Thursday, January 29, 2026
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      ON THE MOVE: Northern Trust AM Names Michael Hunstad; Spiros Giannaros to Confluence

      Anna Lyudvig
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      ON THE MOVE: Northern Trust AM Names Michael Hunstad; Spiros Giannaros to Confluence
      Michael Hunstad

      Michael Hunstad has been appointed as President of Northern Trust Asset Management (NTAM), replacing Daniel Gamba, according to a press release. Hunstad will report to Chief Executive Officer Michael O’Grady. Since joining NTAM in 2012, Hunstad has held a range of senior leadership roles including most recently serving as Global Co-Chief Investment Officer. He also serves on the Asset Management Executive Group, the Investment Policy Committee, and the Risk Committee. Before joining Northern Trust, Hunstad was head of research at Breakwater Capital and head of quantitative asset allocation at Allstate Investments.

      Spiros Giannaros

      Spiros Giannaros has joined Confluence Technologies as Chief Executive Officer, according to a press release. Giannaros brings more than 25 years of leadership experience across the software and FinTech space. Prior to joining Confluence, he served as Executive Vice President at State Street Corporation, most recently as CEO of its Charles River Development company and head of the State Street Alpha Platform. Prior to joining State Street, Giannaros was a Partner at IHS Markit serving as global head of Enterprise Data Management (EDM) and thinkFolio and spent 15 years in leadership positions at Charles River Development spanning sales, account management, and product marketing. 

      David LaValle

      Bullish, an institutionally focused global digital asset platform that provides market infrastructure and information services, has appointed David LaValle as President, CoinDesk Index & Data, according to a press statement. He joins Bullish after four years at Grayscale Investments, where he served as Senior Managing Director, Global Head of ETFs, responsible for leading the strategic development and management of Grayscale’s ETF business. Prior to that, he was the Chief Executive Officer of global index, data and analytics firm VettaFi.

      Fausto Serrano has joined interdealer broker Tradition as North American head of electronic credit brokering, based in New York, the Desk reported. Serrano has more than 20 years of industry experience and was most recently head of fixed income sales and trading for the Americas at Liquidnet. Throughout his career, Serrano has held various senior roles including US head of e-trading at TP ICAP, director of electronic trading at BGC Partners, and vice president of credit derivatives at ICAP Electronic Broking.

      Stern Brothers, an independent, private investment bank in the US, has hired Paul Karrlsson-Willis as Senior Managing Director, Head of Institutional Equity Trading, based out of the New York office, according to his post on LinkedIn. Karrlsson-Willis is a seasoned financial services executive with more than 30 years of experience. He started his career at Fidelity, where he spent 25 years in leadership roles building out businesses in everything from International Trading to US Institutional Sales. His experience extends to other senior leadership positions at prominent firms such as StoneX, INTL FC Stone Financial, and Cabrera Capital.

      Brandon Laczkowski has been appointed Managing Director, Head of RIA Sales at InspereX, according to a press release. Laczkowski will report to Deryk Rhodes, Managing Director and Head of Wealth Management Solutions. Laczkowski rejoins the firm from HRC Financial Group, where he focused on covering RIAs. He previously worked for InspereX (formerly Incapital) from 2014-2016 as a member of the structured product wholesaling team. Prior to joining HRC Financial Group, Laczkowski spent eight years working at investment banks including Goldman Sachs and Credit Suisse.

      KKR has hired Adam Selipsky, former Chief Executive Officer of Amazon Web Services (AWS), as a Senior Technology and AI Strategy Advisor to the firm, according to a press release. Selipsky has more than 20 years of executive leadership experience in scaling mission-critical internet infrastructure.

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

      SEC, CFTC Set Priorities for Harmonization

      SEC
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      SEC, CFTC Set Priorities for Harmonization

      As the markets for securities and non-securities increasingly converge, we are excited to embark on a new beginning for coordination between U.S. market regulators. The work of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) has never been more intertwined—and the wave of innovation before us never more dependent on the depth of our cooperation. Harmonization between U.S. market regulators is essential to the viability of a broad range of innovative products. We build on our divisions’ joint statement on facilitating trading of certain spot crypto asset products and highlight the innovations that greater harmonization of SEC and CFTC regulatory frameworks can unleash.

      The securities and commodity derivatives regulatory regimes have differing statutorily prescribed jurisdictions, but fostering innovation in both new markets and new products demands that U.S. regulators be flexible and agile. The SEC and CFTC must coordinate to ensure there is not a regulatory “no man’s land” due to inaction by one or both agencies. Failure to coordinate, and the resulting regulatory uncertainty, have chilled productive economic activity even when the products would otherwise be allowable under federal law. That chapter belongs to history.

      It is a new day at the SEC and the CFTC, and we reaffirm the need to ensure regulation does not stand in the way of progress. By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants, investors, and all Americans.

