Breaking the Feudal Model: Digital Transformation in Investment Banking

| Article, Digital Industrialisation & Transformation | No Comments

Investment banks have traditionally structured their operational activities along discrete business lines, which were traditionally split up by asset class and geography.

E-trading Governance ups the Pace

| Article, Feature, Regulations | No Comments

High-performance algorithmic trading is no longer the privilege of a few high-tech trading firms leveraging cutting-edge, specialised infrastructure.

The Fundamental Review of the Trading Book: Grey Areas, Uncertainty and Business Impact

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This article is the fourth in a series of articles that will be published on GreySpark’s Capital Markets Intelligence Web site over the coming months.

The Rise of the Non-bank Liquidity Provider

| Article, Buyside Trends | No Comments

The growing ability of non-bank spot FX liquidity providers to service client demand in the marketplace came to the fore in 2016’s Euromoney annual spot FX volumes survey results, which showed that the amount of currencies volume supplied by the top-five market-makers was falling when compared to the ability of one proprietary trading firm – XTX Markets – that provides pricing to dealer-to-client currencies (D2C) venues.

The Good, Bad and Ugly of Employee Surveillance: Addressing the Role of Technology in Tackling Financial Services Conduct Risk

| Article, Technology Trends | No Comments

Predictive analytics is a branch of advanced analytics wherein a variety of different types of software tools can be used to make predictions about future events.

The Evolution of Sellside Digitalisation: Developing Holistic Digital Alignment

| Article, Digital Industrialisation & Transformation | No Comments

The so-called digitalisation of the capital markets arena – in which an increasingly larger number of previously manual processes within investment banks gradually become automated – is an on-going process that traces its roots to the late 1980s, when e-trading was originally pioneered.

Video: Trends in Fixed Income Trading — Metamodern Meditations on the Future Market Structure

| Sellside Trends, Video | No Comments

Russell Dinnage, managing consultant at GreySpark Partners, talks about how the structure of trading in the fixed income market could change over the next five-to-10 years.

Collaboration: The Way Forward for Hong Kong and Singapore as Fintech Hubs

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Since the 1990s, Hong Kong and Singapore have jostled for dominance over the bulk of Asia’s financial markets activity. Market participants in both cities believe their respective metropolis’ are uniquely positioned to act as a gateway to the rest of the region for trade and commerce.

PSD2: Unlocking Opportunity with Open APIs

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The EU’s Revised Payment Services Directive (PSD2) is a fundamental piece of payments industry legislation adopted by European Parliament in January 2016.

Fintech M&A Activity to become Source of Innovation Industrial Revolution in Banking in 2017

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Fintech mergers and acquisitions (M&A) activity within the investment banking industry is set to increase in 2017, according to a survey of the financial markets industry published by law firm White & Case in November 2016.

The Rise and Rise of Smart Beta

| Article, Buyside Trends | No Comments

While beta is a measure of a fund’s or product’s relative volatility compared to the market as a whole, smart beta is the categorisation of strategies using rule-based screens to attempt to outperform the market, as opposed to the capitalisation-weighted indexes used by passive funds.

DevOps Applications for the Banking Industry

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A noticeable trend in the financial services industry in 2016 is the exploration of differing software development strategies to exhibit maximum agility across a whole business. Specifically within the banking industry, this trend is fuelled by increasing competition, the heightened cost of regulation and an empirical need to remain profitable.

Video: Secure Migration to Cloud Services

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Rachel Lindstrom, senior consultant at GreySpark Partners, talks about the drivers behind the increasing adoption of cloud-based services within financial institutions.

The Fundamental Review of the Trading Book: An Assessment of Technology Vendor Implementation and Compliance Solutions

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This article is the third in a series of articles that will be published on GreySpark Partners’ Capital Markets Intelligence Web site over the coming months.

Buyside Firms to Benefit Long-term from Strategic Compliance Investments

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Exploring why and how buyside firms must appraise their current outlay of trade and transaction order and execution management systems used to generate regulatory reporting data in the EU as well as the technology debt associated with any legacy systems.

Replumbing the Market Data System

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The complex network of separate pipes that must be installed and maintained by end-users to receive real-time market data is helping drive the global spending on this information skywards. This article examines the open source initiative, OpenMAMA, looking to disrupt the market data marketplace by replumbing the market data distribution system and help end-users conquer the rising costs of this information.

