Clear Street Launches Futures Clearing Services

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April 29, 2024

NEW YORK – April 29, 2024 – Clear Street, a New York-based diversified financial services firm, is pleased to announce the launch of futures clearing and execution services on U.S. exchanges for global clients, including hedge funds, professional trading groups, and family offices.

After more than two decades of significant futures commission merchant (FCM) consolidation, Clear Street now offers emerging funds to large institutions everything they need to clear, custody, execute, and finance U.S. equities and options; clear, custody, and finance fixed-income securities; and clear futures.

The news follows Clear Street’s launch of professional clearing services for registered market-makers in U.S. equities and options, marking the first successful entry into the professional clearing market in close to a decade.

“Intensified competition, increased capital requirements, technological advancements, and evolving global trading dynamics have driven substantial FCM consolidation, leaving many institutional participants like hedge funds, corporates, and professional trading groups with limited clearing options,” said Chris Smith, CEO, Clear Street Futures.

“The current landscape underscores the critical need for a new player with technology that enables firms to navigate the market in real-time amid escalating volatility, regulatory shifts, and rapid changes.”

Clear Street is a member of the following futures exchanges, offering access to a range of products, including indexes, rates, and commodities: CME, ICE US, and NODAL. The Company is actively pursuing memberships with other major global futures exchanges.

Chris Pento, CEO and Co-Founder, Clear Street, said: “This launch marks a significant milestone in a multi-year project aimed at establishing a cohesive prime brokerage and futures offering. Clear Street is uniquely positioned to disrupt the market by delivering innovative technology that seamlessly integrates futures with our comprehensive suite of offerings on a unified platform.”

In July 2023, Clear Street acquired React Consulting Services and its proprietary futures clearing platform, BASIS, in July 2023.

BASIS was subsequently integrated into Clear Street’s existing cloud-native clearing, settlement, execution, and custody platform.

Clear Street currently processes around 2.5% of the notional U.S. equities volume, equivalent to roughly $10 billion worth of activity through its platform.

The Company concluded a successful third tranche of Series B funding in December 2023.

Led by Prysm Capital, the raise increased Clear Street’s Series B to $685 million and the firm’s valuation to $2.1 billion.

Source: Clear Street

Options Industry Conference to Cover Industry Growth, Innovation, and Regulation

By

Anna Lyudvig

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April 29, 2024

The Options Industry Conference (OIC) in Asheville, North Carolina will be an invaluable opportunity for the industry to come together, exchange insights, and explore many of the emerging trends and developments in the options market, according to Ed Modla, Executive Director, Investor Education at the Options Clearing Corporation (OCC).

The 42nd annual conference will take place on April 30 – May 2 at the Omni Grove Park Inn in Asheville.

This three-day event brings together the most diverse and accessible group of key industry professionals, influential speakers, and top-quality content to curate an experience of connecting, learning, and engaging.

In addition to the impressive lineup of speakers, there will be plenty of social events with networking and collaboration.

Modla said attendees consistently express their feeling that “OIC tops their list of conference experiences throughout the year.”

“This is a priority conference for those in the options industry, and we expect a strong turnout of around 400 attendees,” he added.

According to Mat Cashman, Principal, Investor Education at OCC, said that the Options Industry Conference changes locations yearly, but this is the first year they’re holding it in the Blue Ridge Mountains of western North Carolina: “The response has been fantastic thus far, with attendance tracking higher than last year’s event.”

“The conference has always included opportunities for networking and connection with industry colleagues, but I think this year’s location provides a stunning backdrop for those conversations and one that will be memorable for everyone in attendance,” he said.

Cashman added that the Option Industry has seen record growth over the last five years.

Cleared volume statistics continue to trend higher and with that expansion comes the natural reflection from within the industry on how to create an environment that continues to foster that growth responsibly, he said.

“One of our aims in constructing the agenda was to make room for those discussions to occur in an organic and natural way,” he said.

Many of the agenda items will reference topics like responsible growth, changes in potential regulations, and cutting-edge innovations from within the industry, said Cashman, adding that attendees will hear from industry leaders who will share their viewpoint from both macro and micro levels.

The keynote speaker this year will be Navy SEAL Commander (Ret.) Rorke Denver. The keynote presentation will be fascinating, commented Modla, saying that Rourke has a unique way of engaging an audience with inspiring tales of leadership forged in the crucible of adversity.

