Stankevicius’ Post

According to a new study by @Acuiti and ION, European retail brokers are likely to expand into institutional markets besides diving into listed derivatives should restrictions on contract for difference (CFD) markets keep gaining traction. In a recent article for @The Trade, I shared my thoughts on the implications for the institutional brokerage landscape. I also explained that the rise in retail participation in listed derivatives will drive sell-side demand for modern technology. You can read the article https://lnkd.in/dcWiaAkw  

I am pleased to announce that at this year's 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗶𝗼𝗻 conference in Lisbon I was awarded the "𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗕𝗲𝘀𝘁 𝗣𝗮𝗽𝗲𝗿 𝗔𝘄𝗮𝗿𝗱" for the paper "Can you trust the numbers? A model-free assessment of misleading cost disclosures for Structured Retail Products" In the paper, I develop a new, model-free method for analyzing cost disclosures for retail derivatives. Applying this method to the portfolios of five large banks shows that only two banks report the correct costs. The cost statements of the other banks deviate from the costs actually included in market prices. Three patterns can be identified: 1.     Systematic under-reporting of costs; 2.     Reporting of large cost ranges for products with identical costs; 3.     Distorted cost statements due to outdated product information sheets. These findings are problematic from various perspectives. On the one hand, it is critical from a consumer protection perspective that private investors are not provided with all information relevant to their decisions correctly. On the other hand, from a legal perspective, the incorrect cost statements represent a violation of applicable European law. In order to improve the cost statements, a specification of the regulatory requirements would be conceivable. The obligation to disclose the valuation procedures to the supervisory authority and more detailed requirements for updating the information documents have the potential to reduce the discrepancies identified. Further information can be found in the current version of the working paper.

Bringing Transparency to the Post Trade Landscape – FCA Changes One Month Later On 29 April 2024, the UK regulator (FCA) made a number of regulatory changes to post trade reporting requirements, following changes brought in for the EU at the start of the year. One of the most significant changes is to introduce more exemptions from post trade reporting, with the aim of reducing operational costs and limiting the overreporting of trades, writes Nazed Mannan, Senior Product Manager at BMLL. One month into these changes, using high-quality historical data, Mr. Mannan takes a look at the impact this has had on liquidity discovery, and in particular, overall addressable liquidity, providing a snapshot of how the market has responded since the post trade regulatory changes went into effect. #posttrade #reporting #marketdata #liquidity Financial Conduct Authority https://lnkd.in/d7D2BTKm

Bringing Transparency to the Post Trade Landscape – FCA Changes One Month Later On 29 April 2024, the UK regulator (FCA) made a number of regulatory changes to post trade reporting requirements, following changes brought in for the EU at the start of the year. One of the most significant changes is to introduce more exemptions from post trade reporting, with the aim of reducing operational costs and limiting the overreporting of trades, writes Nazed Mannan, Senior Product Manager at BMLL. One month into these changes, using high-quality historical data, Mr. Mannan takes a look at the impact this has had on liquidity discovery, and in particular, overall addressable liquidity, providing a snapshot of how the market has responded since the post trade regulatory changes went into effect. #posttrade #reporting #marketdata #liquidity Financial Conduct Authority https://lnkd.in/d7D2BTKm

#derivatives The Financial Markets Authority (FMA) has opened its consultation on imposing a new standard condition and varying an existing standard condition (the New Conditions) for all derivative issuer (DI) licences. The purpose of the New Conditions is to help retail investors manage the risks associated with leverage limits and suitability. Read more below!

The TRADE News highlights Last year, 62% of European investment-grade corporate bond trading volume was executed electronically, as with 49% of notional high-yield volume; compared to 40% and 31% in the US, respectively. New research from Coalition Greenwich (a division of CRISIL) has found that 62% of European investment-grade corporate bond trading volume was executed electronically last year – making Europe the most electronic bond markets globally. Nearly half of notional high-yield volume in Europe (49%) was also executed electronically in 2022. These figures are noticeably higher when compared to US markets, which saw 40% of investment-grade corporate bond trading volume and 31% of high-yield volume traded electronically last year.In both the EU and the UK, we expect trading volumes to continue migrating to new, electronic trading protocols due to a combination of innovation and regulation,” said Kevin McPartland, head of research at Coalition Greenwich Market Structure and Technology. Overbond and Rapid Addition Limited deliver interoperability and direct venue connectivity for bond trading automation services. Interoperability ties all parts of the RFQ and smart order routing together. SOR is an automated process used in online trading to quickly execute a trade, based on price and liquidity, across a range of electronic trading venues and counterparties. It allows data aggregation, the integration of AI modeling and external pre-and post trade vendor connectivity. By analyzing different offers and placing optimized orders, SOR is a response to the challenge of fragmented data and liquidity in the fixed-income marketplace. Full Article Here: https://lnkd.in/e8KD5k2g

Digital Trade Finance is a must for tackling today's supply chain challenges and so for all the stakeholders of global trade it's essential to embrace tech more than any other time. Enjoy this fantastic piece prepared by Deutsche Bank and ITFA #GlobalTrade #SupplyChain #TradeTech #TradeFinance #SilkRoadHeritage

FOLLOW BCI ON MEDIUM (dot com) Read my latest article, "Hitting a Covered Call Writing Double: The BCI Trade Management Calculator in Action," published 8/27/23. Then, hit the Follow link to receive notifications of all future postings. https://lnkd.in/gQgirR8c

Upcoming ISLA Events Ranging from our annual Post Trade conference, through to our regional briefings and workshops, visit https://hubs.la/Q021rQR_0 to view further details about upcoming #ISLAEvents for the remainder of 2023! We have been running in-person briefings throughout the year for regional market participants.  Our upcoming Frankfurt Briefing is taking place on 21 September. Kindly hosted by Deutsche Bank, the briefing will provide regional practitioners, including institutional investors, funds and banks with an update on key market trends and developments within the securities lending and financing industry. Shortly there after we will be running a Paris regional taking place on 3 October! Find out more about #ISLABriefings: https://hubs.la/Q021rQR_0 ISLA AGM & 13th Annual Post Trade Conference (1 November) This year’s agenda will focus on post-trade and operations groups’ activities and priorities, as they continue to grapple with outdated and fundamentally flawed processes, partly due to historic under-investment, but now set against a backdrop of a political will to see a greater pace of change. At the same time, having to manage the day-to-day complexities associated with the implementation of regulatory frameworks such as Basel, as well as changes in behaviour around a developing tax agenda. Can we build a post trade eco-system that truly supports the aspirations of our respective businesses, yet satisfies the demands of the politicians? Could imposing a T+1 settlement on our markets further compound these endemic problems? Could technology in all its forms yet underpinned by industry standards drive the solutions we are looking for? View agenda: https://hubs.la/Q021rCMm0 ISLA & ICMA Workshops ICMA - International Capital Market Association will be running a virtual workshop entitled 'Repo & Securities Lending under the GMRA-GMSLA' across 20 - 22 September. This course provides a solid and broad understanding of all key aspects of repo and securities lending and of the trading and post-trade management of these instruments within the frameworks provided by the GMRA and GMSLA. It is presented by a unique combination of experts with first-hand experience of all dimensions of repo and securities lending. Register: https://hubs.la/Q021rCPv0 ISLA & ICMA - International Capital Market Association have partnered to run a virtual workshop across four days in 12, 13, 19, 20 October. Learn the fundamentals of Securities Lending from the trade associations at the heart of securities financing transactions. Register: https://hubs.la/Q021rCMn0? #ISLANews #ISLAEvents #securitieslending #securitiesfinance