BornTec had the pleasure of attending FIA Boca 2022

BornTec had the pleasure of attending FIA Boca 2022. It was great reconnecting with customers, friends, and former colleagues after nearly two years virtual.

The advance in technology and cryptocurrency over the past several years showed a strong presence at this year’s conference. There were several crypto exhibitors that spoke on the institutionalization of crypto, which brought a large crowd to the several panel discussions that were held throughout the conference. On a related note, last week we saw Goldman Sachs become the first major bank to execute an OTC crypto trade, and more are likely to follow.

Boca FIA

Innovations and business models now employed in the Crypto space caused many to discuss the applicability of these in the broader futures space. Topics included cloud based trading and connectivity and the possibility of rethinking the exchanges model of charging for market data.

Data utilization was another hot topic at the
Boca event, and one close to our hearts at BornTec. Many of the discussions we had were centric to how brokers and FCM’s can make better use of their trade data, run meaningful analytics from their data, and solve key problems like faster customer onboarding through better data dissemination.

The event was among the most well attended Boca conferences on record, and would have likely been a stronger turnout if not for the recent geopolitical and market turmoil keeping some from attending. We spoke to several persons who had meetings canceled last minute as the gyrating energy and commodity markets necessitated key people stay home to attend to business during this time.

We had a busy and enjoyable conference and can’t wait for next year.

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Is your firm violating exchange audit trail regulations?

How certain are you that your company is compliant with CFTC and Exchange “Audit Trail Requirements”? Some firms would ascribe a fairly high degree of confidence. Our data shows this confidence is mis-placed.

BornTec’s analysis shows that utilizing typical industry practices, there will be missing, invalid or corrupted data much of the time. 

These audit trail regulations are primarily prescribed under CFTC 17 CFR § 1.35 and 38, CME 536.B.2, ICE Futures US 27.12A and others. Individual penalties can be significant.

BornTec’s audit trails module in Crosscheck expertly mitigates the core issues that managing audit trails poses for clearing members – retrieval/production of data, validation of data and verifying completeness.

Without Crosscheck, audit trail compliance is a manual and disorganized process:

  • Retrieval/production of data requires resources from the member to manually comb through numerous folders, files, and logs looking for the exact data the exchange requested. This was often a fool’s errand, as the requisite data was commonly  incomplete, or missing altogether. In most cases, it took weeks to gather the data, filter it, send it to the exchange, and then hope they do not issue a fine. In some cases, significant fines were issued for lack of a timely response.
  • Validation of data is generally limited to spot checks at best
  • Checking for completeness of data is usually limited to whether or not files exist. This is insufficient to ensure that the file data is complete or in the required format.

Crosscheck solves this problem by ensuring complete and validated data in an automated way.  The audit trail data is compiled in a normalized schema and is accessible for users to query via a GUI.  Exports can be made in the exchange requisite format.  Users are provided confidence in their audit trail data. What previously took weeks, can now be accomplished in minutes.  

Having actionable knowledge of your data ahead of an audit can go a long way in mitigating your firm’s reputational risk.

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In a Data-Driven World, Brokers Need to Unlock the Power of Their Own Data

The proliferation of big data across global business has been well documented and is readily apparent in everyday life. From the smart watch on your wrist to the advertisements on your screens to the elections in which you cast your vote, data is being mined, analyzed, and leveraged to create actionable business insights.

The financial industry as a whole is no laggard in this effort. Fintech startups leveraging the power of data continue to take the industry by storm, and — even after a year of mixed returns for quants — a recent U.S. Securities and Exchange Commission report labeled the use of algorithms in trading as “pervasive.” But the rise of big data, for all its benefits, now means traders — both systematic and discretionary — must contend with an ever-increasing volume of data from discrete and disconnected sources.

Picture a trading desk at a mid-to large-cap bank dealing heavily in energy. Some on the desk may conduct their trades on Fidessa, while others may utilize CQG or another vendor, or an internally developed platform. These platforms all have the capability to display and analyze data, allowing the trader to learn from their previous behavior — but the systems don’t speak to each other. For this team of energy traders, their data is stuck in silos with no way to effectively use it as a group.

This issue of siloed data is compounded by a regulatory environment that requires that trading data speak to each other. Increasingly complex and ever-changing reporting standards (both abroad and domestic) necessitate automated systems that can query and submit historical trading activity at the drop of a hat, and hazy and potentially ambiguous market abuse statutes require the availability and accessibility of trading data for real-time monitoring.

These concerns are what our flagship product, CrossCheck 2, was designed to alleviate. At BornTec we like to say we “break down the silos” in which your data is stuck, but that may be an overwrought metaphor — we aren’t taking a sledgehammer to internal and external business systems, but we are efficiently aggregating the data contained within these systems and normalizing it. In effect, we allow your data sets to talk to each other at scale.

It is this automation — done in a real-time environment — that unlocks the power of the data at every trader’s fingertips. Offices no longer have to worry about where to find trading history when the government comes knocking, nor do they have to worry that they are missing out on insights already on hand. By collecting, collating, and connecting various streams of data, CrossCheck 2 allows traders to do what they do best: look for patterns and leverage them for favorable outcomes.

For more on CrossCheck 2, and how you can do more with your own data, reach out to us at sales@borntec.com

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