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Peter Randall, CEO, SETL
Disintermediation to the post-trade
Cost pressures, and successful blockchain
projects like Iznes, will generate significant
further interest in 2018 and both asset issuers
and asset owners will increasingly contribute
to the growth of the total market place for the
exchange of cryptographic proofs using the
inherent integrity of a blockchain. Further areas
Mark Pumfrey,
head of EMEA, Liquidnet
of the post-trade value chain will be subject
to disintermediation. In 2018, we will also see
increased emphasis on systems that meet ISO
27001 standards and that can process tens
of thousands of transformations to tens of
millions of addresses in a secure permissioned
environment.
Mahmood Noorani,
founder, Quant Insight
The year to focus on
excellence Quant-essential
recruitment
The spotlight in 2018 will be firmly on
excellence - for both execution and
research. What we have witnessed in
financial markets to date is that too
much average product and service has
been allowed to survive and prosper.
The transparency changes enforced as
part of MiFID II will ensure an overdue
move towards best-in-class survival.
As accountability and control shifts to
the buy-side in both equity and fixed
income, relationships will change as
will the make-up of key partners. All of
this should be very good for returns, the
end investor, and confidence in financial
markets. MiFID II combined with the threat to active
asset managers from passive point in the
same direction: discretionary funds need
to embrace big data & smart technology
to regain an edge. To some degree, this
happened with large asset managers hiring
in-house quants. But history suggests these
teams will be siloed, with insufficient access
to front office traders, meaning their output
will lack relevance. While the first wave of
FinTech was dominated by new pipelines of
alternative data, the success of phase two
will be determined by having the experience
& expertise to know which data is relevant,
how to interpret that data & translate it into
actionable investment ideas.
Issue 54
TheTradeNews.com
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