Multi-market trading platform provider TraderEvolution Global has released the latest version of its trading platform, which includes a series of comprehensive updates to the company’s multi-asset back end core trading engine. In keeping with TraderEvolution Global’s commitment to assisting brokerages keep abreast of ever-evolving requirements and developments in the markets via a liquidity agnostic, multi-asset environment, the latest release, designated version 3.114, covers these important refinements: Back End Enhancements:   1) Tools4Brokers integration complete Adding to the array of existing integrations within the TraderEvolution core trading engine, we have now completed the integration with trade processing, liquidity management and connectivity provider Tools4Brokers.  2) TradingView Broker integration update: New mapping task implemented. This new task facilitates the mapping of stocks and ETFs between TradingView and Trader Evolution platforms. 3) ‘Hedging By largest leg’ functionality has been implemented. Hedging by largest leg functionality checks the final margin value for instruments according to the largest Buy or Sell leg of the portfolio. 4)  The Statement panel has been implemented.  This new enhancement gives users access to the Statement panel in the client app which displays a detailed account statement for the selected account(s). 5) End of Day trailing drawdown rule amendment within Margin & Risks The End of Day (EOD) trailing drawdown rule has been added to the User group User/Account/Account preset levels. This value determines the drawdown offset for the account in its currency. The trailing drawdown level will be calculated at the end of each day. 6) ‘Use time range to allow quotes’ function added to Quote Filters. This new functionality enables the setting of a time range for quotes filtering, which is conducted via the timestamps on each quote. Additional ‘From/To’ fields are also included for defining the time range, and a ‘Timezone’ drop-down list for selecting the required time zone appears.  7) Two new controls added to the Custody plan: Max and Min acc ccy. The Custody plan now has two new controls relating to fees charged between custodial operations maintenance task runs. The first of these is ‘Min value, acc ccy’, which is a numeric field for specifying the minimum fee that can be charged during these runs. The second of these is ‘Max value, acc ccy’, which is a numeric field for specifying the maximum fee that can be charged during these runs.  8) Update to the Interest On Balance service. This function has been updated to include the possibility of considering a leap year. 9) ‘Allow positions checking in the past’ function added to Corporate Actions Within the Corporate Actions function, there is a new ‘Allow positions checking in the past’ control. If this is active, it allows the checking of positions in the past and corporate actions can be run for them.  Front End Enhancements: TraderEvolution Global Ltd pioneers AI Assistant TraderEvolution Global Ltd continues to pioneer the innovative AI Assistant which is built into the front end trading interface. Currently the AI assistant is in its prototype phase and is subject to continued development, however for those wishing to see it in action, it will be showcased at the TraderEvolution Global Ltd booth at the forthcoming Finance Magnates Pacific Summit in Sydney Australia on August 28 and 29 this year.

Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported some financial and operational metrics for the first half of 2024, highlighting higher revenues and EBITDA despite lower market activity towards the end of the period. The company reported revenues of $398.2 million for H1 2024, up 8% compared to $368.5 million in H1 2023. Q2 2024 revenues also showed growth, rising 14% to $182.6 million from $160.6 million in Q2 2023. EBITDA for H1 2024 stood at $183.9 million, up 6% from $174.1 million in the same period last year. For Q2 2024, EBITDA increased by 11% to $81.3 million, compared to $73.2 million in Q2 2023. The EBITDA margin remained strong at 46%, slightly down from 47% in H1 2023. “This performance was achieved despite lower levels of activity across financial markets towards the end of the period, which were affected, as expected, by the UEFA EURO 2024 Football Championship, a trend consistent with previous tournaments,” the company stated. “During the first six months of 2024, Plus500 delivered excellent financial and operational progress despite difficult market conditions. Revenue and EBITDA increased meaningfully year-on-year, highlighting the inherent resiliency and strength of the Group’s differentiated business model. We also delivered excellent operational progress across both our B2C (Retail) and B2B (Institutional) offerings to further reinforce our international competitive advantage and scale,” said Plus500 CEO David Zruia. The company’s balance sheet shows cash balances exceeding $1 billion as of June 30, 2024. In H1 2024, Plus500 onboarded 56,759 new customers, up from 50,449 in H1 2023. This included 24,810 new customers in Q2 2024, compared to 22,248 in Q2 2023. The active customer base remained stable at 175,909 during H1 2024, compared to 175,762 in H1 2023. During H1 2024, Plus500 announced shareholder returns of $175 million through dividends and share buybacks. The company bought 3,229,215 shares at an average price of £19.73, totaling $80.7 million. As of June 30, 2024, the total number of ordinary shares in issue was 76,509,277. The company will announce new shareholder returns, including dividends and share buybacks, as part of its H1 2024 results. Plus500 will publish its final H1 2024 results for the six months ended June 30, 2024, on August 19, 2024.  

Japan-based investment advisor Metaplanet continues to increase its bitcoin (BTC) holdings despite a decline in BTC prices. On July 7, the company announced on X another purchase of 42,466 bitcoins for 400 million Japanese yen ($2.5 million). This upcoming transaction marks the firm’s fourth acquisition since April 2024. Last month, Metaplanet stated it adopted bitcoin as a reserve asset to mitigate risks associated with Japan’s massive debt burden and the yen volatility. Japan’s net debt to gross domestic product (GDP) ratio was the highest among G7 countries in 2023, at around 159%. Following this purchase, Metaplanet now holds a total of 203,734 BTC, acquired at an average price of around 10 million yen ($62,000) per coin. This average purchase price is roughly 7% higher than the current market price of Bitcoin. Metaplanet made its initial foray into Bitcoin in April 2024, adopting the cryptocurrency as a treasury asset and purchasing its first batch of Bitcoin for $6.5 million. The company’s decision to invest in Bitcoin was influenced by prominent industry figures such as Morgan Creek Capital founder Mark Yusko, Ordiswap founding member Jack Liu, and companies like Sora Ventures and UTXO Management. Metaplanet’s strategy mirrors that of MicroStrategy, a Virginia-based software developer, which has accumulated 214,400 BTC worth $14.3 billion since it began purchasing the asset in 2020, making it the largest corporate holder of bitcoin. Metaplanet’s move into Bitcoin impacted its market performance, with its stock price surging by about 90% the day after the initial announcement. However, the stock later declined amid a drop in Bitcoin’s price. After peaking at 107 yen ($0.66) on June 11, Metaplanet’s stock fell by 25% as Bitcoin’s price dropped from around $70,000 to below $60,000. The stock is currently trading at 80 yen ($0.5), which is still 344% higher than at the beginning of 2024. In late June, Metaplanet announced a plan to issue 1 billion yen ($6.26 million) worth of bonds to raise additional funds for buying Bitcoin. Similarly, Michael Saylor’s MicroStrategy has also announced several convertible note raises in 2024 to further invest in Bitcoin.

