FinTech Exchange, Chicago

Now in its fourth year, Barchart’s FinTech Exchange* event seems largely designed to address the specific needs of the Chicago trading community: technology and data vendors; brokers and intermediaries; and commodities, futures and derivatives markets – with an emerging thread of Blockchain and crypto.

In fact, the Keynote Speaker, Dr. Richard Sandor, spoke of Blockchain as being as significant as the invention of double-entry bookkeeping, the launch of stock markets, the introduction of electronic trading, and the creation of financial derivatives combined.

Other topics included: the evolution of global financial markets; the threat or potential of enterprise Blockchain and FinTech solutions; the role of cryptocurrency exchanges; understanding big data and data analytics; deploying AI and machine learning within FinTech; and the rapid expansion of API solutions as products and services in their own right (not just as a means of data delivery).

There was also a panel discussion with the winners of the previous day’s Startup Exchange pitch event.

On behalf of Brave New Coin, I ran a series of round-table discussions on the current state of cryptocurrencies, token sales and digital assets; and the prospect of so-called security tokens (a topic which is sure to feature in this blog in coming months).

Finally, the notion of “alt data” is gaining attention, and not just among hedge funds. In part a by-product of big data (how to make sense of all this data), alt data is set to become the high-octane fuel for generating yield (if data is the new oil).

* Declaration of interest: Barchart syndicates Brave New Coin news and technical analysis content

Next week: Corporate purpose, disruption and empathy

 

Startup Exchange, Chicago

As part of its annual FinTech Exchange event in Chicago last month, Barchart* ran the Startup Exchange pitch competition, where 16 hopefuls competed in front of a stellar panel of judges.

The presentations in order of appearance were:

Mercaris – A market data and trading platform for niche agri-products e.g., organic, non-GMO, certified and other niche food products and commodities where identity preservation (IP) is critical.

KTS Operations – A configurable software development solution for data handling and trading. It aims to automate redundant data tasks, such as putting CPU processing on a Blockchain.

HALO – Is a platform for trading structured notes. Currently working with 10 banks and 5,000 financial advisors.

UCX – Offers a consolidated market place and platform for buying Cloud services.

Demand Derivatives Corp – Allows clients to design new derivative instruments for listing on futures exchanges, as compared to standard futures and options contracts. As well as supporting unique instrument design, the service focuses on IP protection, exchange listing and liquidity.

UpTick Technology – Identifying the in-house talent gap at many firms, this spreadsheet-based analytical tool integrates with any data set, multiplies internal development capacity and supports data distribution within the client organization.

MaterialsXchange – Is a raw commodities exchange offering a B2B e-marketplace to digitize and automate trading data. It features a live, two-sided (bid/offer) venue with full execution and delivery, plus connectivity to ancillary services. First product is a lumber market place.

Coinifide – Has launched a P2P crypto trading and auction market place, combining elements of a social trading platform with an emphasis on providing investor education, It features key influencers and subject-matter experts and a simulator to replicate trading strategies.

Upper Room Technology – Is a new analytics solution for professional bond traders, with algo-based modelling and trade execution services.

Tipigo – A decision-support and information tool aimed at self-directed investors and day traders. It combines machine learning and fundamental research (450+ data sources tracking 8,300 US companies) to screen and funnel investment strategies, with trade execute via 8 traditional brokers.

TrendyTrade – Designed to encourage millennials to invest, it aggregates 400+ data sources, as well as Twitter, StockTwits and traditional media. An AI-based algo model makes recommendations, and explains why a specific stock might be moving. Currently has 30,000 users (under a freemium model) and boasts 79% accuracy.

Peak Soil Indexes – Aiming to “democratize farmland”, this is all about so-called “precision agriculture” – financializing farmland, creating a new asset class and offering a passive investment product, tracked by their own farmland index. It recognizes the demand for farmland, while offsetting some of the inherent risks of highly volatile crop prices.

SixJupiter – This is text-based robo advice platform. Focuses on liquidity, diversification and aggressive growth. Data suggests that 36% of the US population don’t get financial advice.

