Australia and New Zealand Banking Group (ANZ) has announced its integration with CobaltFX’s Dynamic Credit platform, marking a significant advancement in managing credit exposure for foreign exchange (FX) trades across interbank trading venues.
By adopting CobaltFX’s platform, ANZ aims to streamline the management of credit exposure through a unified global limit set, enabling dynamic distribution of credit availability across multiple trading venues.
Reduce credit usage
CobaltFX, a part of United Fintech, is recognized for its comprehensive solutions in pre and post-trade infrastructure. Its platform empowers financial institutions worldwide to access deeper liquidity pools, utilize less credit, and mitigate operational risk effectively. CobaltFX is committed to ongoing enhancements to its platform, aiming to simplify market access and reduce risks for all participating entities.
David Thorne, ANZ’s Head of eFICC Europe and North America commented: “This new approach to credit management has helped eliminate carve-outs as well as reduce credit usage while improving our market access. This capability benefits our customers, counterparties, and the bank.”
CobaltFX, acquired by United Fintech last year, specializes in dynamic credit and post-trade automation for the foreign exchange (FX) market. It aims to re-engineer the FX world with a focus on credit optimization and post-trade processes. The platform offers a comprehensive solution for credit and post-trade FX infrastructure, aiming to increase profitability, control, and efficiency for financial institutions.
Its Dynamic Credit feature allows for optimized market access and liquidity for clients by shifting from manual over-allocation of credit to automated and real-time dynamic credit distribution. Additionally, CobaltFX’s post-trade automation service seeks to eliminate reconciliation and mutualize operational risks, thus reducing the cost of processing FX business tickets by sharing the process with counterparties and clients.
CobaltFX has garnered recognition for its market innovation and environmental, social, and governance (ESG) initiatives in the FX market. The acquisition and subsequent integration into United Fintech have allowed CobaltFX to benefit from synergies across partner companies, enhancing its global distribution, sales, and marketing efforts. Despite operating independently, CobaltFX’s clients have been successfully migrated onto the United Fintech platform.
It was last week that, as part of a broader executive reshuffle at United Fintech, Darren Coote returned to the role of CEO of CobaltFX.
Darren Coote, CEO of CobaltFX expressed: “It’s a pleasure to welcome ANZ to the CobaltFX community of market leaders who are dedicated to transforming the nature of the FX market by reducing risk and enhancing market access for all.”
The Financial Industry Regulatory Authority (FINRA) has imposed a fine of $850,000 on M1 Finance LLC for violations concerning its use of a social media influencer program.
Marking FINRA’s first disciplinary action specifically related to a firm’s oversight of social media influencers, the fine was levied due to influencers making posts on behalf of M1 Finance that were found to be unfair, unbalanced, or contained claims that were exaggerated, unwarranted, promissory, or misleading.
M1 Finance outsourced promotional efforts to 1,700 ‘fiinfluencers’
The investigation revealed that from January 2020 to April 2023, M1 Finance compensated social media influencers to produce content endorsing the firm and encouraged the use of a specific hyperlink directing potential customers to its website for account opening and funding. Over 39,400 new accounts were attributed to the efforts of approximately 1,700 influencers. However, the firm failed to ensure that these promotional activities were fair, balanced, and compliant with FINRA rules, notably Rules 2210 (Communications with the Public) and 2010 (Standards of Commercial Honor and Principles of Trade).
One highlighted infraction involved misleading representations about M1 Finance’s margin lending program, suggesting more lenient terms than were actually available. This, among other violations, pointed to a lack of adequate review and approval of influencer content, as well as a failure to maintain a suitable supervisory system for overseeing such communications, violating additional FINRA rules and regulations.
In response to the enforcement action, M1 Finance has agreed to the findings and consented to implement a supervisory system and written procedures designed to ensure compliance with FINRA Rule 2210, without admitting or denying the charges. This case serves as a reminder of the regulatory expectations for firms using social media and influencer marketing strategies in the financial services industry.
Bill St. Louis, Executive Vice President and Head of Enforcement, FINRA, said: “As investors increasingly use social media to inform their financial decisions, FINRA’s rules on communicating with the public are especially critical. FINRA will continue to consider whether firms are using practices and maintaining supervisory systems that are reasonably designed to address the risks related to social media influencer programs.”
‘Finfluencers’: ASIC sued “Black Wolf Pit” into bankruptcy
The Australian Securities and Investments Commission (ASIC) recently bankrupted Tyson Robert Scholz, the figure behind “Black Wolf Pit”, as part of a crackdown on so-called ‘finfluencers’ and individuals providing unlicensed financial services.
ASIC’s move culminates a series of legal challenges initiated by the corporate regulator against Scholz in 2021, culminating with the Federal Court issuing sequestration orders against him for failing to cover court costs of $456,293.
Scholz is known for promoting trading courses and stock tips under the moniker ‘ASX Wolf’ to his 118,000+ social media followers. He was found to have operated a financial services business from March 2020 to November 2021 without holding an Australian Financial Services License (AFSL).
The Federal Court had previously imposed permanent injunctions on Scholz in April 2023, barring him from conducting any financial services business in Australia and mandating him to pay the legal costs incurred. Scholz’s inability to fulfill this financial obligation led ASIC to take further legal steps, including serving a Bankruptcy Notice in July, followed by a Creditors Petition, resulting in the recent sequestration orders.
Scholz’s business model involved charging subscribers for membership fees ranging from $500 to $1,500, providing them with various levels of trading courses, stock tips, and access to a private chat site via Discord. Despite describing himself as a global equity trader with over a decade of experience, Scholz’s operations without an AFSL have now led to legal and financial repercussions.
ASIC issued many public statements advising firms to be cautious when engaging so-called “finfluencers” and conduct serious due diligence on any prospective partners. It says those promoters must be licensed to give financial advice or are authorised representatives of advisers. The same rules apply to influencers who earn affiliate commissions for referring their pages’ followers to online brokers, which also requires a license to give such advice.
An industry survey revealed that 33% of 18 to 21-year-olds use social media sites to get financial advice from influencers. In comparison, only three percent of people under the age of 25 have used paid financial advice to keep them in the green. Other findings also showed that two thirds of people in the same age bracket changed their financial behavior because of a celeb.
TikTok and other social media influencers, however, do not have the necessary accreditation or qualifications to offer these services, though they promise very lucrative and sometimes guaranteed returns. They also need to meet certain educational standards and manage conflicts of interest, amongst other requirements.
Eurex, Deutsche Boerse’s derivatives arm, has introduced a new addition to its sector index futures with the launch of the STOXX Semiconductor 30 Index Futures contract.
The introduction of this futures contract, the first by Eurex on the semiconductor sector, comes in response to the sector’s growing influence in areas such as communication, technology, and defense, spurred by advancements in artificial intelligence and autonomous driving.
30 largest global semiconductor listed in the US, including Nvidia
Developed in collaboration with Deutsche Boerse’s index provider ISS STOXX, the new index captures the performance of the 30 largest global semiconductor companies listed on U.S. exchanges, including prominent names like Nvidia.
The index is denominated in USD and operates as a price return index. With its recent launch, the STOXX Semiconductor 30 Index Futures will be available for trading continuously from 1:00 CET to 22:15 CET, aligning with trading hours in the U.S. and Asia.
