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      Industry Braces for Sweeping Market Structure Overhaul

      Anna Lyudvig
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      Industry Braces for Sweeping Market Structure Overhaul

      The equity market structure is entering what Matt Billings, Vice President of Brokerage and President of Robinhood Financial & Robinhood Securities, called “the year of implementation”.

      At SIFMA’s Market Structure Conference on November 20, the panel New Rules, New Rails: The Future of Equity Market Structure, moderated by Gregg E. Berman of Citadel Securities, revealed an industry committed to moving forward while genuinely unsure about which changes will ultimately stick.

      Billings laid out the sheer scale of what’s coming. Round lot reform took effect in early November, replacing the traditional 100-share standard with a tiered system based on stock price, he said.

      By early 2026, Trade Reporting Facilities will accept fractional trades, and the Securities Information Processors will post them with up to six decimal places. “That’s a big deal,” Billings said, though he acknowledged it doesn’t solve clearing and settlement challenges yet.

      He said that the TRFs are pushing back their opening time from 8 AM to 4 AM, eliminating the overnight data dump; odd lots will be added to the SIP in the first half of 2026; Rule 605 disclosure reforms got pushed from December to August 2026; and the biggest changes, minimum trading increment reforms and excess fee caps, are scheduled for November 2026.

      “The body of work here, of what is actually going to happen is immense,” Billings said.

      But transparency comes at a cost, according to Ari Burstein, General Counsel and Chief Policy Officer, at Imperative Execution: ”When we have to implement some of these changes, go through system wide testing software changes internally, that’s taking away resources from other things like building products or improving products,” he said.

      Burstein raised additional regulatory costs beyond the structural reforms, including CAT (the Consolidated Audit Trail) and Regulation SCI. “That is a huge cost for us, resources time as a small firm,” he said. “I wouldn’t forget about that when you add that to everything else that we’re going to have to do.”

      Adrian Griffiths, Head of Market Structure, MEMX argued the industry may be undercounting implementation work. Beyond the technology changes, there’s extensive preparatory work through SIP operating committee meetings on how the consolidated tape will function in a 23-hour, 5-day trading environment, weekly meetings on extending investor protection regimes, and ongoing discussions about how Rule 605 reports will handle post-only and book-only order types. 

      “Saying we have one implementation per quarter, plus maybe one out there for 24/5, that’s probably under counting the amount of work that has to go into actually implementing all of these things,” he said.

      Jessica D’Alton, Head of Americas Market Structure and Liquidity Strategy at UBS, emphasized the technology focus required. “I think the time that we’re spending on this is it’s meaningful. I think it’s driving our markets forward. I think these are all things that need to happen for us to get to that next point.”

      The Uncertainty Factor

      Beneath all this implementation work lies genuine uncertainty about whether these changes will proceed as planned. The new SEC administration’s focus on Order Protection Rule reform could reshape everything. Berman posed the uncomfortable question: if OPR reform eliminates protected quotes, what does it mean to put odd lots on the SIP and how do you distinguish an odd lot from a round lot if neither has protected quote status?

      Burstein commented: “It would be great to know if all of these changes are going to happen, and if they’re not, then sooner than later, the better.” With the resources required, clarity on actual priorities would help enormously.

      Jessica D’Alton, Head of Americas Market Structure and Liquidity Strategy, UBS, highlighted how interconnected everything is. If OPR gets repealed, routing practices need complete rethinking, she said: “It is kind of recreating our routing practices that exist today that are so clearly defined as having best price as best execution in a world where that’s not the baseline anymore.”

      Griffiths added: “The order protection rule is very much the centerpiece of Reg NMS. And a lot of the other related rules are kind of offshoots of that.” Take access fees, they only exist because of OPR and technically only apply to accessing protected quotations, he said, adding that if OPR disappears, what happens to fee caps? “Do they disappear too, or get extended to cover lit ATSs, fundamentally changing competitive dynamics?” he questioned.

      “What is the future end state for equity market structure, and what’s the right way to get there? Because we don’t want to see a situation where we’re implementing new rules and then pulling them back or modifying – that will be incredibly disruptive,” he said.

      The conversation then shifted to the extended trading hours. “Everyone’s shrinking the down times with everything,” Billings said, adding that the SIPs and TRFs are working to support these hours, and DTCC continues shrinking its downtime. “This is really going in a positive way,” he said.

      But institutional adoption remains uncertain. D’Alton said UBS is building capabilities because “it’s not an if, it’s more of a when,” driven partly by global clients wanting earlier US access. Still, nobody can predict what overnight liquidity will actually look like.

      Eden Simmer, Executive Vice President, Head of Global Equity Trading, PIMCO, said: “If critical mass goes then my answer would be yes, we’re going to go where the volumes go.” But she raised real questions: Will brokers make risk overnight? What will spreads look like? “Is it a situation where this creates more liquidity in general, or are we just, you know, sort of dispersing liquidity over over a longer period of time?”