      Tuesday’s joint staff statement on spot crypto asset products is only a first step. To the extent possible and appropriate in the public interest under existing statutes, our respective agencies should consider harmonizing product and venue definitions; streamlining reporting and data standards; aligning capital and margin frameworks; and standing up coordinated innovation exemptions using each agency’s existing exemptive authority. Working together, the agencies can consider how to craft a reliable playbook for innovators and investors, advancing U.S. competitiveness and market integrity, consistent with our statutory mandates. We look to a future where the meeting of our statutes is not a point of friction, but a source of clarity.

      Next Steps – Bringing Novel and Innovative Products Back to America

      We are announcing a joint SEC-CFTC roundtable on regulatory harmonization, which will be held on September 29, 2025. As detailed by the President’s Working Group on Digital Asset Markets Report on Strengthening American Leadership in Digital Financial Technology, we are committed to using our existing authorities to establish fit-for-purpose regulations for innovative products and trading platforms. The United States has long been the home of financial innovation, but recently, novel products have been driven overseas by fragmented oversight and legal uncertainty. The SEC and the CFTC should encourage the reversal of this trend by harmonizing their approaches to product offerings, enabling increased market choice, and protecting investors through clear, predictable, and pro-innovation regulatory frameworks. We present the priorities below as potential areas of coordination to be discussed at the joint roundtable.

      24/7 Markets

      For on-chain finance to scale, the SEC and the CFTC should collaborate to consider the possibility of further expanding trading hours, where appropriate. Factors that may be relevant to this consideration include operational feasibility and liquidity consistent with investor and customer protections. Certain markets, including foreign exchange, gold, and crypto assets, already trade continuously. Further expanding trading hours could better align U.S. markets with the evolving reality of a global, always-on economy. Expanding trading hours may be more viable in some asset classes than others, so there may not be a one-size-fits-all approach for all products.

      Event Contracts

      Prediction markets, while they have existed around the world for decades, are undergoing rapid growth with growing demand from both market operators and the public. We should work together to provide clarity for innovators that want to list event contracts on prediction markets responsibly, including those based on securities. The SEC and CFTC should examine opportunities to collaborate to consider where event contracts may be made available to U.S. market participants regardless of where the jurisdictional lines fall.

      Perpetual Contracts

      Perpetual contracts, or derivatives without a defined expiry date, are common in offshore crypto markets. Jurisdictional and definitional constraints have limited their use in the United States. The agencies could consider concurrent steps to onshore perpetual contracts that meet investor and customer-protection standards, potentially allowing these products to trade across SEC- and CFTC- regulated platforms. This endeavor would capture economic activity now flowing exclusively to foreign platforms and bring U.S. traders access to products with transparent leverage limits and robust risk management.

      Portfolio Margining

      A coordinated SEC-CFTC framework for portfolio margining could potentially reduce capital inefficiencies by recognizing offsetting positions across product classes. Today, unharmonized requirements and structural inefficiencies often force market participants to post collateral separately at SEC-registered and CFTC-registered entities, even when their positions hedge each other in real economic terms. By considering harmonizing margin requirements, the agencies could allow broker-dealers, futures commission merchants, and clearing members to more efficiently net exposures. This would reduce the cost of carrying hedged positions, free up balance sheet capacity, and lower barriers for institutional and retail participation in cross-market strategies.

      The two agencies should consider taking action to allow clearinghouses to offer portfolio-based margin across their respective product lines that retains resiliency without triggering duplicative registration or conflicting compliance burdens. By reducing capital lock-up while maintaining robust risk controls, the agencies could catalyze liquidity, tighten spreads, and encourage innovation in market structure. This kind of collaborative red tape cutting could meaningfully strengthen market resiliency and better align U.S. markets to compete internationally.

      Innovation Exemptions and Decentralized Finance

      Today’s decentralized finance (DeFi) protocols enable direct peer-to-peer trading without the need for intermediaries. We reaffirm that both agencies are prepared to consider “innovation exemptions” to create safe harbors or exemptions that allow market participants to engage in peer-to-peer trading of spot, leveraged, margined, or other transactions in spot crypto assets, including derivatives such as perpetual contracts, over DeFi protocols. These safe harbors and exemptions would allow market participants to build commercially viable models while the agencies advance longer-term rulemaking.

      The right to self-custody one’s assets is a core American value. While market participants have paths under current law to trade spot crypto on federally regulated venues, the path remains open for peer-to-peer spot crypto trading as well. We encourage market participants to meet with our respective staffs as entrepreneurs onshore trading activity and innovate.

      Conclusion

      Today, we are ready to usher in a new era of innovation by recalibrating our posture toward regulatory cooperation. By harmonizing our regulatory frameworks, leveraging exemptive authorities, and collaborating on innovative products and trading platforms, the two agencies could unlock new opportunities for market participants, foster innovation, and solidify the United States as the global leader in crypto and blockchain technology.

      Building on the PWG Report’s recommendations, we can work to create a regulatory environment that allows American businesses to flourish, innovate, and lead in global markets. Working together, we can ensure that the next chapter of financial innovation is written right here in America, and that the United States remains the premier place in the world to start a business, develop breakthrough technologies, and participate in capital markets.

