Malrait was most recently managing director and global head of market structure and innovation for financial markets at ING Bank, overseeing the financial market innovation strategies within the firm. Before joining ING in 2015, he spent eight years at Société Générale, most recently working as global head of FIC eCommerce. He also previously worked at JP Morgan Chase for ten years, serving in different roles in global FX eCommerce business management and cross-asset eCommerce technology, based in London and New York.

Cédric Farhat and Tobias Sjöström Chanteloup joined Kepler Cheuvreux in ETF senior sales roles as the firm looks to further strengthen its position in the ETF market. Stockholm-based Sjöström Chanteloup joined from JP Morgan Asset Management, having most recently served as head of Nordic ETF distribution. He has also previously worked at WisdomTree, State Street, Société Générale, and Bloomberg in London. Farhat is set to join Kepler Cheuvreux’s Paris office, joining from Agora Capital in Geneva, where he was head of ETF. Prior positions include stints at Tradition Securities and Lyxor ETF, and Societe Generale Corporate and Investment Banking.

RBC Capital Markets promoted Adam Ragol-Levy to head of European and Asian product, multi-asset agency solutions. The appointment follows three years serving as global multi-asset product manager at the firm, based in London. Prior to joining RBC Capital Markets, Ragol-Levy spent nearly five years at Bank of America Merrill Lynch, most recently working as a senior cash equities business analyst and product owner. Before that, he served as a Fidessa cash equities business analyst at HSBC Global Banking and Markets.

Stuart McDonald was appointed director, cross-asset trader at Julius Baer, based in Monaco. He joined from Mirabaud Group where he served as a multi-asset trader for two years. McDonald has also previously worked in trading-related roles at FlowBank, IG, and Alexander David Securities. His experience spans more than a decade and encompasses work on trade execution, flow trading, market making, risk management and data. Work includes trading of: equities, fixed income, foreign exchange, derivatives, and vanilla and exotic options across both Europe and APAC.

The post People Moves Monday: Etrading Software, Kepler Cheuvreux, RBC Capital Markets and more… appeared first on The TRADE.

I think it’s similar to 2024 to some extent, the main challenges are going to be political and macroeconomic uncertainties and how that will impact traders’ trading strategy. In 2025 we could have a bit more clarity than we had in 2024, with the US election – a big topic – now being decided. But other things such as the war in Ukraine, and the situation in Gaza and Israel are still developing, so I think we are looking at a bit more certainty, but it’s still a market of unpredictability – a main challenge for traders. 

Another point relates to more than just their trading activities, it’s more about how it’s going to impact their preparation for their long-term strategies. Looking at how predicted trends are panning out is more important than ever, for example increased focus more on emerging market markets and the nuance and technological needs are paramount.

Financial products are different in EM than in developed markets where products are more electronic, with more high frequency trading, etc. It’s all highly dependent on macroeconomics and political uncertainty. 

What can we expect to be prioritised on the regulatory front this year?

There are a few big regulatory changes which are probably not going to go live in 2025, but will need technological and infrastructure-related preparation and change before 2026 and 2027. 

The first one is the move to T+1 settlement in the UK and Europe. We already know the date – 11 October 2027 – less than three years away and people will need time to prepare, which means that the work should starts now.  

The second big one is the creation of the consolidated tape in the UK and in Europe for bonds, and then equities followed by the derivative products. People will need to start getting ready to look at the data, connect to the CTP in Europe and in the UK and they will need to reassess how it will impact their business model/trading activities. The first deadlines are coming in next quarter so it’s something important to put in the roadmap.

The third topic is artificial intelligence, with the implementation of the AI Act in Europe and potentially similar initiative happening in the UK means that AI is going to remain a big topic impacting the financial market industry. I would advise watching what the regulators are going to implement and also prepare your trading activity for that impact.

Number four that I’d put on my list is the current consultation by IOSCO on pre-hedging activities cross-asset. This one will take time before it goes to national regulators so probably another year or so away, but I think if you don’t engage with these early consultations it may impact your trading activities.