This initiative is supported by a liquidity provider scheme from its inception, featuring incentives such as rebates and revenue sharing. The launch has garnered significant interest, particularly from Asian investors, due to the presence of Taiwanese companies in the index and recent global challenges emphasizing the need for secure semiconductor production and distribution.
Strong investor demand from Asia
Randolf Roth, Member of the Eurex Executive Board: “Recent global uncertainties have prompted nations to prioritize the secure production and distribution of semiconductors. Consequently, our STOXX Semiconductor 30 Index Futures are reflecting the growing appetite for semiconductors as a new investment theme. We are seeing a noticeable demand from Asia in particular, as Taiwanese companies are well represented in the index.”
Axel Lomholt, General Manager at STOXX: “The STOXX Semiconductor 30 Index represents the leading companies within a rapidly flourishing industry, all meticulously selected through a rules-based and transparent methodology. Our great collaboration with Eurex reflects a terrific opportunity to further enrich the derivatives market, particularly in combination with themes and sectors, leveraging our innovative index-based solutions.“
In a significant move within the trading industry, Eurex, Europe’s leading derivatives exchange, has announced the launch of new derivatives focused on Environment, Social, and Governance (ESG) indices. This development comes closely on the heels of the International Swaps and Derivatives Association (ISDA) introducing a comprehensive sustainability-linked derivatives (SLD) clause library.
ISDA’s pioneering effort for SLDs
ISDA’s new clause library aims to standardize the burgeoning field of SLDs. These derivatives incorporate sustainability-linked cash flows, relying on key performance indicators (KPIs) to ensure adherence to ESG targets. The initiative, led by ISDA Chief Executive Scott O’Malia, promises to streamline negotiation processes and reduce risks in this highly bespoke market segment.
“By their nature, SLDs are highly bespoke transactions, but the language that describes the terms and the objectives doesn’t have to be. The ISDA SLD Clause Library is designed to eliminate unnecessary differences and bring greater standardization to this market. This will bring more efficiency to the negotiation process and reduce risks, setting the foundations for this market to develop further,” said O’Malia.
ESG: Eurex launched suite of Socially Responsible Investing (SRI) futures
Earlier this year, Eurex launched new derivatives focused on Environment, Social, and Governance (ESG) indices. This development came closely on the heels of the International Swaps and Derivatives Association (ISDA) introducing a comprehensive sustainability-linked derivatives (SLD) clause library.
ISDA’s new clause library aims to standardize the burgeoning field of SLDs. These derivatives incorporate sustainability-linked cash flows, relying on key performance indicators (KPIs) to ensure adherence to ESG targets. The initiative, led by ISDA Chief Executive Scott O’Malia, promises to streamline negotiation processes and reduce risks in this highly bespoke market segment.
The ISDA SLD Clause Library, available on the ISDA MyLibrary platform, includes provisions for evidence of sustainability performance, mechanisms for adjusting cash flows based on ESG target compliance, and options for handling disruptions.
Aligning with these industry advancements, Eurex has broaden its ESG derivatives offerings with the introduction of futures on various Socially Responsible Investing (SRI) indices, including STOXX Europe 600 SRI, MSCI SRI Europe, USA, World, and Emerging Markets. These derivatives are designed to meet the needs of investors with stringent ESG mandates, such as asset managers for endowment funds or foundations.
Eurex’s product suite already includes sustainable versions of established benchmarks, with a methodology ranging from negative ESG screening to best-in-class approaches. Since introducing its first ESG derivatives in 2019, Eurex has seen a steady increase in trading volumes, cementing its position as a leading liquidity pool for ESG derivatives globally.
Finalto Asia and oneZero have expanded their collaboration to enhance liquidity services for their trading clients in the Asia-Pacific area.
The expansion includes integrating the Equinix Tokyo data center, TY3, with the already established centers in New York and London, significantly broadening the availability of Finalto’s specialized liquidity solutions for clients in this region.
oneZero’s Institutional Hub is seen as an essential element in Finalto’s global aggregation and pricing strategy as it grants access to over 250 brokers and banks within the oneZero Ecosystem. Integrating the Tokyo data center, however, will further increase liquidity options in the Asia-Pacific for Finalto clients.
Finalto adds TY3 data center to the LD4 and NY3
The oneZero Institutional Hub offers a modern, flexible trading solution, enabling financial entities and brokers to access a wide range of asset classes, liquidity, aggregation, pricing, distribution, risk management, and credit management services.
Alex Mackinnon, CEO of Finalto Asia, said: “We are excited to announce the expanded relationship with oneZero not only by using their Institutional Hub as a key component in our technology stack, but now by adding the Equinix TY3 data center to the LD4 and NY3 data centers. This exemplifies our dedication to providing our customers with cutting-edge technology options in accessing our wide liquidity and product offerings via a seamless trading experience.”
It features advanced trading analytics and comprehensive trading interfaces on a reliable SaaS platform, blending bespoke streams from over-the-counter (OTC) liquidity providers with market data from traditional exchanges. This ensures low latency and superior trading experiences for both clients and their customers.
Finalto Asia believes that introducing the oneZero Tokyo Hub will significantly impact the fintech landscape, positioning its customers for success in the competitive trading environment.
Andrew Ralich, CEO and Co-Founder of oneZero, commented: “I am pleased to be cementing the fruitful partnership that Finalto and oneZero has shared globally. By leveraging our Institutional Hub, the addition of the Equinix Tokyo data center marks another distribution channel by which Finalto customers in the region will be able to access liquidity. Our strategic partnership caters not only to the liquidity needs of brokers and institutional clients in the region, but also to their desire for advanced and customizable functionality through an efficient and comprehensive solution.”
Having recently celebrated the Year of the Dragon, Finalto Asia is once again making its liquidity offering more attractive to brokers and their clients in the APAC region, namely via strategic partnerships and infrastructure development.
After establishing a Singapore data center as part of its strategy to reduce latency and improve service efficiency for its Asian clients, Finalto partnered with PrimeXM and Centroid Solutions to enhance its liquidity provision. The firm was recognized with the ‘Best B2B Liquidity Provider APAC 2023‘ award at the UF AWARDS APAC Ceremony.
Earlier this month, Finalto launched its Prime of Prime (PoP) service on the London Stock Exchange Group’s (LSEG) FX Matching venue. Besides the direct access to FX Matching’s liquidity pool, the Prime of Prime service features sophisticated risk management tools, customizable trading solutions, and comprehensive real-time reporting and analytics.
Shawn Carpenter, the Chairman and CEO of StockAlarm, analogizes AI in trading to self-driving technology. Josh Kincaid, CMO at ToroAlerts, critically examines AI’s evolving role. Anthony Cammarano, a seasoned expert in cybersecurity, discusses AI’s implications for data security within trading strategies. Bernard Marr, a generative AI expert, delves into AI’s revolutionary impact on the trading industry. Giuseppe Sette, President of Toggle AI, discusses AI’s unmatched data analysis capabilities. Sean Kozak, developer of NeuroStreet, highlights practical AI applications in algorithmic trading, and Brian Prince, CEO of TopAITools.com, offers a nuanced perspective on AI in the crypto trading realm.
