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IIROC Releases Compliance Priorities Report for 2018/19

January 20, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: business, business models, Compliance Priorities Report, IIROC, investment, Investment Industry Regulatory, market integrity, regulatory, regulatory focus

The Investment Industry Regulatory Organization of Canada (IIROC) today published its annual Compliance Priorities Report a review of the issues and trends identified through the past year’s compliance and registration activities, that also provides a preview of areas of regulatory focus for the coming year.

“This report is an important overview of issues and challenges that firms should address to better comply with IIROC’s regulatory standards,” says Victoria Pinnington, IIROC’s Senior Vice President, Market Regulation and Policy. “Ensuring compliance with IIROC’s high standards is an integral part of our mandate to protect investors and maintain confidence in the integrity of Canada’s capital markets.”

Priorities outlined in this year’s report stem from risks and trends identified in firms’ business conduct, financial operations requirements, trading practices, as well as registration and membership filings and disclosures.

Among IIROC’s areas of focus for the coming year are:

Implementing changes to risk models to ensure IIROC’s compliance resources are focused on the greatest risks to investors and market integrity;
Continuing to support firms’ cybersecurity resiliency by compiling and reviewing the results of IIROC’s second survey on cybersecurity preparedness conducted in late 2018; and,
Ensuring IIROC-regulated firms demonstrate a commitment to a strong compliance
culture.
IIROC
Senior Vice-President of Enforcement and Registration, Elsa Renzella

“Firms should use this Compliance Priorities Report, along with our guidance notices, conferences and other forums, to help them protect their clients and businesses,” says Elsa Renzella, IIROC’s Senior Vice-President, Enforcement and Registration. “Firms should treat the report as a tool that assists them with complying in a manner that is appropriate for their unique business models.”

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IIROC is the national self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian capital markets. IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of more than 170 Canadian investment dealer firms and their more than 29,000 registered employees, the majority of whom are commonly referred to as investment advisors. IIROC also sets and enforces market integrity rules regarding trading activity on Canadian debt and equity marketplaces.

Weakened International Cooperation Damaging Collective Will to Tackle Global Risks

January 20, 2019 by industryspread Leave a Comment Filed Under: Regulatory Annoucements Tagged: economic, fundamental values, geopolitical conditions, Global Risks, Global Risks Report, international cooperation, investment, risks, Trading Rules

· Rising geopolitical and geo-economic tensions are the most urgent risk in 2019, with 90% of experts saying they expect further economic confrontation between major powers in 2019

· Environmental degradation is the long-term risk that defines our age, with four of the top five most impactful global risks in 2019 related to climate

· Rapidly evolving cyber and technological threats are the most significant potential blind spots; we still do not fully appreciate the vulnerability of networked societies

· Read the full report here

· To find out more about The Geopolitical Challenges of Globalization 4.0 watch our video here

London, United Kingdom, 16 January 2019 – The world’s ability to foster collective action in the face of urgent major crises has reached crisis levels, with worsening international relations hindering action across a growing array of serious challenges. Meanwhile, a darkening economic outlook, in part caused by geopolitical tensions, looks set to further reduce the potential for international cooperation in 2019. These are the findings of the World Economic Forum’s Global Risks Report 2019, which is published today.

The Global Risks Report, which incorporates the results of the annual Global Risks Perception Survey of approximately 1,000 experts and decision-makers, points to a deterioration in economic and geopolitical conditions. Trade disputes worsened rapidly in 2018 and the report warns that growth in 2019 will be held back by continuing geo-economic tensions, with 88% of respondents expecting further erosion of multilateral trading rules and agreements.

If economic headwinds pose a threat to international cooperation, efforts will be further disrupted in 2019 by rising geopolitical tensions among major powers, according to the report. Eighty-five percent of respondents to this year’s survey said they expect 2019 to involve increased risks of “political confrontations between major powers”. The report discusses the risks associated with what we describe as a “multiconceptual” world order – one in which geopolitical instabilities reflect not only changing power balances but also the increasing salience of differences on fundamental values.

Børge Brende, President of the World Economic Forum

“With global trade and economic growth at risk in 2019, there is a more urgent need than ever to renew the architecture of international cooperation. We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards. What we need now is coordinated, concerted action to sustain growth and to tackle the grave threats facing our world today,” said Børge Brende, President of the World Economic Forum.