Overall, both the UK and Europe also have a competitive and growth agenda and it is going to be a necessary focus on simplification of existing regulation – to streamline processes and make it easier for market participants.

When it comes to EU and UK regulators, are these converging or diverging? What’s the outlook for 2025 and beyond? 

It really depends on the topics. In the last two to three years, the two sides couldn’t speak too much to each other until 2024, where this started to change. A good example is the T+1 reduction of settlement cycle for securities markets – where there needs very strong alignment between UK and Europe for the European time zone to be able to converge on the date of application. So convergence makes a lot of sense as the industry pushes for it and conversations are particularly important when it comes to project implementation. 

Another area where convergence is needed is potentially AI regulation. There will be differences due to the fact that Europe is more prescriptive into the way they make regulation, where the UK is going to focus on principle-based regulation. We can already see where Europe is heading with their AI act which was quite prescriptive.

In addition, digital assets could be something similar where the industry will need a global approach. Better alignment is a positive approach.

For this growth of competitive agendas into the UK and in Europe, it’s key to make sure that there are consultations on both sides and market participants can take a very key role there, through their trading associations, or through talking directly with regulators. When you look at an asset manager, pension fund, or bank, most of them who are in the UK also trade in Europe, so that’s why it’s such an important topic to discuss. 

How is the role of technology changing as market structure develops?

I think it’s even more important than it has been in the past. If you look at the last 20 years, where the traders could add a much more important role than the technologies that was supporting them, now it’s almost the opposite – you can see the rise of technology in the way that traders develop new trading activities very clearly and market structure is an important part of that. 

For me there are three key levels where market structure is vital.

Firstly, the technology focus – a company needs to have a very strong technological foundation, a sound system which is solid but flexible. Some companies are still playing catch up when it comes to their technology architecture level and it’s only when you have some technologies like that in place that you can move to the second level, the data. 

It’s increasingly important in financial market to become a data-led organisation, and it is about usage of internal data versus external data, and how to use your own data to develop clear and unique insights. That’s why the consolidated tape in the UK and Europe will be a very big added value for the market. 

The third layer, which I see is how AI can use this data layer and people are starting to realise the importance of the potential impact of AI in their business model. If you don’t do it, others will take the lead. We already see that in the very liquid instruments like equities, but it will develop in other asset classes like bonds.

Using technology, data and the intelligence layer will increase your productivity – which is where you already have developments like algorithmic trading. In that instance, of course, it is more developed in some asset classes than others, but development is these capabilities is happening. Then comes the artificial intelligence aspect, how the newest innovations in the future can pragmatically help traders and market makers. Essentially all are ‘efficiency tools’.

Suppose that you have a good technology foundation, a good data foundation, the focus must then become how do you make sure that your team are extremely efficient going forward. That’s the key to making the most of technology as market structure continues to change.

Malrait is set to join Etrading Software as chair of its industry stakeholder group (ISG) on the consolidated tape (CT) on 20 January, as revealed by The TRADE on Monday 13 January.

The post Fireside Friday with… ING Bank’s Stephane Malrait appeared first on The TRADE.

He is set to begin his new role on 20 January and will be charged with ensuring user needs are fully represented in the CT.

Specifically, he will lead discussions within the ISG on functionalities, fee and licensing models and other tender process requirements. 

Sassan Danesh, chief executive of Etrading Software, said: “We are delighted to have Stephane on-board and leading our stakeholder engagement activities. His leadership will be instrumental in the design of a high-quality tape.” 

Malrait was most recently managing director and global head of market structure and innovation for financial markets at ING Bank, overseeing the financial market innovation strategies within the firm. 

Before joining ING in 2015, he spent eight years at Société Générale, most recently working as global head of FIC eCommerce.

He also previously worked at JP Morgan Chase for ten years, serving in different roles in global FX eCommerce business management and cross-asset eCommerce technology, based in London and New York.

In December 2023, Etrading Software confirmed plans to bid to become the consolidated tape provider (CTP) for both the UK and EU. A move which followed the announcement that the Bloomberg, MarketAxess and Tradeweb JV was off the table. 

