Databricks and Frisco Tools Seek to Simplify Workflows

A deal between Databricks and Frisco Analytics is intended to simplify data workflows and unify siloes across enterprises.

The tie-up will make Frisco’s data management tool available to clients on Databricks’ Data Intelligence Platform. Clients will have access to tools to integrate data management and governance, improve data quality and consistency and accelerate analytics and artificial intelligence model development.

RepRisk Data Made Available to Bloomberg Clients

Bloomberg clients can now access RepRisk’s business conduct and ESG risk data, with Data License and Terminal subscribers able to gain insights into more than 100 risk factors across 28,000 companies.

Switzerland-based RepRisk’s business conduct and ESG risk information is updated daily and integrated into Bloomberg’s data pool that feeds clients’ analytics and other processes.

UK Penalties for AML Regulatory Breaches More Than Double 2023 – Fenergo Research

According to a new analysis by Client Lifecycle Management and perpetual KYC solution provider Fenergo, financial institutions in the UK have experienced a sharp increase in the total value of AML-related fines despite a drop in the number of enforcement actions.

In 2024, the Financial Conduct Authority (FCA) issued three significant fines totalling $64.74 million, up from $25.2 million in 2023. While the overall number of AML penalties from the FCA has declined by 80% since 2022, the total value of fines has risen notably. Notable cases include Metro Bank ($21.8 million) and Starling Bank ($38.4 million), with an additional $4.5 million fine against CB Payments, part of the Coinbase Group, for weaknesses in financial crime control frameworks.

Fenergo’s data highlights mixed trends on a global scale. Although the total value of AML-related penalties worldwide dropped by 30% to $4.6 billion (from $6.5 billion in 2023), banks faced a 522% increase in fines, amounting to $3.65 billion. Penalties specifically tied to transaction monitoring breaches surged by 100% year-over-year to $3.3 billion.

Beyond AML, Fenergo’s research also points to growing enforcement actions related to environmental, social, and governance (ESG) practices. Global ESG-related fines nearly doubled, reaching $37.7 million in 2024, while in the United States, these fines rose by 13%, totalling $21.5 million.

Reflecting on these developments, Rory Doyle, Director of Regulatory Affairs at Fenergo, notes, “The surge in penalties for AML violations in banking in the UK and around the world underscores the relentless pace at which financial crime evolves, and the growing expectations placed on financial institutions by regulators. While progress is being made, the data serves as a clear reminder that compliance must continually adapt to meet new challenges.”

Key findings from 2024 global regulatory fines include:

• Banks accounted for 80% of all fines, totalling $3.65 billion. TD Bank became the largest U.S. institution to plead guilty to Bank Secrecy Act (BSA) violations.
• Digital asset platforms were fined $762.9 million.
• Payments firms faced $54.8 million in penalties.
• Buy-side firms received $52.85 million in fines.
• Private banks were fined $48.2 million.

Doyle emphasizes the importance of proactive measures and technology adoption: : “In today’s environment, staying ahead isn’t just about monetary loss and avoiding fines — it’s about building trust, safeguarding stakeholders and maintaining operational resilience. As the financial landscape becomes increasingly complex, leveraging advanced technologies and fostering a culture of proactive compliance will be key to addressing regulatory demands and mitigating risk. This is particularly evident in the UK, where politically exposed person (PEP) risk assessments have grown increasingly complex compared to those in other jurisdictions.”

SEC Launches Crypto Task Force to Provide Clarity on Regulatory Framework

Acting U.S. Securities and Exchange Commission (SEC) Chairman Mark T. Uyeda has launched a new crypto task force aimed at establishing a comprehensive and transparent regulatory framework for digital assets. Commissioner Hester Peirce will lead the initiative, with Richard Gabbert, Senior Advisor to the Acting Chairman serving as the task force Chief of Staff, and Taylor Asher, Senior Policy Advisor to the Acting Chairman, assuming the role of Chief Policy Advisor.

The task force will work across SEC divisions and engage with stakeholders to define clear regulatory parameters for crypto assets. Historically, the SEC’s approach to crypto regulation has been largely enforcement-driven, often leading to uncertainty for industry participants. The initiative seeks to address challenges related to compliance, registration, and disclosure by offering practical solutions and clearer guidelines.

“I look forward to the efforts of Commissioner Peirce to lead regulatory policy on crypto, which involves multiple SEC divisions and offices,” said Acting Chairman Uyeda.

Commissioner Peirce emphasized the importance of broad stakeholder engagement, stating, “This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation.”