In the survey’s 10-year outlook, cyber risks sustained the jump in prominence they registered in 2018, but environmental risks continue to dominate respondents’ concerns beyond the short term. All five of the environmental risks the report tracks are again in the high-impact, high-likelihood category: biodiversity loss; extreme weather events; failure of climate-change mitigation and adaptation; man-made disasters; and natural disasters.

Alison Martin, Group Chief Risk Officer, Zurich Insurance Group, said: “2018 was sadly a year of historic wildfires, continued heavy flooding and increasing greenhouse gas emissions. It is no surprise that in 2019, environmental risks once again dominate the list of major concerns. So, too, does the growing likelihood of environmental policy failure or a lack of timely policy implementation. To effectively respond to climate change requires a significant increase in infrastructure to adapt to this new environment and transition to a low-carbon economy. By 2040, the investment gap in global infrastructure is forecast to reach $18 trillion against a projected requirement of $97 trillion. Against this backdrop, we strongly recommend that businesses develop a climate resilience adaptation strategy and act on it now.”

Environmental risks also pose problems for urban infrastructure and its development. With sea levels rising, many cities face hugely expensive solutions to problems that range from clean groundwater extraction to superstorm barriers. Shortfalls of investment in critical infrastructure such as transport can lead to system-wide breakdowns as well as exacerbate associated social, environmental and health-related risks.

John Drzik, President of Global Risk and Digital, Marsh, said: “Persistent underfunding of critical infrastructure worldwide is hampering economic progress, leaving businesses and communities more vulnerable both to cyberattacks and natural catastrophes, and failing to make the most of technological innovation. Allocating resources to infrastructure investment, in part through new incentives for public-private partnerships, is vital for building and strengthening the physical foundations and digital networks that will enable societies to grow and thrive.”

At an individual level, declining psychological and emotional well-being is both a cause and consequence within the wider global risks landscape, impacting, for example, social cohesion and political cooperation. The Global Risks Report 2019focuses explicitly on this human side of global risks, looking in particular at the role played by complex global transformations that are under way: societal, technological and work-related. A common theme is that psychological stress relates to a feeling of lack of control in the face of uncertainty.

This year’s report revives the Future Shocks series, which recognizes that the growing complexity and interconnectedness of global systems can lead to feedback loops, threshold effects and cascading disruptions. These “what if” scenarios are food for thought as world leaders assess potential shocks that might rapidly and radically disrupt the world. This year’s sudden and dramatic breakdowns include vignettes on the use of weather manipulation to stoke geopolitical tensions, quantum and affective computing, and space debris.

The Global Risks Report 2019 has been developed with the invaluable support throughout the past year of the World Economic Forum’s Global Risks Advisory Board. It also benefits from ongoing collaboration with its Strategic Partners Marsh & McLennan Companies and Zurich Insurance Group, and its academic advisers at the Oxford Martin School (University of Oxford), the National University of Singapore and the Wharton Risk Management and Decision Processes Center (University of Pennsylvania).

Crypto Exchange Platform, ErisX Adds Ethereum Co-Founder, Joseph Lubin and Tech Entreprenuer Cris Conde to its Board of Directors

January 19, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Bitcoin, Blockchain, Coindesk, Cryptocurrencies, Cryptocurrency exchange, economy, ErisX, investment, trading platform

Chicago-based crypto futures platform, ErisX has expanded its Board of Directors and has onboarded Ethereum co-founder Joseph Lubin alongside technology entrepreneur Cris Conde. The hiring comes ahead of the launch of spot and derivatives markets for the derivatives asset.

They will serve alongside DRW CEO Don Wilson Valor Equity Partners managing partner Antonio Gracias and ErisX CEO Thomas Chippas. Lubin, 53 is a CEO of blockchain platform ConsenSys and also owns a majority stake in the company. He has helped many crypto startups to grow. In a press release by ErisX, it said that Lubin’s experience in working in the digital asset space and familiarity in working with the Ethereum network had helped his inclusion in the Board.

ErisX Head of Marketing, Jessica Darmoni has told Coindesk that, their primary objectives remain launching Ether products but refused to further reveal if the company is planning to announce the launch of Ether products in the near future. Adding: “As a general rule, we don’t comment on engagement with regulators while we are still in process with them,”

Commenting on Joseph Lubin’s addition to the Board, Darmoni said, “However, we can say that Mr. Lubin and his team bring extensive knowledge and background on Ethereum, the crypto space as well as the token space to ErisX.”

ErisX CEO Tom Chippas added:

“As two leaders in the digital asset space, ErisX will benefit from the unique perspectives they offer and the enthusiasm they bring to the space. We also want to thank Cliff for the significant guidance and support he has provided, including helping shape the digital asset spot and regulated futures market.”