Video: Big Data Use Cases in Financial Services

| Digital Industrialisation & Transformation, Video | No Comments

Rachel Lindstrom, senior consultant at GreySpark Partners, talks about GreySpark’s report into key use cases for Big Data technology in the financial sector. The report discusses use cases alongside descriptions of Big Data implementations across a range of financial institutions.

Video: Big Data Technology in Investment Banking

| Digital Industrialisation & Transformation, Video | No Comments

Rachel Lindstrom, senior consultant at GreySpark Partners, talks about Big Data Technology in Investment Banking. Providing business managers in investment banks with a high-level explanation of Big Data concepts and an overview of the technology framework to help inform their Big Data discussions with IT teams.

Peering Through the Looking Glass: Preparing for the Onset of EU Transaction Reporting Regulations

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The implementation of new EU transaction reporting regulations in 2018 will alter the ways in which the front-office of buyside firms and investment banks interact with clients as well as put additional pressure on back-office systems.

The Fundamental Review of the Trading Book: Potential Impacts

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Sellside FICC trading business models are targeted for reform under the Basel Committee’s Fundamental Review of the Trading Book proposals. This article explores how the long-standing businesses within banks are subject to change under the regulations and what the implications of these changes will be for the industry as a whole.

Video: Mastering MiFID II — Research Unbundling

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George Kao, Founding Partner speaks to Saoirse Kennedy, Senior Consultant of GreySpark Partners on the impact that the second iteration of the EU’s Markets in Financial Instruments Directive (MiFID II) will have on the investment research marketplace and its competitive environment.

Managing Expectations: Why the Hong Kong-Shenzhen Stock Connect Will Face a Slow Start

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The August 2016 launch of the Hong Kong-Shenzhen Stock Connect program signalled the start of a second phase of financial markets infrastructure development in China. But will the new linked exchange facility bear fruit for domestic and foreign investors alike?

The Fundamental Review of the Trading Book: An Overview

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This opinion piece explores the reasons why GreySpark Partners believes that the forthcoming implementation of the Fundamental Review of the Trading Book regulations means that it is imperative that banks rethink their risk infrastructure and develop a plan for compliance.

Video Feature: Countering Cyber-crime in Financial Services

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George Kao, Founding Partner speaks to Rachel Lindstrom, Senior Consultant of GreySpark Partners on how financial institutions and governments are working to address the risks and threats posed by the...

RegTech: The Regulatory Landscape is Creating a Perfect Storm of Innovation

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If a perfect storm is an event in which a rare combination of circumstances drastically aggravates the circumstances of an existing situation, then the growing trend within the fintech industry...

EU Asset Managers Preparing for PRIIPS Regulations Must Keep One Eye on UCITS Rules

| Article, Regulations | No Comments
The recent financial crisis exposed some glaring weaknesses in the EU’s financial markets regulatory frameworks governing the distribution and sale of retail investment products such as funds to the region’s...

Bonds E-trading: The More Things Change, the More They Attempt to Stay the Same

| Article, Sellside Trends | No Comments
By Frederic Ponzo, GreySpark Partners managing partner The fixed income marketplace, specifically the corporate and government bonds markets, are awash with structural change in 2016 that is being driven by...

Video Feature: Digital Transformation of Investment Banking

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Digital transformation is increasingly apparent among investment banks that must take action now to remain competitive. Saoirse Kennedy, Senior Consultant with GreySpark Partners explains the drivers and pillars of this...

Fintech in Hong Kong: A Bridge under Construction

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Despite being initially slow in adopting fintech innovations as a means of enhancing their businesses and financial markets trading models, banks and other types of financial institutions based in Asia-Pacific...

MiFID II Delays are Reducing Tech Debt, Not Increasing It

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Delays in the publication of all of the Regulatory Technical Standards (RTS) for the EU’s Markets in Financial Instruments Directive (MiFID II) proposals are having an interesting, observable and positive...

Video Feature: Blockchain and settlement – what’s the future?

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Blockchain is a reality that is already disrupting the banking industry, but what changes will it bring about to the settlement landscape? Interview: Anna Pajor, Principal Consultant of GreySpark Partners discusses...

Western Cybersecurity Standards are Setting the Stage for Banks in Asia to Mitigate Client, Operational Risk

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Many investment banks in Asia-Pacific (APAC) are planning to implement new, internal cybersecurity standards in 2016 for protecting their vast warehouses of proprietary client and operational data, according to GreySpark...