AI trading, the integration of artificial intelligence into the trading process, is shaping up to be a game-changer, much like the internet, electricity, and the steam engine were in their times. While it’s hard to predict exactly where it’s headed, it’s clear that AI’s impact could be felt sooner than we think.
Overall, AI trading leverages algorithms and machine learning to process large volumes of data, identify market patterns and trends, minimize human error, and uncover opportunities that might be overlooked by traditional methods.
Overview of AI Trading
AI trading executes trades using computer algorithms that analyze data like historical price movements and economic indicators to inform trading decisions.
Over time, AI trading has advanced, incorporating more complex machine learning algorithms. These developments have enabled traders to make more informed decisions and, for some, automate their trading strategies to capitalize on market opportunities around the clock.
AI trading tools also offer an edge by helping investors overcome common biases and emotional decisions. They can execute trades quickly, seizing opportunities that might otherwise be missed, ultimately leading to better outcomes and higher returns.
Additionally, these tools provide real-time updates and alerts, allowing investors to adjust their strategies promptly in response to market movements.
However, it’s essential to understand that AI tools supplement rather than replace human judgment and expertise.
Practical Use Cases of AI in Retail Trading
AI trading applications represent a sophisticated blend of artificial intelligence and machine learning, offering a range of benefits to retail investors. Here is an overview of real-world applications for AI in retail trading, with some already in operation while others have the potential to emerge.
AI trading bots
At the core of AI trading are bots, specialized programs that perform tasks like trend analysis, market movement prediction, and identifying investment opportunities, tailored to user preferences. These bots are essential for navigating markets like cryptocurrency and forex, becoming vital assets for financial entities.
AI trading bots excel by leveraging algorithms to spot trends and pinpoint profitable trading opportunities. Their ability to autonomously execute trades makes them particularly advantageous for OTC trading.
Quantitative Analysis
A key technique in quantitative analysis is regression analysis, which examines the relationship between multiple variables to identify trends and correlations. By employing AI, traders can devise strategies to capitalize on the interplay between different market factors or asset correlations, exploiting inefficiencies for profit.
High-Frequency Trading (HFT)
High-frequency trading represents the epitome of speed in AI trading, executing transactions in mere fractions of a second. HFT strategies leverage advanced algorithms and high-speed data transmission to profit from minor price fluctuations, trading large volumes quickly and efficiently.
Arbitrage Strategies
Arbitrage strategies seek to benefit from price discrepancies across different markets or assets. By identifying mispriced assets relative to each other, traders can buy and sell these assets to capture the price difference as profit.
Predictive Models
Machine learning’s primary application in trading is the development of predictive models. These AI models analyze historical market data to forecast future trends, providing traders with insights into potential price movements.
Sentiment Analysis
Sentiment analysis represents another innovative use of AI in retail trading. By analyzing news articles, social media, and other information sources, traders can gauge market sentiment, informing their buy or sell decisions based on the prevailing mood of the market.
Reinforcement Learning
Reinforcement learning allows algorithms to learn from their actions, adjusting strategies based on the outcomes of past trades. This adaptive approach creates dynamic trading models that evolve in response to market changes, optimizing strategies for real-time conditions.
Data Mining
Data mining plays a pivotal role in AI trading by sifting through extensive datasets to detect patterns and market trends. Utilizing algorithms and statistical models, data mining digs into historical market data, uncovering actionable insights that inform trading strategies.
Real-Time Analytics
This process involves analyzing data in real time, employing algorithms and statistical models to detect patterns and trends. The ability to process information on the fly offers AI trading systems a significant edge, enabling rapid response to market changes.
Risk Assessment Models
Risk assessment models are vital for evaluating the potential outcomes of trading decisions. By analyzing historical data, these models estimate the likelihood of various market scenarios.
Stress Testing
Stress testing evaluates a trading strategy’s resilience under various market conditions, revealing potential strategy weaknesses. By simulating different market scenarios, traders can adjust their strategies to mitigate identified risks.
Automated Trading Systems
Automated trading systems execute trades based on predefined rules and criteria, utilizing AI to analyze market data and pinpoint trading opportunities. These systems automate the trading process, reducing the need for constant manual oversight and allowing for efficient market participation.
Backtesting
Backtesting is a critical advantage offered by AI, allowing for the simulation of trading strategies using historical data. This process not only assesses a strategy’s viability but also identifies potential improvements. For instance, AI tools can analyze stocks poised for breakouts, advising on the most effective options strategies based on historical performance.
Benchmarking
Benchmarking complements backtesting by comparing a strategy’s performance against a selected benchmark or market index. This comparison helps traders understand how their strategy fares relative to the market or specific sectors, providing insights into its relative success.
Challenges and Limitations
Despite the advantages, AI trading faces several challenges and limitations:
Market Volatility
AI trading systems, trained on historical data, may struggle to predict unexpected market events or black swan incidents, leading to inaccuracies and financial losses. Furthermore, the widespread use of AI algorithms can amplify market volatility, as simultaneous algorithmic reactions to market signals may exacerbate price fluctuations.
AI Interpretability
The complexity and opacity of AI models pose interpretability challenges, making it difficult for traders to understand the rationale behind algorithmic decisions. This opacity can erode trust in AI systems, complicating informed decision-making. Additionally, AI models are susceptible to data inaccuracies.
Wrap-Up
Pros
AI makes things faster and smarter indeed. Manual trading might not cut it in the future as most trading is done by robots, especially in high-speed and arbitrage trading. High-speed trading is about making lots of trades super fast. Arbitrage involves trading in different markets at the same time to take advantage of price differences.
Not long ago, stock trading happened on big, noisy floors filled with traders. But then computers changed everything, making trading electronic and accessible worldwide. This shift left many traditional traders behind, as they couldn’t keep up with the new digital market.
The appeal of AI trading lies in its potential to make sophisticated trading strategies accessible to newcomers, reducing emotional biases and improving risk management. However, the limitations of AI, including the lack of human intuition and adaptability to unexpected market changes, highlight the importance of a balanced approach to automation in trading.
Cons
Science fiction often makes AI seem like a super-smart force. But really, AI today is just a bunch of algorithms, or steps to solve problems, that range from simple to very complex. Some algorithms are so complicated that even experts find them hard to explain. Others are simple enough for a computer science student to program and win a game of checkers. It’s not about which one is better; they just do different things with different kinds of data.
AI can look at huge amounts of data to find patterns and give useful information. But success in retail trading still needs people to make decisions and handle problems that AI can’t predict. So, despite some scary predictions, the teamwork between humans and AI is still the most likely path forward.
Conclusion
Trading with AI or by hand has its pros and cons. That’s why many big companies use both AI and expert traders. They work together to make more money and reduce risks.
AI algorithms are incredibly quick and accurate. They can handle huge amounts of data in milliseconds and execute trades perfectly. Human traders can’t compete with AI in speed. AI can also read the market and financial news super fast, something humans can’t match.
Robots don’t get tired or emotional. They don’t take breaks, get sick, or make decisions based on feelings like greed or fear. However, AI today doesn’t have the intuition or creativity humans do. They follow their programming, but they’re not great at seeing the big picture. That’s why humans still play a big role in making big investment decisions.
