008 financial crisis. A number of experienced candidates have demurred when contacted about the position, people familiar with the search said.
Crypto & Digital Asset News
Anchorage Digital Secures BitLicense in New York, Expanding Crypto Services to Large Institutions
The Block | Jason Shubnell
Crypto custodian Anchorage Digital announced Monday that The New York State Department of Financial Services (NYDFS) has granted a BitLicense to its subsidiary, Anchorage Digital NY, LLC. This approval positions Anchorage Digital to offer institutions in New York State secure and efficient crypto trading, with full capabilities expected by early 2025. The BitLicense allows Anchorage Digital to extend its services to one of the most highly regulated and influential markets in the U.S. Institutions in New York can now access Anchorage’s agency trading desk, which provides deep liquidity and cost-effective trading through a regulated entity.
ClearToken Joins UK Digital Securities Sandbox
Markets Media | Staff
ClearToken is proud to announce its admission into the Bank of England’s Digital Securities Sandbox (DSS) as a Sandbox Entrant, as it seeks to ultimately operate as a Digital Securities Depository (DSD) for digital securities. Overseen by the Bank of England and the FCA, admission and passage through “Gate 1” of the DSS marks a major milestone which reflects our commitment to building the financial market infrastructure (FMI) necessary to support the evolution of digital asset and tokenisation markets.
Trillium Surveyor and Kaiko Announce Strategic Partnership to Enhance Crypto Trade Surveillance
Press Release | N/A
Trillium Surveyor, a leading provider of trade surveillance and best execution software, and Kaiko, the leading cryptocurrency market data provider, today announced a strategic partnership to deliver best-in-class solutions for financial institutions and exchanges engaged in cryptocurrency trading. This partnership comes at a pivotal moment as the cryptocurrency market faces impending regulatory changes and increased institutional adoption. Through this collaboration, Trillium Surveyor and Kaiko will provide an integrated solution that combines Trillium’s state-of-the-art trade surveillance platform with Kaiko’s high-quality crypto market data.
Taurus, Temenos Offer Digital Asset Custody to Banks
Markets Media | Staff
Taurus, the global leader in digital asset infrastructure for banks, has expanded its collaboration with Temenos, the global leader in banking software, by fully integrating Taurus-PROTECT, Taurus’ custody solution, with Temenos core banking. The integration allows banks to create and manage wallets as well as transfer a wide range of digital assets directly from Temenos Core. Taurus is the first fully integrated digital asset custody platform with Temenos.
These Five Wall Street Titans Thought Bitcoin Was a Fad. Here’s What They Say Now.
Wall Street Journal | Vicky Ge Huang
Bitcoin took some 15 years from creation to eclipse $100,000. Along the way, the digital currency experienced feverish rallies and spectacular crashes. Today, it is newly ascendant in Washington and a $2 trillion asset. Yet some of Wall Street’s biggest luminaries still aren’t convinced of its value. The world’s largest cryptocurrency has been buoyed by hopes that the digital-assets industry will bloom under a second Donald Trump administration. Investor enthusiasm over a coming crypto renaissance has lifted other tokens too, pushing the market cap of all cryptocurrencies toward $4 trillion.
Crypto Insiders Jockey for Influence on Proposed Industry Advisory Council
Bloomberg News | Olga Kharif & Stephanie Lai
The incoming US administration is weighing two very different approaches to a council that the crypto industry hopes will dramatically increase its influence over digital-asset policy. President-elect Donald Trump and his inner circle are considering options that would see as few as 10 people or as many as 100 on a council that would report to David Sacks, according to people with knowledge of the matter who asked not to be named as they were not authorized to speak on the record.