“His story of leadership, determination, team building, and peak performance will captivate everyone who is fortunate enough to attend,” he said.

Cashman cited a few panels that he thinks hold unique value within this agenda.

“While volume numbers continue to reach new highs each year, it strikes me that one of the pillars of any strategy to continue to expand the footprint of this industry will reside in its ability to innovate,” he said.

One with particular relevance at this moment is “The Option Trailblazers: Pushing the Boundaries of Innovation,” he said.

“I’m excited to hear about those innovations from experts at the forefront of the organizations who continue to push those boundaries forward,” he added.

Cashman said he’s also keen to hear from the industry experts on “Embedded Optionality: Shaping the Future of the Industry” – both the moderator and panelists have unique perspectives on “where we are in the state of the industry and where it might be headed over the next decade”.

Industry panelists, including Andrej Bolkovic, CEO, OCC, will discuss exchange operations, the state of competition, the return of floor trading and the overall resiliency for the next 50 years.

Modla added that he will pay particular attention to “Market Landscape: Where We Are and What is Next.” While many discussions will be specific to the options industry, he said, this panel will take a step back and offer a holistic view of the U.S. economy and what variables might play the largest role in aiding or hindering growth in the near term.

As an educator, he is also drawn to “Engaging Today’s Investor: Are We Evolving with Them?”

Modla said the need for options education has never been greater, and this panel will provide the audience with speakers from different sides of the industry, who will discuss their characterization of today’s options user and how to connect with them.

“With engaging and inspiring content on stage, the chance to connect with industry colleagues, and the opportunity to develop new relationships, this conference will be productive and memorable,” he concluded.

ON THE MOVE: Peter Harrison to Leave Schroders; Liquidnet Gets Jeffrey Crane

By

Anna Lyudvig

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April 29, 2024

Schroders has announced that Peter Harrison has signaled his intention to retire as Group Chief Executive next year. A thorough and extensive search for his successor will now be launched. The Board anticipates an orderly transition during 2025 and Harrison will remain as a director of the Company throughout this period. Harrison joined Schroders in March 2013 and became Group Chief Executive in April 2016. Prior to his current role, he was Global Head of Investment. Before joining Schroders, he was Chairman and CEO of investment boutique RWC Partners. Harrison began his career at Schroders in 1988, and later spent some time at JP Morgan, and as Group Chief Investment Officer of Deutsche Asset Management (now DWS).

Jeffrey Crane has joined Liquidnet as Head of International, Americas where he will be heading up Liquidnet’s international export business, concentrating on U.S. accounts trading international markets, via the platform’s High-touch, Low-touch and block trading capabilities. Prior to joining Liquidnet, Crane was most recently Managing director, Head of Sales at SageTrader, which he joined following a 22-year career at Instinet across a variety of roles, including managing the company’ s export business as the Head of International desk in New York.

BNP Paribas’ Securities Services has appointed John Fox as Head of Market and Financing Services (MFS) for the United States, effective May 1, 2024. Fox joined BNP Paribas in November 2023 as Head of US Agency Lending, a role he will retain in the region. He has over 25 years of experience in financial markets. Before joining BNP Paribas, he was Head of Client Management and Sales, North America for BNY Mellon and before that was with Deutsche Bank as Head of US Client Services.

Clear Street, a New York-based diversified financial services firm, has appointed Ashley DeSimone as the firm’s Chief Marketing Officer (CMO). DeSimone joins Clear Street after a cumulative 14 years at ICR, where she led programs for private and public companies across the Technology, Media, and Telecommunications (TMT) space.

Westwood Holdings Group has announced the addition of Michael Kovacs as a senior solutions portfolio manager on its Managed Investment Solutions Team, based in Chicago office. Kovacs has more than 20 years of investment experience. Previously he served as head of investment technology strategy at Legal & General Investment Management.

Duco has appointed Josh Monroe as Chief Revenue Officer. Based in New York, he brings a wealth of experience to the role and reports directly to Michael Chin, Duco’s Chief Executive Officer. Monroe most recently served as Chief Revenue Officer at Xceptor. Prior to this, he held key leadership positions at Itiviti, FIS, and SunGard. His career also includes time at Morgan Stanley and Point72 Asset Management.

Traydstream has hired Stephan Hufnagl as its new Chief Technology Officer. Hufnagl brings a wealth of experience from his tenure at Microsoft, Google and other engineering companies. In his most recent role at Microsoft, he was responsible for Data, Analytics and AI teams, driving transformation projects utilizing cloud services.

