Some Random Questions on a Glorious Spring Day
Since it's a glorious spring day here in New York City, I'm finding it hard to string together intelligent prose. So instead of writing a column worthy of a Pulitzer, let me bring up some questions that have come about through conversations I've had this week.
First, why is it that the Commodity Futures Trading Commission (CFTC) proposed a mandate that firms have to go through a minimum of five dealers for a request for quote (RFQ), while the Securities and Exchange Commission (SEC) has no such obligation to its proposed rules? A colleague of mine who writes for sibling publication Risk magazine brought this up and it got me thinking: Why five? Is that just a random number? And what are the technological implications? If you have to shoot orders out to at least five dealers, would this create more challenges in order to remain competitive?
Second, will hedge fund "hotels" return in earnest once Dodd–Frank goes through? I've been hearing that these, which are just leased spaces, are going to become more popular here in New York. Apparently, these spaces left Manhattan for Connecticut back in the early 2000s. But the ’burbs have become expensive, and in order to cut costs, small hedge funds are looking to lease spaces back in the Big Apple. Is this something that is indeed happening, or am I being fed a line?
Finally, just how prepared are hedge funds to register themselves with the SEC? It's springtime and that July deadline is rapidly approaching. Every hedge fund I've spoken with says that it hasn't been a problem, but off the record, it doesn't sound so simple. I wonder if there will be more of a panic as April/May comes around.
All right, this day is too glorious to continue writing, but I need answers, people. Give me a call at 212-457-7762 or shoot me an email at anthony.malakian@incisivemedia.com. Enlighten me.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
On vibe coding, no/low-code dev, and some potential misconceptions
The Waters Wrap: Is no-code/low-code even a thing anymore? Not really. But the companies that championed those terms just a few years ago tell Anthony they aren’t going anywhere.
SEC gunning to take over CAT in 2027
Chairman Atkins has plans for the SEC to run the Consolidated Audit Trail directly. Industry participants are split on the idea.
Rapid-fire repo raises hopes of cheaper, faster trading
Tokenized Treasuries piloted by DTCC could squash settlement cycles and enable 24/7 repo.
Stopgaps and fail-safes: How trading vendors guard against rogue AI agents
TradeStation’s newest trading tool, Titan-X, uses agentic tools to help plan, execute, and collect data on trades.
A tidal wave of token costs threatens landfall
Budgeting for AI was never “easy,” but as financial firms rely more heavily on agents, soaring token usage is forcing them to rethink the economics of modern enterprise AI.
Is this tokenization’s golden opportunity?
The Waters Wrap: More initiatives around tokenizing assets are coming to fruition. Nyela asks: Is the market ready?
EuroCTP wins again, Fanatics teams up with BGC, Clarity Act’s uncertain future, and more
The Waters Cooler: A recap of the major tech and data news from the past week in the capital markets.
ICE buys MarketAxess to create ‘common rails’ for fixed income
The deal, which is expected to close early next year, will further establish ICE in the fixed-income market.