      Source: SEC

      Avoidable Errors Led to Loss of Gary Gensler’s Texts

      SEC
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      Avoidable Errors Led to Loss of Gary Gensler’s Texts

      The Office of Inspector General issued a final report detailing the results of our special review of the loss of the former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s text messages. The report contains five recommendations that should further strengthen the SEC’s management of mobile devices and federal records.

      WHY WE DID THIS REVIEW

      Records are the foundation of open government, and electronic recordkeeping (including recordkeeping of text messages) helps ensure transparency, efficiency, and accountability. On January 17, 2024, the U.S. Securities and Exchange Commission (SEC or agency) Office of Information Technology (OIT) reported to us that, about four months earlier, the agency erased nearly a year’s worth of text messages sent and received by the then SEC Chair, Gary Gensler. We undertook this review to determine what happened and why, how the agency responded, and any implications for federal records management.

      WHAT WE FOUND AND RECOMMENDED

      OIT’s decisions and actions resulted in the inadvertent loss of text messages sent and received by Gensler between October 18, 2022, and September 6, 2023. Specifically, in August 2023 OIT implemented a poorly understood and automated policy that caused an enterprise wipe of Gensler’s government-issued mobile device. The device was erroneously thought to be inactive and no longer in use, and OIT had not backed up the device for nearly a year. In an effort to recover from the enterprise wipe, OIT hastily performed a factory reset, which deleted text messages stored on the device and the device’s operating system logs.

      OIT’s response to this incident culminated in a contractor-produced after action report at an estimated cost of about $53,000. However, inadequacies in the report impacted its reliability and usefulness.

      Furthermore, because OIT did not collect or maintain necessary log data, neither OIT, its contractor, nor we could determine why Gensler’s device stopped communicating with the SEC’s mobile device management system, which caused the device to appear inactive and led to the enterprise wipe. A series of additional OIT actions, deficiencies, and missed opportunities, including a lack of backups and procedures that failed to consider record retention requirements for Capstone officials (such as Gensler) exacerbated the situation and hindered the SEC’s response.

      Although the SEC took steps to recover or recreate the deleted text messages, the agency was unable to collect or determine the entire universe, including some federal records. Since notifying our office, the SEC has disabled text messaging agencywide (with some exceptions), notified the National Archives and Records Administration in June 2025 of the lost records, and taken additional steps to back up Capstone officials’ records and data, among other actions. However, the loss of Gensler’s text messages may impact the SEC’s response to certain Freedom of Information Act requests.

      While some matters we identified did not warrant recommendations, we are recommending specific actions to further strengthen the SEC’s management of mobile devices and federal records. These actions include updating or developing plans, policies, and procedures related to change management, Capstone officials’ devices, and the system used to manage mobile devices, among other topics.

      Source: SEC

      Fidelity Investments Launches WealthscapeSM Intelligence

      Press Release
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      Fidelity Investments Launches WealthscapeSM Intelligence

      Fidelity Investments Launches WealthscapeSM Intelligence and Introduces New, Fully Digital Onboarding Enhancements

      • WealthscapeSM Intelligence helps advisors make smarter, faster decisions by delivering “next best actions” to save time and better support their clients
      • New onboarding enhancements include digital, flexible experience integrated with third-party systems leveraging APIs to help streamline client onboarding

      Fidelity Investments® today announced the launch of WealthscapeSM Intelligence and new enhancements to its digital onboarding capabilities across the WealthscapeSM platform, reinforcing the firm’s ongoing commitment to elevating the digital experience for wealth management firms and advisors. The new offerings are designed to help streamline advisor workflows, allowing them to focus more on meeting clients’ evolving needs and long-term investment goals.

      Fidelity research[i] shows that advisors at digitally empowered firms[ii]—or those embracing technology best practices—have seen strong business results: digitally empowered firms have been growing significantly faster than their peers, both in terms of average client growth rate (20% vs. 8%) and average AUM growth rate (22% vs. 11%).

      “Advisors tell us they want to be even smarter and faster to grow their businesses, and they look to Fidelity for innovation that enables this,” said Jess Liberi, head of Institutional Wealth Management Services (IWMS) Platform & Technology at Fidelity Investments, overseeing technology for Fidelity’s Clearing and Custody business. “That’s exactly what we’re delivering through WealthscapeSM Intelligence and our new digital onboarding enhancements, with solutions designed to meet advisors where they are and help them move forward with greater speed, insight, and confidence.”

      Introducing WealthscapeSM Intelligence

      WealthscapeSM Intelligence elevates the WealthscapeSM experience bydelivering prioritized, data-driven information that helps advisors save time and better support their clients. Through a single, simplified interface via My Dashboard, advisors gain access toactionable insights,streamlined analytics, andcentralized reporting to help drive smarter, faster decision-making.

      “WealthscapeSM Intelligence gives advisors more than just data—it unlocks powerful insights that drive smarter decisions and real business growth, all through a unified dashboard tailored to the advisor,” Liberi said.