PRConnect, a digital content marketing services provider, has partnered with MediaFuse, a vertical newswire service and publisher of Chainwire, FinanceWire, CyberNewsWire, and GamingWire. This partnership aims to expand PRConnect’s global distribution capabilities, enhancing the delivery of news and press releases to targeted readers in blockchain, cybersecurity, fintech, gaming, and high-tech industries. PRConnect, a leading digital content marketing services provider, has entered into a strategic partnership with MediaFuse, an innovative vertical newswire service and publisher of Chainwire, FinanceWire, CyberNewsWire, and GamingWire.  The collaboration significantly broadens PRConnect’s global distribution network, enabling PRConnect and its partners to deliver news and press releases targeting readers in the blockchain, cybersecurity, fintech, gaming, and high-tech industries. “By partnering with MediaFuse, we have accelerated plans to provide our partners with end-to-end content marketing fulfilment services,” said Wing Yu, CEO of PRConnect.  “We are especially excited about our immediate ability to tap into a massive network of branded technology-focused media sites that encompasses Europe, the Middle East and Asia.” PRConnect partners will benefit from MediaFuse’s top-tier PR syndication capabilities, allowing them to create successful campaigns targeting multiple markets and regions simultaneously. MediaFuse’s extensive PR distribution network effectively amplifies stories about product launches, partnerships, investments, and other newsworthy events. Thanks to its partnership with MediaFuse, PRConnect can offer clients guaranteed coverage in top-tier publications, including tech sites and news aggregators. The arrangement supports simultaneous news syndication, ensuring major stories are dispatched as they break. With the aid of custom tracking provided by API, PRConnect clients can monitor campaign performance and identify markets that present new opportunities for growth. About PRConnect PRConnect is a leading content syndication and amplification firm that provides reliable service, innovative technology, and custom solutions to help wire services and content marketers reach and engage audiences. For more information, please visit PRConnect. About MediaFuse MediaFuse is a niche-focused newswire company with a mission to maximize the reach and traction of press release distributions. Its unique approach combines targeted media outlets and enhanced visibility on their websites, ensuring businesses can optimize their PR announcements to amplify their news push. For more information, please visit MediaFuse.

Weakening Dollar due to signs of disinflation in the US economy like lower wage growth and potentially slowing economy. Federal Reserve rate cut expected in September, not July.   US Dollar and Federal Reserve: A Looming Rate Cut? Weakening Dollar: The US Dollar is currently trading at its lowest level since mid-June due to a shift in market expectations regarding the Federal Reserve’s monetary policy. Disinflation Signs: Recent economic data points towards disinflation in the US economy. This includes the lower-than-expected Nonfarm Payrolls data, which showed slower wage growth and a slight uptick in unemployment. Additionally, the upcoming release of inflation data on Thursday is anticipated to show a further decline in inflation rates. Anticipated Rate Cut: Weakening inflation and a potentially slowing economy are leading market participants to believe the Federal Reserve will cut interest rates in September. Currently, the market is pricing in less than a 10% chance of a cut in July, but those odds jump to around 80% for September. Fed Chair Powell’s Testimony: This week, Federal Reserve Chair Jerome Powell will deliver his Semiannual Monetary Policy Report to Congress. Investors will be closely watching his comments for any clues about the Fed’s future actions regarding interest rates. French Election Outcome: A Surprise for the Euro Unexpected Results: The second-round French election results surprised markets, with a leftwing government coalition winning the most seats in parliament. This outcome was unexpected as pre-election polls favored a far-right victory. Uncertainty for the Euro: The left-wing government’s potential for increased public spending raises concerns about potential strain on public finances. This has introduced some uncertainty into the Euro’s outlook, although the impact is expected to be mild. Previously Expected Headwinds: Markets had previously been bracing for a far-right victory, which was generally viewed as negative for the Euro. The surprise outcome removes this potential headwind for the Euro, but doesn’t necessarily translate to immediate gains. Hung Parliament: The leftwing coalition lacks an absolute majority, requiring them to find other parties to form a government. This could lead to political instability and potentially impact economic decisions, further affecting the Euro. Gold Prices: Caught Between Bond Yields and Geopolitics Downward Pressure: Gold prices are facing some downward pressure due to rising US Treasury bond yields. This rise in yields is linked to fears that former President Donald Trump could win the next election. Trump Effect on Bond Yields: Market participants believe a Trump presidency would likely lead to increased government spending and tax cuts. This could stimulate inflation and force the Federal Reserve to raise interest rates, which would negatively impact gold prices (since gold is a non-interest-bearing asset). Geopolitical Support: Despite the downward pressure, gold is still finding some support from ongoing geopolitical tensions in the Middle East and Ukraine. Investors often turn to gold as a safe haven asset during times of uncertainty. Central Bank Demand: Central banks, particularly those in Asia, continue to be net buyers of gold, which provides underlying support for the price. This demand is seen as a hedge against potential depreciation of their own currencies against the US Dollar. Here are the top 5 economic events for the week starting from July 8th, 2024:   Eurogroup Meetings (July 8th & 9th & 12th): (Impact: Medium, Currency: EUR) These meetings bring together European finance ministers to discuss economic issues and policy coordination within the Eurozone. The outcome of these meetings can impact the Euro by signaling potential changes in monetary policy or fiscal spending. US Consumer Price Index (CPI) Release (July 11th): (Impact: High, Currency: USD) This report shows the changes in prices of goods and services purchased by consumers. It’s a key indicator of inflation in the US economy. A higher than expected inflation number could lead to a stronger US Dollar and potentially signal a Federal Reserve rate hike in the future. Federal Reserve Chair Jerome Powell Testifies (July 9th & 10th): (Impact: High, Currency: USD) Investors will be closely following Powell’s comments for clues about the Fed’s future actions regarding interest rates. His remarks could impact the US Dollar and financial markets. Chinese Consumer Price Index (CPI) Release (July 10th): (Impact: High, Currency: CNY) Similar to the US CPI report, this release will show inflation levels in China. This can affect the Chinese Yuan (CNY) and broader Asian economies. University of Michigan Consumer Sentiment Index (July 12th): (Impact: High, Currency: USD) This survey measures consumer confidence in the US economy. A higher number indicates greater optimism, which can be a positive sign for economic growth and the US Dollar.     The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

EURUSD currency pair can be expected to rise further toward the next resistance level 1.0900. – EURUSD reversed from support zone – Likely to rise to resistance level 1.0900 EURUSD currency pair continues to rise inside the minor correction ii, which started earlier – when the price reversed up from the strong support zone located between the pivotal support level 1.0700 (which has been reversing the price from February), lower daily Bollinger Band and the support trendline of the weekly Triangle from the start of 2023. The active wave ii belongs to the downward impulse wave 3 from the start of June. Given the continuation of the strongly bearish USD sentiment which can be seen across the currency markets, EURUSD currency pair can be expected to rise further toward the next resistance level 1.0900 (which reversed the previous corrections a and 2), target price for the completion of the active wave ii. EURUSD technical analysis The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

The ETF Connect Program, which facilitates two-way capital flows between mainland China and Hong Kong for eligible ETFs, celebrated its second anniversary. The program strengthened its position in deepening the integration of the two capital markets, with the number of eligible ETFs increasing from 87 to 151 since launch, and the monthly Northbound trading volume rising from US$55 million to US$2.98 billion in June this year. The current eligible ETFs consist of 84 listed on Shanghai Stock Exchange, 57 listed on Shenzhen Stock Exchange, and 10 listed on Hong Kong Stock Exchange, according to Hong Kong Stock Exchange. E Fund to expand ETF portfolio Among them is E Fund Management, the largest fund manager in China, which has a total of 14 ETFs included, covering a variety of indexes, including broad-based indexes such as CSI 300 Index and STAR 50 Index, thematic index such as CSI Artificial Intelligence Index, and strategic index such as CSI Dividend Index. Additionally, the average management fee of these offerings was less than 0.3% per annum, underscoring E Fund’s dedication to empower foreign investors to diversify their assets across both Hong Kong and mainland China markets in an efficient and cost-effective manner. The scope of the program is expected to see significant expansion on July 22nd. It is believed that this expansion will serve offshore investors seeking exposure to A-share capital market with enhanced investment choices, and increase liquidity and trading activity of relevant ETFs in the same time. State Street launched FIX API for Fund Connect ETF platform State Street launched a Financial Information eXchange (FIX) application programming interface (API) for its Fund Connect ETF platform, a key portal within State Street’s GlobalLink product suite that enables the creation and redemption of ETFs, designed as a single point of access to many issuers. The portal’s automated order placement solution and comprehensive integration to order management systems has supplied a direct link between APs, distributors, order takers, sub-advisors, and issuers. The new FIX connectivity method drives increased efficiency, reduced operational risk and enhanced communication between parties. Now available to all participants on the platform, the enhancement offers connectivity and electronic communication through an integral industry protocol used in electronic trading. This will allow market participants to send orders directly from their order management system (OMS) to the Fund Connect ETF platform streamlining the ETF creation and redemption process. Fund Connect ETF also recently released the ability for issuers or their agents to approve AP creations and redemptions via RESTful API continuing to deliver increased connectivity and straight through processing for the ETF primary market.

