Asia Pacific Trading Summit 2017: Takeaways
The 15th annual Asia Pacific Trading Summit occurred in Hong Kong this past week, and Flyer was there.
The focus was on MiFID II, geopolitics, the continuing rise of China, and trading technology. Our product manager – Brandon DeCoster – sat on the Technical Breakout Session alongside Daniel Shek (Bloomberg), Damian Bierman (Portware), Lisa Taikitsadaporn (Brook Path Partners), and Denis Sweeney (Metamako).
Here are our takeaways from the show.
MiFID II Affects Asia
MiFID II may not be de jure regulation in Asia, but it will become a de facto one. Entities doing business in Europe will have to comply with at least some MiFID II requirements. More importantly, the standards that arise out of compliance will become global simply as the natural course of standardization, especially with regard to research unbundling.
FIX Encryption is Coming
Today, the far majority of FIX traffic is unencrypted. The excuse is that it’s always been that way, or else that extranets and cross connects are “inherently secure.” These assumptions don’t hold up in 2017. They barely held up in 2007. FIX will be encrypted, starting with Bloomberg. Cybersecurity in finance is a top priority. Be prepared.
Machine Learning is Disruptive
Even at this early stage, machine learning is set to rapidly and profoundly disrupt the financial ecosystem. It is an area of intense, active R&D. It is also an avenue for outside industries (silicon valley, gaming, etc…) to enter.