If you have a new job or promotion to report, let me know at alyudvig@marketsmedia.com

Global Spending on Financial Market Data Rises by 12.4% in 2023

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Press Release

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April 29, 2024

Total spending hit a record $42 billion in 2023, driven by advanced technology
According to a new report by Burton Taylor, a division of Parameta Solutions (owned by TP ICAP)

London and New York, April 26, 2024 – Global spending on financial market data and news continued its decade-long growth streak with revenues jumping 12.4% to a record $42 billion in 2023. Although real-time trading and data spending accounted for the largest share of total revenues, strong demand for Pricing, Reference and Valuation data drove spending according to a new report published today by Burton Taylor International Consulting, a division of Parameta Solutions.

Slightly more than one-half of revenue is earned in the Americas, up from 48% just five years ago. Earnings among the three major geographic regions have changed little in the past year, with EMEA generating 31% of the total and Asia owning just short of 19%.

Bloomberg continues to claim the largest share of the global market data business, followed by LSEG Data & Analytics and S&P Global Market Intelligence, which are the only three providers that claim double-digit market share. Moody’s Analytics reported the sharpest revenue growth in 2023, followed by FactSet and S&P Global Market Intelligence

“The rapid growth of AI and similar advanced analytical technologies have elevated the value of market data beyond the level we’ve seen in recent years, driving notably higher growth rates in 2023,” says Hadley Weinberger, Sr. Analyst at Burton-Taylor. “Financial institutions are already using generative AI and other artificial intelligence tools across all areas of their operation, driving demand for data not only for trading and risk but also to extract intelligence in other operational areas of the business.”

The 103-page Burton-Taylor Financial Market Data/Analysis Global Share & Segment Sizing 2023 report is available for immediate download by Burton Taylor research members through the website. The report can be purchased by visiting Burton Taylor’s website here Financial Market Data/Analysis: Global Share & Segment Sizing 2024 | Burton Taylor (tpicap.com) or by contacting orders@burton-taylor.com, +1 646 225-6696.

About Burton-Taylor International Consulting (www.tpicap.com/burtontaylor)

Burton-Taylor International Consulting, part of TP ICAP Group, is the recognized leader in information industry market research, strategy and business consulting. Burton-Taylor Exchange, Credit, Risk, Compliance, Media Intelligence, PR and Market Data share figures are seen as industry benchmark standard globally. For further information see www.burton-taylor.com .

About TP ICAP

Through our people and technology, TP ICAP connects buyers and sellers in global financial, energy, and commodities markets.
We are a world-leading provider of liquidity and data solutions, with a portfolio of businesses that provide broking services, data & analytics, and market intelligence that are trusted by clients globally.
We operate from more than 60 offices across 28 countries, supporting brokers with award-winning technology.
www.tpicap.com

FLASH FRIDAY: US Brokerage Consolidation to Continue

By

Anna Lyudvig

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April 26, 2024

FLASH FRIDAY is a weekly content series looking at the past, present and future of capital markets trading and technology. FLASH FRIDAY is sponsored by Instinet, a Nomura company.

The broker-dealer space is undergoing significant transformation with the number of U.S. brokerage firms continuing to shrink. There were 3,378 firms registered with FINRA in 2023, a decrease of 16 firms from 2022, 229 firms from 2018 and 1,448 firms from 2017, according to the regulator’s 2023 Industry Snapshot report.

David Choate

David Choate, COO at CAPIS said that fixed costs continue to rise, while the overall commission pool shrinks: “This leads to one of only two growth possibilities – broker-dealers must take market share or buy market share”.

Technological advancements and regulatory demands are some of the factors driving consolidation.

Choate said that increased technology and compliance costs must be offset by either higher revenue or increased efficiency.

The prime brokerage industry is also shrinking, according to Peter Eliades, Managing Director, Electronic Trading, Clear Street.

He said that US bank regulators are preparing to issue a notice updating capital rules, known as Basel III Endgame, with the final expected effective date on January 1, 2025.

“As banks continue to face pressure to meet increasing and uncertain regulatory capital requirements, reducing counterparty and trading risks will be an important focus for large banks, who may look to further cut prime brokerage clients and services in anticipation of the new regulations,” he said.