      She also pointed out potential countervailing forces, like possible regulatory changes limiting earnings to twice yearly instead of quarterly—removing two major drivers of pre- and post-market volume spikes. “Just because you can, should you right?” she asked.

      The panel revealed that modernization means different things to different firms. For institutional traders, it means preserving access to block liquidity, while adapting to new realities. For retail-focused firms, it means democratization and transparency. For venues, it means building infrastructure while managing regulatory uncertainty.

      As D’Alton said: “The interconnectedness of it all playing together is going to be critical in how folks are responding to each one of these changes.”

      The Widening EU/UK Reporting Gap

      DerivSource
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      The Widening EU/UK Reporting Gap

      The MiFIR Review is the European Union’s (EU) effort to modernise its rulebook, making trading more transparent and efficient. It’s part of a wider push to simplify markets including derivatives and to ensure fairer access to data and trading. However, in the summer, the European Securities and Markets Authority (ESMA) launched a consultation looking for feedback from the industry on the best way to streamline the reporting of financial transactions across the bloc. This includes MiFIR, the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR).

      PJ Di Giammarino, an independent RegTech authority, and Grant Haley, practice lead for transaction reporting and regulatory solutions at First Derivatives, talk to DerivSource Senior Writer Lynn Strongin Dodds about the developments across asset classes and in particular derivatives.

      To set the scene, can you please explain why the European Securities and Markets Authority’s (ESMA) decided to pause the proposed changes to MiFIR?

      PJ: The root cause is that regulators are having problems piecing it all together. They are building a very complex and complicated system with 72,000 data points. That translated into scores of different datasets across 18 different regimes. That is clunky and cumbersome especially given the low-quality of the data available.

      The target is to reduce cost by 25% but there is no clearly articulated model for how to achieve this. We are talking about billions of dollars in budgets across the UK and the EU and in my view, it’s stifling growth.

      What do you think the outcome will be based on the consultation?

      GH: We believe the most probable outcome is ESMA will recommend option 1a that splits reporting rules by product such as OTC under the EMIR, exchange traded derivatives under MiFIR and securities trading in SFTR. This may create additional market abuse challenges if certain OTC derivative products are no longer reported under MiFIR.

      This could mean a shift to single-sided reporting, but it is not yet a certainty, since funds and venues have not lined up behind it. There is also a probability that back reporting will be reduced. 

      Why has the delay widened the transparency gap between the UK and Europe. Is this due to Brexit?

      GH: The delay to transaction reporting until 2028 and 2029 opens a transparency gap with the UK which are planning to implement its own plan next year. Brexit has had an impact. Before the UK left the EU, they were pretty much in lockstep, but we expect there to be significant differences. At the moment these are relatively minor, but the regulators are fundamentally taking different approaches and hence will be the source of divergence. For example, a trade may be eligible in one regime and ineligible in the other while a validation rule may be triggered in the EU but not in the UK, obliging operations teams to run dual interpretive playbooks. 

      PJ: I also think that the transparency gap alludes to the fact that actually the data quality isn’t very good on either side and that is what both sides need to get it right.  In our recent survey – Mastering MiFIR Divergence – we spoke to people at more than 20 firms where 36% were unconfident, and 55% were only somewhat confident in the accuracy and completeness of their data today.

      What are some of the challenges specifically to the derivatives market and does it differ from other asset classes?

      PJ: One of things unique to derivatives is that the International Swaps and Derivatives Association developed the Common Domain Model (an open-source, standardised data and process model) as well as the Digital Regulatory Reporting (DRR) that uses the CDM to automate and standardise derivatives trade reporting for various jurisdictions. This enables derivatives fund managers to align to common guard rails for their data quality and simplifies the complexity across the regions.

      GH: Regulatory reporting overall acts as a window that allows the regulator to look inside an organisation. The analogy is to demonstrate that the data firms provide allows the regulator to see how well the firm and its functions operate or not. The challenges are not necessarily asset class specific but more due to the complex nature of regulatory reporting and in particular the complexity of derivatives markets. There are multiple functions across an organisation and pulling all the data together, whether it be for trading or clearing is difficult. This is because it sits across different systems, teams, functions, locations, infrastructure and message types.

      Given the divergence what should the tech and operational priorities be?

      PJ: The challenge is that divergence is now structural and accelerating. The EU pause guarantees that reporting frameworks will evolve on separate tracks for at least another cycle. Transparency standards that once aligned under MiFID II are now splitting into two regimes and we think it is important for firms to get their ducks in a row now. This means treating 2026 as a dual-track control year that gets systems and data ready. It also means getting different governance models because legacy approaches will not cope with the new demands. Silos should be broken down, and a single cross-sector team should be developed to ensure field alignment across transactions and funds.

      There is a lot of hype about AI but how can firms leverage the technology for these rules?