In summary, robots are a big deal in retail trading now, doing more trading than humans. AI has many advantages, like being fast, accurate, and unemotional. But humans still have the upper hand in intuition and creativity. This might change as AI gets better, possibly leading many traders to leave the industry or invest in trading algorithms themselves. One thing’s for sure: the financial world is always evolving.
Industry Insights
Brian Prince, CEO of TopAITools.com and founder of the crypto trading platform XCoins, provides a nuanced perspective on the role of AI in retail trading.
Prince points out, “AI systems lack the inherent bias and emotion of human traders.” However, he also cautions that any bias in AI systems stems from their human developers.
Despite the hype around AI’s performance, Prince is skeptical about its proven superiority over human traders in the long term, stating, “I personally have not seen any instances of this.”
On the accessibility of AI trading tools, Prince observes that many platforms are designed to be user-friendly for retail investors. He mentions Uptrends AI as an example of an intuitive platform that leverages natural language processing to inform investors.
Prince also addresses AI’s role in risk management and predictive analysis, noting its capability to process vast data volumes swiftly. This efficiency can reveal market patterns and risks overlooked by human traders. Nevertheless, he emphasizes, “AI is only a tool,” arguing that while AI can support informed decision-making, it cannot replace the nuanced advice of human financial advisors.
Regarding AI’s impact on market dynamics, Prince notes, “AI tools can enhance market efficiency and liquidity…they can also contribute to increased volatility”.
Sean Kozak, the developer of NeuroStreet, als provided insights into the real-world applications of AI by retail traders. He highlights the use of AI in developing algorithmic and quant systems for trading platforms, which eliminates the need for individual coding and reduces the financial burden of hiring programmers.
Regarding AI-driven strategies among retail traders, Kozak notes the difficulty in pinpointing effective strategies, suggesting that many may not deliver substantial value. “This is a very hard question to answer as most strategies used by retail are not worth their weight in gold.”
Kozak also addresses the perceived impact of AI trading bots and algorithms on market volatility and liquidity, dismissing it as largely overhyped. He argues that significant market movements are primarily driven by institutional actions rather than retail trading algorithms, pointing out the distinction between marketing narratives and the actual influence of trading volume.
“It doesn’t, this is just hype. The only impact on volatility and liquidity comes from large SIZE. And only institutions have this, the rest is just marketing and bull@#$%.”
On regulatory challenges, Kozak points to a broader issue within the industry: a lack of clarity and understanding of AI’s regulatory landscape, even among governing bodies like the SEC.
Giuseppe Sette, the President and co-founder of Toggle AI, shares insights on the integration of AI in trading, highlighting its superior capability to analyze vast datasets which is not feasible for human traders.
He notes, “They can go both ‘deep and wide’…at a scale that is just not feasible for human traders.”
However, Sette clarifies that this does not necessarily set AI in opposition to human traders. Instead, AI serves as a tool that unveils investment opportunities, while human traders contribute a holistic perspective, crucial for identifying the best investment options.
Highlighting the practical success of AI, Sette mentions that “The greatest quant hedge funds and market makers have effectively taken the top spot in terms of risk-adjusted performance 10 to 15 years ago and never let it go”.
Sette also addresses the barriers to AI integration in trading, pointing out the necessity for a blend of AI and investing skills to fully leverage AI capabilities.
Sette further elaborates on AI’s role in risk management, stating it not only expands the horizon of traditional risk management but also helps in predicting future scenarios and identifying emerging macro trends, such as the implications of AI on inflationary pressures due to workforce replacement.
Bernard Marr, a generative AI expert and author, delves into the impact of AI on the trading industry, offering direct insights into how these systems revolutionize market operations.
“AI systems are transforming the trading landscape by offering superior performance and efficiency compared to traditional trading strategies,” Marr explains. He points out, “There have been instances where AI-driven strategies have consistently outperformed human traders,” especially in high-frequency trading where time is critically short.
Marr addresses the challenges of integrating AI into trading, noting the substantial barriers in terms of “technical knowledge and financial resources.” Yet, he also highlights the democratizing potential of cloud computing and AI trading platforms, which “are beginning to lower these barriers for retail traders.”
Retail traders are increasingly relying on AI for a variety of functions, including “algorithmic trading, sentiment analysis from news and social media to gauge market mood, and automated risk management.”
However, Marr does not shy away from discussing the complexities introduced by AI, acknowledging that while it can improve “market efficiency and liquidity,” it might also “lead to increased short-term volatility.” Marr concludes with a forward-looking perspective, emphasizing that “the key to harnessing the power of AI in trading lies in balancing innovation with ethical considerations and regulatory compliance.”
Anthony Cammarano, with over 25 years of experience in cybersecurity and technology, brings a focused perspective on the intersection of AI, data security, and trading strategies.
As the Global VP of Security, Privacy & Strategy at Protegrity, Cammarano highlights, “AI systems have a unique capacity to ingest massive amounts of data and effectively summarize and identify patterns”. This capacity enables AI to excel in both short-term decision-making, leveraging vast datasets in fractions of a second, and in navigating complex market dynamics more adeptly than traditional quant/cubist strategies.
Cammarano points out the diverse applications of AI in the realm of retail trading. He notes the technology’s utility in “quant/cubist short-term trading strategies, long-term market research, and short-term news/social sentiment analysis.”
Josh Kincaid, CMO at ToroAlerts, offers a critical perspective on the evolving role of artificial intelligence (AI) in retail trading.
He acknowledges AI’s profound impact, highlighting its advantages in speed, data analysis, and decision-making capabilities. However, Kincaid also raises concerns about potential overreliance on AI-driven strategies, suggesting that it could lead to a loss of critical thinking skills among traders and possibly exacerbate market volatility.
Kincaid provides compelling evidence of AI’s superior performance in trading through examples like The Medallion Fund and The C3 Fund, which have achieved remarkable returns by leveraging AI and machine learning. He points out, “Successful AI-based strategies…outperform traditional trading strategies in terms of performance and efficiency.” For instance, The C3 Fund’s staggering 876% return trading crypto in 2021 versus Bitcoin’s 24% illustrates AI’s potential to significantly outpace human trading strategies.
Kincaid also highlights real-world applications of AI for retail traders, from algorithmic trading to sentiment analysis and automated trading systems. He also notes the popularity of AI-driven strategies such as trading signals and copy trading among retail traders.
However, Kincaid also cautions about the mixed effects of AI trading bots and algorithms on market volatility and liquidity, including the potential for increased volatility through mechanisms like high-frequency trading and flash crashes.
Shawn Carpenter, Chairman and CEO of StockAlarm, draws compelling analogies and likens the advent of AI in trading to the transition from manual to self-driving cars.
Carpenter describes AI trading systems as “having a supercomputer sidekick that can crunch numbers, predict market moves, and even execute trades in the blink of an eye.”
Carpenter acknowledges the complexity of integrating AI into trading, stating, “jumping into AI trading isn’t as simple as downloading an app on your phone. It’s more like building a rocket in your backyard.” This analogy reflects the necessity of having a robust understanding of both financial and technological domains to effectively leverage AI in trading.