Speaking to his appointment, Malrait, said: “The consolidated tape is going to be a major market structure change in the UK and Europe and will impact all market participants. It is important that the voice of the user community is represented to advice and give feedback to CT providers.”

The FCA is set to appoint a bond CTP early this year, with the EU planning for the end of the year.

Read more: ESMA launches first stage of bond CTP selection process

Malrait was nominated by The TRADE for the coveted Industry Person of the Year award at the 2024 Leaders in Trading event in London. 

The recognition is designed to celebrate those individuals who have made a significant impact on their own organisation and, equally, the industry externally, with a commitment to bettering and future proofing the markets for years to come.

The post ING Bank’s Malrait joins Etrading Software appeared first on The TRADE.

Speaking in an announcement, Sassan Danesh, chief executive of Etrading Software, said: “Our one concern is that the transparency regimes should allow a commercially viable tape to emerge. The buy-side in particular, must see value in the data.”

“We do not face the challenges of Cassette [the Bloomberg, MarketAxess and Tradeweb initiative] (managing consortiums and dealing with conflicts of interest are hard),” he added.

This news comes as fixed income trading venues and data providers Bloomberg, MarketAxess and Tradeweb scrapped their previous joint venture agreement to become the fixed income consolidated tape provider (CTP) in the EU, subject to regulatory approvals.

Speaking in an announcement on Friday, the three entities confirmed that they would not form an independent company in order to participate in the public procurement procedure to become the fixed income CTP in either the EU or the UK.

Read more: If you build it, will they come?

“Various developments in recent months have added further clarity to the risk and complexity of delivering this project under a joint venture from our three firms,” said the businesses.

“For example, uncertain outcomes around product definitions and structural complexities would significantly increase the timeline and costs associated with this approach. As such, after careful consideration, we have jointly agreed to end our engagement in this venture.”
 
The three venues confirmed plans to apply to become the EU tape provider in June last year via a public procurement process organised by ESMA, selecting FINBOURNE as their infrastructure provider.

Read more: Battle lines are drawn over European consolidated tape project 

Back in September, a JV between major exchanges across Europe announced the incorporation of the new company, EuroCTP, with the aim of bidding to become the EU’s equities and ETF consolidated tape (CT) provider. Specifically, the JC participants include: BME, Deutsche Börse Group, Euronext, Luxembourg Stock Exchange, and Nasdaq.

The post Etrading Software makes CTP bid as Bloomberg, MarketAxess and Tradeweb JV scrapped appeared first on The TRADE.

Fintech firm FINBOURNE Technology has won the recent tender process to become the technology infrastructure provider for the joint consolidated tape (CT) project for fixed income in Europe,

Read more – Bloomberg, MarketAxess and Tradeweb take the wheel in European fixed income tape plans 

“We believe a CT would play a key role in achieving this and it is why we’ve spent significant time collaborating with capital markets firms, regulators and industry bodies, to collectively understand the data, its quality and how to deliver a resilient and practical CT to the market,” said FINBOURNE, commenting on its selection. 

“Facilitating change is integral to our mission and in everything we do. It is the driving force behind the achievements, ambition and value creation our employees deliver. Our selection further validates our modern, cloud-based, API-first technology and our ability to deliver critical data access and transparency.” 

No further information is currently available, although Tradeweb told The TRADE that: “Together with Bloomberg and MarketAxess, we will be sharing more information on the progress of our EU bond CTP initiative in due course.” 

The tape has been the subject of longstanding and widespread controversy, but achieved a renewed focus in December 2022 when the Czech presidency of the Council of the European Union in its last days in office finally agreed on a compromise that would push the controversial Mifid II review through to the next stages of discussion. The agreement included plans for a close-to-real-time consolidated tape which includes post-trade data together with best bids and offers available at the time of the particular trade. 

Read More – Czech Presidency achieves Mifid milestone as compromise is approved 

Founded in 2016, FINBOURNE has made substantial growth strides over the past year – in 2022 it increased headcount by nearly 50%, and recently launched operations in North America and Asia Pacific with new offices in New York and Singapore. Last month the firm also secured a £30 million debt facility from Kreos Capital, which will enable it to further expand its international footprint.  