Eliades added that regulation in industries like technology and medicine often follows innovation, and governing bodies must keep up with the latest developments. In finance, the opposite can be true, he said: “New regulations sometimes drive innovation, challenging the industry to develop solutions that meet rising standards in reporting and processing.”

For example, he said, mandated Central Clearing of U.S. Treasury and Repo through the Fixed Income Clearing Corporation will require firms to centralize inventory from different desks through an integrated, centralized platform.

A SEC study of the impact of this rule on markets and market participants found that technology will be the most considerable cost to market participants adopting the rule and that outdated systems would be a significant constraint, Eliades said.

Another example is the move to T+1, which requires a change of culture and a shift from manual processes, like email trade confirmations, to automation, according to Eliades.

“As the May 2024 deadline approaches, industry participants must ensure their technology and internal operations (and their counterparties) can accommodate the change,” he said.

“In theory, technology should be making us all more productive and efficient,” added Choate.

Unfortunately, he said, broker dealers are forced to add new technology to satisfy new regulatory requirements rather than to improve efficiency.

For example, broker dealers have added services for various reporting requirements such as CAT, CAIS, TRACE, 606, 605, and others, he said.

While most of these reporting systems have been in place for years, new requirements are consistently being added.

“The move to T+1 settlement is another industry-wide change that requires new technology, but does not necessarily increase efficiency or add revenue,” he said.

Choate thinks that consolidation will continue to impact the landscape, but independent brokerage firms will “still drive innovation as they seek to solve problems at the client level”.

Eliades added that increased connectivity and fragmentation require more robust infrastructure and routing capabilities than ever before.

“As Best Execution requirements continue to rise, broker-dealers must stay ahead of the game by investing in technology and innovating across their stack,” he stressed.

“To keep up with changing market conditions and regulatory requirements, banks and brokers must reduce manual processes in favor of technology that empowers users to make smarter decisions and identify potential risks throughout the trading process,” he added.

Cboe Global Markets Realigns Digital Asset Business

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Press Release

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April 26, 2024

Cboe Global Markets Realigns Digital Asset Business, Leveraging Strength and Expertise in Derivatives and Clearing

Company plans to transition digital asset derivatives trading and clearing into existing derivatives and clearing business lines
Plans to wind down Cboe Digital Spot Market in third quarter 2024

CHICAGO, April 25, 2024 – Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced plans to refocus its digital asset business to leverage its core strengths in derivatives, technology and product innovation while realizing operating efficiencies for both Cboe and its clients. These changes are being made as part of Cboe’s strategic review, taking into consideration the lack of regulatory clarity in the digital space, and are aligned with Cboe’s longer term strategy.

Cboe plans to transition and fully integrate its digital asset derivatives, currently offered by Cboe Digital, into its existing Global Derivatives and Clearing businesses. This move is expected to create efficiencies for Cboe and clients, while enabling Cboe to harness the power of its broader global derivatives franchise and global technology platform to support and fuel growth of the exchange-traded digital asset derivatives market.

Additionally, the company plans to wind down operations of the Cboe Digital Spot Market, the company’s spot digital asset trading platform, in the third quarter of 2024, subject to regulatory review. John Palmer, President of Cboe Digital, will become Head of U.S. Derivatives Market Development, under the leadership of Cathy Clay, EVP, Head of Global Derivatives.

Cboe plans to transition its cash-settled bitcoin and ether futures contracts, currently available for trading on the Cboe Digital Exchange to the Cboe Futures Exchange (CFE) in the first half of 2025, pending regulatory review and certain corporate approvals. This move will consolidate all Cboe U.S. futures products, including digital asset futures, onto one exchange powered by world-class technology, creating efficiencies for clients across the globe. By transitioning digital asset derivatives to CFE, this product set will benefit from the holistic support of the Cboe Global Derivatives business, including global derivatives sales and distribution, product development, market structure and investor education expertise.

“Refocusing our digital asset business enables us to refine our strategy, leveraging our core strengths in derivatives, technology excellence and product innovation to help maximize opportunities for our business and deliver efficiencies for Cboe and our clients,” said Fred Tomczyk, Chief Executive Officer of Cboe Global Markets. “We believe these changes enable greater optimization and strategic alignment for our business across geographies and asset classes, further supporting our long-term growth strategy.”