As witnessed by the recent crash in Bitcoin (BTC) price and the rest of the crypto market, it is clear that the hype can quickly fade once volatility steps in. Despite its potential for rapid financial gains and the thrill of its volatility, the characteristics that create this appeal can also be the cause of its downfall. Unlike stocks, which can rise and fall separately, the industry-wide trend in the crypto market can swing like no other, drastically impacting portfolios and resulting in catastrophic losses if not balanced. To offset this instability and find balance amongst volatility, it’s vital that a portfolio integrate traditional derivatives and forex assets alongside crypto for a stable investment strategy. Doing so through stable platforms like MultiBank.io can help any trader quickly find balance in an unbalanced market. Why is Crypto so Volatile? The crypto market is notorious for making millions and for taking millions from suspecting and unsuspecting traders. The problem occurs when either BTC or Ethereum (ETH) experience large market price changes within periods as short as four to six hours. The collateral damage to the rest of the market is usually amplified by a factor of 2 or 3 in comparison to these two heavy hitters — so if BTC drops 5%, the market drops 10% or even 15%. If a trader’s portfolio is solely invested in cryptocurrencies, it’s easy to see how rapidly the value of those investments can deteriorate. Finding the Balance with Traditional Derivatives In light of the substantial volatility of the crypto market, it’s important to mitigate such risks through portfolio diversification through the inclusion of traditional derivatives. These traditional financial instruments can include things like contracts for difference (CFDs), options, and futures. By providing exposure to more stable assets like indices, equities, and commodities, these instruments effectively hedge against the volatility of the crypto market and help stabilize a portfolio. One such example could include a trader holding gold to offset the volatility of their crypto holdings — gold being considered a ‘safe haven’ asset that endures market instability. The Power of Forex Forex refers to foreign exchange trading and can be of great help in further balancing a crypto-heavy portfolio and improve stability during market turbulence. Forex markets involve the trading of different national currencies and play out very differently to crypto markets due to their significant reduction in volatility. Due to their low-risk nature, forex investments can function as an effective counterbalance for more high-risk assets like cryptocurrencies. By trading in national currency pairs such as GBP/USD or EUR/USD, traders can capitalize on geopolitical and economic trends without substantial risk of portfolio losses. As a high-liquidity market with steady returns, forex assets are an excellent addition to balancing a portfolio. MultiBank: Establishing a Balanced Portfolio MultiBank Group was established in 2005 and is one of the largest financial derivatives institutions globally, allowing traders to easily integrate traditional and crypto assets in their portfolios. The Group serves over one million clients and operates with over 12 regulatory licenses to ensure all trade is trustworthy and extends this legacy into crypto through its platform, MultiBank.io. MultiBank.io offers traders a one-stop-shop solution for balancing their portfolios with advanced trading tools and high-leverage options. The platform allows traders to gain exposure to crypto derivatives while consistently having access to traditional, more stable financial instruments. The integration of crypto and traditional assets ensures that all traders can maintain diverse portfolios and effectively balance the volatile nature of crypto assets with stable traditional assets. Paired with the firm’s reputation for security and user safety, this makes MultiBank a reliable choice for those looking to balance their portfolio. Unlike other platforms, MultiBank shows a strong commitment to regulatory oversight and transparency in all things — particularly in an industry that relies almost solely on trust. Through MultiBank Group’s stable regulatory framework and history of regulatory compliance, traders can rest assured they trade with confidence. Portfolio Stability Through Innovation On May 3, MultiBank Group revealed the MultiBank.io platform, marking a significant milestone where crypto derivatives can meet traditional assets. Since then, the platform has continued to offer increasingly innovative features for traders to maximize the diversification of their investment portfolio. By offering traders leverage options of up to 100x traders can get exclusive access to a unique range of Tether (USDT) pairs that are linked to stable traditional assets like commodities, equities and other asset classes. This integration between entirely different asset classes forges a bridge for the crypto market and traditional finance (TradFi) for substantially more stable investment strategies. What Next? Although the crypto market offers a high-risk, high-reward appealing allure to many traders, the inherent volatility demands trader portfolio diversity and preparedness. To avoid significant losses and maintain a stable portfolio, traders need to incorporate traditional derivatives and forex assets for a more balanced position in the market. By utilizing MultiBank.io’s diverse portfolio options, traders can now find true investment balance.

Mastercard and LuLu Group have joined forces to enhance the co-branded credit card network across six markets, including Bahrain, Kuwait, Oman, Qatar, UAE, and now Saudi Arabia. The integration of Mastercard’s expertise into Lulu Group’s operations will advance efficiencies, scale, and data-driven decision-making following a decade-long partnership in the retail sector between the two. The two organizations have spent over a decade collaborating and innovating to meet the evolving needs of consumers in the region. In 2013, a first co-branded credit card was launched, which was later followed by other initiatives that strengthened relationships with various co-brand issuer partners. Cardless payments at self-checkout counters Besides co-branded credit card portfolios, other projects will benefit from the collaboration, including a variety of sustainability initiatives and technology enhancements. Revamped features and benefits include digital in-store transactions and more cashless experiences, as well as personalized rewards and cashback offers on spends at LuLu stores. LuLu will also deploy the Mastercard Next Gen Point of Interaction (POI) solution, allowing its consumers to make cardless payments at its self-checkout counters. The companies will continue to offer a portfolio of co-branded credit cards via partners including Abu Dhabi Commercial Bank in the UAE, Bank Muscat in Oman, CrediMax in Bahrain, Doha Bank in Qatar, Emirates NBD in the UAE, and Gulf Bank in Kuwait. There are also plans for expanding into Saudi Arabia. Enhancing co-branded credit card partner network Amnah Ajmal, Executive Vice President, Market Development, EEMEA, Mastercard, said: “We are delighted to embark on this transformative journey with LuLu Group, a valued partner, who shares our vision for a more sustainable and inclusive future. Our partnership will enable us to enhance the Mastercard co-branded credit card experience and support LuLu in leveraging technology and innovation to boost their offerings.” Saifee Rupawala, CEO, LuLu Group International, commented: “Being able to personalize our offerings to better suit our customers’ needs, is key for Lulu Group’s growth and future ambitions. Our partnership with Mastercard enables us to do this, driving our business forward. It will also enhance the rewards and advantages we are able to offer via our co-branded credit card partner network across the region. As payments’ technology continues to offer new possibilities, we look forward to the next stage of our relationship with Mastercard.” Sumsub recently joined the Mastercard Engage Partner Program as a technological partner focused on Digital First solutions to provide its full suite of verification and anti-fraud solutions to secure customers’ onboarding and ongoing compliance journey. Nuvei secured a UAE payments license Nuvei has recently secured an in-principle approval for a Retail Services Category II License from the Central Bank of the UAE.  This important strategic expansion into the United Arab Emirates (UAE) comes as the jurisdiction increasingly establishes itself as the bridge between the West and East at a time of heightened geopolitical tensions. The announcement is the latest from Nuvei as it continues to strengthen its global reach, including extending its local acquiring capabilities in more than 50 countries. In 2024 Nuvei has already announced that it had secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore and that it is the first global payments company to offer local direct acquiring in Colombia. The UAE’s eCommerce sector is projected to surpass $10 billion in revenue by 2029 with an annual growth rate (CAGR 2024-2029) of approximately 9%. Nuvei already has a strong commercial presence and existing high-profile partnerships in the region. The firm is now fortifying its global presence and commitment to the Middle East and North Africa (MENA). The Retail Services Category II License enables Nuvei to offer its comprehensive suite of payments technology to businesses operating in the thriving UAE market, including direct local acquiring, payment aggregation services, and domestic and cross-border fund transfers. Through direct local acquiring, Nuvei gains greater control over the payment life cycle, ensuring further optimized payment acceptance rates and lower processing costs for its customers.