Exploring real-world applications, Carpenter envisions AI trading as possessing the ability to sift through “millions of tweets, news stories, and financial reports in seconds” for market sentiment analysis or to execute trades with astounding rapidity.
Highlighting AI’s role in risk management, Carpenter refers to it as a “guardian angel,” capable of forecasting market movements with remarkable accuracy and thereby facilitating better decision-making and portfolio management. However, he also points out the challenges AI introduces, including potential contributions to market volatility and liquidity fluctuations, describing the balance as “a delicate balance; we’re all still learning the ropes.”
The lawsuit stems from Lemma’s alleged retraction of an agreement to sell two FTX accounts, valued at $166 million at the time of FTX’s collapse, to Attestor. The agreement was formed in June 2023 after Attestor placed the highest bid in an auction organized by Lemma Technologies in May 2023.
Lemma Technologies, which acquired the accounts from its majority owner, South Korean national Junho Bang, in January 2023, agreed to sell the claims to Attestor for about $58 million. At the time, this sum represented nearly 35% of the accounts’ initial value.
However, Attestor alleges that Lemma began to express concerns over its authority to sell the claims and the potential liability Bang could face from his business associates if the transfer proceeded.
As delays ensued, Lemma Technologies is accused of attempting to renegotiate the purchase price, indicative of what Attestor describes as “seller’s remorse.” The suit highlights the rising value of FTX claims, with the average bid for claims increasing from 35% at the time of the agreement to 92% by the end of 2023. This came amid growing investor confidence in recovering funds through the bankruptcy process.
This lawsuit comes amid other legal troubles for Bang, who, along with two executives from Haru Invest, a South Korean crypto yield platform, was arrested in February on charges of embezzling nearly 1.1 trillion won ($830 million) in cryptocurrencies, from around 16,000 customers. Haru Invest has since suspended withdrawals and deposits and has taken legal action against B&S Holdings for allegedly providing fraudulent management reports.
Haru Invest acted as a cryptocurrency yield platform that has been facing troubles since it suspended withdrawals in June 2023.
According to the prosecution’s claims, the executives of Haru Invest misappropriated the coins deposited by their customers. This was purportedly done by reinvesting the assets from March 2020 to June 2023, contrary to the firm’s claims of using “risk-free diversified investment techniques” for operating a stable business.
Haru Invest had previously attributed its challenges to alleged fraudulent activities by consignment operator B&S Holdings, formerly known as Aventus. However, the arrests suggest deeper issues within Haru Invest’s operations.
This decision precedes the European Union’s (EU) adoption of the Markets in Crypto-Assets (MiCA) regulation, set to fully come into effect on December 30, 2024. MiCA will introduce tighter controls on the usage of certain stablecoins within the region.
An OKX spokesperson explained that the delisting aims to facilitate the introduction of euro on-ramps for EEA-based customers. He added that this adjustment impacts only a minor portion of the exchange’s user base. In addition to phasing out USDT pairs, OKX is expanding its offerings in the EEA by introducing various euro fiat onramps and euro pairs to cater to the needs of its regional customers.
Although the exchange confirmed that tether became inaccessible to EEA traders starting March 14, OKX’s website still listed USDT pairs as available in the region as of March 15. Some EEA traders were informed about the delisting via email, which hinted at the impending regulatory changes without directly linking the decision to the MiCA regulation.
The email to traders stated, “Please note that not all tokens are available in all markets due to regulatory requirements,” indicating a shift in available services to comply with upcoming regulations.
These changes are part of the bloc’s wider efforts to transition smoothly to MICA-based regulations. Countries in the European Union are gearing up to implement the recently finalized rules, which will govern digital assets and firms operating within the single market.
MiCA is set to take effect over the next 12 months, and countries like France are already making preparations.
Under MiCA, stablecoins are categorized either as ‘e-money tokens’ (EMTs), if pegged to a fiat currency, or ‘asset-referenced tokens’ (ARTs) for other types of backing. The regulation introduces scaling constraints based on usage. Specifically, stablecoins not pegged to an EU currency face restrictions: they will be banned from exceeding 1 million transactions per day. Additionally, the rules cover Terra-style algorithmic stablecoins, which rely on automated coding to maintain value.
Zhao, who stepped down from his role at Binance in November 2023 following a plea deal with the U.S. Department of Justice, shared on X that this project would focus on education without introducing new tokens. More details are expected to be announced soon.
In his departure from Binance, Zhao agreed to plead guilty to charges related to breaches of the Bank Secrecy Act and will pay a $50 million fine. The act mandates that businesses aid in preventing money laundering and other financial crimes.
Earlier in February, a federal court announced a new sentencing date for Changpeng Zhao. Originally scheduled for February 23, his sentencing on charges related to money laundering has now been moved to April 30. Under federal sentencing guidelines, Zhao could face up to 18 months in prison, although prosecutors have suggested a maximum sentence of 10 years.
Despite his exit from Binance, Zhao’s fortune soared by almost $25 billion this year, even as his holdings in Bitcoin and Binance’s own coin, BNB, are not included in this valuation. His wealth, now estimated at over $37 billion, ranks him as the 35th richest person globally. This increase is primarily attributed to his controlling stake in Binance. However, this figure remains well below its peak of nearly $97 billion in early 2022. It also dropped from the year-to-date high of $50.4 billion eight months ago.
Binance, known for holding user assets in a 1:1 ratio along with additional reserves, has assets exceeding $100 billion. The exchange’s proof-of-reserves (POR) system supports transparency for 31 digital assets, although critiques have been made about the lack of audited fiat reserves and detailed financial health information.
A blog post from Binance highlighted that the total value locked on its centralized exchange has soared from about $67 billion to $115 billion over the past. This comes in a landmark month for the broader crypto industry, with daily exchange volume, DeFi TVL, global crypto investment products AuM, and U.S. spot bitcoin ETFs trading volume all surpassing the $100 billion mark.
Both face up to 20 years in prison for their involvement in what has been described as a “Ponzi” scheme. The verdict was issued on March 14 after a two-week trial in a New York District Court.
According to the U.S. Attorney’s Office for the Southern District of New York, IcomTech was marketed as a crypto mining and trading firm following its launch in mid-2018 by founder David Carmona, who had enlisted Rodriguez to create a website for the company. The firm falsely promised investors guaranteed daily returns from its crypto trading and mining operations.
Prosecutors revealed that IcomTech did not engage in any trading or mining activities. Instead, it operated as a Ponzi scheme, using new investor funds to pay returns to earlier investors. Rodriguez contributed to the deception by advising on the pricing of “investment packages” and fabricating daily returns accessible to investors through the website and a portal he managed.
The U.S. Attorney’s Office disclosed that Brend and other promoters of the scheme spent large sums of investor money on personal expenses, including real estate and travel. They also organized extravagant events to attract more investors, promising luxury lifestyles and financial freedom.
As the scheme began to unravel, with investors unable to withdraw their profits and facing excuses, delays, and hidden fees, IcomTech introduced a token called “Icoms” in a bid to raise additional funds. The token, which was falsely claimed to be accepted for payments by various companies, was essentially worthless, leading to further losses for investors. IcomTech collapsed in 2019, ceasing all payments.
