How Technology is Changing the Way You Trade (Finance Magnates)
How is technology changing trading? Markets are more accessible for retail traders and the brokerage landscape is more competitive, giving consumers more features for less fees. White-label solutions allow smaller players to set up shop quickly by using somebody else’s platform, and traders are freed from their desk by mobile apps. Negatives? The interpersonal aspect of trading has diminished, and high-frequency trading can create excess volatility.
U.S. House Bill Aims to Set Up Sandbox for Fintech Innovation (The Wall Street Journal)
The US is losing financial innovators to the UK, where a “sandbox” regulatory program allows startups to test their ideas alongside regulators from the FCA, the British version of the SEC. There are similar programs in Singapore and Hong Kong, and soon there will be one in the US. Congress members have stressed that it will keep business in the US while forcing regulators to get up to speed with what’s happening in the marketplace.
The Banking Bazaar and The Bizarre Banker (The Finanser)
Banks need to focus on creating and owning FinTech marketplaces. Rather than locking their customers into a mediocre end-to-end experience, they should embrace the marketplace of open platforms linked through APIs. With an open platform available, they can attract top third-party innovators to build superior customer experiences, while still keeping a hold on their own customers and their data.