Joseph Lubin also added:

“ErisX has a unique position in the market with support from a wide range of investors as well as experienced leaders at the helm. I look forward to bringing my experience with decentralized technologies and digital assets to a model that will further democratize access to digital assets. 2019 is likely to be a breakthrough year for digital assets, and the exceptional ErisX team is poised to lead.”

Monex Group Announces Series of Organisational and Personnel Changes and Eurex Clearing Appoints Dmitrij Senko as its Next CRO

January 19, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Eurex, financial services, foreign exchange, FX trading, investment, Monex, Monex Group, TradeStation, trading platform

Tokyo-based Monex Group has announced a series of changes in organisational and management structure this Thursday. Monex Group operates retail fx brokerages TradeStation, Monex, Boom Hong Kong, and Coincheck.
Effective Feb. 1st, 2019, the firm will do away with its investment business office, and it has not provided any reason, why it is doing so. From removing the investment business office, the firm has also made some series of managerial changes, that includes the addition of Akira Inoue as an Executive Director. Her appointment is made effective from the 22nd Jan 2019. She will also be appointed as General Manager of Financial Control Department from 1st Feb. 2019.
From 1st Feb. 2019, its current CFO and Executive Officer Satoshi Hasuo will also handle the role of General Manager of the Finance Department.
The group has also made personnel changes in its subsidiary, Monex Inc. and has appointed Hiroshi Aikawa as an Executive Director. Aikawa has not held any positions with the firm previously.
The managerial and organisational changes were made just days after Monex Group’s US subsidiary TradeStation announced its plan to launch cryptocurrency services later this year under the brand name, TradeStation Crypto.

Eurex Clearing Secure Dmitrij Senko as its Next Chief Risk Officer

Eurex Clearing, the subsidiary of Deutsche Bourse has announced that Dmitrij Senko will be joining the firm as its next Chief Risk Officer (CRO). Senko will take up the role from July this year and will replace departing CRO, Thomas Laux.
Senko has been working with Eurex Clearing’s risk department for almost a decade. He joined the firm in 2010 and was promoted to Head of Risk Analytics and Model Validation in the risk department in 2013 and reported directly to Thomas Laux. For Senko, the role for CRO will not be that much challenging as he has been working with Laux for quite some time and knows the nature of work.
Erik Müller, Chief Executive Officer (CEO) of Eurex Clearing said:
“It’s great news that Dmitrij has agreed to join the board. Risk management is at the core of our business and is of special importance to Eurex Clearing. Dmitrij has been with us for many years, and I am very happy that we will benefit from his expertise and deep knowledge in the years to come.”

On departing CRO Thomas Laux, Eurex Exchange CEO Thomas Book said:

“Thomas Laux is an outstanding risk expert, and I thank him for his work and commitment over the last years,” said Book. “He has played a major role in making Eurex Clearing what it is today. The most prominent example of his achievements is our industry-leading risk engine Prisma.”

Trade Optimism Lifts Asian Markets

January 18, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Asian Markets, banks, Brexit, brokerage, Chinese imports, economy, EUR-USD, foreign exchange, investment, Sino-US trade war, trading platform

Steven Mnuchin, US Treasury Secretary

US Treasury Secretary, Steve Mnuchin, was considering easing trade tariffs on Chinese imports as the two economic superpowers continue trade negotiations. The signs of possible progress in negotiations over the Sino-US trade war boosted equities in Asia with the Shanghai Composite Index advanced 0.8 percent to 2,579.76, and Tokyo’s Nikkei 225 added 1.2 percent to 20,655.08. Australian stocks closing higher for a fourth straight day with the ASX 200 adding 30 points or 0.5% to 5879.6 points. Over the week, the top 200 index rose 1.8% while the broader All Ordinaries also rose 1.8%. U.S. crude oil rose 54 cents to $52.61 per barrel while Brent crude oil, adding 47 cents to $61.65 per barrel in London.

Equities in Europe are on bulls playground with DAX trading 0.94 higher at 110,020 Cac40 adding 0.97% to 4840 and FTSE in London gaining 0.45%.

On the Lookout: US-China trade talks headlines after The Wall Street Journal’s story, that the US administration is considering reduce tariffs on Chinese imports will set the tone today in the markets. The economic calendar includes UK retail sales where analysts expect to drop 0.8% m/m in December, following a 1.4% rebound seen in November. Total retail sales are seen arriving at 3.6% over the year, same as that booked previously. In the US, industrial production and consumer sentiment data will be released later today.

