CQG at FIA EXPO 2023: Ryan Moroney’s take on rates, AI regulations, and Equity Options

Rick Steves

At the FIA EXPO 2023, CQG’s CEO, Ryan Moroney, discussed the impact of high interest rates on stock markets, called for clarity on AI regulations following SEC concerns, and revealed CQG’s plans to introduce equity options by early next year.

FinanceFeeds Interviews - FIA EXPO 2023

Once again, the prestigious FIA EXPO has assembled the luminaries of the derivatives industry, offering a platform for insightful discussions and forward-thinking perspectives.

This year’s gathering delved deep into a plethora of pressing subjects, ranging from market volatility and the ever-present threat of cybersecurity to the transformative potential of AI, tokenization, and the cloud.

Additionally, the event provided a stage for expert dialogues on clearing, collateral management, and the evolving regulation landscape. As the world of trading continues to evolve at a breakneck pace, the FIA EXPO stands as a testament to the industry’s commitment to innovation, collaboration, and navigating the challenges ahead.

At the recent FIA EXPO 2023, FinanceFeeds Editor-in-Chief Nikolai Isayev interviewed Ryan Moroney, the CEO of US-based financial software firm CQG, to discuss a range of topics including the firm’s recent advancements, the shifting landscape of technologies for trading, and the potential implications of AI in the brokerage world.

Interest rates and the stock market

Asked about CQG’s recent addition of access to BrokerTec RV Curve on CME Globex, Moroney highlighted the innovative nature of the RV spreads and acknowledged the expectations of high interest rates potentially straining stock markets.

He emphasized the interconnected nature of high rates, increasing commodity prices, and robust corporate earnings. He suggested that while we might not witness a collapse in the equity markets, the prolonged period of high rates is unsustainable in the long run.

Moroney further proposed that a focus on boosting productivity might be a more suitable approach to counterbalance the rising prices.

Mobile vs. Desktop, SEC vs. AI

On the topic of mobile trading, Moroney revealed that while mobile usage is frequent among professional traders, the bulk of trading volume on CQG, about 97%, still happens on the desktop. He inferred that mobile platforms are more often used for quick market check-ins, monitoring, and reactionary trades while traders are away from their desks, while more substantial trading decisions are still made on the desktop.

Addressing concerns raised by the SEC about potential conflicts of interest due to predictive analytics usage by broker-dealers, Moroney expressed the need for clarity in regulatory guidelines. He emphasized the importance of understanding AI’s decision-making process, especially when the output could influence trading advice. Moroney expressed optimism about the potential innovations in AI, provided they are approached responsibly.

CQG plans to introduce Equity Options by Q1 2024

Speaking about CQG’s partnership with Broadridge, Moroney shared that the collaboration has been positively received in the market. He stressed that partnerships have been a crucial part of CQG’s strategy since 2010, indicating more such collaborations is on the horizon.

On the equity options front, Moroney confirmed that CQG has made significant progress with working prototypes in place and plans to introduce them to the market by the first quarter of the next year.

Concluding the interview, Moroney reflected on the conference’s theme, emphasizing the industry’s role in ensuring market stability, especially during uncertain times. He lauded the collaborative spirit at the FIA EXPO and expressed optimism about the industry’s future.

The insights provided by Moroney offer a glimpse into the evolving world of the many technologies that support trading and the challenges and opportunities that lie ahead. As the landscape continues to change, companies like CQG remain at the forefront, driving innovations and partnerships to shape the industry’s future.

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