Volatility will Drive Equity Markets towards Digital Transformation

| Article, Digital Industrialisation & Transformation | No Comments
The percentage of US and European equity trading, covering cash equities and equity derivatives, that takes place electronically has plateaued as a percentage of total market volume. While the high-frequency...

Why Financial Professionals Should Care but be Cautious about the Blockchain Technology

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William Benattar, Financial Technology Analyst, presents an introduction to the Blockchain technology and the main use cases in the Capital Markets industry. The article is an interview that details to...

The Decline and Re-birth of the Inter-dealer Spot FX Market

| Article, Sellside Trends | No Comments
In 2015, the structure of the FX market for spot liquidity is approaching a tipping point. This tipping point is emerging because of increasing levels of similarity between the characteristics...

Collateral Obligations: Re-orientating the Sellside’s Uncleared OTC Derivatives Trading Business Model

| Article, Sellside Trends | No Comments
On an annual basis, there is an estimated USD 170tn in notional value stored in the global market for uncleared OTC derivatives. Wrapped up inside EU, Japan, US and Basel...

Collateral Obligations: Hub Solutions for a Spoke-and-Wheel OTC Derivatives Landscape

| Article, Sellside Trends | No Comments
For observers of the long-running regulatory jigsaw puzzle that is the implementation of G20 nation-mandated reforms for margin requirements for non-centrally cleared derivatives, the news July 7 that little-known US-based...

Pre-trade Risk Controls

| Article, Sellside Trends | No Comments
This article was originally published by Best Execution magazine As automated trading emerged, the term ‘Flash Crash’ entered the industry vocabulary. Now, when creating algorithms or providing High Frequency Trading...

Trends in E-commerce and Electronic Trading 2014 – Survey Summary

| Sellside Trends, Survey Summary | No Comments
This is a survey summary for our annual research series: Trends in E-commerce and Electronic Trading. The context for capital markets trading activity is evolving as a result of ongoing regulatory...

Deriving Value from the Data Flood

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Deriving Value from the Data Flood was originally published by Best Execution magazine Capital markets data is produced by, analysed by and consumed by many different types of industry professionals....

F&O trading: Do we need an OMS?

| Article, Technology Trends | No Comments
This article was originally published by Best Execution magazine The futures and options trading platform has historically been driven primarily by the need for market gateways and white-labelled, sell-side-provided screens...

The Shanghai-Hong Kong Stock Connect is a Comin’ Down the Street

| Article, Digital Industrialisation & Transformation | No Comments
In 1852, Wells, Fargo & Co. was founded by Henry Wells and William Fargo to deliver basic banking services and express delivery of consumer precious goods to the American West....

The Data-driven Bank – Survey Summary

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The 2014 series of GreySpark's reports on the Data-driven Bank is based on GreySpark’s hands-on experience working with a variety of capital markets trading firms, advising them on data strategy and technology....

Finding Solace in Future FX Market Structure

| Article, Sellside Trends | No Comments
This article was originally published here by the publication FX-MM Magazine. GreySpark Partners’ Russell Dinnage, a senior consultant with the London-based capital markets advisory firm, explains how – after a tumultuous 12 months...

OTC Derivative Reforms in Australia – What do the New Reporting Rules Mean for You?

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OTC Derivative Reforms in Australia Australia’s OTC derivative reforms provide a framework for the regulation of OTC derivatives reporting, central clearing and trade execution and affect almost all participants in...

The Data-driven Bank – Notes on Implementation

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Implementing technology to support a bank’s data strategy is a complex task. The complexity is twofold: first – several technologies are introduced at the same time; second – this creates...

Dark Pool Trading Increasing Amid Regulatory Concerns

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This article was originally published in Bloomberg Brief's Economics Asia on Aug. 7, 2014. Dark Pool Trading Increasing Amid Regulatory Concerns There is still a great deal of secrecy surrounding dark...

Rising Bilateral Trade Costs to Impact Australian OTC Market

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 This article was originally published in Bloomberg Brief's inaugural Financial Regulation Asia-Pacific Region Special on Aug. 1, 2014. GreySpark’s Shekar Says Rising Bilateral Trade Costs to Impact Australian OTC Market...

Forgotten Allies: The Impact of Regulations on Independent Software Vendors

| Article, Regulations | No Comments
There is plenty of analysis and commentary on how capital markets regulations are altering the market structure of a number of different asset classes, affecting the ability of buyside firms,...

OTC Reforms in Australia: What Does the Future Hold?

