Page 8 - FundTech Spring 2019
P. 8

NEWS


                                                    CONFERENCE SPEECH
                         ROBO OVERHYPED?            DTCC EXECUTIVE CALLS FOR DIGITAL STANDARDS
                         BOOST FOR HUMAN ADVISERS
                         The demand for robo-advisers   THE DEVELOPMENT AND ADOPTION   themselves as ‘the’ technology provider
                         among UK millennials may   of distributed ledger technology (DLT) is   that will serve as the ledger and
                         be overstated, according to a   being held back by the lack of operating   platform for any number of new smart
                         recently published survey on the   standards, according to an executive   contract or other applications,” he said
                         digitisation of the UK’s wealth   at the Depositary Trust and Clearing   in a conference speech in Frankfurt.
                         management industry.       Corporation (DTCC).           “Perhaps understandably, their focus
                          The study, produced by Global   Larry Thompson, vice chairman of the   is more on becoming the technology
                         Data, found that just 5% of   US-based post trade group, said a lack   partner of first resort, rather than on
                         millennial investors favour using   of coordination and collaboration may   establishing and agreeing to common
                         robo-advisers to structure their   only serve to further complicate existing   principles that lay the foundation
                         savings. Using an independent   market structure. Currently, technology   for maximum interoperability of
                         financial adviser (37%) or   providers are positioning themselves to   networks, and broadest use of software
                         investment company (27%)   be “technology provider of first choice”   applications.”
                         remain the most popular options.   rather than “laying the foundation for   He added: “Without coordination to
                          Global Data wealth        maximum interoperability”.   settle on a common set of standards
                         management analyst Sergei   Instead, argued Thompson, every user   applicable to DLT and used globally,
                         Woldemicheal says a combination   of a blockchain must agree to standard   we are at risk of repeating the past
                         of robo-technology and human   protocols, programming language, data   and creating new siloed systems that
                         advisers is the best approach for   fields and dictionaries if the technology   cannot interact with each other. We
                         the future, not least because it   is to be successfully implemented.   need to increase awareness of the need
                         is unclear if robo-advisers are   “While collaboration has been   for harmonised technology standards
                         able to tackle the risks that could   considerable to date, we are still in a   and best practices for the purposes of
                         materialise from a downturn.  period where technology firms and   integration and interoperability. The
                                                    vendors are jockeying to position   official sector can help.”

                       HEDGE FUNDS
                       CME LAUNCHES ALTERNATIVE DATA TOOL                          DEVERE GROUP HIRES
                                                                                   GLOBAL FINTECH HEAD
                                                                                   WORKING ON E-MONEY APP
                       THE US-BASED CME GROUP has   global head of ENSO.
                       unveiled a community benchmarking   “ENSO Data Insights taps into our   Independent financial adviser
                       tool designed to help hedge fund   derived data to provide the market   deVere Group has named
                       managers meet their best execution   with a unique insight into how trending   Dimitris Litsikakis as its first
                       requirements.                securities are being positioned by   global head of fintech.
                        ENSO Data Insights provides users   alternative fund managers.   A former country manager
                       with data from global multi-asset   “This allows for an enhanced   for UK fintech Revolut,
                       class securities that can be used to   analytical process, driving better   Litsikakis will report to deVere
                       compare best execution financing   informed investment and best   chief executive Nigel Green
                       rates, long and short position changes,   execution financing decisions.”  and chief operating officer
                       sector breakdown and securities   ENSO has more than $1 trillion in   Beverly Yoemans.
                       borrowing rate changes.      assets under administration (AuA),   His first responsibility will be
                        “Until now, the market has had   covering 33% of the global hedge fund   the development of the firm’s
                       limited access to aggregated and   equity long short market.   multicurrency e-money app
                       anonymised long and short alternative   Data Insights is now accessible to   deVere Vault.
                       data,” commented Paul Busby, the   ENSO’s international client base.






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