      WealthscapeSM Intelligence features include:

      • My Dashboard: A personalized hub that brings together client portfolio insights, analytics, and reports in one unified view.
      • Insights: A centralized location for real-time and historical insights—categorized as active, resolved, or expired—helping advisors stay proactive and informed.
      • Analytics: High-level trend analysis on assets under administration (AUA) and money movement (including new and existing assets) to help identify potential opportunities and areas that may require attention
      • Reporting: Consolidated operational reports on AUA, trades, orders, billing, and money movement for greater efficiency and clarity

      Latest with Digital Onboarding

      Fidelity’s enhanced digital onboarding capabilities simplify and accelerate the account onboarding process (including account funding), delivering a fully digital, end-to-end experience that should reduce friction for both advisors and their clients.

      With a focus on flexibility, integration, and speed, the latest enhancements help advisors onboard clients faster by reducing manual tasks and creating a more intuitive experience from start to finish.

      New digital onboarding capabilities include:

      • True Digitization: Dynamically rendered account views that provide investors with a clear, interactive picture of their account details, moving beyond static PDFs.
      • Bulk Account Opening: Onboard multiple clients at once, reducing manual work and helping accelerate time to asset realization.
      • Multi-Account Bundling: Open up to 10 accounts in a single workflow, with support for up to three transfers of assets (TOAs) per account.
      • Customizable Experiences: Build proprietary, firm-branded onboarding flows using Fidelity APIs, allowing for on-demand data retrieval, updates, and transactions tailored to each firm’s unique needs.
      • Click-to-Agree Signing: A streamlined, consistent signing experience that allows investors to review, edit, and authorize through a simplified experience.
      • Deep Integration Capabilities: Seamlessly connect with relevant parts of the advisor’s technology ecosystem, including customer relationship management (CRM), for prefill and integrate with Fidelity’s Service Center for real-time tracking, status updates, and alerts—enabling a more connected and efficient workflow.
      • Advisor Document Upload: Firms can upload key documents—such as Form ADV and fee schedules—directly into the workflow for investor review and approval.

      “Our latest digital onboarding enhancements are engineered to make that experience faster, simpler, and more adaptable,” Liberi said. “Whether using Fidelity’s full platform, modular tools, or integrations through our APIs, we’re empowering firms to deliver a modern, efficient onboarding journey tailored to their unique needs.”

      For more information on WealthscapeSM Intelligence and the latest digital onboarding capabilities, please visit http://clearingcustody.fidelity.com/platforms/brokerage/advisors.

      About Fidelity Investments

      Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $16.4 trillion, including discretionary assets of $6.4 trillion as of June 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

      # # #

      Fidelity Clearing and Custody Business provides a comprehensive clearing and custody platform, brokerage, investment and reporting services, trading capabilities and practice management and consulting to registered investment advisors, including strategic acquirers and professional asset managers, retirement recordkeepers, broker-dealer firms, banks, insurance companies, family offices and wealthy families. Fidelity Clearing and Custody’s goal is to help clients ensure that they are always future-ready by offering knowledgeable consulting, exceptional people and transformative technology.

      Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

      Third party marks are the property of their respective owners.  All other marks are the property of FMR LLC.

      Fidelity Brokerage Services LLC, Member NYSE, SIPC

      900 Salem Street, Smithfield, RI 02917

      Fidelity Distributors Company LLC

      900 Salem Street, Smithfield, RI 02917

      National Financial Services LLC, Member NYSE, SIPC

      245 Summer Street, Boston, MA 0211

      eReview #: 1219301.1.0

      [i] Fidelity’s 2023 Financial Advisor Community – Technology Stack Survey was an online blind survey (Fidelity not identified) and was fielded during the period November 9 through 24, 2023. Participants included 426 advisors—including some firm leaders, partners, and other technology decisionmakers—who work with individual and/or small business investors and are licensed and credentialed. Advisor firm types included a mix of RIAs, national brokerage firms (commonly referred to as wirehouses), other broker-dealers, with findings weighted to reflect marketplace headcount by channel, as reported by Cerulli. The study was conducted by an independent firm not affiliated with Fidelity Investments.

      [ii] Digitally empowered firms were identified in the Technology Stack Survey by using statistical clustering analysis based on advisors’ responses about their firms’ use of technology. While the factors that most drove differentiation of these firms versus others were using technology to differentiate client experience, immediately implementing new features, having a process to evaluate tech based on strategy/need, and providing adequate training/resources to advisors, these firms scored higher than their peers on nearly every technology best practice that we asked about. Digital empowerment is a goal state to strive for, rather than an actual condition. As such, references to “digitally empowered firms” are intended to reflect those firms that stand out as more digitally empowered than their peers.

      BlackRock to Manage $80 Billion of Citi Wealth Client Assets

      Press Release
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      BlackRock to Manage $80 Billion of Citi Wealth Client Assets

      Harnesses the power and scale of two global leaders in wealth

      $80 Billion Citi Wealth Client Assets to Be Managed by BlackRock in Largest Agreement of its Kind

      Citi Wealth announced the selection of BlackRock to create a new portfolio offering for its clients – Citi Portfolio Solutions powered by BlackRock. This offering will combine the strategic investment advisory and planning capabilities of the leading global bank with the investment management and technology strengths of one of the world’s preeminent asset managers.