In addition, Cboe will maintain ownership and operation of Cboe Clear Digital, the clearing arm of Cboe Digital, and plans to align Cboe Clear Digital with Cboe Clear Europe, its European clearing house, under unified leadership. Cboe Clear Digital will continue to facilitate the clearing of bitcoin and ether futures. Cboe Clear Europe will continue to serve as the pan-European central clearing party (CCP) for Cboe’s European equities and derivatives exchanges across the EU, UK and Switzerland. Vikesh Patel, the current President of Cboe Clear Europe, will now also oversee U.S. clearing.

“Bringing digital asset derivatives and clearing into our existing business lines enables us to leverage the full breadth of our global derivatives team and unlock the full value of Cboe to our clients around the world,” said David Howson, Global President of Cboe. “We expect to continue to see greater demand for exchange-traded derivatives to help manage crypto exposures, hedge risk and enhance capital and operational efficiencies. Optimizing our derivatives and clearing business operations and product development across borders and asset classes enables us to better serve our diverse client base and sharpen our strategic focus.”

The company anticipates that the wind down of the Cboe Digital Spot Market operations will have an immaterial impact on Cboe’s net revenue in 2024. The company estimates that expense savings will be in the range of $2 million to $4 million in 2024, with savings expected to be in the $11 million to $15 million range on a normalized annual basis. Cboe will provide more details about these strategic changes during its forthcoming first-quarter 2024 earnings call on May 3, 2024. A conference call with remarks by the company’s senior management will begin at 7:30 a.m. CT (8:30 a.m. ET). A live audio webcast for the conference call and the presentation that will be referenced during the call will be available on the Investor Relations section of Cboe’s website at ir.cboe.com under Events.

Sterling to Add Fixed Income Support to Risk & Margin Service

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Press Release

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April 26, 2024

Continues product innovation in anticipation of client risk and regulatory mandates

CHICAGO, April 25, 2024 – Sterling Trading Tech (‘Sterling’), a leading global provider of technology in order management, risk and margin, and trading, today announced plans to support fixed income securities by the end of Q2 2024.

As Sterling grows its OMS and Risk & Margin System offerings, this latest in a series of strategic initiatives across the product suite advantages clients by extending Sterling Risk & Margin’s (SRM) already broad and deep asset coverage. Current covered assets include US and international equities and options; US and international futures and futures options; FX, and crypto.

In addition to its multi-asset coverage, SRM delivers advanced analytics as a RaaS (Risk-as-a-Service) solution. This allows firms to monitor client Reg T, portfolio margin and custom house policy requirements in real-time and includes the ability to view advanced post-execution risk analytics for US and global equities, options and futures as well as secure FINRA reporting. Clients can also combine Sterling’s risk capability with its OMS.

Once delivered, Sterling clients will be able to view fixed income securities in the SRM UI. This capability will allow them to ascertain how the securities contribute to portfolio values and margin requirements and, in addition, stress their fixed income securities within interest rate shocks to determine their contribution to portfolio risk. Sterling will use standard FINRA margin requirements for fixed income securities, while allowing for overrides at the company or account level.

Said Brian Saldeen, CFA, Senior Product Manager – Risk & Margin, at Sterling: “Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment. Our approach accounts for asset classes, risk exposure, and regulation in one service offering.”

Continuing its commitment to innovation and excellence across its product suite, Sterling will also expand capabilities to include mutual funds later this year.

About Sterling Trading Tech

Sterling Trading Tech is a leading provider of professional trading technology solutions for the global equities, equity options and futures markets. With over 100 clients including leading brokers, clearing firms and prop groups in over 20 countries, Sterling provides solutions tailored to clients’ needs. Sterling is committed to providing fast, stable technology along with outstanding customer service. Sterling provides trading platforms, OMS, and risk products to its clients. For more information, please visit www.sterlingtradingtech.com.

Active ETFs Grow by Over 20% Annually Since 2019

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Press Release

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April 25, 2024

The growth rate of active ETFs has been surging by over 20% annually since 2019, pushing total market share in the ETF industry to 8.5%

Morningstar, a leading provider of independent investment insights, published “Morningstar’s Guide to U.S. Active ETFs,” a new landscape report that covers advantages, challenges, approaches, and trends of actively managed exchange-traded funds (ETFs). Overall, the report found that active ETFs can be a cost-effective, tax-efficient approach to active management for investors, but as with any active investment, can carry risk over the long term.

“Active ETFs have taken center stage in the fund industry, propelled by a confluence of regulatory change, product developments, and market events that highlight the advantages of these strategies,” said Bryan Armour, director of passive strategies research for Morningstar. “After years of relative obscurity, these burgeoning vehicles could unlock opportunity for investors, while offering a lifeline to active managers in a period of significant outflows for active mutual funds.”