In addition to developing regulatory clarity, the task force will collaborate with other federal and international regulatory bodies, such as the Commodity Futures Trading Commission (CFTC), to ensure a coordinated approach. The initiative will also provide technical assistance to Congress as it considers updates to existing legislation.

Public engagement will be a cornerstone of the task force’s efforts, with future roundtables planned to facilitate dialogue. In the interim, stakeholders are encouraged to share their insights via Crypto@sec.gov.

Adaptive Reports 69% Growth in Product Revenue and Launches New Brand

Adaptive, the custom trading technology solutions provider, has reported significant growth in 2024, with product revenue increasing by 69% and overall revenue rising by 10%. The company expanded its client base, launched a new brand and website to reflect its evolution, and strengthened its leadership team. These milestones highlight Adaptive’s transformation from a capital markets consultancy to a global provider of cutting-edge trading platforms.

The year saw significant investment in Adaptive’s Aeron technology, including new open-source capabilities, premium components, and enhanced community engagement through Aeron Community MeetUps, which attracted over 600 participants from 200 companies.

Adaptive also deepened cloud partnerships, introducing Aeron Premium on Microsoft Azure and publishing performance reports on Google Cloud. Workforce expansion, including a 35% increase in the product team, reflects the company’s commitment to innovation and global service delivery, and underscores its growing expertise in cloud-native trading solutions and proprietary technology accelerators.

Commenting on the growth, Matt Barrett, CEO of Adaptive, said: “2024 has been a year of milestones for Adaptive. As well as growing our revenue, client base and headcount, we have made several strategic investments in our capabilities – deepening our offering and ensuring that we can continue to support our clients in staying two steps ahead in fast-changing markets.

“The hard work of our team over the past twelve years has culminated in the business that we have today – a business that excels in developing proprietary technology accelerators and complex trading platforms, while deepening our partnerships with major cloud providers. This is why we are proud to unveil our new brand – reflecting our heritage, evolution and continued commitment to transforming capital  markets through technology.”

DMIST Proposes New Standard for Streamlining Position Transfers in Derivatives Markets

The Derivatives Market Institute for Standards (DMIST), an independent body established by FIA in July 2022, has released its third proposed standard, targeting the automation of position transfers in exchange-traded derivatives markets. This initiative seeks to enhance operational efficiency and resiliency while mitigating regulatory and operational risks associated with the current predominantly manual process.

The proposed “Standard Regarding Position Transfers” addresses the movement of open positions between accounts within the same clearing firm or across different firms. Such transfers are critical for risk management, margin optimisation, portfolio balancing, and adapting to changes in ownership due to mergers and acquisitions.

DMIST has initiated a consultation period open to all industry stakeholders, running until 21 March 2025, with a finalised standard expected by the end of Q2 2025. Comments can be submitted via DMIST’s website, with all feedback publicly accessible. This standard marks a pivotal step towards automating position transfer workflows, promising improved communication between clearing members and clients.

BlockFills Partners with Revelate to Enhance Crypto Data Distribution

Revelate, the secure data marketplace platform provider, has partnered with BlockFills, a provider of digital asset trading solutions. Through the collaboration, BlockFills will leverage Revelate’s platform to automate and scale the delivery of its crypto-enriched data products, including Reference Rates and Aggregated Book Data. The integration aims to provide institutional clients with seamless access to high-quality, data-driven crypto insights.

As demand for robust crypto data continues to grow among institutional investors, BlockFills is expanding its offerings with additional solutions. By adopting Revelate’s data-sharing technology, BlockFills aims to streamline its distribution processes, ensuring secure, efficient, and scalable delivery to meet the evolving needs of its clients.

Nick Hammer, CEO of BlockFills, commented: “Our clients demand the highest quality digital asset data to inform their trading strategies. Our partnership with Revelate allows us to meet this demand with greater efficiency. By adding to the distribution of our crypto-enhanced data, we are delivering a seamless experience that aligns with the exacting standards of institutional investors.”

Marc-André Hétu, General Manager at Revelate, added: “We’re excited to support BlockFills in optimizing the distribution of its in-depth data offerings. Revelate’s platform is designed to enable secure, scalable data sharing, helping organizations like BlockFills provide its clients with the insights they need to thrive in the digital asset markets.”

Canton Network and Digital Asset Partner to Revolutionise Crypto Derivatives Collateral Management

The Canton Network, in collaboration with Digital Asset, QCP, and select counterparties, has launched a project to introduce an advanced on-chain collateral and margin management solution for bilateral derivatives. The initiative leverages the Canton Network’s robust privacy features to address inefficiencies in the crypto derivatives market, which suffers from over-collateralisation and the high costs associated with tri-party agents.

