Financial Markets 2018: Rise of the Machines, the Next Frontier of Finance Course
June 7th & 8th 2018
Speacial Offers: 25% Super Early Bird Discount Until Friday April 27th 2018.
When 2 colleagues attend the 3rd goes free
Before the machines, markets were a place that humans with roughly equal information and reflexes set the prices of financial assets by buying and selling. After the machines took over, markets became dominated - in terms of volume, liquidity and pricing - by machines, artificial intelligence, and algorithms that operate in time frames of a millionth of a second. We will explore these impacts and future developments of technology in today’s & tomorrow’s capital markets.
10 years ago, the Rise of the Machines (aka high frequency trading algorithms and artificial intelligence) completely altered the terrain of what we call the capital markets. Not only are today's markets something the human traders of a generation ago would fail to recognize, they're no longer a place where human actions of any sort have much of a remaining role. The digitalization of the workplace gives organizations a new set of options for getting work done. It’s time to move beyond alarmist rhetoric about market automation and consider how human-machine collaboration can deliver a higher level of productivity. The question to ask isn’t how many finance jobs will be replaced by artificial intelligence (AI) and robotics, but how work can be reconfigured in order to achieve the optimal integration of talent and machines. From liquidity improvements, to big data, to settlement technology, and blockchain. We are now in a new wave of automation, AI in the capital markets are here to stay.
Agenda Day 1:
Modern Market structure looking beyond 2020: The rise of alternative technology, marketplaces, and products such as exchange traded derivatives, and crypto currencies.
- Exchanges, Clearing houses, and Collateral
- Exchange traded & OTC derivative landscape
- Crypto currencies dynamics, offerings, and eco system
- Blockchain, AI, and machine learning in trading, finance, and operations
Regulations, Donald Trump, Brexit, and Red Flag Risk Factors- Studying the impacts on the capital markets
- MiFID II: One of the most seismic regulatory shifts in history affecting everything from research to dark pools
- Who will be Bitcoin’s ultimate regulator: Future state of Crypto currency trading regulation
- The Global LEI Initiative – The LEI is part of a much bigger market structure solution
- Deregulation: a lose-lose game that would have serious consequences for the stability of the world financial system
Collateral Tidal Wave: Collateral usage today, tomorrow, and impeding shortfall.
- Account segregation history: MF Global, LSOC, CFTC, CME, and John Corzine
- Instant Payment? Ripple & MoneyGram’s XRP digital currency
- What can China do to help the global collateral exchange?
- Exploring the impact and rule set for non-cleared margin regulation
Crypto-currency evolution, use cases, exploring hype vs. sustainability
- Crypto-currency trading, and the regulatory response
- Case Study: Omega One ,leading crypto-asset agency brokerage for asset managers and institutional investors
- Ethereum and SMART contracts: The winning model for settlement in the future.
- Case Study: Silk Road & Dread Pirate- the complete story- and how the illegal marketplace changed market and trading history
Agenda Day 2:
Exchanges, Clearing houses, Market Share & Industry battles and future winners
- Case Study: Quantile Technologies Ltd & compression. Reducing risk in the $600 trillion derivatives market.
- Case study: OpenDoor- tackling the illiquidity problem with bond trading
- Case Study: BitMEX, a cryptocurrency exchange changing market structure forever.
- The Future of Libor & ISDAfix: a Review of the Libor manipulation scandal and how the rate will be assembled in the future
HFT, Connectivity, & AI in Trading- Have we hit a wall? How competitors have reached critical mass
- Combating HFT? IEX launches HFT proof exchange, reviewing the offering and why it works and why it doesn't matter anymore.
- Chicago Stock Exchange: The new hub for China stock trading?
- Case Study: No more traders? How market leader JPM is automating almost their entire worldwide trading business – eventually
- Case Study: Hedge Fund Renaissance & Artificial Intelligence greatest success story in the Markets- How Renaissance’s Medallion Fund Became Finance’s Blackest Box
The future of financial crimes and prosecution, what is fair game?
- Lessons from the World’s largest Cryptocurrency Heists
- Case Study: Snitching on Wall Street. Informant Double-Crossed the FBI
- The CFTC & DRW: Trading manipulation lawsuit & “Banging-the-Close”
- Is the VIX Being Gamed? VIX trading and ongoing manipulation in the volatility index market
Blockchain and other game changing Fintech offerings
- Blockchain live: ASX Ltd. processing equity transactions powered by Blockchain & Digital Asset Holdings
- Your sandbox or mine? A review of current offerings and initiatives from Axoni, Digital Asset Holdings, Symbiont, R3 and Chain
- The Ethereum Blockchain & zero-knowledge proof: Adding a level of privacy encryption
- Case Study: AirSwap- The worlds first decentralized exchange utilizing Blockchain technology
Instructor: Sol Steinberg
Sol Steinberg is a OTC Markets Subject Matter Expert and specializes in Risk Management, OTC derivatives, Market structure, Collateral, Trade Lifecycle, Valuation, Financial Technology Systems, Strategic development, and Monetization.
Sol is the founding principle of his firm, OTC partners. OTC partners is a boutique value add firm that specializes in research, content, development. Before starting OTC Partners Sol was a senior executive at the world’s leading clearing house LCH.Clearnet. Sol also spent nine years on the buy side and Citi, performing product development, risk management, and valuation for the OTC markets.
Sol has a wide-ranging network of asset managers, analytic providers, execution venues, regulatory, and government contacts. He used his eco system to successfully commercialize analytics, data, and other non commercialized intellectual property and had significant monetization success. He brought to market several initiatives, including institutional and commercial risk engines such as SMART tool, Risk Explorer, Global Market Risk System for Citi: the largest VaR engine in the world from 2004 to 2006, as well as developing CCP2 – a derivative education & certification program for leading consultancies. Sol also contributed to OTC industry’s clearing and default management policies for the cleared OTC swap markets as well as contributed to industry standard risk analytics in times of low market rates.
Waters Magazine’s award “Best risk analytics initiative 2012” & “Best risk analytics initiative (Sell Side) 2013”
FTF’s award for “Most cutting edge risk contribution 2013” for developing the SMART risk analytics tool.
Global nominee in 2012 for “Best Practices in Global Financial Risk Management” from PRMIA, Professional Risk Managers International Association.
You will be able to receive CPD points for attending this event (number of points to be confirmed).
The CPD Certification Service was established in 1996 as the independent CPD accreditation institution operating across industry sectors to complement the CPD policies of professional and academic bodies. The CPD Certification Service provides recognised independent CPD accreditation compatible with global CPD principles.