      PJ:  The big picture is that AI doesn’t fix bad data. In fact, it does the opposite and amplifies the divergence. It cannot deliver sustainable value without clean data, remediation of legacy breaks, and standardised, traceable, well-governed models. Once those foundations are in place, it can be a powerful accelerator but is not a replacement for core controls. For example, AI can be used to document, connect, and maintain clear lineage from regulatory text to internal controls, processes, and data. Models can also automate data cleansing and remediation workflows as well as identify systemic weaknesses.

      At the moment I am working with the FIX Protocol Trading Community’s AI Working Group to look how it can be used as a wrapper around FIX messaging for compliance.

      BlackRock, AccessFintech Enhance Post-Trade Connectivity

      Press Release
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      BlackRock, AccessFintech Enhance Post-Trade Connectivity

      BlackRock, and AccessFintech (AFT), a leading data and workflow collaboration network for financial markets, announced a strategic partnership. Through Aladdin®, BlackRock’s technology platform that unifies the investment management process, the firms will aim to deliver bilateral connectivity and real-time post-trade collaboration between the global buy-side Aladdin platform community, and the 250+ capital markets and asset servicing institutions already connected to AccessFintech’s Synergy Network.

      “This partnership is a major milestone in our mission to unlock capital market efficiency at scale,” said Sarah Shenton, CEO of AccessFintech. “We’re proud to deepen our relationship with BlackRock and bring the power of our Synergy Network to Aladdin platform clients. This integration will enable interoperable, secure, and intelligent workflow across the investment lifecycle—delivering tangible benefits to the buy-side and enhancing collaboration for brokers, custodians and agent bank participants.”

      A New Standard for Post-Trade Collaboration

      The integration between AccessFintech and the Aladdin platform seeks to enable secure, API-first connectivity between buy-side firms and their sell-side, asset-servicing, and market-infrastructure counterparties. Benefits for Aladdin clients include:

      • Real-time visibility into trade lifecycle events and collaborate directly with brokers and custodians to resolve exceptions and reduce fails;
      • Access to real-time, cross-asset, multi-region data and AI-driven predictive analytics without changing existing infrastructure;
      • Accelerated remediation processes and reduce operational risk across securities, private markets (loans), and derivatives (swaps).

      Sell-side participants and asset servicers gain a powerful new channel to engage with the global network of buy-side firms on the Aladdin platform, enabling faster resolution and prevention of exceptions and providing transparency for better decision-making to improve client outcomes.

      “BlackRock has accelerated its strategy in partnership with AccessFintech, integrating real-time data across the post-trade and asset servicing lifecycle. This delivers more efficient workflow, greater interoperability, and improved risk management,” said Michael Debevec, Head of Global Investment Operations at BlackRock. “Our partnership extends these benefits to the wider Aladdin community, helping clients achieve higher operational performance and capacity throughout the investment lifecycle with a broader ecosystem of collaborators, enhancing the client experience.”

      Strategic Investment to Accelerate Innovation

      BlackRock has separately made a strategic capital investment in AccessFintech designed to support the company’s next phase of growth, including product innovation, global expansion, and deeper ecosystem integration. The investment reflects a shared commitment to a more connected, data-driven capital markets infrastructure.

      “BlackRock shares our vision for what advanced technologies can do to transform the post-trade landscape,” added Shenton. “This investment will accelerate our efforts to bring to market the innovations that continue to drive alpha for our clients.”

      Terms of the investment were not disclosed.

      Source: AccessFintech

      Broadridge’s David Runacres: Automating the Japanese Trade Lifecycle

      The Open Order Podcast
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      Broadridge’s David Runacres: Automating the Japanese Trade Lifecycle

      In this episode of the Open Order podcast, Nick Dunbar, editor of Traders Magazine sister publication Global Trading, spoke to David Runacres, President APAC at Broadridge, about how booming capital markets are spurring automation and improving resilience.

      Listen to the podcast now!

      Shaped by Challenge: Ann Sebert’s Path to CEO of CAPIS

      Anna Lyudvig
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      Shaped by Challenge: Ann Sebert’s Path to CEO of CAPIS

      Ann Sebert’s journey to the CEO role at CAPIS wasn’t a straight line but a series of opportunities that pushed her beyond what felt comfortable. In an interview with Traders Magazine, she recalls stepping into new responsibilities with a mix of curiosity and grit, discovering along the way that true leadership grows out of uncertainty, empathy, and a willingness to learn.

      What have been the most defining moments or challenges in your journey to becoming CEO of CAPIS, and how have they influenced your leadership?

      Ann Sebert

      Some of the most defining moments in my career came from times of change and challenge. I learned early on that growth happens when you step forward, especially when the path isn’t clear. Leadership, to me, has never been about doing everything yourself, but about leading by example. If I’m not willing to do something, how can I expect someone else to?

      Throughout my journey, I’ve taken on projects and roles well outside my comfort zone. Even when I had no prior experience, persistence, curiosity, and clear communication helped me succeed. Each challenge reinforced that no obstacle is too great when you stay adaptable, collaborative, and focused on the end goal. Those lessons have shaped the way I lead CAPIS today — with resilience, empathy, and a readiness to embrace what’s next.