      The agreement includes the appointment of BlackRock to manage approximately $80 billion in assets for thousands of Citi Wealth clients whose accounts are currently managed by Citi Investment Management (CIM).

      Under the agreement, BlackRock will manage a range of core, opportunistic and thematic investment strategies across Equities, Fixed Income, Multi-Asset Class strategies and, over time, Private Markets. In addition, the firm’s Aladdin Wealth® technology platform – with its advanced risk, portfolio management and data insight capabilities – has been selected by Citi and will be deployed to Citi’s Private Bankers and investment professionals.

      Leaders at Citi Wealth and BlackRock believe the new model will benefit clients and accelerate growth at both firms.

      “We want to bring best-in-class advice, solutions and service to our clients, and we want to serve more of the world’s changemakers,” said Andy Sieg, Head of Wealth at Citi. “With this offering, we can accomplish both. It brings together the sophisticated relationship-driven and market-based advice of our bankers, backed by the insights of our own Chief Investment Office, with the renowned investment expertise and innovative technology capabilities of BlackRock.”

      Citi Wealth clients with assets to be managed by BlackRock are domiciled in nearly 100 countries. These clients will continue to maintain a primary relationship with their Citi Private Banker who will advise on their overall wealth approach, including strategic asset allocation, establishment of long-term financial goals and selection of investment strategies. Subject to Citi Wealth’s ongoing review and monitoring, BlackRock will be responsible for managing and implementing specific investment strategies tailored to meet the objectives of Citi Wealth clients.

      This enhanced investment offering will provide Citi clients with access to a wide range of investment options and strategies, leveraging BlackRock’s leadership in portfolio construction and the management of customized portfolios.

      As part of the agreement, certain members of CIM will join BlackRock where they will continue to serve as portfolio managers on existing strategies for Citi clients. In due course, Citi and BlackRock will also develop new products and solutions for the benefit of Citi clients by leveraging the scale, infrastructure, and capabilities of BlackRock.

      “We’re excited to be selected by Citi to bring BlackRock’s extensive suite of investment solutions and innovative financial technology to clients, enabling Citi to deliver customized portfolios and strong investment outcomes across Wealth,” said Sir Robert Fairbairn, Vice Chairman at BlackRock. “As investor appetite grows for custom built, whole portfolio solutions, BlackRock continues to invest in our global investment platform to stay at the forefront of clients’ evolving needs.”

      Jaime Magyera, Head of BlackRock’s U.S. Wealth Business, noted that BlackRock has long enjoyed a business relationship with Citi and said the firm looked forward to the opportunity to work even more closely with the bank’s Wealth business under the Citi Portfolio Solutions arrangement.

      “For nearly four decades, BlackRock has helped lead the evolution of customized portfolio management, continuously adapting to meet the needs of individuals for tailored, tax-optimized investment strategies underpinned by cutting-edge asset allocation and portfolio construction capabilities,” she said. “Today, these investors and their advisors are reimagining the entire portfolio experience across public and private markets. By working alongside Citi and its clients, we are well-positioned to deliver the breadth, precision, and innovation their clients and investors worldwide require.”

      Keith Glenfield, Head of Investment Solutions for Citi Wealth, echoed the sentiment.

      “There has never been a better time to be a Citi Wealth client. Boutique in feel, global in reach, this offering fully aligns with our high-quality open architecture approach and will significantly enhance the set of investment solutions and capabilities available across our platform,” he said. “Our clients will get the best of both worlds – the personalized guidance of a trusted Citi Private Banker or Advisor, augmented by BlackRock’s innovative technology and expertise in managing customized portfolio solutions.”

      The agreement is expected to begin in the fourth quarter subject to customary approvals and conditions and is not expected to have a material impact on Citi’s previously disclosed revenue or return targets.

      Source: Citi

      FLASH FRIDAY: Assessing the Rush into Private Assets

      Editorial Staff
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      FLASH FRIDAY: Assessing the Rush into Private Assets

      (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.)

      Your friendly neighborhood Traders Magazine editor is old enough to remember when private assets meant owning baseball cards. You’d keep them in a box under your bed or in the closet and hope they appreciated in value. (Only to find years later most cards were worth three cents each according to a price guide, but there were no buyers at that price.) 

      Or, for wealthy folks, art would be the private asset of choice.

      Things changed over the years and private markets advanced. In the 2010s there was increased interest in buying into firms before they went public. But it was still a niche corner of the markets with high barriers to entry. For instance, consider the state of play as described in the 2013 article 3 ways to buy Twitter before the IPO:  

      “Twitter is not yet public, but that doesn’t mean there aren’t shares of the company floating around out there, populating the ‘high-growth’ sections of investment portfolios. Twitter, and pretty much every other company under the sun, will issue various forms of equity while still a private company, either as compensation to employees, payment for an acquisition or to large private investors. These are sometimes laden with so many terms and conditions of sale that they are frozen solid for months or even years, but sometimes they are able to be traded, albeit in what would be considered an illiquid market.”