Sense of security is paramount for traders when choosing a broker, a new study conducted by FXStreet revealed.  The study, titled the “Philip Fry Project,” was based on a sample of eight traders and delves into the decision-making processes of traders when opening brokerage accounts and making deposits.  The sample of traders was selected based on specific criteria, including having opened an account within the last 12 months, being active Forex traders, and representing diverse geographic regions such as MENA, Southeast Asia, Latam, and Europe. Referrals and reviews are vital for broker trustworthiness The study was born out of the need to understand how traders decide to open and deposit into brokerage accounts. The primary objective was to analyze the factors influencing these decisions to enhance FXStreet’s strategic alignment with brokerage services. Besides the importance of a sense of security, FXStreet identified the triggers for switching brokers, the main features traders consider when choosing a broker, which information sources they rely on, and the client onboarding procedures.  FXStreet found that:  A sense of security is paramount for traders when choosing a broker. Trust is established through personal referrals and positive reviews from other users; Traders often open new accounts or switch brokers for better trading conditions, such as improved spreads, better margins, or a more user-friendly interface; The top features traders consider when evaluating brokers are reputation, reviews, regulation, and the reliability of withdrawal and deposit processes. The perceived security of funds and ease of financial transactions are critical factors; Traders primarily learn about brokers through passive methods like referrals and advertisements. They also actively search online, using keywords and visiting broker websites. Social media and trading forums are additional sources of information; The sign-up process, although data-intensive, is generally perceived as straightforward. After opening an account, traders typically test the platform using demo accounts or small deposits to ensure reliability before committing significant funds. While opening a brokerage account is easy, the critical aspect for traders is trustworthiness and the assurance that they will not fall victim to scams, the ‘Philip Fry Project’ reveals, which adds that personal referrals and user reviews are vital in establishing this trust. FXStreet aims to position itself as a credible and comprehensive source of information for traders who search for broker recommendations.  Founded in 2000, FXStreet is a leading independent portal dedicated to the Foreign Exchange (Forex) market, offering a wide range of tools and resources: 24/5 currency news, real-time economic calendar, advanced rates and charts, educational webinars, analysis reports, forecasts, Learning Center, newsletters, industry services, FX customizable studies, and more.  Dedicated to providing neutral and unbiased information and enabling its users to make better and more confident decisions, FXStreet has managed to gain the collaboration of the entire Forex industry, from individual professionals and small companies right up to Forex Brokers and Investment Banks.  Besides the main website in English, the portal is available in 16 other languages (English, Japanese, Simplified Chinese, Traditional Chinese, Spanish, Russian, Arabic, Turkish, Indonesian, Portuguese, German, French, Italian, Hungarian, Vietnamese, Korean and Catalan).

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency. FX Market Surge in new hedge funds as assets hit record $4.3 trillion The estimated number of new hedge fund launches in 1Q24 surged to 146, an increase of 70 percent from the prior quarter and the highest level since 1Q22, according to the HFR report. Read More ViewTrade enters Australia to help superannuation industry save $160 million ViewTrade has entered Australia in an effort to further expand its trading solutions in the APAC region. Read More Revolut reports record pretax profit of £438 million in 2023 UK-based Fintech giant Revolut has reported a record pretax profit of £438 million ($553.81 million) in 2023, driven by user growth and a rise in interest-related income. Read More Robinhood taps Bitstamp to offer crypto futures in US and Europe Robinhood Markets is planning to offer cryptocurrency futures to its customers in the U.S. and Europe later this year. Read More DXtrade adds Pelican’s copy trading to white label for FX, CFD, Crypto brokers DXtrade, the trading platform powering both big-name and start-up FX, CFD, and crypto brokers, has partnered with Pelican Trading to add a copy trading service to its B2B trading solutions. Read More CFTC may lose case against My Forex Funds due to regulator’s misconduct CFTC Commissioner Caroline D. Pham has finally come forward regarding the CFTC v. Traders Global Group lawsuit, which alleges that My Forex Funds (MFF) practiced fraud. Read More Crypto Market Bybit Poland offers zero fees with BLIK on One-Click Buy and Fiat Deposits Bybit has partnered with BLIK to enable zero-fee transactions for the Polish client base that used that payment method for both One-Click Buy and Fiat Deposits. Read More European regulator issues ‘Travel Rule’ guidance for crypto The European Banking Authority (EBA) has issued guidelines on the ‘Travel Rule’ – the information that should accompany transfers of funds and certain crypto assets- which is designed to tackle the abuse of such transfers for money laundering and terrorist financing purposes. Read More Sony to launch cryptocurrency exchange subsidiary S.BLOX Co. Japan’s multi-industry conglomerate Sony is set to launch a cryptocurrency exchange subsidiary by revamping the local trading platform WhaleFin, which it acquired last year. Read More India’s CoinDCX acquires Dubai-based crypto exchange BitOasis India’s largest cryptocurrency exchange, CoinDCX, has acquired Dubai-headquartered digital asset trading platform BitOasis, marking the first step in its international expansion plans. Read More Coinbase builds on SEC v. Binance ruling momentum Coinbase is leveraging the momentum from Judge Amy Berman Jackson’s ruling in the SEC v. Binance case. Read More Bitstamp to pay Mt Gox creditors in 60 days, Kraken in 3 months Creditors of the defunct Mt Gox crypto exchange may have to wait up to three months to receive their bitcoin or bitcoin cash repayments, depending on the crypto exchanges through which they made their claims. Read More