The court accused the operation of defrauding tens of thousands of individuals out of millions of dollars, exploiting working people’s savings.
Sentencing Brend is scheduled for June 27, followed by Rodriguez’s sentencing on June 28. Marco Ochoa, IcomTech’s former CEO, received a five-year prison sentence in January after pleading guilty to wire fraud conspiracy. David Carmona, the founder, also pleaded guilty to wire fraud conspiracy in December.
Central Bank Decisions in Focus This Week
The financial world is set for a busy week with central bank meetings taking center stage. The Federal Open Market Committee (FOMC) meeting on Wednesday is the most anticipated event, with investors waiting to see if the Fed will change its interest rates and economic projections. A hawkish Fed could strengthen the US Dollar (USD) and put downward pressure on gold prices, while a dovish Fed could weaken the USD and potentially boost gold. Other central bank decisions, such as those from the Bank of England (BoE) and the Bank of Japan (BoJ), could also impact currency markets.
US Dollar Outlook: Mixed Signals
The US Dollar is currently under mild selling pressure due to rising stock markets and positive economic data from the Eurozone. However, the US Dollar Index (DXY) is still reflecting minor gains. Investors are closely watching the US Treasury yields, which are rising, and the upcoming Fed meeting for further cues on the direction of the USD.
Gold Prices: Balancing Act
Gold prices are edging higher at the beginning of the week, as a weaker US Dollar due to improved risk appetite is boosting demand for the safe-haven asset. However, this upside is limited by firming US Treasury yields, which reflect reduced expectations of a Federal Reserve rate cut in June. The key event for gold this week will be the Fed meeting on Wednesday. If the Fed maintains its hawkish stance, meaning it doesn’t cut rates or signals future hikes, it could put downward pressure on gold prices. Investors will be closely following the Fed’s economic projections and the dot plot, which shows interest rate expectations from Fed officials, for clues on the future path of monetary policy and its impact on gold.
Economic Calendar Highlights
Central Bank Meetings:
- BoJ Interest Rate Decision (03/19/2024):This decision by the Bank of Japan could significantly impact the Japanese Yen (JPY).
- RBA Interest Rate Decision (03/19/2024):This decision by the Reserve Bank of Australia could significantly impact the Australian Dollar (AUD).
- BoC Consumer Price Index (Core and YoY) (03/19/2024):This data release from the Bank of Canada will influence expectations for their monetary policy decisions and impact the Canadian Dollar (CAD).
- PBoC Interest Rate Decision (03/20/2024):This decision by the People’s Bank of China could significantly impact the Chinese Yuan (CNY).
Other Important Releases:
- FOMC Meeting (03/20/2024):While not listed above, this is still a very important event as the Federal Open Market Committee’s decision on interest rates and economic projections will impact global financial markets.
- Consumer Price Index (YoY) for UK (03/20/2024) and EUR Zone (03/20/2024):Inflation data is a key indicator for central banks, and these releases could influence monetary policy decisions in both regions.
- ECB President Lagarde speech (03/20/2024):Speeches by central bank leaders can provide clues about future monetary policy direction.
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– EURUSD reversed from key resistance level 1.0980
– Likely to fall to support level 1.0850
EURUSD currency pair recently reversed down with the daily Shooting Star from the key resistance level 1.0980, which has been steadily reversing the pair from the start of January, as can be seen from the daily EURUSD chart below. The resistance level 1.0980 was strengthened by the upper daily Bollinger Band and by the 61.8% Fibonacci correction of the previous sharp downward impulse 1 from the end of last December.
Given the clear daily downtrend and the strengthening euro bearish sentiment seen across the FX markets today, EURUSD currency pair can be expected to fall further toward the next support level 1.0850 (former minor resistance from the end of February).
The move comes three months after the acquisition of NAGA Group, a provider of brokerage services, cryptocurrency platform NAGAX and neo-banking app NAGA Pay, by Capex.com. Bilski, a Polish/German serial tech entrepreneur, established NAGA as a social network for investing. The platform now boasts nearly 1 million users.
Before transitioning to the role of CIO, Bilski served as NAGA’s Chief Executive Officer until June 2023. During his tenure as CEO, he aimed to simplify the investment process for new users by integrating a social component that allows them to copy professional traders’ strategies while learning about the markets.
Bilski described NAGA as the “Facebook for the trading industry,” seeking to eliminate the necessity for users to navigate multiple platforms for trading and investment strategy research, offering a more streamlined and user-friendly experience.
Interestingly, Bilski credits not Facebook but Tinder as the initial inspiration for NAGA’s concept, spurred by his personal challenges with the complexity of online trading platforms he encountered starting in 2014.
Bilski wrote on his Linkedin profile: “Even though as core founder, I never owned more than 10% of NAGA. I treated it as if it’s all mine and have shown always 100% full-scale commitment towards my job. Sometimes, I loaded a bit too much on my shoulders. I can’t hide the fact that such limited ownership makes you then rethink future perspectives, but that’s how business is!”Top of Form
NAGA has recently made a series of new additions to its top management team, hiring new executives for key leadership positions, with Michael Milonas taking on the role of Group CEO. Additionally, NAGA appointed Sam Chaney as the Chief Commercial Officer (CCO), responsible for driving global growth in emerging markets.
For the 2023 financial year, the group’s brokerage business revenue was reported at €45.5 million. This figure represents a +20 percent decline from the previous year’s revenue of €57.6 million. However, the company’s EBITDA showed a marked improvement, reaching around €7 million, a sharp contrast to the previous year’s loss of €-13.7 million.
Following a restructuring in the summer, NAGA decreased its cost base by nearly two thirds when compared with the same period in the year earlier whilst keeping new customer growth above 2022 levels.
Meanwhile, the broker optimized its user acquisition strategy, drastically reducing its marketing and sales spending. In the first nine months of 2022, the company spent approximately €26 million, while in 2023, this figure was trimmed to just €4 million for the same period. Notably, the average net acquisition cost per new account dropped from €1,269 in 2022 to €181 in 2023. Despite the reduced budget, NAGA Group acquired around 10,000 new funded accounts in the first three quarters of 2023, only 19% less than the previous year.
Barchart has enhanced its flagship platform, cmdtyView, by introducing integrated Bid, Offer, and Hedge management capabilities.
cmdtyView, known for its comprehensive market intelligence, analysis, and risk management tools, now allows users to manage bids, offers, and hedging activities within a single interface.
This interface also provides access to real-time market data, news, charting, and trading tools, catering to a wide range of agricultural markets such as grains, oilseeds, meats, coffee, cocoa, cotton, sugar, as well as energy and metals.
“We’ve set out to develop cmdtyView into a central command center”
Streamlining operations for commodity merchandisers, traders, brokers, and analysts, the integrated Bid, Offer, and Hedge management within cmdtyView, Barchart further positions its trading platform as a central hub given its integration across various workflows, exchanges, brokers, and back-office operations for risk management and accounting.
Established in 1995, Barchart is a leading provider of market data and services to the global financial, media, and commodity industries.