      So basically you could buy and sell private-company shares on platforms such as SecondMarket (now Nasdaq Private Market) and SharesPost (now part of Forge Global), or invest in private firms indirectly via private equity firms or certain mutual funds. Either way, it was an expensive and inefficient process.

      Private markets have developed over the past dozen years and there has been a surge in recent interest to make the asset class more accessible to regular folks. Last month, President Trump signed an executive order to make it easier for 401(k) plans to include alternative assets such as private equity.  

      The upshot seems to be that private markets are transitioning from niche to mainstream, with some household financial brands getting involved. For instance, BlackRock is set to include private assets in its retirement plans, and Goldman Sachs and T. Rowe Price are collaborating on investments that include private markets.

      Why the recent spike in interest in private assets? That’s a point of curiosity. The apparent answer seems to be simple: investment returns.

      Demand for private assets “mostly comes from a return story,” Morningstar Research Services’ Jack Shannon said in a January 2025 podcast. “So I think over the last decade, you’ve seen in the press, the financial press, a lot of discussion about how great private equity and venture capital has been for … university endowments and for pension funds. And I think people see that and say … hey, how come these big institutions and these high-net-worth credit investors have access to something, this great asset class that I don’t have access to?”

      However, it’s not all sunshine and rainbows. 

      For one, chasing returns is never a good thing. So while private assets may have outperformed over the past decade, there’s no assurance that will continue in the next decade. 

      Two, there’s an inherent conflict with private assets: companies often want to stay private to avoid the disclosure and reporting requirements of being a public company. But that disclosure and reporting is helpful, maybe even necessary, for retail investors to stay informed.

      Even just one private-company blowup stemming from a ‘black box’ situation that burns mom and pop investors could undo years of progress.

      So while private assets can help investors diversify and increase returns, it’s worth considering whether there’s some irrational exuberance around the asset class at present.

      Operational Spending Surge as Banks Seek Growth, Efficiency, and Competitive Edge

      Anna Lyudvig
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      Operational Spending Surge as Banks Seek Growth, Efficiency, and Competitive Edge

      The world’s top 12 corporate and investment banks (CIBs) spent a staggering $159 billion in 2024 to run their global businesses across origination & advisory, equities, fixed income, trade finance, cash management, and securities services, a 3.4% increase from the previous year, according to a new research from Crisil Coalition Greenwich.

      Notably, technology spending alone accounted for nearly $35 billion, second only to front-office compensation.

      This sharp increase in tech allocation reflects a clear strategic pivot: banks are betting on digital innovation to secure long-term relevance and profitability.

      Stephen Bruel, Coalition Greenwich
      Stephen Bruel

      “Tech is the core enabler of banks’ long-term strategies, whether directing investment towards automating processes, strengthening risk and control frameworks, or improving client analytics and digital platforms,” said Stephen Bruel, Head of Derivatives and FX practice on the Market Structure and Technology team at Crisil Coalition Greenwich and author of Corporate and investment bank spending in unpredictable times.

      “The aim tends to be twofold: protecting franchise relevance in an increasingly electronic market and creating scale efficiencies that underpin sustainable growth,” he told Traders Magazine.

      The rise in tech spending aligns with strong revenue momentum. In 2024, the top global CIBs grew revenues by 9%, reaching $262.9 billion. From 2019 to 2024, total operational spending climbed 17.2% globally, with U.S. banks increasing their spend by 19.5%—outpacing the EU’s 12.9% rise, according to the findings. Technology again stood out, growing nearly 29% globally over that period, with U.S. banks driving a 34% increase versus 20% in EMEA.

      This divergence signals a widening gap between regional investment strategies, raising concerns about digital competitiveness.

      “The higher U.S. bank tech spend reflects both greater revenue scale and the advantage of having kicked off substantial investment sooner than EU counterparts,” Bruel explained.

      “And while spending levels matter, competitive advantage depends on whether investments are targeted at the right capabilities and executed efficiently.”

      Despite revenue gains and clear strategic priorities, banks are operating in a volatile global environment—marked by geopolitical tensions, persistent inflation, and a shifting regulatory landscape. Under these conditions, managing return on equity (RoE) continues to be a top priority.

      “Banks indicate that they are moving towards tighter alignment between tech spend and front-office priorities—tying investment decisions directly to revenue growth, client engagement, and competitive positioning,” said Bruel. “Increased governance, transparency, and ROI discipline are being applied to tech budgets, ensuring spend is not just larger but smarter.”

      Across the CIB landscape, roughly half of all spending continues to go toward front-office roles—primarily compensation—while the remaining half supports operations, technology, risk and control functions, and human resources. Tech must therefore serve dual mandates: driving efficiency and unlocking new revenue streams, according to the report.

      “Cost pressure drives more emphasis on efficiency gains, so investments serve both revenue ambition and cost-to-income resilience,” Bruel said.