FreightWaves – A trucking futures marketplace, developed in response to a lack of market transparency and the corporate headwind of freight costs. Combines insights from market trends, regulatory factors and the impact of new technology. Primarily a content site, the service has achieved 1 million paid views per month.

PanXchange – An OTC marketplace for physical commodities – agri, energy, food and metals. Provides Instant access to realtime and historic data, for price discovery and for
trading futures and derivatives. Live data includes bid/offer spreads and trades (as opposed to traditional price reporting agencies. Its first key product has been a weekly benchmark price for Frac Sand.

Matrix Execution Technologies – Trading solution for active traders in equities, futures and options. Includes order management and executions services, especially for trading spot markets against listed contracts (such as CME and CBOE Bitcoin futures). Aimed as family offices and HNWIs.

Based on the judges’ verdict, the winners were:

1. PanXchange
2. Coinified
3. FreightWaves

* Declaration of interest: Barchart syndicates Brave New Coin news and technical analysis content

Next week: FinTech Exchange, Chicago

CoinAlts Fund Symposium, New York

Following on from last week’s theme on Blockchain, crypto and asset management, the recent CoinAlts Fund Symposium in New York brought together various parts of the fund industry to discuss issues connected to crypto investment, portfolio management and back office solutions.

Although conducted under a veil of non-attribution, it wouldn’t be betraying any confidences to describe some of the key talking points. If anything, the main themes echoed much of what I have heard at similar events over the past 6 months: scaling transaction capacity and establishing Blockchain interoperability; building industry standards for this new asset class; and creating valuation models for new token issuance projects.

In addition, the conferences addressed operational matters such as crypto fund administration, audit, custody, taxation and client reporting. All the usual back office functions that are taken for granted in other asset classes.

What was particularly noticeable about this event was the lack of international participation. In fact, a number of the speakers almost berated the audience for choosing to ignore overseas industry, market and regulatory developments at their peril.

For example, on regulation, it was suggested that if the SEC doesn’t provide some constructive guidance on new token issuance (especially so-called security tokens), the USA could be left behind. Indeed, one industry representative stated that for his company, the USA is only their third largest market. Another presenter drew attention to the fact that South Korea (a leading marketplace for Blockchain and crypto) produces 15 times as many engineers as the USA, while the USA produces 40 times as many lawyers as South Korea.

A recurring theme throughout the day was that without formal standards, clearer regulation, and institutional-strength tools and infrastructure, major asset managers, pension funds and Wall Street firms will remain very cautious about investing in digital assets, whatever their current level of interest.

Next week: Startup Exchange, Chicago

 

Beyond Blocks, Tokyo

Thanks to my work with Techemy and Brave New Coin, Content in Context is currently on the road, attending various Blockchain and crypto events in Tokyo, Vienna, NYC and Chicago. The next few blogs will attempt to capture notes from the field.

Techemy CEO, Fran Strajnar presents on the new asset class of digital value

In Tokyo, the Beyond Blocks Summit was a stellar affair, with marquee blockchain projects and major investors presenting on stage, alongside cosplay characters, light shows, upbeat music and a crowd of crypto fanatics.

Given the significant developments in Japan’s regulatory framework for crypto-currency trading, there was a lot of interest in the presentations by bitFlyer, Quoine and Smart Contract Inc.

As with the recent APAC Blockchain Conference in Melbourne, there was a strong representation from China’s growing base of Blockchain projects (but not ICOs, of course), keen to demonstrate their infrastructure projects.

There was much debate about regulatory developments across Asia, made all the more interesting by the announcement that Monex is acquiring Coincheck, despite (or because of?) the recent hack on NEM tokens held on the local exchange.

Among international key speakers were Patrick Byrne from Overstock and tZERO, John Burbank of Passport Capital, and Techemy’s own Fran Strajnar – all looking to the future of this new asset class, especially so-called security tokens.

Interspersed throughout the two days were panel discussions and presentations on scaling, infrastructure, decentralized exchanges, stable coins and the future of ICOs.

Although this was only their second event of this kind, the Beyond Blocks team have quickly established themselves on the conference circuit.

Next week: Token Investment Summit, Vienna