Mark Haraburda, CEO of Barchart, said: “We’ve set out to develop cmdtyView into a central command center for our users to help them operate their commodity business more efficiently. With our latest releases and the product development we completed in 2023, cmdtyView integrates across our users’ workflows, as well as down to exchanges and brokers for trading and back-office for risk management and accounting. It’s a complete ecosystem for our users to work within.”
Barchart launched media syndication service, Barchart Impact
In late 2023, Barchart launched a media syndication service that aims to connect clients with a vast audience on barchart.com and many other websites within Barchart’s syndication network.
The goal of Barchart Impact is to assist clients in building brand awareness, enhancing SEO visibility, promoting products, generating leads, and engaging new investors.
Barchart Impact is used by a diverse range of clients including investor relations firms, public relations firms, small-cap companies, and global exchanges.
Services provided by Barchart Impact comprise:
Sponsored Content: Allows clients to reach a vast audience on barchart.com and its partner network.
Premium Placement: Ensures that client content achieves a specified number of pageviews in an engaging format.
Syndication & SEO: Utilizes over 300 syndication outlets to maximize content visibility and boost SEO.
Dedicated Emails: Provides the option to send targeted emails to Barchart’s database of over 300,000 investors and traders.
Social Media: Showcases client content to Barchart’s 110,000+ social media subscribers.
Newsletters: Places client branding prominently in Barchart Newsletters.
The clarification comes amid allegations of insider trading, as detailed by on-chain data firm Lookonchain, which reported a large BOME purchase made shortly before the coin’s explosive growth on the exchange.
Additionally, Binance has announced a reward program offering between $100,000 to $5 million for information on fraudulent activities, including insider trading.
The incident in question involved a crypto whale acquiring 314 million BOME tokens at $0.0074 each, amounting to $2.3 million, through the Raydium decentralized exchange. Following Binance’s listing of BOME and the introduction of trading pairs against Bitcoin, Tether, First Digital USD, and the Turkish Lira, the token’s price surged by over 1500%.
Community members and observers raised questions about the timing of the transaction, speculating on the possibility of insider information being used to profit from the listing. Binance’s quick response included an internal investigation, which found no evidence of staff involvement in the transaction.
On Reddit, one user asked whether the trade was merely luck or if it stemmed from insider information, while another suggested that the trader could be an insider affiliated with Binance.
Amidst the Solana memecoin frenzy, while some individuals made handsome gains, not everyone shared in the luck. On March 15, a trader who had acquired BOME tokens very early missed out on potential millions in gains after selling their tokens just a day before the token’s price surged.
The trader offloaded 170 million tokens for $131,000, only to see the token’s value skyrocket thereafter. At current market prices, those tokens would have been valued at $2.3 million.
Webull Canada has introduced a cash management solution for Canadian investors, offering 4% CDN interest or 3% USD interest on uninvested cash.
The low-cost digital investment platform aims to provide Canadian users with a means to earn passive income amid market volatility, at no extra charge.
No minimums, lockups, or limitations
Interest accrues monthly without the need for account minimums, lockups, or limitations. It is important to note that interest rates on settled net credit cash balances in Webull Securities (Canada) Limited accounts are subject to change without notice.
Webull, based in St. Petersburg, Florida, and supported by private equity investors from the United States, Europe, and Asia, operates globally. It serves millions of users across over 180 countries, offering 24/7 access to financial markets and allowing for a variety of investment strategies through its platform. Webull’s services are available in multiple countries, including the United States, United Kingdom, Hong Kong, Singapore, Australia, South Africa, Japan, Mexico, and now Canada.
Michael Constantino, CEO of Webull Securities (Canada) Limited, said: “Earning passive income on interest is a huge benefit for Canadian investors which is not very prevalent in today’s market. Webull saw initial success with its cash management tool following its launch in the United States, and we are excited to bring the same benefits to our Canadian customers.”
Webull Canada opened for business in January of this year, with its brokerage services now available to Canadian residents, which means access to both Canadian- and US-listed equities through the Webull app.
The goal of Webull is to disrupt a traditionally expensive brokerage system in Canada via its low-cost business model. The firm an app, market data, tools, analytics, and education for free.
Authorized in November 2023, Webull Canada launched order execution-only brokerage functions, offering features such as real-time quotes, comprehensive market data, 20+ charting widgets, 60+ indicators, paper trading, and educational tools.
The Securities and Exchange Commission has sued Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their purported use of artificial intelligence (AI).
What Delphia and Global Predictions were accused of doing is what is now known as “AI washing”, a term used to describe the practice where companies falsely or misleadingly claim that their products or services are powered by artificial intelligence (AI), when in fact they may not be using AI technologies or are using them minimally.
This can be a marketing strategy to capitalize on the popularity and perceived value of AI, making the offerings seem more innovative or effective than they actually are. It is similar to “greenwashing,” where companies overstate the environmental friendliness of their products. AI washing can mislead consumers and investors, affecting their decision-making process based on inaccurate representations of technology use.
Delphia to pay $225,000, Global Predictions to pay $175,000
The two investment advisers agreed to settle the SEC’s charges and pay $400,000 in total civil penalties. Delphia agreed to pay a civil penalty of $225,000, and Global Predictions agreed to pay a civil penalty of $175,000.
According to the SEC’s order against Delphia, from 2019 to 2023, the Toronto-based firm made false and misleading statements in its SEC filings, in a press release, and on its website regarding its purported use of AI and machine learning that incorporated client data in its investment process.
Delphia claimed that it “put[s] collective data to work to make our artificial intelligence smarter so it can predict which companies and trends are about to make it big and invest in them before everyone else.” The statements were false and misleading because Delphia did not in fact have the AI and machine learning capabilities that it claimed.
In the SEC’s order against Global Predictions, the SEC found that the San Francisco-based firm made false and misleading claims in 2023 on its website and on social media about its purported use of AI. For example, the firm falsely claimed to be the “first regulated AI financial advisor” and misrepresented that its platform provided “[e]xpert AI-driven forecasts.”
Additionally, both firms violated the Marketing Rule which, among other things, prohibits a registered investment adviser from disseminating any advertisement that includes any untrue statement of material fact.
“You need to ensure that your representations are not false or misleading”
“We find that Delphia and Global Predictions marketed to their clients and prospective clients that they were using AI in certain ways when, in fact, they were not. We’ve seen time and again that when new technologies come along, they can create buzz from investors as well as false claims by those purporting to use those new technologies. Investment advisers should not mislead the public by saying they are using an AI model when they are not. Such AI washing hurts investors,” said SEC Chair Gary Gensler.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented: “As more and more investors consider using AI tools in making their investment decisions or deciding to invest in companies claiming to harness its transformational power, we are committed to protecting them against those engaged in ‘AI washing’. As today’s enforcement actions make clear to the investment industry – if you claim to use AI in your investment processes, you need to ensure that your representations are not false or misleading. And public issuers making claims about their AI adoption must also remain vigilant about similar misstatements that may be material to individuals’ investing decisions.”
DTCC has announced the appointment of Sharon Biran as its new Managing Director and Chief Client Officer, taking over from Timothy Keady, and reporting directly to Francis J. La Salla, President, CEO, and Director, and
With over two decades of experience in client engagement, global transformations, and operational resilience, Biran joins DTCC after more than six years at Accenture, where she was Managing Director and Global Account Leader, based in New York.