      The rapid increase in tech spending isn’t just a response to present challenges—it’s a strategic investment aimed at securing long-term success and resilience.

      “We’re seeing a clear shift in mindset,” Bruel emphasized. “The banks that win over the next decade will be the ones that marry strategic clarity with execution discipline—and that means using technology not just to modernize, but to fundamentally reshape how they serve clients and manage risk.”

      Looking forward, the disparity in tech investment growth between U.S. and EU banks may prompt strategic recalibrations, especially in Europe, where competitive pressure from both American banks and nonbank liquidity providers is intensifying.

      Yet regardless of geography, technology has become essential. For banks aiming to thrive in a complex, fast-moving financial ecosystem, it’s the cornerstone of sustainable growth.

      “It’s not just about spending more. It’s about spending wisely—because that’s what will separate the leaders from the laggards,” Bruel concluded.

      Stern Appoints Paul Karrlsson-Willis as Head of Institutional Equity Trading

      Editorial Staff
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      Stern Appoints Paul Karrlsson-Willis as Head of Institutional Equity Trading

      Stern Brothers, an independent, private investment bank in the US, has hired Paul Karrlsson-Willis as Senior Managing Director, Head of Institutional Equity Trading, based out of the New York office.

      “Yes, this just happened! Excited to be back and working for a great company. Let’s rock and roll!,” Karrlsson-Willis shared on his LinkedIn.

      Karrlsson-Willis is a seasoned financial services executive with more than 30 years of experience building and leading businesses across areas such as international trading and institutional sales, with a particular interest in the connection between finance and community impact.

      Paul Karrlsson-Willis

      He started his career at Fidelity, where he spent 25 years in leadership roles building out businesses in everything from International Trading to US Institutional Sales.

      His experience extends to other senior leadership positions at prominent firms such as StoneX, INTL FC Stone Financial, and Cabrera Capital.

      Stern wrote in a press release that Karrlsson-Willis is recognized for “his deep expertise in operational excellence, revenue growth, and opening new markets”.

      “His strategic vision and hands-on leadership have consistently driven innovation and business success across complex financial ecosystems,” the firm said.

      “A passionate advocate for leveraging finance as a force for good, Paul believes that profitability and positive social impact are not mutually exclusive—but mutually reinforcing,” the company added.

      Karrlsson-Willis is also involved in nonprofit organizations such as the Commission for Disability Employment, the National Down Syndrome Society, and the Special Olympics.

      Goldman Sachs, T. Rowe Price Partner on Public & Private Solutions

      Press Release
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      Goldman Sachs, T. Rowe Price Partner on Public & Private Solutions

      Goldman Sachs and T. Rowe Price announced a strategic collaboration aimed at delivering a range of diversified public and private market solutions designed for the unique needs of retirement and wealth investors.

      This collaboration will leverage the strengths of both firms, including respective investment expertise, solutions orientations, and a deep understanding of the needs of intermediaries and their clients. A central focus is on providing a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisors, plan sponsors, and plan participants.

      The firms are pleased to announce that Goldman Sachs intends to invest, through a series of open-market purchases, up to $1 billion in T. Rowe Price common stock with the intention to own up to 3.5 percent.

      “This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,” said David Solomon, Chairman and Chief Executive Officer of Goldman Sachs. “With Goldman Sachs’ decades of leadership innovating across public and private markets and T. Rowe Price’s expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation.”

      Rob Sharps, Chair, Chief Executive Officer and President of T. Rowe Price, said, “As a leader in retirement, we have a proven track record of using our expertise to drive solutions that help our clients confidently prepare for, save for, and live in retirement. We are excited to collaborate with Goldman Sachs—building on our broad capabilities across public and private markets to offer clients the ability to unlock the potential of private capital as part of their retirement and wealth management strategies.”

      “This strategic collaboration greatly enhances T. Rowe Price’s and OHA’s ability to deliver a wider range of investment strategies, focusing on accelerating innovation and creating new products to serve client needs. We welcome T. Rowe Price’s and Goldman Sachs’ commitment to deepen private market alternatives access to wealth and retirement clients. We view this collaboration as an important milestone in OHA’s growth with T. Rowe Price,” said Glenn August, Founder and Chief Executive Officer of OHA.

      Key Highlights

      • Target-Date Strategies: The firms will offer new, co-branded target-date strategies that leverage T. Rowe Price’s expertise in the retirement blend series while broadening plan participants’ access to private markets by incorporating investment capabilities from Goldman Sachs, T. Rowe Price and OHA. Goldman Sachs will serve as third-party provider of private market strategies for the target-date series. The firms intend to launch the solutions in mid-2026.
      • Model Portfolios: The firms will introduce a series of jointly created, co-branded model portfolios leveraging the strengths of both organizations, incorporating SMAs, direct indexing, ETFs, mutual funds and private market vehicles tailored to the needs of advisors serving mass-affluent and high-net-worth (HNW) clients.
      • Multi-Asset Offerings: T. Rowe Price and Goldman Sachs will also collaborate on multi-asset offerings. The firms are currently considering two strategies—one that will provide access to asset classes such as private equity, private credit and private infrastructure in a diversified portfolio delivered through one vehicle, and another that integrates US public and private equity investing into a single offering.
      • Personalized Advice Solutions and Advisor Managed Accounts: The firms are collaborating to deliver an innovative, scalable advisory platform for advisors and other RIAs to offer managed retirement accounts at scale in-plan and out-of-plan. This includes integrating retirement planning and advice from the firms into the T. Rowe Price recordkeeping and Individual Investor platforms.