      How do you balance innovation with preserving the firm’s culture and core values?

      Innovation must serve a purpose. It should enhance how we work without diminishing the expertise and judgment of our people. Over the years, we’ve learned that the best approach is to be deliberate and thoughtful in deciding which technologies to adopt and how to implement them.

      Like many firms, we’re exploring how AI fits within our organization, particularly how it can elevate the client experience. From the start, we make a point to involve employees in that process. Innovation only succeeds when people feel part of it, not subject to it. That collaboration ensures we continue to evolve while staying true to the culture and values that define CAPIS.

      In a rapidly changing trading environment, how do you identify and prioritize strategic opportunities for CAPIS?

      In a constantly changing trading environment, focus is everything. One of CAPIS’s greatest challenges and strengths has been staying disciplined about where we direct our energy. Doing a few things exceptionally well has always served us better than trying to be all things to all clients.

      The commission management space has faced significant regulatory and market shifts in recent years. By staying true to what we do best, we’ve been able to identify smart growth opportunities including strategic acquisitions that complement our core strengths.

      We stay close to our clients and listen carefully to our front-line sales and trading teams to understand where the industry is headed. We don’t chase every trend; instead, we double down on our foundation, superior trading and outstanding client service.

      What major shifts do you foresee in institutional trading and brokerage over the next few years?

      We’ve already seen technology transform every part of institutional trading, and that pace will only accelerate. Outsourced trading will continue to expand as firms seek greater efficiency, scale, and access to specialized expertise. AI and automation will keep delivering more sophisticated tools to support traders and clients alike.

      But even as technology advances, the need for human judgment and trusted relationships hasn’t diminished — especially for middle-market money managers. In fact, it’s become even more critical. The firms that will truly stand out are those that blend advanced technology with the experience, intuition, and partnership that only people can provide.

      How is CAPIS integrating technology and data to deliver better outcomes for clients?

      CAPIS has always been a technology-forward firm. Our reporting and analytics tools give clients transparency into execution quality and costs, a foundation for informed decision-making and accountability. We also work closely with clients to help automate their own processes, improving efficiency and freeing them to focus on their investment goals.

      Internally, we continue to leverage automation to eliminate inefficiencies, reduce errors, and accelerate workflows. But the real advantage comes when technology strengthens relationships — when it helps us build trust and consistently deliver better outcomes for our clients.

      With market volatility and regulatory changes continuing, what do you think distinguishes firms that thrive from those that struggle?

      Two of our core values — integrity and agility — have guided CAPIS through nearly five decades of market volatility and regulatory change. Compliance has always been at the heart of who we are. Our clients trust us not only for execution, but also for insight and guidance as the regulatory landscape evolves.

      Longevity in this industry comes from consistency, transparency, and always putting clients first. We can’t control volatility or regulation, but we can control how we respond. The firms that stay proactive, disciplined, and client-focused will continue to thrive no matter what the environment.

      As a woman leading a financial services firm, what barriers did you encounter early in your career, and how did you overcome them?

      I was fortunate to join a firm where women were already in leadership roles, which gave me a strong foundation early in my career. While I’ve certainly faced challenges along the way, I’ve never felt that being a woman was a deciding factor in my success or setbacks.

      What’s helped me most was preparation and persistence. I’ve always believed that credibility comes from clear communication, follow-through, and being ready for every opportunity. I was also fortunate to have mentors — many of them men — who opened doors and saw potential rather than stereotypes. My hope is that my experiences can help make the path a little easier for the next generation of women leaders in finance.

      How can firms like CAPIS foster environments where women not only enter but advance into senior and executive positions?

      Creating an environment where women can thrive and advance starts with intention, from both the organization and the individual. Firms need to provide systems that support training, mentorship, and clear paths for advancement. At the same time, individuals must take ownership of their growth by being prepared, proactive, and willing to stretch beyond their comfort zones.

      Throughout my own career, I’ve relied on hard work, communication, and focus to move forward, often while balancing the demands of raising a family. I believe opportunities come to those who are ready for them, regardless of gender.

      It’s important that advancement be based on merit, not quotas. True equity happens when firms invest in developing talent and women are recognized for their capability and contributions. That’s how we build workplaces where success is both earned and celebrated for everyone.

      Do you see the perception of women in finance evolving, and what further changes are needed to ensure equal representation at the top levels?

      Absolutely! The perception of women in finance has evolved tremendously. We’re seeing women succeed in leadership roles across every corner of the industry. That said, progress isn’t always linear. Some areas, like trading, still have ground to cover, and that starts with education and confidence by encouraging young girls early on to believe they can thrive in any field they choose.

      True equality isn’t just about representation or numbers. It’s about building cultures where inclusion, opportunity, and respect are embedded in how we operate every day. That’s how lasting change takes hold.

      What advice would you give to young women entering finance today, particularly those interested in leadership or trading roles?

