We are celebrating the 10 year anniversary of the great crash with a bang!
We are celebrating the 10 year anniversary of the great crash with a bang! Of course, most thought that MiFID II was a great way to mark that occasion. I thought balloons and champagne would suffice. But the markets have a mind of their own and decided to explode volatility! (And exploding some rather dodgy volatility products — CDO squared anyone?)
For Wall Street volatility is a two-sided coin. It has a tempering effect, exposes really bad ideas and products, provides plenty of opportunities for investors and traders to prove themselves against more passive investing techniques, and drives secondary trading revenues.
This volatility cycle is concurrent with new regulation, new demand, new workflows, growing electronic trading, and exploding data. Technology discussions become more crucial across all capital market functions; this is particularly true in FX.
FX with its changing market structure, regulatory pressure, and now trending dollar, is potentially a very different macroeconomic landscape from the last decade. We will see the differences in those firms that are leveraging the best in technology to access liquidity, automate processes, analyze data, utilize TCA, and prove best execution.
So, the timing is perfect to be discussing these topics at TradeTech FX USA in Miami with 500+ FX market participants. I will be participating on several panels discussing: electronic trading tools and demands for data, market structure and regulations, the impact of clearing, and changes in the FX prime brokerage model. These conversations will not only be centered in spot FX but across the FX landscape (NDFs, swaps, and forwards and options). These are major topics that are redefining the way buy side traders and the sell side interact.
On the final day of the conference, I will be participating in a debate on whether cryptocurrencies like Bitcoin can realistically have a role in an institutional investment portfolio. There should be fireworks!
Speaking of fireworks, can someone ask their AI or analyst what an equity move like we saw in January followed by the February Flubbing means for the rest of the year?
See you in Miami (which ain’t bad in February).