The European Banking Authority (EBA) has issued guidelines on the ‘Travel Rule’ – the information that should accompany transfers of funds and certain crypto assets- which is designed to tackle the abuse of such transfers for money laundering and terrorist financing purposes. The goal is to establish a consistent and effective approach to implementing the travel rule across the EU that allows relevant authorities to fully trace such transfers where this is necessary to prevent, detect, or investigate money laundering and terrorist financing. New guidelines come into force 30 December 2024 These Guidelines repeal with effect from 30 December 2024 the Joint Guidelines under Article 25 of Regulation (EU) 2015/847 on the measures payment service providers should take to detect missing or incomplete information on the payer or the payee, and the procedures they should put in place to manage a transfer of funds lacking the required information. EBA is in charge of issuing guidelines to competent authorities, PSPs, and CASPs on: (a) the measures those providers should take to comply with certain articles of Regulation (EU) 2023/1113; (b) the technical aspects of the application of this Regulation to direct debits; (c) the measures, including the criteria and means for identification and verification of the identity of the originator or beneficiary of a transfer made to or from a self-hosted address. The ‘Travel Rule’ guidelines specify: which information should accompany a transfer of funds or crypto assets list the steps that payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs), and intermediary CASPs (ICASPs) should take to detect missing or incomplete information, what they should do if a transfer of funds or a transfer of crypto-assets lacks the required information. In June 2023, Regulation (EU) 2023/1113 entered into force and brings the EU’s legal framework in line with the Financial Action Task Force (FATF)’s standards by extending the obligation to include information about the originator and beneficiary to CASPs – the so-called ‘travel rule’. The deadline for competent authorities to report whether they comply with the Guidelines will be two months after the publication of the translations into the official EU languages. The amending Guidelines will apply from 30 December 2024. The EBA also published Guidelines on risk-based AML/CFT supervisors of crypto-asset service providers (CASPs) and Guidelines crypto-asset service providers to effectively manage their exposure to ML/TF risks, and is currently finalising the work on Guidelines on internal policies, procedures and controls to comply with restrictive measures that apply to CASPs as well as other financial institutions. Sumsub published “Mastering Travel Rule Compliance” Sumsub and Mercuryo have together published a paper titled “Mastering Travel Rule Compliance” aimed at providing guidance to Virtual Asset Service Providers (VASPs). Designed to aid cryptocurrency businesses in understanding and implementing the Travel Rule to ensure compliance and support business growth, the guide is particularly timely as the FATF’s recent survey revealed that 35 of 135 jurisdictions have already enacted Travel Rule legislation, with the European Union set to follow by December 30, 2024. VASPs need to respond to the growing global commitment to integrating cryptocurrency within regulated financial systems and ensuring a safe, transparent, and compliant environment. The guide addresses the complexity of the regulation and provides practical solutions to stay compliant while minimizing costs and risks. The Travel Rule, established by the Financial Action Task Force (FATF), mandates that financial entities involved in virtual asset transactions collect and share personal information of both senders and recipients. This regulation is a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) efforts. It is essential for VASPs and financial institutions to adhere to these guidelines to remain compliant, avoid penalties, and retain their licenses.

Creditors of the defunct Mt Gox crypto exchange may have to wait up to three months to receive their bitcoin or bitcoin cash repayments, depending on the crypto exchanges through which they made their claims. This information was detailed in a trustee document released today. The trustee announced that repayments have started to be processed for some designated crypto exchanges as part of the rehabilitation plan. The timeline for payouts to appear in creditors’ accounts varies: Kraken has up to 90 days to process payouts, Bitstamp may take up to 60 days, BitGo will make payouts visible within 20 days, while SBI VC Trade and Bitbank will complete payouts within 14 days. “Each Designated Cryptocurrency Exchange, etc. is obligated to add the number of BTC/BCH to the balance of a rehabilitation creditor’s account (or to transfer BTC/BCH to a wallet linked to the account) within a certain number of days after the day the BTC/BCH are transferred from the Rehabilitation Trustee,” the trustee said in the document. Repayments to eligible creditors will be “promptly made” if certain conditions are met, including confirmation of the validity of registered accounts, acceptance of the intention to subscribe to an agreement by designated crypto exchanges, and completion of discussions with the trustee. Earlier today, Mt Gox moved 47,228.7 BTC (roughly $2.71 billion) to a wallet and later transferred the assets in multiple transactions, including sending 1,545 BTC ($85 million) to a hot wallet on the crypto exchange Bitbank, according to data from Arkham. Bitcoin’s price dropped below $54,000 at one point today and is currently trading at $54,270, down 6.48% over the past 24 hours. The broader crypto market saw more than $665 million in daily liquidations across centralized exchanges. The repayment process follows the trustee’s announcement that repayments are being made through some designated crypto exchanges based on the rehabilitation plan. The trustee emphasized the importance of eligible creditors confirming the validity of their registered accounts and completing necessary agreements and discussions. “We ask eligible rehabilitation creditors to wait for a while,” the Mt Gox trustee stated. In May, Mt. Gox moved at least $2.9 billion in Bitcoin for the first time in five years. Despite this transfer, Mt. Gox still holds roughly $9.42 billion worth of bitcoin in its tracked wallets. The Mt. Gox Trustee issued a statement explaining the recent transfers. He confirmed that the bitcoin and bitcoin cash are being managed securely and requested patience from creditors as preparations for repayments continue. Former Mt. Gox CEO Mark Karpeles reassured creditors on social media, stating, “As far as I know, everything is fine with Mt. Gox. The trustee is moving coins to a different wallet in preparation for the distribution that will likely happen this year. There is no imminent sale of bitcoins happening.”