      Be curious, be resourceful, communicate clearly, and never underestimate your value. This industry rewards those who ask questions and seek to understand the “why” behind every decision.

      Find mentors and allies who will both challenge and support you. Don’t wait for someone to hand you an opportunity — leadership begins long before the title does. And most importantly, be prepared. Hard work and preparation build confidence, and confidence compounds just like returns. The more you invest in yourself, the stronger you grow.

      Private Markets Shift From Wall St to Main St Could Drown Investors with Data

      NeoXam
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      Private Markets Shift From Wall St to Main St Could Drown Investors with Data

      By Yann Bloch, Vice President of Product Management of NeoXam, Americas

      American savers are after a retirement shake-up, increasingly eyeing private markets once reserved for the super wealthy. 10% say they’re dissatisfied with their current 401(k) investment offerings and want more non-traditional options, according to a Harris Poll survey of US adults. A staggering 90% of survey participants say they’d be comfortable allocating a portion of their retirement savings to private investments, while almost a third would happily devote as much as 10–14% of their portfolio to them.

      This dramatic sea change begs the question – how exactly do investment managers prepare existing investment portfolios for a future where private markets are no longer just for the select few?

      The shift from curiosity to participation presents a plethora of operational problems. As President Trump’s August executive order accelerates access to alternatives in retirement plans, investment managers will soon be tasked with integrating private credit, private equity, and other illiquid assets into the same systems that currently handle public equities, bonds, and mutual funds. This is the essence of what has become more commonly known as total portfolio management, which aims to unify all asset classes in one portfolio to better balance risk and return.

      Yet achieving this aim is far from straightforward. Private assets operate on entirely different valuation methods than public ones. For instance, private-credit funds might report quarterly, while public markets update by the millisecond. Illiquid holdings often rely on modeled valuations, while liquid assets depend on real-time market pricing. Reconciling these differences, not to mention ensuring they roll up consistently into portfolio-level insights, is where most existing systems will falter.

      These risks are not merely academic. A total portfolio framework that cannot reconcile private valuations with public market movements can distort exposure calculations, overstate diversification, or misjudge liquidity. For 401(k) investors gaining access to private markets for the first time, that could mean seeing misleading performance numbers or, worse still, bearing the brunt of unforeseen risks.

      Siloed systems are the major culprit here. Public equities, bonds, and private assets are often tracked on separate platforms, each with distinct data structures, investment methodologies, and reporting cycles. When these worlds collide, as they increasingly are, discrepancies become inevitable. Even the most sophisticated asset owners struggle to harmonize data feeds from multiple custodians, administrators, and private fund managers in near real time.

      As investors demand access to alternative assets, the definition of a total portfolio is evolving. It’s no longer just about managing across geographies or currencies. Instead, it’s about bridging the gap between the transparent world of public markets and the opaque realm of private ones.

      The democratization of alternatives represents both an opportunity and a stress test. Investment managers who build robust total portfolio systems, capable of integrating private assets with the same rigor and timeliness as public ones, will undoubtably be best positioned to serve the next generation of retirement savers. As 401(k) investors step into private markets, seeing the whole portfolio picture will be key to maintaining an institutional investor client base rooted in Wall Street, while simultaneously earning Main Street investor trust.

      SIFMA Roundtable Survey Forecasts 2.2% Q4 GDP Growth, 1-2 Fed Cuts in 2026

      Press Release
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      SIFMA Roundtable Survey Forecasts 2.2% Q4 GDP Growth, 1-2 Fed Cuts in 2026

      Year-End SIFMA Economist Roundtable Survey Forecasts 4Q/4Q 2.2% Real GDP Growth and One to Two Fed Cuts in 2026

      Washington, D.C., November 24, 2025 – Today, the Securities Industry and Financial Markets Association (SIFMA) published the results of its Economic Advisory Roundtable semiannual survey. The Roundtable is comprised of the chief U.S. economists from over 20 global and regional financial institutions. The survey assesses the current economic landscape, tariff policy, inflation and monetary policy, the economic outlook, and more. The median outlook for 4Q over 4Q growth in SIFMA’s H2 2025 economic forecast stands at 1.8% for 2025 and 2.2% for 2026, both higher than the H1 2025 projections of 0.9% and 1.9%.

      “The U.S. economic and inflation outlook has improved since our last Economist Roundtable survey, with one-third of participants noting an improved 2026 outlook and recession concerns moderating,” said Scott Anderson, Ph.D., Co-Chair of the SIFMA Economist Roundtable and Chief U.S. Economist and Managing Director at BMO. “A series of trade agreements that lowered the average effective U.S. tariff rate, the absence of retaliation from trading partners, and the continued lift from the AI investment boom and rising equity prices collectively helped blunt the worst-case tariff impacts on spending, inflation, and investment, playing a notable role in this year’s economic outperformance. Looking ahead to next year, tariff effects are expected to fade into the background as domestic demand and labor-market slack become more important drivers of price pressures. The Roundtable expressed caution about future market performance, with more than half of participants anticipating a 10% or greater equity market correction and almost a quarter seeing the possibility of a 20% or greater decline by the end of 2026.”