The rapid growth of active ETFs can be attributed to several factors: The U.S. Securities and Exchange Commission passed the “ETF Rule” in 2019, streamlining the ETF listing process and giving portfolio managers more flexibility when creating and redeeming ETF shares; investors and their advisors have increasingly sought out low-cost funds; portfolio managers have accepted greater transparency into their fund holdings, which investors have preferred; and traditional mutual fund providers began to convert existing mutual funds into ETFs to capitalize on the newfound investor demand.

The new Morningstar report delves into the benefits and drawbacks of the active ETF structure, contrasts the approaches of leading active managers, and categorizes trends and offerings for investors by asset class.

Highlights from the report include:

Due to ETFs’ fee structure that doesn’t charge sales loads or distribution fees, the average active ETF fee is 36% cheaper than the average active mutual fund fee. As active ETFs surge, their counterparts in active mutual funds are contracting, with net outflows of $1.6 trillion in 2022 and 2023.
The majority of active ETF assets have funneled to a few leading issuers and funds. As of March 31, 2024, Dimensional Fund Advisors leads all providers with $135 billion in assets under management, and the largest active ETF is the JPMorgan Equity Premium Income ETF.
Asset managers can approach ETFs in different ways, such as by launching a new strategy, copying an existing mutual fund strategy, or converting a mutual fund into an ETF. The flexibility provides a growth opportunity for active ETF managers, allowing them to tailor their offerings to meet investor demand.
Unlike active mutual funds, active ETFs cannot close to new investors, presenting a capacity risk particularly for concentrated strategies or those investing in illiquid markets. According to the report, opting for ETFs with liquid securities and diversified portfolios could help mitigate these risks.
Fixed income was the most popular active ETF asset class early on, but active equity ETFs have since gained the upper hand because the tax efficiency of ETFs benefit equity strategies even more than bonds. Active multi-asset ETFs are few and far between since mutual funds and collective-investment trusts dominate retirement plans.

The full report can be downloaded here, and a summary article of the report can also be found here on Morningstar.com.

As the active ETF market continues to grow, Morningstar will publish ongoing analysis in its ETF Roundup article series on Morningstar.com. The topic will also be featured in different sessions at the Morningstar Investment Conference, including the session, “Active ETFs: A Lifeline or Band-Aids for Active Management?”

More information about the Morningstar Investment Conference, including the full agenda and registration details, can be found here.

Source: Morningstar

FIA Cautions CFTC on Regulation of AI

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Press Release

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April 25, 2024

Future artificial intelligence robot and cyborg. — Artificial intelligence AI research of robot and cyborg development for future of people living. Digital data mining and machine learning technology design for computer brain communication.

FIA cautions CFTC on regulation of AI

FIA recommends “technology-neutral” approach to regulation FIA says CFTC should focus on “outcomes and use cases” rather than AI itself FIA letter joined by CME, ICE and FIA PTG

responded

request for comment

###

FIA is the leading global trade organization for the futures, options and centrally cleared derivatives markets, with offices in Brussels, London, Singapore and Washington, D.C. FIA’s membership includes clearing firms, exchanges, clearinghouses, trading firms and commodities specialists from about 50 countries as well as technology vendors, law firms and other professional service providers. FIA’s mission is to:

support open, transparent and competitive markets, protect and enhance the integrity of the financial system, and promote high standards of professional conduct.

As the principal members of derivatives clearinghouses worldwide, FIA’s clearing firm members play a critical role in the reduction of systemic risk in global financial markets.

SIFMA Statement on FTC Non-Compete Rule

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Press Release

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April 25, 2024

SIFMA Statement on FTC Non-Compete Rule Finalized Today

Washington, D.C., April 23, 2024 – SIFMA today issued the following statement from president and CEO Kenneth E. Bentsen, Jr. regarding the final Federal Trade Commission (FTC) non-compete rule:

“We are carefully reviewing the final rule released today and appreciate that the FTC carved out the sale of businesses and the existing agreements for senior executives. We however, remain concerned that the near-categorical prohibition on non-compete clauses would hurt competition and the economy by terminating long-established practices of using non-compete clauses to protect a business’s sensitive information. The proposal also greatly underestimated its compliance costs, while failing to establish a clear record on its benefits or necessity.”

SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.

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