Trading Perspective: Forex markets still appear to be taking a positive view on all of the political turmoil coming out of the UK Brexit story as the sterling continues to edge higher against the US Dollar. Increasing talk around the prospect of an article 50 extension and a second vote appears to be encouraging some short covering in the pair. GBPUSD has continued to advance higher after this week’s dip to 1.2670; the sterling has managed to push through the 1.30 area after it broke above the 100-day moving average. Today GBPUSD is trading 0.25% lower at 1.2951 as the pair hit overbought conditions at the 1.30 area. The momentum has turned positive for the pair, and an attempt for the 200-day moving average at 1.3102 can’t be ruled out. Traders should wait for a convincing break above 1.30 to initiate new long positions. On the flipside 1.2930 is the immediate resistance while more demand will come at the 100-day moving average in the 1.2893 area.

GBP futures markets from CME Group noted open interest dropped by nearly 2K contracts on Thursday from Wednesday’s final 216, 613 contracts. Volume followed suit, shrinking by almost 16.2K contracts and clinching the second drop in a row.

The Aussie dollar has rallied its way back to 71.9 US cents after hitting lows around 71.5 US cents yesterday. The pair is trading around the crucial 100-day moving average facing resistance at 0.7236 weekly high and support at 0.7146 previous daily low.

EURUSD is trading in a narrow range as it tested yesterday with success the 50-day moving average at 1.1365 and rebounded just to get another rejection at 1.14. Investors are cautious at current levels as macro data are coming softly from the old continent. Other than Brexit, France economy is a source of risk after disappointing figures and the” yellow vest” movement. Italy is off the headlines for the week, but the budget and banking crisis in the country is far from over. Greece came up in the headlines again after political turmoil in Athens, and we should not forget that during the Grexit issue, the EURUSD hit multiyear lows at 1.06. As of writing the pair is trading 0.05% higher at 1.1396, with the first supply zone at the 100-hour moving average (1.1429) and immediate support at yesterdays low at 1.1365.

CME Group’s flash data for EUR futures markets showed traders added around 1.1K contracts to their open interest positions on Thursday vs. Wednesday’s final 525,546 contracts. In the same line, volume rose by more than 8.3K contracts following the previous sharp drop.

Broadridge and Tokyo Stock Exchange Announce Blockchain PoC for Proxy Voting

January 17, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: Blockchain, Broadridge, brokerage, Cryptocurrencies, Cryptocurrency exchange, financial services, ICJ, investment, risk management, Tokyo Stock Exchange

The project concluded the using distributed ledger technology results in the reduction or elimination of complex reconciliation processes.

Broadridge Financial Solutions has successfully conducted the first Proof of Concept (PoC) of blockchain-based proxy voting in Japan together with ICJ, a joint venture of the Tokyo Stock Exchange (TSE) and Broadridge.

The project, which used Quorum as the underlying distributed ledger technology (DLT), was developed specifically for the Japanese proxy market. The solution mirrored the proxy voting processes which included unique file transfer protocols on the ICJ electronic voting platform.

ICJ-participating issuers represent 87% of the TSE First Section market cap, 97% of Nikkei 225 index constituents and 84% of Japan Exchange Group (JPX)-Nikkei Index 400 constituents.

Patricia Rosch, President of Investor Communication Solutions, International at Broadridge Financial Solutions, commented:

“The successful completion of the Japan market DLT-based voting platform PoC builds on our investment in leading-edge technology solutions in the investor communications space. The Japan project validated our view on how an interoperable blockchain platform can play a central role in raising corporate governance by creating end-to-end vote transparency and driving operational efficiency in light of the unique processing requirements in Japan.”

ICJ Incorporated is a joint venture company of TSE and Broadridge, which operates an Electronic Voting Platform for Foreign and Institutional Investors. Shigeo Imakiire, President, ICJ Inc., said:

“The PoC is the first step to deploy and utilize this new technology, and we will continue to pursue a path in enhancing the efficiency and transparency of the voting process in Japan, which involves a variety of domestic and global market players.”

The PoC was validated in a test environment in which the role of local custodians, global custodians, the central securities depositary, and local transfer agents was simulated. The official statement said the final positions of these organizations were loaded on the ledger and reconciliation was performed using smart contracts.

As a result, Broadridge and ICJ found that the ledger can be used for performing position management and be used as the single source of truth for subsequent data reference needs, resulting in the reduction or elimination of complex reconciliation processes.