Nonfarm Payrolls (NFP) acts as a crucial US economic indicator, impacting job growth forecasts, unemployment rates, financial markets, and wage growth expectations. The Nonfarm Payrolls (NFP) report is a closely watched event in the financial world, acting as a crucial barometer of the US economy’s health, particularly the labor market. Here’s a more detailed look at the information you provided: Market Expectations and Economic Implications: Job Growth Forecast: Economists currently anticipate the NFP for June to show an increase of around 190,000 new jobs. This is a significant drop compared to the robust 272,000 jobs added in May. A lower-than-expected number could signal a slowdown in economic growth. Conversely, a higher number would suggest the economy is continuing to expand at a healthy pace. Unemployment Rate: The unemployment rate is projected to remain steady at 4%. This low level indicates a tight labor market, where there are more job openings than unemployed people. However, it’s important to consider the participation rate, which reflects the portion of the workforce actively seeking jobs. Impact on Financial Markets: US Dollar (USD): A strong NFP report, exceeding expectations for job growth, could strengthen the USD. This happens because a robust labor market suggests the US economy is on solid footing. As a result, investors may be more inclined to hold USD assets, driving up its value. Conversely, a weak report could lead to a weaker USD. Stock Prices: A strong NFP report might lead to a decline in stock prices. This is because a strong labor market could prompt the Federal Reserve to raise interest rates to curb inflation. Higher interest rates can make borrowing more expensive for businesses, potentially dampening economic activity and corporate profits. Conversely, a weak NFP report could boost stock prices as it increases the likelihood of the Fed keeping interest rates low or even cutting them, which can stimulate borrowing and investment. Gold Prices: Gold is often seen as a safe-haven asset during economic uncertainty. So, a weak NFP report, indicating potential economic slowdown, could lead investors to buy gold, pushing up its price. On the other hand, a strong NFP report might cause gold prices to dip as investors shift their focus to riskier assets like stocks. Focus on Wage Growth: Beyond the headline job growth figure, investors will be keenly watching the wage growth data within the NFP report. Wage Growth and Inflation: Slower wage growth could be a sign of disinflation, meaning inflation is falling or rising at a slower pace. This can be a double-edged sword. On the one hand, it can be positive for consumers as their purchasing power increases. However, disinflation can also lead to stagnant economic growth. The Fed closely monitors wage growth to gauge inflationary pressures and determine its monetary policy. Global Context: It’s important to remember that the NFP report doesn’t exist in a vacuum. Here’s how global events can influence the markets: UK General Election: The recent victory of the Labour Party in the UK general election could impact currency valuations. The Labour Party’s policies might be seen as less business-friendly compared to the Conservatives, potentially weakening the British Pound (GBP) relative to the USD. French Parliamentary Elections: Upcoming elections in France can also influence the Euro (EUR). The outcome could affect investor confidence in the Eurozone economy, leading to fluctuations in the EUR’s exchange rate. By considering both domestic and international factors alongside the NFP report, investors can gain a more comprehensive understanding of potential market movements. Major Upcoming Economic Events for next week: Legislative Election Start: 07/07/2024 00:00 Impact: HIGH Currency: EUR Description: The results of this election could significantly influence economic and political stability in the region, potentially affecting the EUR. Fed’s Chair Powell Testifies Start: 07/09/2024 14:00 Impact: HIGH Currency: USD Description: Jerome Powell’s testimony could provide insights into future monetary policy, impacting the USD and financial markets. Consumer Price Index (YoY) Start: 07/10/2024 01:30 Impact: HIGH Currency: CNY Description: This index measures the change in the price of goods and services, indicating inflation levels which affect economic policy and currency value. RBNZ Interest Rate Decision Start: 07/10/2024 02:00 Impact: HIGH Currency: NZD Description: The Reserve Bank of New Zealand’s decision on interest rates will influence the NZD and provide direction on the country’s economic outlook. Harmonized Index of Consumer Prices (YoY) Start: 07/11/2024 06:00 Impact: HIGH Currency: EUR Description: This index measures inflation and is crucial for monetary policy decisions in the Eurozone, affecting the EUR. Consumer Price Index (MoM) Start: 07/11/2024 12:30 Impact: HIGH Currency: USD Description: This monthly change in the price of goods and services is a key inflation indicator for the US economy, influencing monetary policy and the USD. Consumer Price Index ex Food & Energy (YoY) Start: 07/11/2024 12:30 Impact: HIGH Currency: USD Description: This index, excluding food and energy prices, provides a clearer picture of core inflation in the US, impacting economic decisions and the USD. Producer Price Index ex Food & Energy (YoY) Start: 07/12/2024 12:30 Impact: HIGH Currency: USD Description: This index measures the average change in selling prices received by domestic producers, excluding food and energy, indicating inflation and production cost trends. Michigan Consumer Sentiment Index Start: 07/12/2024 14:00 Impact: HIGH Currency: USD Description: This index measures consumer confidence in economic activity, influencing spending and economic outlook, affecting the USD. Retail Sales (YoY) Start: 07/12/2024 06:00 Impact: HIGH Currency: EUR Description: This annual measure of retail sales indicates consumer spending trends in the Eurozone, influencing economic growth and the EUR.     The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

Bolsas y Mercados Españoles (BME), the Spanish company that deals with the organizational aspects of the Spanish stock exchanges and financial markets, has announced plans to incorporate SpainAtMid, a new functionality into its Smart platform. This new functionality will allow trading participants to seek contra liquidity in larger sizes, whilst minimizing the price impact of resting orders or seeking price improvement on aggressive orders. Equities trading at BBO mid-point of CLOB SpainAtMid, a non-displayed pool, will allow the trading of equities at the BBO mid-point of BME’s central limit order book (CLOB). Starting in December 9, 2024, SpainAtMid, will be available during the continuous trading phase and support the execution of resting, immediate, and sweep orders. BME added that a separate MIC Code has been registered for SpainAtMid and it has been designed to operate on the same atomic matching cycle as the BME CLOB, which ensures that there is no latency cost in seeking price-improvement at the mid-point when sweeping through SpainAtMid to aggress a displayed price on the CLOB. Also it ensures that trades are always executed at the current PBBO mid-point price (i.e. never at a stale price). Traders can choose between Direct and Sweep orders SpainAtMid will allow trading participants to specify how their market and limit orders interact in two ways: Direct: Orders can be flagged to be routed to SpainAtMid only, where they will remain until execution at the prevailing mid-point or until they are canceled. Sweep: Orders can be flagged to be routed firstly to SpainAtMid, (for execution at the prevailing mid-point) and then any remaining unexecuted portion will be routed to the Central Limit Order Book where it will remain until it is either fully executed or canceled. BME launched IBEX ESG index family A few months ago, BME unveiled the IBEX ESG index family, expanding its portfolio of Environment, Social, and Governance (ESG) focused indices as the demand for ESG-based investments continues to ascend across global markets amid a broader transition towards responsible investment strategies. The methodology behind the new indices has been developed by Inrate, an independent provider specializing in measuring the sustainability impact of companies. To qualify for inclusion, companies must earn an ESG rating of C+ or higher, adhere to the United Nations Global Compact Principles, and must not exceed certain revenue percentages from activities considered detrimental to sustainability. This new index family consists of two types of indices—IBEX ESG and IBEX ESG Weighted. The former selects companies based on sustainability criteria and weighs them according to their free float-adjusted capitalization. The latter also uses sustainability criteria for selection but weighs the companies based on their ESG Impact Rating. These indices are calculated in real-time, in three variations: price, total return, and net return. The IBEX ESG index family includes 47 Spanish-listed companies, such as Acciona, BBVA, and Iberdrola, that met the stringent sustainability criteria. These companies will be reviewed annually, keeping the list updated and dynamic. The IBEX ESG indices bear similarities to the SIX ESG indices used in the Swiss market, highlighting a growing alignment in sustainability assessment metrics across different countries. It reflects an increasing awareness of ESG criteria and its importance in investment decisions among investors and issuers alike. SIX acquired BME in 2020 It was in 2020 that SIX Group acquired 93.16% of BME’s share capital in exchange for a total of EUR 2,569 million or CHF 2,748 million. In 2021, SIX announced it would migrate BME’s current trading platform to a version of its existing platform, thus establishing the future trading platform technology set-up for both companies. Envisaged to happen between Q4 2022 and Q2 2023, the migration was ultimately canceled after hitting unexpected technological obstacles. The exchange is now focusing on alternative routes to the consolidation synergies including potential renewal strategies on both bourses’ existing assets. 

Sterling can be expected to rise further toward the next resistance level 1.2820, target price for the completion of the active wave 2. – Sterling reversed from support zone – Likely to rise to resistance level 1.2820 Sterling continues to rise strongly after the price reversed up from the strong support zone located between the key support level 1.262 (former resistance from the start of May, which stopped the previous wave A), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous upward ABC correction (2) from the middle of April. The active wave 2 belongs to the intermediate downward impulse wave (3) from the start of June. Given the strongly bearish USD sentiment coupled with the Sterling optimism that can be seen across the FX markets, Sterling can be expected to rise further toward the next resistance level 1.2820, target price for the completion of the active wave 2. The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

The US stock market continues to rise, while almost all other markets worldwide have long since entered a consolidation phase. The question is more topical than ever: how long can the US market maintain its solo run? Optimism has been waning for a few days now, but the index continues to be carried upwards by a few stocks… The trend strength of the S&P500 is still there… The ratio of the S&P500 compared to the World Index shows how strong the outperformance of the US equity market has been in recent weeks… Optimism has also waned recently on the Nasdaq. This is a basic prerequisite for a correction. The other is for the indicator to fall into the pessimistic zone – we are still a long way from that… The Nasdaq has massively outperformed the S&P500 index… As already mentioned, pessimism has long since gained the upper hand in Europe. The Stoxx 50 Index with the largest European companies has already reached such a pessimistic level that a (technical) recovery should be possible… The same applies to the broad Stoxx 600 Index: the stock markets are deep in pessimistic territory… Not surprisingly, the UK stock market has been consolidating for some time due to the elections – with the potential for a continuation… …because smart investors are still not accumulating. No uptrend without sustained buyers… Sentiment on the German DAX index is improving again somewhat. Still too little for sustained advances… In Switzerland, sentiment has only just fallen into pessimistic territory. The consolidation could turn into a correction… And as in the UK, the effects of politics are also evident in France: sentiment is deeply pessimistic… But at least: when sentiment is this negative, smart investors usually show up. In fact, the indicator shows that accumulation is already taking place again in the background… Accumulation is also evident in Tokyo… And in contrast to the stock markets already discussed, optimists predominate in Tokyo… In China, too, sentiment will soon return to the predominantly optimistic zone… The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.  