At Accenture, she managed some of the company’s most substantial banking and capital markets client relationships. Her career also includes 15 years in executive roles at UBS and JPMorgan Chase, focusing on regulatory change programs and driving technology and operations transformation.
Biran will oversee DTCC’s global strategy for client management and engagement
In her new role, Biran will oversee DTCC’s global strategy for client management and engagement, encompassing sales, relationship management, partnerships, marketing, and communications, as well as leading the Consulting Services business. Her extensive background includes more than 25 years in senior leadership roles across the financial services sector, where she has been instrumental in managing strategic client relationships, leading global transformation programs, and spearheading initiatives to boost operational resilience and organizational effectiveness.
Francis La Salla, President, CEO, and Director of DTCC, said: “We’re pleased to have a seasoned executive like Sharon joining DTCC at this critical juncture in our history. Sharon’s deep experience in financial services, senior stakeholder engagement and operational resilience will help us advance our strategy, elevate how we deliver new capabilities and position us as a strategic partner to our global clients and the industry. We thank Tim for his contributions and wish him the very best in his future endeavors.”
“I’m honored to join DTCC and excited to contribute to its mission of enhancing the stability and efficiency of the global financial markets. I look forward to working with the talented team at DTCC and leveraging my experience to further strengthen client relationships, drive innovation, and deliver a world-class client experience,” Sharon Biran said.
Traders Global Group Inc., the firm behind the proprietary trading firm brand My Forex Funds (MFF) which was recently sued by the CFTC for an alleged $310 million fraud, has filed a motion for sanctions against the CFTC, accusing the regulatory body of a pattern of misconduct.
The alleged CFTC misconduct includes misrepresenting facts to the court and attempting to breach MFF chief executive Murtuza Kazmi’s attorney-client privilege. The motion asserts that the CFTC’s aggressive stance against Traders Global and Kazmi is an attempt to regulate U.S.-based simulated foreign exchange trading without clear legal authority, thereby endangering the due process rights of individuals and companies operating in the U.S.
DebtBox and Coinbase also faced ‘ex parte’ misuse
According to the legal team representing My Forex Funds, the case draws parallels with previous actions by regulatory bodies, notably the Securities and Exchange Commission (SEC), against companies like DebtBox and Coinbase, concerning their handling of cryptocurrency services.
The crux of the issue lies in the CFTC’s alleged misuse of ex parte proceedings to freeze all of Kazmi’s assets, a move that has sparked significant controversy and allegations of due process violations.
The CFTC’s actions have raised alarm over the use of ex parte proceedings, which can be executed without the other party’s knowledge, potentially leading to irreversible damage. Kazmi’s case, initiated with charges of fraud by the CFTC in August 2023, involves allegations of profiting from customer losses in proprietary trading activities.
The regulatory action led to the immediate closure of My Forex Funds and the freezing of Kazmi’s assets, based on what Kazmi’s defense claims were knowingly false statements and misrepresentations by the CFTC. In November 2023, however, the court agreed to unfreeze $100 million in assets.
SEC ruined DebtBox’s image for what?
In August 2023, the SEC obtained a temporary asset freeze, restraining order, and other emergency relief against Digital Licensing Inc., also known as DEBT Box. Jason Anderson, his brother Jacob Anderson, Schad Brannon, and Roydon Nelson, as well as 13 other defendants, were sued by the SEC for an allegedly fraudulent scheme to sell crypto asset securities to hundreds of U.S. investors that raised approximately $50 million and unspecified amounts of Bitcoin and Ether.
The restraining order was later dissolved after Debt Box demonstrated that it hadn’t moved funds outside the U.S. or closed its bank accounts as alleged by the SEC. In December 2023, US court Judge Robert Shelby accused the SEC lawyers of misleading the court with false arguments. The case was later dismissed.
The situation underscores a broader concern within the financial industry about the power of regulatory bodies to impact businesses adversely, leveraging oversight mechanisms that may exceed their authoritative boundaries. Similar to the SEC’s controversial handling of the Debt Box case, which was eventually dismissed, the My Forex Funds case may exemplify the potential for regulatory overreach and the need for legislative action to ensure that regulatory agencies operate within the confines of U.S. law.
As the legal battle unfolds, with the CFTC required to file its opposition to the complaint by March 18, and Kazmi’s reply due by March 25, the financial industry watches closely. The outcome of this case could have significant implications for regulatory practices and the rights of businesses and individuals within the trading sector.
John McEnroe, the legendary figure in tennis and winner of seven Grand Slam singles titles, has partnered with Forex and CFD broker Pepperstone.
Joining Australian tennis player Alex de Minaur in Pepperstone’s group of ambassadors, McEnroe brings his renowned charisma and outspoken nature to the table, providing Pepperstone with further visibility.
John McEnroe, who has made significant contributions both on and off the court, including various philanthropic efforts, is now tied with Pepperstone, an ASIC-regulated online broker established in 2010 that also holds licenses from the FCA, CySec, SCB, DFSA, BaFin, and the CMA.
“I couldn’t ask for a better doubles partner than Pepperstone. They’ve got a history of supporting tennis and they’re clearly as passionate about the future of the sport as I am. Having been a Platinum Partner of the ATP and holding the naming rights of the Pepperstone ATP Rankings, Pepperstone supports tennis on a global scale,” said John McEnroe.
Tamas Szabo, CEO of Pepperstone, said: “John is a tennis icon whose influence extends beyond his remarkable achievements on the court, and we very much look forward to working together with him as our Global Tennis Ambassador. Pepperstone will always be proud of being a Platinum Partner of the ATP, and we will continue to support the great sport of tennis for years to come.”
Pepperstone sponsored AFC Asian Cup Qatar 2023…in 2024
Pepperstone recently partnered with the Asian Football Confederation (AFC) as an Official Regional Partner for the AFC Asian Cup Qatar 2023. The event began on January 12, with the final set for February 10, 2024.
Due to the high summer temperatures and Qatar’s participation in the 2023 CONCACAF Gold Cup, the tournament had been postponed to 12 January – 10 February 2024, while retaining the original name for both existing sponsorship and logistical purposes. Hence the name “AFC Asian Cup Qatar 2023“.
Pepperstone has been working ever more closely with reputable digital asset trading firms to provide a quality offering to their users.
In March 2023, Pepperstone was among a few leading multi-asset brokers to have deployed the CROSSx solution by Crossover Markets. CROSSx is claimed to be one of the fastest crypto trading engines in the world, capable of dramatically decreasing trading costs, improving execution quality, and enhancing market data capabilities.
In October 2023, Hidden Road, the global credit network for institutions, launched Route28, its new Synthetic Prime Brokerage offering covering OTC Swaps across all major asset classes, including FX, Equities, Commodities, Digital Assets, Energy, and Rates. The launch of Route28 is supported by a consortium of leading market makers, proprietary trading firms, quantitative hedge funds, brokers, liquidity aggregators, and technology providers. Among these are Capital.com, FXCM, Pepperstone, oneZero, Gold-i, PrimeXM, and Argamon Markets. Each partner firm voiced strong enthusiasm for the potential efficiencies and cost-saving measures that Route28 can bring to the institutional trading landscape.