      Key Takeaways:

      • Economic Growth: The median outlook for 4Q-over-4Q growth in SIFMA’s H2 2025 economic forecast stands at 1.8% for 2025 and 2.2% for 2026—above H1 2025 forecasts.  Survey participants saw upside risks to growth from lower tariffs, stronger productivity gains and consumer spending and cited an equity market pullback, rising inflation and a weaker labor market as downside risks.
      • Inflation: 90% of respondents saw inflation expectations remaining anchored, even as estimates for core PCE, at 2.9% (Q4 2025 vs. Q4 2024) and 2.5% (Q4 2026 vs. Q4 2025) remain above the Fed’s 2% target.  Forecasts for annual growth in core CPI, at 3.1% (Q4 2025 vs. Q4 2024) are modestly lower than forecasts made earlier in the year, with core CPI expected to decline further to 2.8% by Q4 2026. 
      • Monetary Policy: Following two cuts to the Fed’s policy year-to-date in 2025, respondents see one additional cut by year-end 2025. Over half of respondents (58%)  expect at least two more cuts by the end of 2026. In comparison to their H1 2025 outlook, forecasters see slightly more easing on a cumulative basis, with a median Fed Funds estimate of 3.25% in Q4 2026.
      • This report also includes forecast tables and charts for the full survey results, as well as an update on where we are in the economic landscape and a reference guide on historical trends for select economic data.

      The full report can be found here.

      —

      The SIFMA Economic Advisory Roundtable brings together Chief U.S. Economists from over 20 global and regional financial institutions. This semiannual survey compiles the median economic forecast of roundtable members. We analyze economists’ expectations for: GDP, unemployment, inflation, interest rates and other key indicators. We also review expectations for policy moves at upcoming FOMC meetings and discuss key macroeconomic topics and how these factors impact monetary policy.

      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.

      ON THE MOVE: Keith Peterson to Oppenheimer; Wajih Ahmed to Balyasny

      Anna Lyudvig
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      ON THE MOVE: Keith Peterson to Oppenheimer; Wajih Ahmed to Balyasny
      Keith Peterson

      Keith Peterson has joined Oppenheimer & Co. as Managing Director and Head of Cash Equity Sales and Trading, according to a press release. He will report to John Hellier, Senior Managing Director and Head of Equities. Peterson joins Oppenheimer with more than two decades of equity markets experience. He most recently served as Partner and Head of Sector Trading at William Blair. Before that, he spent nearly 20 years at Credit Suisse in trading-focused roles across multiple sectors, including telecommunications, media and technology.

      Wajih Ahmed has swapped Goldman Sachs for Balyasny Asset Management, joining the firm as a macro portfolio manager after more than a decade with the bank, Global Trading reported. Ahmed has almost a decade of industry experience, all of which has been spent at Goldman Sachs. He joined the bank as an inflation trading analyst in 2016, before becoming an associate and then vice president of inflation trading in 2020.

      Oxana Yarkova-Valente

      Oxana Yarkova-Valente has joined Trading Technologies as a sales executive, Global Trading reported. Yarkova-Valente has close to 25 years of industry experience and joins the firm from MTS Markets, where she has been a sales executive and senior sales manager since 2013. Earlier in her career, she was a sales executive and business analyst at the London Stock Exchange Group.

      Wells Fargo & Company has announced in the press statement that Saul Van Beurden, currently CEO of Consumer and Small Business Banking, will lead Artificial Intelligence for the company. In addition, Kleber Santos, currently CEO of Consumer Lending, will take on expanded responsibilities and serve as co-CEO of Consumer Banking and Lending. Van Beurden previously served as the head of Technology and led the global team of information technology and security professionals. 

      Following the departure of Mike Bellaro and Mark Wilcox, the Advisory Committee and Chairs of Plato Partnership have elected Jack Benda as interim COO, he shared on LinkedIn. He has been Head of Marketing and Communications at Plato since 2022.

      C.D. Baer Pettit, President and Chief Operating Officer (COO) at MSCI, and a member of the Board of Directors, has informed the company that he will retire next year after more than 25 years in senior leadership roles. Pettit will continue to serve as President and a Director until March 1, 2026, and will remain as an advisor to the company for a period of time to ensure a smooth transition.

      Arianne M. Collette has joined the Depository Trust & Clearing Corporation (DTCC) as Managing Director and Head of U.S. Equities, according to a press release. She will be based out of DTCC’s Jersey City location and will report to Val Wotton, DTCC Managing Director and Global Head of Equities Solutions. Collette joins DTCC from Morgan Stanley, where she held senior leadership positions including Chief Operating Officer and Head of Strategy for Reinvestment, Global Head of Sales Strategy, and Americas Head of Resource Optimization.

      tZERO Group has appointed Mike Diedrichs as Senior Vice President and Head of Sales, according to a press release. A seasoned capital markets executive with over 20 years of experience scaling fintech, trading, and AI-driven platforms, Diedrichs previously served as Chief Revenue Officer at Bosonic, where he led global expansion initiatives and developed institutional sales strategies for its broker-dealer and ATS platform for digital asset securities.