Key features include smart contract-based collateral agreements that comply with ISDA CSA margin requirements, automated workflows, real-time access to a shared ledger, and tokenised collateral pledging. The solution enhances operational efficiency while preserving transaction privacy by restricting access to sensitive data. Benefits for market participants include 24/7 on-demand margining, shorter margin cycles, and integration of stablecoins and real-world assets within the Canton Network.

Georg Schneider, Head of Financial Products at Digital Asset, commented: “This collaboration underscores Digital Asset’s dedication to revolutionizing market infrastructure through innovative, blockchain-powered solutions within the Canton Network. We are excited to bring privacy to on-chain collateral management, which will allow for the automated flow of funds between counterparties in a secure way without publicly disclosing open derivatives positions.”

Darius Sit, Founder and CIO at QCP, added: “We are excited to spearhead this initiative with the Canton Network to redefine the future of derivatives markets. Its unique ability to deliver privacy forms the foundation for a groundbreaking global collateral network, enabling seamless and secure connections across trading venues, brokers, investors, and FMIs. By addressing inefficiencies in collateral management, this initiative reinforces our commitment to providing clients with trusted, efficient, and scalable solutions that redefine market standards.”

Novobanco Expands Nasdaq Calypso Partnership to Streamline Capital Markets Operations

Novobanco and Nasdaq have announced the expansion of their long-standing technology partnership, with the Portuguese bank adopting Nasdaq’s Calypso platform to fully support its capital market operations. Having utilised Calypso for back-office processing for nearly two decades, Novobanco will now integrate its risk management and front-office functions into the system. This move aims to enhance operational efficiency, agility, and data transparency across the bank’s treasury workflows.

The Nasdaq Calypso platform, deployed in the cloud, offers a multi-asset trade management solution that automates trading, clearing, risk management, and post-trade processing. By expanding its use of the platform, Novobanco aims to benefit from real-time decision-making capabilities, enhanced risk analytics, and seamless global connectivity through standardised APIs. This integration aligns with Novobanco’s ongoing transformation strategy to simplify its operations, improve IT efficiency, and strengthen its client-centric approach.

Nuno Duarte, Head of Treasury and Finance of Novobanco, commented: “Consolidating our treasury function onto a single platform marks another major step in our journey to position ourselves as an independent, strong, and successful Portuguese bank,” said. “By streamlining our infrastructure and enhancing the efficiency of our operations, we are better positioned to deliver a more personal, customer-centric experience to our clients, while supporting sustainable growth. We welcome the opportunity to expand our relationship with Nasdaq and view them as a strategic partner in our transformation.”

Gil Guillaumey, Senior Vice President of Capital Markets Technology at Nasdaq, said: “European banks are on an extraordinary modernization journey and the decision to consolidate Novobanco’s capital markets infrastructure underscores the bank’s commitment to innovation and superior client services. Through this partnership, Novobanco gains the flexibility and scalability required to meet new industry standards, navigate regulatory changes, and capitalize on new growth opportunities. This marks a significant milestone in the bank’s ongoing transformation.”

Trading Technologies Launches TT Broker Scorecard to Enhance Trade Cost Analysis

Trading Technologies has introduced TT Broker Scorecard, a monthly report ranking global and regional equity brokers by liquidity and execution quality. The rankings are based on anonymised trade data from Abel Noser Solutions, which TT acquired in 2023. This new tool aims to provide buy-side market participants with insights into broker performance across various market segments, while enabling sell-side firms to identify their strengths and areas for improvement.

TT Broker Scorecard is accessible through Trade Zoom, Abel Noser Solutions’ transaction cost analysis (TCA) platform, allowing users to review historical trade data and drill down for more detailed insights. The new offering builds on TT’s expansion in TCA services, including the recent rollout of TT Futures TCA, providing granular trade data analysis for futures markets.

Peter Weiler, EVP Managing Director, Data & Analytics at TT, commented: “In today’s ultra-competitive environment, the buy side is increasingly trying to find liquidity in highly concentrated markets, while the sell side is seeking ways to protect and grow market share. TT Broker Scorecard will help firms on both sides uncover distinct business advantages by leveraging the massive universe of data that flows through our market-leading TCA platform. Our buy-side clients can find the counterparties that are most active in specific regions, countries, capitalizations, sectors and other segments. Sell-side brokers can identify and promote where they offer the most liquidity while establishing where they should focus on growing, leapfrogging competition or maintaining market share.”