Treasury technology might not have the allure of Google Glass. It might seem to outsiders like the quiet corner of the firm removed from flashy technology advances. But in an article that ran in bobsguide, Bank of America Merrill Lynch senior vice president and EMEA treasury specialist Des Twort argues that treasury technology is making great strides--if not right in front of our eyes, then under our noses.
The individual risks of Bitcoin and other virtual currencies have been well documented and basically fall into two categories, fraud and currency risk. In the big picture, however, experts say the risks and opportunities of virtual currencies are much harder to define.
CME Group's planned purchase of the technology assets of inter-dealer broker GFI Group, announced last week, raised some interesting questions about how brokerage operations are valued. Through a pair of strategic transactions, CME Group isn't just valuing GFI's Trayport and FENICS technology units more highly than GFI's inter-dealer brokerage, it is valuing them more than four times as high.
The issue of maker-taker pricing is one that has drawn strong opinions from both sides of the debate. Intercontinental Exchange CEO Jeffrey Sprecher, one of the practice's most vocal critics, has advocated banning maker-taker pricing altogether. In his view the pricing method "creates false liquidity by attracting people who are there solely to make rebates and not actually trade and hold risk," he says.
Last week, the Commodity Futures Trading Commission's soon departing commissioner Scott O'Malia gave a frank assessment of the obstacles to robust liquidity that the newly electronic swaps market faces. Speaking to an audience of financial lawyers, he warned about fracturing of liquidity between US and non-US markets, and the lowered liquidity in some commodities markets that is making hedging costly.
The recently released results of Charles Schwab's 2014 RIA Benchmarking Study show record growth among independent registered investment advisors. In fact, registered investment advisors had the highest profitability of any year since the inception of the study in 2006.
It came to light last week that Google helped Goldman Sachs avoid a "needless and massive" security problem last month. Those are the adjectives Goldman Sachs used in court papers to describe a situation that occurred in late June when a contractor working with Goldman Sachs accidentally sent an email to an address that ended @gmail.com instead of one that ended @gs.com.
Last week there was news that a KPMG report warned that companies like Apple, Google and Amazon could bring about radical disruption in investment management. This week, a group of former Google technologists are promoting a new lending platform that applies data-driven analysis methods honed at Google toward assessing the credit worthiness of borrowers.
With a couple taps and a wave of the cellphone at checkout, your items are purchased, receipts are electronically received and stored and expense tracking applications are adjusted to incorporate the latest purchases into the monthly budget. That is the future that banks, wireless carriers, retailers and online powerhouses like Google and PayPal are jockeying to define.
The Senate Permanent Subcommittee on Investigations is holding a hearing today on the topic of "Conflicts of Interest, Investor Loss of Confidence, and High Speed Trading in U.S. Stock Markets." The six panelists scheduled to testify will probably put forth a variety of opinions. On blogs, media sites and newspaper columns, others are already weighing in.