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

      2026 Forecast: Capital Markets Deal with Infrastructure Shifts and the Needs of AI

      TNS Financial Markets
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      2026 Forecast: Capital Markets Deal with Infrastructure Shifts and the Needs of AI

      By Rick Gilbody, Global Head of Sales and Marketing, TNS Financial Markets

      With the end of Q4 in sight, capital markets participants are engaged in the annual ritual of looking ahead to the defining shifts of 2026. Following a year that dealt with regulatory mandates and unprecedented technological investment, the focus now seems to be squarely on infrastructure strategy, the utility of the public cloud, and the continued rise of artificial intelligence as a necessary competitive tool.

      Here are the top trends and outlooks shaping the trading community in the year ahead.

      1. Overnight trading venues will continue to heat up

      One of the most significant trends of the past year has been the elevation of overnight trading venues from a “nice to have” to something that firms seriously consider. We saw this supported by regulatory actions, such as the SEC approval and start of trading at venues like 24 Exchange.

      Looking to 2026, the competitive landscape for these venues is set to crystallize. While Blue Ocean currently maintains the most liquidity, other venues will continue to build up and emerge as choices for firms trading overnight equities. Success for these venues will depend on making the entrance process easy for adopting firms and finding ways to integrate with other global exchanges to benefit market makers and generate liquidity.

      2. The AI investment boom generates a proximity land grab

      There cannot be a discussion of 2025 trends without addressing the immense capital flowing into artificial intelligence. This is not isolated to finance, it is something impacting every industry and vast amounts of capital will be dedicated to it in 2026. We expect it to play a much bigger role in the financial industry moving forward.

      A direct residual effect of this technological push is the massive investment in data centers. In 2026, firms will need to become smarter and much more selective about where they locate their server farms. This translates directly to an increased emphasis on proximity to markets, leading infrastructure providers to build assets and develop strategies that deliver low-latency connection without geographic drawbacks.

      3. AI modeling demands unprecedented compute power

      While the trading industry has historically been slower to adopt new technology, AI has felt different, which has prompted widespread interest in efficiency and returns. However, the immediate impact of AI on the capital markets will likely center on back-office operations rather than live trading – for now.

      Our prediction is that AI will revolutionize the way firms develop trading strategies by modeling and back-testing based on historical data and dynamic market conditions. This capability will lead to a massive increase in the necessary level of compute power.

      4. The cloud utility model hits its limit

      In 2026, we may start to see a shift that was unexpected just a few years ago – backpedaling away from public cloud services. After years of migration, firms are discovering that the public cloud can fail to achieve the cost synergies and required performance profiles they initially sought.

      Specifically, the public cloud’s latency profile and uptime are often not meeting the stringent requirements of the trading community. Firms are increasingly recognizing limitations regarding scaling in the cloud and the high cost associated with extracting data. This means large-scale migrations could start moving applications back toward private cloud, colocation, and direct market proximity.

      5. Emerging markets rise

      Finally, 2026 is poised to see continued geographic expansion and a much-needed injection of technical innovation.

      India’s derivative market is predicted to expand significantly. This growth is likely to be driven by the exchange’s member-friendly approach and its efficiency in attracting global liquidity.

      More broadly, smaller funds are looking toward emerging markets (such as smaller exchanges in Asia and South America). This is a strategic move, as the largest, most competitive markets are yielding diminishing returns for smaller players who risk being picked off by big market players.

      There is an optimistic expectation for a rise in technical ingenuity in 2026. Firms that enter the year with a clear infrastructure plan will be better prepared to manage shifts in technology and trading behavior. The relationship between data center placement, market access, and automation will shape how firms operate day to day. The next phase of growth in capital markets will depend on how well participants can turn these changes into practical advantages.

      Rick Gilbody is Global Head of Sales and Marketing at TNS Financial Markets. His expertise includes data center colocation, low latency exchange infrastructure, network design and real-time market data.

      24-Hour Trading Exposes Gaps in Market Infrastructure

      Anna Lyudvig
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      24-Hour Trading Exposes Gaps in Market Infrastructure

      At SIFMA’s Market Structure Conference on November 20, industry executives gathered to discuss how 24-hour trading, new exchange infrastructure, and artificial intelligence are fundamentally changing market access.

      Moderated by Ron Hooey, Head of Client Execution Quality and Order Routing at BNY Pershing Global Markets Trading, the panel “The Expanding Edge: Innovation and Access in Equity Markets” brought together operators from emerging 24-hour trading venues and established market participants to examine whether infrastructure is ready for round-the-clock equity markets.

