Tomorrow’s Trading Technologies

April 15, 2016 03:00 PM

Financial technology remains one of the hottest spaces in the startup community, with funding surging to $19.1 billion in 2015, according to KPMG and CB Insights. Across every facet of the financial services industry, an opportunity for further disruption exists. In recent issues, Modern Trader has focused on firms engaged in trading technologies and how they exist in today’s world. Now, we take a deep dive into the future, highlighting the companies, trends and thought leaders who will shape and reshape the financial sector in the years ahead. 

Investors and technologists have dramatically altered their opinions of the blockchain — the distributed database based on the bitcoin protocol — during the past year. No longer is the blockchain seen as a tool tied exclusively to bitcoin. Instead, new startups — including New York-based itBit — are building private clearing databases based on the functionality of the blockchain. The company has begun focusing on the global gold trading market, and plans to expand into other markets. We talk to itBit founder and CEO Chad Cascarilla about the blockchain’s capacity to ultimately disrupt the $50 billion clearing and settlement industry and what it means for the future of trading.

Next, risk management has evolved dramatically in the wake of the financial crisis and accelerations in new technologies. Vertex Analytics’ CEO James Austin and COO Doug Duquette highlight the power of their data management system that can solve immense compliance challenges and help traders better understand how the markets truly operate every day. 

Also, we asked more than 150 executives at financial technology companies around the globe to define the top trends in fintech (The full survey will be available on Finalternatives.com). In their own words, these executives provide readers with the “The Top 10 trends in fintech.” A healthy dose of these trends affects the future of trading.

Readers may remember the first issue of Modern Trader, where we highlighted six distinct companies that we believed would dramatically improve traders’ ability to obtain actionable insight. We check in with them to see how quickly they’ve emerged as thought leaders in their respective space. 

Of course, the macro trend in fintech centers on the increasing capital flows from investors. Christine Short of Estimize offers a look at how institutional investors are targeting companies and the three most-trusted firms providing insights into investment activity. 

Finally, we interview Jason Raznick, the CEO of Benzinga, who has created one of the top deal-making events for investors and tech entrepreneurs in the country. The Benzinga Gala Awards are set for May 25, 2016 in New York, and Jason offers readers a sneak preview of what is to come, both at the event and in the broader technology sector this year.

About the Author

Garrett Baldwin is the Managing Editor of the Alpha Pages and the Features Editor of Modern Trader. An author and Baltimore native, he earned a BS in journalism from the Medill School at Northwestern University, an MA in Economic Policy (Security Studies) from The Johns Hopkins University, an MS in Agricultural Economics from Purdue University.