Chainlink, Fidelity International, Sygnum have joined forces to bring Net Asset Value (NAV) data onchain as tokenized assets emerge as the next big thing. The collaboration provides transparency and accessibility around key asset data for Sygnum’s recently issued onchain representation of Fidelity International’s $6.9 billion Institutional Liquidity Fund. Sygnum tokenized $50m in treasury reserves held in Fidelity’s money market fund Sygnum has tokenized $50 million of Matter Labs’ company treasury reserves, which are held in Fidelity International’s money market fund and were issued on the ZKsync blockchain, a member of the Chainlink SCALE program. With Chainlink, NAV data can be accurately reported and synchronized onchain in an automated and secure manner, providing real-time transparency and built-in access to historical data for Sygnum. Chainlink also provides a chain-agnostic approach for disseminating NAV data, enabling the data to securely propagate across any blockchain or existing offchain system. The Chainlink Network goes beyond onchain data delivery to meet the three requirements of tokenized assets, providing cross-chain interoperability as well as dynamic synchronization to power programmable assets that stay updated across any environment. “Fund tokenization is likely the largest digital asset trend happening today” Fatmire Bekiri, Head of Tokenization at Sygnum, said: “As we work to bridge the gap between traditional finance and the blockchain industry, setting standards is crucial for fostering ecosystem participation and strengthening collaboration across blockchain companies, regulated financial institutions, and asset managers. This is an important milestone, and it’s exciting to see the great work that’s been done with Fidelity International, Chainlink, and Matter Labs come to fruition, and we look forward to keep building an onchain ecosystem in a regulated and compliant way.” Sergey Nazarov, Co-founder of Chainlink, commented: “Fund tokenization is likely the largest digital asset trend happening today, and it is a large confirmation that global asset management firms are entering this growing market. The global reach and efficiency benefits of tokenized funds are far greater than traditional methods and will over time become the way the entire asset management industry operates.” Why tokenization hasn’t “taken off” yet Last month, the World Federation of Exchanges (WFE) published a paper to provide a reality check on tokenization: we shouldn’t curtail further development nor should we run blindly towards it. The paper, “Demystifying Tokenisation: Embracing the Future”, was published as the European Commission discusses with stakeholders the tokenization of assets. Yay: fractional ownership, liquidity, trust Tokenized traditional assets should be viewed as nothing more than a modernized and innovative iteration of traditional finance, the WFE argues, pointing to many benefits that could make it a natural next step for financial markets: Fractional ownership, allowing multiple investors to own a share of an asset thereby lowering the capital requirement for individuals to invest in high-value assets; Enhanced liquidity, which arises from fractionalization enabling access to investments that may have been out of reach for many; and Enhanced trust could all lead to greater financial inclusion, diversification, and ultimately economic growth. Nay: 24/7 trading, disintermediated models. instantaneous settlement The trade association of publicly regulated stock, futures, and options exchanges, as well as central counterparties, also reminded us of some of the supposed benefits that are overexaggerated or frankly don’t exist at all: Continuous 24/7 trading – if truly needed – can be achieved without tokenization Disintermediated models face conflicts of interest Instantaneous settlement in tokenized trading may have unpredictable timing, affecting market liquidity and trading costs, especially if assets and funding need to be blocked prior to execution. The WFE argued that tokenization should be seen as a creative and modern version of traditional finance that offers new possibilities to investors and market players. However, current limitations mean that it won’t be right for every type of asset. The WFE explained why tokenization has not “taken off” in traditional markets yet: DLT has limitations, particularly in high transaction environments, as the technology is currently not fast enough to execute and settle all the trades running through a highly active exchange in any given moment. There are also other limitations such as storage problems caused by the distributed ledger. The nature of different DLT creations means that there is a fragmented infrastructure with tokenised assets managed on different blockchains which are not interoperable. Financial institutions would have to build connections with each platform, leading to significant operational costs and challenges, meaning there are only marginal efficiency gains in certain markets, particularly those that are already liquid. There are significant sunk costs involved in implementing DLT. It is a capital-intensive investment to move to the new technology and build the relevant infrastructure. These costs would be felt across the market, from infrastructure providers to market participants and end users. Even then, there may not be sufficient demand if customers do not have the correct infrastructure or capital to invest. The lack of regulatory certainty, which is improving thanks to the efforts of regulators and industry, persists. Most jurisdictions’ bodies of law do not reflect the creation of tokenised assets, leaving firms apprehensive. Anything that is, in effect, a financial instrument, should be treated in the same way, regardless of whether it is tokenised. The lack of adoption further inhibits tokenisation because, without widespread use, there are no network effects and there is little value to firms and exchanges to update their technology stacks to incorporate tokenised assets.