However, FINBOURNE is not the only player in the market, and other competitors are also looking to develop a CT – including capital markets tech firm Etrading Software, which in December 2022 received a significant investment from the private equity division of Lloyds Banking Group, LDC, to help develop its plans.  

Read More – Consolidated tape proposal receives significant boost from private equity investment 

The post FINBOURNE wins tender for joint consolidated tape project appeared first on The TRADE.

Headquartered in London, Etrading Software provides market and reference data used by international financial institutions. The latest investment from the private equity division of Lloyds Banking Group, LDC, highlights the growing urgency of consolidated tape provision in Europe.

The two firms stated that their partnership will also address constantly evolving market and regulatory challenges. 

“One immediate benefit [of LDC’s investment] is to strengthen our proposition for creating a consolidated tape market data infrastructure for increased market transparency in the UK and Europe,” said Sassan Danesh, chief executive of Etrading Software. 

As part of the partnership, LCD is backing the existing management team led by Denesh, who founded the business in 2004.  

Joseph Fison, investment director at LDC, led the transaction, with support from investment manager, Alex White, and investment executive, Francesca Speke. Fison and White will join Etrading Software’s board, alongside Emanuel Mond, who has been appointed as chairman, bringing with him over 25 years’ experience of building capital markets technology platforms.  

“Etrading Software’s market leading proposition has made it an integral part of the capital markets ecosystem,” said Finson. 

“Its expertise in operating critical market infrastructures gives it the perfect platform to support public authorities and market participants in implementing future regulatory mandates such as a consolidated tape for market data. We look forward to working with the team as they embark on the next stage of their growth journey.” 

Etrading has been vocal on the need for improved data standards, quality and governance to make a consolidate tape viable, and recently published proposals for a derivates CTP in partnership with the Derivatives Service Bureau (DSB), for which it has acted as managed service provider and technology partner since its inception. 

The post Consolidated tape proposal receives significant boost from private equity investment appeared first on The TRADE.

As such, large firms are slowly starting to consider abandoning expensive, resource intensive in-house solutions in favour of vendor-led options that offer the benefits of ‘safety in numbers’ and ‘crowd wisdom’ in which the cumulative knowledge and experience of the vendor and its clients support accurate, regulator-approved and cost-effective reporting.
– Ronen Kertis, CEO, Cappitech

2021 will see big changes to the RegTech industry across four key areas. We expect more regulatory reporting vendors to struggle (as we saw with CME and Deutsche Bourse) on the back of the price war in the market – and for fees to increase for remaining providers. Regulators will clamp down on poor data quality and increase their focus on MAR, which has already begun at the FCA.

Surveillance will continue to evolve as people combine office and home working, with more focus on behavioural analytics and stringent policy enforcement. Finally, I expect the industry will move away from data silos, and instead adopt more efficient holistic solutions, where all data resides on a single platform which can be extensively used across compliance functions – for regulatory reporting, communications and trade surveillance.
– Matt Smith, CEO, SteelEye

There’s little doubt that institutional investor adoption of digital assets is heading toward a tipping point. 2021 could be a pivotal year for this asset class due to several developments. First, regulatory clarifications of practices around digital assets at the federal level and expansion of prime and other services that support institutional investments.

Then maturation of risk, execution and reporting tools required for professional investors and strong institutional client demand driving the embrace of digital assets by asset managers. Together, these factors will contribute to a more familiar investment environment for institutional investors, drastically driving adoption forward.
– Anton Katz, CEO, Talos

The most certain prediction is the continued requirement for efficiency. Market volatility, and thus profits, are low so the banks must do more with fewer people. The supervision and surveillance systems must give traders their time back so they can monetise the opportunities that arise when volatility returns. In addition, compliance and 1LOD (first line of defence) functions will increasingly focus on (and invest in) keeping pace with advances in technology – combining remote working with the emergence of new communication channels presents challenges for all firms trying to supervise employee behaviour.
– John Crouch CEO, Ideal Prediction

2021 is the year standardisation of the cryptoasset markets starts to occur, thereby fulfilling another pre-condition for the asset class to go mainstream.