UK Parliament rejected the Brexit deal by 432 votes to 202 votes.

January 16, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: banks, Brexit, Capital Markets, economy, financial services, investment, trading platform, UK

While the 230 vote defeat is believed to be the largest in UK political history, the loss was largely expected and therefore had minimal impact on market sentiment today. The British leader’s government now faces a confidence vote. The Nikkei average fell 112.54 points, or 0.55 percent, to end at 20,442.75, the Topix index closed down 4.95 points, or 0.32 percent, at 1,537.77. It rose 12.99 points the previous day. The Hang Seng HSI, was up 0.1%, the Australian ASX 200 made a last minute rally to close at the day’s highs – up 20 points or 0.35% to 5,835.

In Europe the FTSE 100 was down 0.3% while DAX was flat and CAC40 is trading 0.22% higher. A wait-and-see mood is growing, with investors hoping to see the outcome of a vote of no confidence that the May government faces later on Wednesday. Italian Deputy Prime Minister Matteo Salvini slammed the European Central Bank, accusing it of attacking the Italian financial industry.

On the Lookout: Australian Consumer Confidence has posted its largest monthly fall in more than three years, amid falling house prices and global trade tensions. The Westpac/Melbourne Institute consumer sentiment index fell 4.7% in January to 99.6 points, pushing it below 100 points.

In macro news today we wait the US Beige Book, released along with export/import prices and the NAHB housing market index.

Trading Perspective: US dollar’s topside versus the yen is increasingly limited as it is difficult for currency market players to purchase the U.S. currency actively amid uncertainty over the impact of the partial U.S. government shutdown, which has become the longest ever. The USDJPY was almost unchanged around ¥108.60 in Tokyo trading after paring early losses thanks to repurchases. The pair is still in negative mood as cannot cross above 109 level. CME Group’s flash data for JPY futures markets noted open interest dropped by just 339 contracts on Tuesday from Monday’s final 230,051 contracts. Volume, instead, increased by around 46.1K contracts after three consecutive drops.

GBPUSD: After a rollercoaster session yesterday the pair is trading at 1.2860 after hitting the daily high at 1.2895 just shy of the round 1.29 figure, and the daily low at 1.2824 in Asian session. On the upside immediate resistance can be found at 1.2929 the January 14^th high and then the high from November 2018 at 1.3072. On the flipside first support stands at the 50 hour moving average at 1.2850 and then at yesterdays low at 1.2665.

INTL FCStone Secures US SEC Approval for its GMP Securities Acquisition

January 16, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Brexit, brokerage, Capital Markets, Dutch Regulator, economy, financial services, GMP Securities, INTL FCStone, investment, trading platform

INTL FCStone, a financial services company also in the list of Fortune 500 has secured the necessary regulatory approval from US regulator SEC in connection to the acquisition of GMP Securities LLC.

The acquisition will benefit INTL FCStone to gain over 2,400 institutional clients who will also benefit from its broader product offering that includes commodities, derivatives, FX and global payments. The deal will allow INTL to expand its current fixed income product portfolio.

GMP Securities was established in 1999 and is formerly known as Miller Tabak Roberts Securities. It operates as a division of GMP International Holdings Corp, the wholly-owned subsidiary of Canada-based GMP Capital Inc which acquired the company in 2011. GMP Securities has over 40 employees on its roll across New York, Fort Lauderdale, Stamford, and Plano.

INTL FCStone which provides risk management, execution, market services, market intelligence, and clearing services has over 700 commercial and institutional customers throughout Europe, the Middle East, and Africa.

Bloomberg Trading Facility Limited Secures Approval for MTF from Dutch Regulator

Bloomberg Trading Facility Limited (BTF), a part of Bloomberg LP has secured regulatory approval from the Dutch Authority for the Financial Markets (AFM) to operate a multilateral trading facility (MTF).

Bloomberg’s Dutch MTF or BTFE mirrors the current regulatory permission in the UK that allows the company to provide its services throughout the EU from Amsterdam, operating under a MiFID II passport. The new MTF draws on Bloomberg’s trading venue capabilities that enables market participants to execute interest rate swaps and credit default swaps, using both requests for quote and order book functionalities.

Bloomberg and other trading companies are establishing its European bases ahead of the Brexit, and the Dutch regulator has set a deadline of July 1 for firms to seek approval if they want a guarantee of being regulated in time for Brexit.