      For Jason Wallach, CEO of Bruce Markets, one issue looms large over 24-hour trading ambitions: corporate actions. “It does raise a question: should we be looking at some level of streamlined or consolidated distribution of corporate actions moving forward?” Wallach said. “I do think it is a very, very important topic, and one of the larger risk items for 24 hour trading.”

      Paul Adcock, Head of Equities at 24 Exchange, said: “Sometimes you have to look in three different places to find the corporate action. Sometimes you don’t get it till 10 o’clock at night. You’ve been trading it since eight. So this is something that really has to get fixed.”

      Adcock said that 24 Exchange is participating in a task force working on these issues, and suggested progress is imminent. “I find it very interesting that we’ve had limit up, limit down at 9:30 to four. Nobody cared about pre and post market. But when you decide to go in the overnight market, the primary share care about their company. So you’re going to see some things happen in the overnight session. And I think it’s going to happen pretty quickly, and it’ll be good for the market.”

      Beyond corporate actions, price protection mechanisms represent another critical consideration for overnight trading. Wallach explained the approach Bruce Markets has implemented: “We take a snapshot of the last sale 7:30 but closest to 7:30 without going later, and we use that reference price and enforce a 20% up or down price band on that reference price for the entirety of the session.”

      He characterized these safeguards as “training wheels” for a maturing market – temporary protections that allow the industry to “build for the future through market based solutions.”

      While Bruce Markets supports roughly 10,000 Reg NMS symbols, many participants offer only a subset, evaluating securities based on average daily volume, liquidity profile, and price, Wallach said. “That does create some controls and allows people to continue to evaluate what they think is in the best interest as a fiduciary, and also that that investor experience,” Wallach noted.

      Adcock provided insight into the technical challenges of building a 24-hour exchange. Rather than developing proprietary technology, 24 Exchange partnered with Members Exchange. “They have a huge suite of of controls. It’s very impressive, since every control you can possibly think of,” he said.

      But technology alone isn’t enough. The consolidated tape, the SIP that distributes market data requires two conditions to deliver extended-hour quotes. “One is the DTCC has to be open, and that’s going to happen in July. We believe the other pieces of is just for corporate action,” Adcock explained. When 24 Exchange loads symbols at 8pm to begin its session, the system needs to receive complete information: trading increments, penny or half-penny pricing, and critically, any corporate actions and halt status with reason codes.

      Hooey shifted the discussion to artificial intelligence, asking panelists how AI and machine learning are helping their companies and clients.

      Kimberly Russell, Vice President and Head of Market Structure Strategy for ETF Capital Markets at State Street Investment Management, said. “It’s like the internet, it’s so ingrained, and whoever’s not using it won’t be able to compete,” she said.

      She said that at State Street, AI applications span the organization. The firm has partnered with KenshoAI on ETF strategies that use AI to scan regulatory filings and identify innovative companies, she said. Their systematic equity team uses AI to integrate qualitative analyst insights into quantitative models. On the client-facing side, AI tools enable more targeted sales conversations and help identify which new funds are most likely to succeed. “Launching funds is easy, but launching the right funds and successful funds is hard, and I think that the the tools that AI offers helps to better understand what clients are buying,” Russell explained.

      For trading specifically, Russell sees potential in enhanced transaction cost analysis, though she acknowledged it’s “probably early days on enhanced TCA through AI tools.”

      On the surveillance side, 24 Exchange has brought in an outside system that uses AI extensively. “I’m really excited to see we can stay ahead of the smart guys with AI,” Adcock said.

      The Low-Latency Limitation

      Cameron Smith, Global Head of Trading and Co-President, Texas Stock Exchange, offered a more skeptical perspective on AI’s near-term trading applications, drawing on his experience at trading firms. “We’ve never really found a great way to use that in line. You can use it sort of off to the side, but the ultimate trading decisions in a low latency environment, you didn’t, couldn’t really employ it very effectively.”

      For AI, the challenge is similar. “Inline trading, or we’re creating a matching engine and a low latency environment to handle millions of messages a second. It really it’s not that helpful,” Smith said. “But again, it could be, maybe surveillance, some of the kind of adjacent parts of the stack AI could be useful, but at this point, it’s a little too slow.”

      Wallach largely agreed, noting that Bruce Markets is “working with probably the most plain vanilla product”. For a market focused on operational soundness and price-time priority, AI’s most promising applications lie outside the matching engine, particularly in surveillance as overnight trading grows and activity in sub-dollar stocks increases, he said.

      But Wallach sees potential at the client level. For wealth management firms evaluating overnight trading opportunities, “AI can be a tool used to actually find these times where risk reduction should be considered, or being able to express investment interest through opportunistic events.”

      Smith suggested one use case: real-time model refitting. After deploying a trading algorithm based on historical back-testing, firms often discover that current market conditions are far more volatile than the test period. “Clearly, I assume everyone in this room is contemplating how to refit their algos, essentially in real time, and I’m sure most of the trading firms are now,” Smith said. “So I think AI certainly has utility, but just off the edge there, not in line on the trading.”

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