Recently, you shared that 91% of memecoins are scams, rug pulls or have vulnerabilities. Could you elaborate on these issues in the memecoin market and what might be causing them? Creating a token on Solana today is no harder than writing an email. Anyone can launch a new asset using no-code solutions in mere minutes. You don’t have to have any background, expertise, or skills whatsoever. This creates huge potential for developing the memecoin ecosystem on Solana – while also being its Achilles’ heel. When launching a token is so easy, many new assets emerge, most of which are very low-quality – vulnerable code, weak strategy, and poor community engagement. Some create mediocre projects because they don’t know how to do otherwise – but some do it intentionally. As the memecoin market surges, fraudsters launch their tokens in the pursuit of profit. Market conditions favor this, while no established mechanisms exist to control such behavior. What should crypto users focus on to identify the 9% of memecoins that are genuinely worthwhile? There are several green flags suggesting that a project is less likely to be a scam. The first two would be an established community of several thousand people on Twitter and Discord — and a well-written whitepaper describing tokenomics and token allocation. It’s also important to check the number of token holders and the amount of tokens distributed among them. If many tokens are held on just one or a few addresses, that’s a potential red flag.  It’s worth considering tokens already listed on exchanges – while it’s not a silver bullet, reputable exchanges conduct a due diligence before listing new assets. Also, check for independent security audits by a credible organization – it’s one of the best ways to know the developers can’t technically pull the rug. It’s also great if you know who’s building the project. In the memecoin environment, it is common for the developer’s identity to be unknown – while this is not always a sign of a scam, knowing the team would add to the trust. That’s why at Memepad, we conduct KYC of all tokens’ founders to ensure their accountability. A current trend in the memecoin market is the rise of celebrity-endorsed memecoins. How do you think celebrity influence impacts crypto’s mainstream image and adoption? I like the concept of celebrity tokens. Famous people release crypto assets to strengthen connections with their fanbase, and fans can feel involved in their favorite star’s endeavors. Meanwhile, this onboards thousands of new users to crypto, giving them an easy introduction to digital assets. It’s a win-win situation. Unfortunately, things don’t quite work this way in practice. Celebrities often create assets just to make extra money and engage in questionable methods of promoting their assets, while the tokens themselves lack robust use cases. The controversy surrounding celebrity tokens is unlikely to strengthen cryptocurrencies’ reputation in the public’s eyes. What role do celebrities play in promoting dubious projects, and how can this narrative be improved? The typical promotion of celebrity tokens includes advertising on social media and shilling in communities – similar to how other memecoins enter the market. Unfortunately, besides how they’re promoted, celebrity tokens often come with the same scams and controversies seen in the memecoin market. A star’s name in the token’s title doesn’t guarantee that it will be problem-free. Recently, popular tokens launched by Caitlyn Jenner, an American media personality, and Iggy Azalea, an Australian rapper, were at the center of a controversy involving Sahil Arora – an influencer who allegedly scammed the stars while launching and promoting their tokens. A few years ago, the SEC fined Kim Kardashian for unlawfully advertising a shady project, EthereumMax, which quickly dropped to zero. Malicious people who run token launches or listings often mislead celebrities. These scammers buy up most of the supply before the celebrity promotes the token, and once the promotions start, they dump all of their tokens. Famous people need a more sustainable approach to launching tokens. Professional launchpads with qualified technical and marketing support could make tokens more than just a tool for short-term gains. Assets with solid use cases and secure code can enhance a celebrity’s reputation and provide thousands of crypto novices with a smooth onboarding into Web3. Learning the ropes and building necessary connections takes years: elebrities may not have the time or expertise to delve deep into. Teaming up with a trusted partner can be a great way for them to navigate the complexities of developing and supporting a memecoin project. You suggested that one way to improve the memecoin market is to create a more secure and sophisticated infrastructure. How might this point be approached to project security and verification among the existing memecoin launchpads and platforms? The memecoin market is nothing but the Wild West, so users need some proven ways to identify non-scam projects in which to invest. Professional launchpads for memecoins could become such safety islands. Unfortunately, not all industry players believe in this approach. Memecoin launchpads like Pump.Fun, GemPad, and PinkSale offer minimal entry barriers, advertise 10-minute token creation and launch, and lack strict verification procedures. As a result, scam projects thrive, along with risks for investors. What are the main benefits for memecoin developers working with launchpads? Launchpads guide the process of public sales. They help developers attract thousands of users willing to find a gem to invest in. The community, in turn, gets a carefully selected project – with solid tokenomics, passed security audits, and due diligence done for them. It’s a win-win: launchpads help developers find an audience for their launch, and the audience gets a quality project. What future developments or features can we expect from Memepad to further enhance the security and user experience of memecoins for both investors and developers? Our goal is to be more than just a launchpad – rather, an ecosystem where projects, users, and investors communicate and benefit from each other. In this MemeVerse, the community gets the opportunity to participate in token launches with proven quality, while projects gain tremendous growth opportunities.  Recently, we ran a successful sale of MPAD – the platform’s native token that we will launch soon. The token will introduce multiple use cases for developers and users, balancing the project’s economy and creating a foundation for its long-term growth. We are now picking a date to launch the token amid the most favorable market sentiment – probably, in July. Currently, the team focuses on product development and strategic marketing to ensure a successful launch.

Historically, institutional trading may have been an exclusive club dominated by industry giants. However, the ability to now outsource infrastructure-as-a-service opens the door for a more robust market to emerge. In partnership with managed service providers (MSPs), the next generation of fintech innovators are cracking the code of hyperscale trading operations. The vast resources required to compete – from data center management to compliance expertise – have restricted smaller firms from entering the market. Whether the mission is to broker exchange trading, manage portfolios, deliver data or provide technical services, competing in the institutional game has always required resources beyond the reach of all but the biggest incumbents. But that isn’t the case anymore thanks to MSPs. The MSP Imperative Gaining competitive advantage means partnering with MSPs to democratize access, compliance and staffing. Cracking the code to these barriers is not an all-or-nothing proposition, neither does it require losing operational control. Instead, carefully orchestrated MSP agreements can help fintechs focus on their core competencies and get to market faster by removing resource-heavy business burdens. Recent research by Frost & Sullivan indicates that nearly a third of global CIOs are planning to engage an MSP within the next year. Here are the top-three benefits and strategic imperatives to keep in mind when building a relationship with an MSP: Plug in to a Robust Infrastructure Decades ago, the biggest players developed their own proprietary systems and connected to mostly expensive global, wireline telecommunications networks. They had the capital, cashflow, and the ability to absorb the tremendous costs that support such investments. They maintained competitive parity with each other, and by dominating the infrastructure itself, were able to limit others from climbing the ladder. Over time, however, institutional legacy systems became ensnarled with connectivity and security issues, and it was even harder for organizations of any size to enter the market. As data exchange and transaction volumes continued to expand, MSPs rose to the challenge by managing within a more robust infrastructure and in parallel with the move to the cloud. In today’s new hosted ecosystem, everything is becoming more democratized. High-speed, ultra-low latency access to secure trading infrastructure helps fintechs meet institutional standards. MSPs can bridge the gap between trading centers and multi-channel networks that are morphing every day under the pressure of technical paradigm shifts. From AI and algorithmic trading to blockchain computing and cross-market hedging, the sheer volume and complexity of financial exchange is too robust for fintechs to staff and build themselves. For a company to keep up and remain focused on its own customers, it’s better to buy the MSP’s team, knowledge and technology than to build it alone. Navigate the Compliance Maze To stay competitive, every financial services organization must navigate the compliance ecosystem. MSPs offer a smarter solution, allowing all financial institutions to optimize costs and resources by leveraging their knowledge country by country and across multiple exchange protocols. Of course, the rules will always be changing across borders and jurisdictions. But compliance complexity is accelerating with the impact of more sophisticated, nation-state cybercrime and next-generation security framework overhauls. With increasing volatility, trading needs to be seamless with access to multiple exchanges, and agnostic to time and place. With boots on the ground and deep local knowledge, MSPs can navigate the ever-changing legal and compliance hurdles in every region. For fintechs working independently with in-house resources, it’s very difficult to afford that level of expertise in the fragmented world of regulatory adherence and political upheaval. The legacy players managed compliance through vertical integration, which historically set them apart. But this model may no longer be suitable, especially for midmarket companies. Effective colocation and hosting must span the globe. Data center relationships, in-country know-how and language skills are imperative to doing business across cultures. Onboard Faster Single-vendor MSP solutions can lower costs by encompassing infrastructure, procurement, implementation, monitoring and management. Existing and pre-approved relationships with telcos and software vendors streamline international implementations. For buy- and sell-side brokers, banks, market makers and data providers, a well-executed MSP relationship provides seamless connectivity, expert hosting and the uptime assurance necessary to access and optimize hybrid trading environments. What’s Next for MSPs Cloud migration, end-point dispersion, and changing buyer/seller behaviors accelerated after the pandemic. Gone are the days when trading infrastructure was optional. Low-latency Layer 1 connectivity, high scalability, uncompromised connectivity, and access to the full data service supply chain are competitive requirements. With this, a new trading infrastructure has emerged where size doesn’t necessitate agility and more players are able to harness new exchanges, broaden their reach and scale, and gain market share faster than their incumbent competitors have ever seen before. By orchestrating an MSP’s capabilities instead of their own, trading organizations of all sizes can focus on their core expertise. Jeff Mezger is Vice President of Product Management at Transaction Network Services (TNS) with responsibility for its managed services for the financial industry. He oversees product development and strategy for market data, online and data center services. For more information visit tnsi.com. The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.