Commenting on this, Ben Macdonald, Global Head of Enterprise Product at Bloomberg, said:

“Bloomberg is committed to helping its clients in the UK and the EU transition into the post-Brexit environment, whatever the outcome of the negotiations. We chose Amsterdam as we’ve had a presence in the city for many years and consider that its flourishing business environment, as well as the experience of the AFM, provide the best solution for Bloomberg.”

Nicholas Bean, Head of Electronic Trading Solutions at Bloomberg and CEO of BTFE, commented:

“We are pleased to announce that eligible market participants will be able to leverage our Dutch MTF to trade in compliance with EU regulatory obligations, notably MiFID II. Bloomberg’s Dutch MTF is at an advanced stage of development and will be operationally ready in early 2019 to maintain Bloomberg’s commitment to operating a venue within the EU for its clients.”

ICE’s Bakkt Crypto Exchange Platform Inks First Acquisition Agreement, To Buy Certain Asset of Chicago-Based Rosenthal Collins Group

January 15, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: BAKKT, Blockchain, brokerage, CBOE, CME, Cryptocurrencies, Cryptocurrency exchange, financial institutions, financial services, ICE, investment, regulators, Rosenthal Collins Group

Intercontinental Exchange’s cryptocurrency platform Bakkt has signed the company’s first acquisition agreement. Bakkt CEO Kelly Loeffler made the announcement on her official medium blog. The cryptocurrency startup will buy certain assets of Chicago-based futures commission merchant — Rosenthal Collins Group (RCG).

Rosenthal Collins Group established nearly 100 years ago has also sold its customer business of the futures brokerage to London-headquartered commodities broker Marex Spectron. RCG has recently expanded its client base to 14,000 accounts while deepening its introducer broker network.

Bakkt’s acquisition of RCG’s asset is the latest push towards positioning itself towards more regulated markets. According to Bakkt CEO, the RCG’s system and expertise would improve the company’s risk management and treasury operations. This acquisition is in line with other US cryptocurrency operators including Coinbase which puts them in a firmer regulatory footing with regulators. It further helps the crypto firm to position themselves up to offer a broader range of crypto-based financial products.

Bakkt CEO Kelly Loeffler stated in her blog:

“It will enhance our risk management and treasury operations with systems and expertise. Other aspects of the transaction will contribute to our regulatory, AML/KYC and customer service operations as we help enable digital asset acceptance by bringing more choice and control to buyers and sellers,”

Georgia based ICE last month said that the Bakkt would launch the first physically delivered Bitcoin futures in the last week of January. But now it has been delayed for the third time with no specific date of launch. The initial launch was set for November 2018.

Other established exchange like Cboe and CME offers Bitcoin futures but are cash settled, in which the actual cryptocurrency doesn’t change hands.

US-Subsidiary of Monex Group, TradeStation to Launch Crypto Brokerage Platform Later this Year

January 15, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Blockchain, brokerage, Cryptocurrencies, Cryptocurrency exchange, ErisX, Financial markets, investment, Monex Group, NASDAQ, TradeStation, trading platform

The US subsidiary of Japanese financial services major Monex Group, TradeStation has revealed its plan to launch cryptocurrency brokerage services in the country later this year with the brand name, TradeStation Crypto.

For the new crypto service, TradeStation will leverage on its expertise in the brokerage industry to address some of the critical concerns and weakness that the current cryptocurrency ecosystem faces. The company said in its statement.

The company has no specific timeline for the launch of the crypto services platform, but it has already applied for money service business registration with each state regulator. The money transmittal license (MTL) allows a crypto firm to offer both the crypto-to-crypto and fiat-to-crypto trading pairs.

For Monex Group, it is not the first encounter with the cryptocurrency products, and it has earlier saved the hacked-crypto exchange CoinCheck to remain in business. The brokerage has announced in July last year that it will try to gain a foothold in the US cryptocurrency market with dedicated services offering and will mainly cater to the institutional class investor. Then it said that it would try to build a base on the top of 2 million client accounts which it holds worldwide.

Monex Group has acquired hacked-cryptocurrency exchange, Coincheck in April 2018 after it was hacked of $534 million in January, forcing it to near shut-down. Monex Group has also invested in soon to be launched cryptocurrency exchange ErisX, which has also raised over $25 million from investors like Fidelity Investments and Nasdaq Ventures.

Commenting on the news, President of TradeStation Group, said:

“We believe investors and traders are seeking ways to access and trade cryptocurrency products similar to the way they trade traditional capital markets – and through a trusted and familiar brand and company. Our focus will be to provide the tools and services that serious traders require to trade across multiple asset classes, including crypto.”