Outlook 2019: Glenn Havlicek, GLMX12.31.2018 By Rob Daly Editor-at-Large
Glenn Havlicek is the CEO and co-founder of GLMX.
How should 2019 be known?
Although required technology adoption could be associated with the last few years, expect to see accelerated adoption in 2019 across fixed income. Regulatory parameters, best execution requirements, transaction-cost analysis, and access to data are a few reasons why we should see an uptick in fintech adoption over the next 12 months.
What will be the first watershed moment in the new year?
It will be the enactment of Securities Financing Transactions Regulation, which finally was approved by the European Commission on December 14. The first phase of SFTR adoption will take effect in the second quarter of 2020. SFTR preparations largely have been put on hold by much of the industry due to concern over timing (now resolved) and Brexit. With a formal timeline now approved, SFTR will be a game changer for the industry due to the level of information it will demand across securities financing, with each transaction required to be reported to a trade repository and attached to an LEI.
What was the most important lesson of 2018?
It was the value of data. Regulation and market participant demand highlight the data’s value, which is a given in many other markets. The Office of Financial Research is proposing an enhanced data collection rule designed to offer greater visibility for the Financial Stability Oversight Council to monitor for market risks and instability is but another leading indicator. Repo markets will continue to evolve around efficiency and data through 2019.
Stephanie Dumont and Ola Persson of FINRA reflect on advances in fixed income transparency.
Investors lack confidence in fixed income data and believe only half is really reliable.
The consortium is creating the first open market electronic trading platform for syndicated loans and CLOs.
Buy-side users can access Tradeweb’s RFQ process while strengthening relationships with diverse dealers.
The Treasury is soliciting public feedback on additional post-trade data transparency.