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As OTC derivatives regulation moves into the realm of ‘business as usual’ for many trading counterparts in the US and EU, Australia has only taken tentative steps forward in transforming...

GreySpark Survey Summary – FIX Connectivity and FIX Networks

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The Financial Information eXchange (FIX) is a protocol that allows different financial systems to communicate. Core FIX Engine technology is now fully commoditised and prices for a pure FIX engine are as...

Equities Trading Focus: Latency – Safety in Numbers

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Safety in Numbers was first published by Best Execution magazine in Spring 2014. Authors: Asif Abdullah, Jon Batty, Saoirse Kennedy, Anna Pajor, Frederic Ponzo The approach taken to address low-latency...

Trade Repositories: Global Market Transparency is not Yet a Reality

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New capital markets regulations in Australia, the EU, US and in some Asian countries mandate reforms to the trading of OTC derivatives and the structure of markets for the products....

OTC Derivatives Reforms: Fixing the Gaps in Regulatory Compliance

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The EU and US recently rolled out two historic capital markets regulations, both of which are intended to increase transparency in the global OTC derivatives market following the financial crisis....

Is Collateral OTC Clearing’s Double-edged Sword?

| Article, Sellside Trends | No Comments
New capital markets regulations in the EU and US impose limits on the ability of investment banks to post high-yield fixed income securities to central counterparty clearinghouses (CCPs) as collateral...

The Art of Good Capital Markets E-sales is Being a Profitable Middleman

| Article, Digital Industrialisation & Transformation | No Comments
As 2014 begins to unfurl, investment banks are left to reflect on 2013 as the year in which client-centric, multi-asset, digital investment banking began to transition toward a new level...

Redefining the Role of FX – ‘Suits you, Sir?’

| Article, Sellside Trends | No Comments
This article was first published in the Winter 2013/2014 issue of Best Execution magazine. In it, GreySpark Partners senior consultant Russell J. Dinnage examines ways to redefine the optimal FX sellside...

GreySpark Survey Summary: E‑commerce and Electronic Trading 2013

| Sellside Trends, Survey Summary | No Comments
Our annual report on Trends in E-commerce and Electronic Trading is a unique opportunity for the Capital Markets industry to get a fact-based insight on the current situation and emerging...

Transaction Cost Analysis: Tracking the Current

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Transaction Cost Analysis: Tracking the Current was published by Best Execution magazine. Transaction Cost Analysis is following the route of trading electronification in its advance across asset classes, by Saoirse Kennedy...

Reinventing the Wheel: How Banks Can Use ‘Big Data’ to Master Credit Bond Sales

| Article, Digital Industrialisation & Transformation | No Comments
As financial institutions continue to embrace the era of Big Data, opportunities abound for the credit bonds markets. Specifically, sellside credit secondary trading desks operating in an e-credit environment for...

All Change Ahead for the Credit Bond Markets

| Article, Sellside Trends | No Comments
A range of e-commerce and electronic trading trends have emerged recently to challenge the long-standing, two-track model of credit bond market making in the fixed-income markets In this, an op-ed...

The Way to the Cloud

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Getting the most from cloud technology Authors: Anna Pajor, Bradley Wood, Cameron Griffith Institutions across tiers and locations are currently concentrating on consolidation and cost reductions in the work place....

Equities Trading: Feeling the Squeeze

| Article, Sellside Trends | No Comments
Managing down the cost-per-trade is key to survival for mid-sized players in equities trading. Author: Asif Abdullah Contributions: Anna Pajor Although leading global equity markets have recovered to pre-crisis levels,...

SEFs and the FX market: The Name of the Game is Disintermediation

| Article, Sellside Trends | No Comments
SEFs and the FX market: As swap execution facilities begin to take their place in the grand scheme of global FX trading, banks are responding with bigger and better single-dealer...

High Frequency Trading Survey Summary 2013

| Survey Summary, Technology Trends | No Comments
High Frequency Trading, over the past 30 years, have grown from being the latest fad to hit global markets into a significant part of daily activity in electronic markets around...

Colocation Infrastructure Survey Summary

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Our survey explored the use of colocation services and low latency infrastructure components in e-Trading This survey coincides with GreySpark’s latency series that includes Low Latency: Faster than Light, Low...

OMS Vendor Benchmarking Survey Summary 2012

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Equity and listed derivatives trading, in line with all other flow businesses, is dominated by the need for greater efficiency; the emphasis is on speed, scalability, execution quality and minimised...