ISO will launch its Digital Token Identifier (DTI) standard to uniquely identify every tradable cryptoasset in the same easy manner that equities, bonds and OTC derivatives are already identified in the traditional capital markets. This identification will enable efficient cryptoasset price discovery, sourcing of liquidity and identification of counterparties for trades.

Central banks and other public bodies will continue their exploration of the best ways to regulate the new financial asset class without throttling the breakneck innovations taking place with a necessary first step being to identify the standards the marketplace should adopt. We anticipate ISO standards such as the DTI will provide the glue that will coalesce the activities of such public bodies with the private sector initiatives taking place.
– Sassan Danesh, managing partner, Etrading Software

As mainstream recognition grows of Bitcoin’s utility as a store of value and custody solutions mature from both a technical and a legal clarity perspective, we expect to see a number of banks begin to offer custody and execution services to customers during 2021. We see a rapid increased adoption of institutional crypto trading and, due to the similarities in the markets between digital assets and FX, it will largely be the FX and precious metals trading teams that are involved. 

Adoption will be driven by institutional grade connectivity using robust technology to access multiple geographically distributed venues.  Fragmentation is a significant issue in both crypto and FX markets, and low latency multi-venue connectivity for market data and trading will increase access and transparency, as well as allow institutional teams to leverage their systems for trading FX to offer services to clients in this burgeoning asset class.
– Alexis Atkinson, founder, crypto and forex connectivity start-up, 4OTC

The year 2020 was transformative for the digital asset industry due to increased interest and involvement by both institutional players and regulatory bodies. Driving institutional adoption has been the regulatory clarity and guardrails established by the OCC and SEC and the availability of more institutional-grade platforms that provide the high levels of security and performance these firms require.

The creation of new cryptofinance products and the participation by prominent traditional financial institutions like Franklin Templeton and BNP Paribas, two of Curv’s newest clients, will motivate an increasing number of firms to enter the market in 2021.
– Itay Malinger, co-founder, CEO, Curv

2021 will be a year where artificial intelligence, machine learning and natural language processing further synthesises the relationship between fundamental investment research and trade execution for actively managed investments. We will see new and improved AI models deployed that will unlock the ability for active managers to draw new correlations across an investment organisation’s entire universe of qualitative research in order to identify new trading opportunities and emerging trends within portfolio holdings that would otherwise not be immediately visible on the surface.
– Hoony Youn, CTO, MackeyRMS

The post The TRADE’s Crystal Ball 2021: FinTech, RegTech and crypto appeared first on The TRADE.

James Haskell and David Lane have joined Etrading Software as business operations officer and technical operations officer respectively, and Will Palmer has been promoted from global head of IT to chief information security officer.   

Haskell has departed Goldman Sachs after more than 13 years, most recently leading client strategy and execution for the investment bank, to join the managed services provider in the newly-create role. As business operations officer, Haskell will take charge of the day-to-day operations at Etrading Software.

Lane joins the Etrading Software from NatWest Markets, and has previously worked at RBS global banking and markets and ABN AMRO. He has more than 20 years’ experience in tier one investment banking and derivatives exchange trading, including supporting firms with technology strategies and risk frameworks.

Palmer has been with Etrading Software for more than four years, leading the vendor’s IT operations. As chief security and information officer, Palmer will focus on client onboarding, service improvements and team delivery to build a security strategy for the firm.

The latest appointments come as Etrading Software targets expansion of its outsourced services delivery to Europe and Asia amid increased demand from financial institutions. In Asia, Etrading Software has expanded its offering to include full-service design, build, operate model for Etrading Software clients, with 24×7 operations capabilities for real-time services. 

“Our offices in Manilla have been long established as a centre for excellence, and we are seeing increased interest from the market place to utilise our outsourced services model,” said Sassan Danesh, managing partner at Etrading Software.

The post Etrading Software makes senior hires as it expands managed services offering appeared first on The TRADE.