While adhering to the CAT reporting timeline, sell-side firms are responsible for monitoring the CAT Reporter Portal and for fixing errors and rejects that come back from FINRA. So far, experts say the industry is doing very well with their data submissions. But error rates could escalate as the industry tackles more thorny order events and submits higher volumes of data.
Aggregation tools that pull in direct pricing streams and RFQs into an execution management system (EMS) or order management system (OMS) are becoming a critical part of creating a composite view of the fixed-income market.
With the hiring of data scientists, advances in cloud computing, and access to open source frameworks for training machine learning models, AI is transforming the trading desk. Already the largest banks have rolled out self-learning algorithms for equities trading.
Banks and asset managers relied on global teams to backup and transfer workloads during the pandemic. But, in moments of crisis, exposure to operational risks, model risks, cybersecurity attacks, and fraud can increase exponentially.
In volatile markets, asst managers were monitoring portfolios in real-time to determine how factors were behaving and affecting risks in their portfolios.
With attention riveted on volatile stock and bond markets and the economic fallout from the COVID-19 pandemic, brokers and asset managers are focused on keeping up with the high volumes of market data and trades. With so many unknowns, the situation could impact market data reforms to overhaul the securities information processor or SIP.
With the proliferation of algorithms in currency markets and regulatory pressure to prove best execution, buy-side trading desks are adopting algorithms to source liquidity and lower trading costs in FX trading.
With mountains of market data, historical prices, and transactions data stored in disparate systems, securities and investment firms are shifting from a focus on collecting data to extracting value from it. But the problem is that most of these huge and large data sets are siloed in legacy system architectures.
Topics such as market data costs, natural language processing, MiFID II research unbundling, Algo Wheels, exchange startups, market structure, dark pools, and desktop interoperability, resonated with the readers of the FlexAvantage industry blog.
The revamped SEC 606 regulation requires more extensive disclosures by broker dealers about the handling and routing of institutional customer orders including the average rebates the broker received from, and fees the broker paid to, trading venues.