      Source: T. Rowe Price

      Cboe to Launch Complex Orders on BZX Options Exchange 

      Anna Lyudvig
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      Cboe to Launch Complex Orders on BZX Options Exchange 

      Cboe Global Markets is set to enhance its BZX Options Exchange by introducing complex order functionality effective October 13, 2025, subject to regulatory approval.  

      The company says the addition marks a significant milestone in its ongoing strategy to deliver uniform, innovative capabilities across all four of its U.S. options exchanges—Cboe Options (C1), C2 Options (C2), EDGX Options (EDGX), and now BZX Options. 

      Anthony Montesano

      “Each of our exchanges has slightly different market structures, pricing models, and technology architectures,” said Anthony Montesano, Head of Derivatives Market Structure at Cboe.  

      “That differentiation allows us to compete for different segments of order flow and liquidity. Adding complex orders to BZX brings consistency across our platform suite and gives us additional tools to innovate—especially in the way we incentivize and support market participants,” he told Traders Magazine. 

      BZX operates under a maker/taker, price-time allocation model. According to Montesano, this structure provides both a strategic advantage and room for creative pricing initiatives.  

      “We think the BZX’s market model allows us to deliver a differentiated complex order experience that’s valuable to both liquidity providers and customers,” he explained. 

      Once launched, BZX will support complex orders through its Complex Order Book (COB), which will use a price-time priority allocation, and through the Complex Order Auction (COA), which will allocate based on price and pro-rata priority—augmented by a new feature exclusive to BZX: Priority Quoter (PQ) functionality. 

      The Priority Quoter mechanism is designed to incentivize market makers to maintain top-of-book quotes in the individual legs of a complex order. “If a market maker is on the National Best Bid or Offer (NBBO) on any of the legs of the complex instrument and they respond to a COA, they get priority up to the size of their best quote,” Montesano said.  

      “This is a very specific and meaningful incentive that we believe will enhance competition and improve pricing outcomes for customers.” 

      Importantly, COA auction notifications on BZX will not disclose the auction price—mirroring the behavior on C1 and C2. Montesano noted that this approach can drive better execution quality. “There are strong arguments that price-obfuscated auctions encourage more aggressive, theoretically fair pricing from market makers,” he said. “We’ve seen in our data that customers often receive meaningful price improvement in this model.” 

      The rollout also includes a suite of technical upgrades to support efficient access and integration. Complex order entry will be available through both the industry-standard FIX protocol and Cboe’s proprietary BOEv3 protocol, which has been newly enhanced for BZX. Certification is required but can be completed via self-service through the Customer Web Portal. Firms previously certified on other Cboe options exchanges for FIX will not need to recertify. 

      To support the new functionality, Cboe is launching updated market data infrastructure, including new multicast groups and rendezvous points for the Complex PITCH, Complex TOP, and Complex Auction feeds. These feeds will begin transmitting heartbeats on September 15, 2025. GRP and SPIN sessions will also be available on that date.  

      Starting in early August, firms have had access to the full complex order suite in Cboe’s BZX certification environment, with additional weekend testing opportunities scheduled for September 20 and October 11. 

      Fee code and pricing updates related to complex orders and market data for BZX will be reflected in the BZX Options fee schedule and announced separately. 

      Montesano emphasized that while the BZX complex order rollout may seem like a narrowly targeted enhancement, it represents a broader Cboe philosophy. “This is part of a much larger initiative to build the tools and infrastructure that our members need,” he said.  

      “Whether it’s enhancements to our FLEX market, innovations like pairing FLEX and non-FLEX options, or new daily expirations, we’re constantly evolving with our partners.” 

      Cboe’s recent innovations in the FLEX space have helped power the rapid growth of defined outcome ETFs—many of which rely heavily on custom options execution, he said.  

      “We’ve introduced order types like Delta-Adjusted-at-Close (DAC) and percent-based FLEX orders, all built in collaboration with the firms that needed them,” Montesano explained. “And we’re not stopping there.” 

      Another major initiative underway is the planned launch of complex stop-limit order functionality—the first of its kind among U.S. options exchanges. “Retail customers, especially those trading zero-DTE strategies, often rely on complex stop limits that today sit on brokers’ systems,” Montesano said. “We’re building functionality to allow those orders to rest on exchange, because our retail partners asked us to.” 

      Collaboration with market participants continues to play a central role in how Cboe designs and evolves its market structure. “Our retail partners, ETF issuers, market makers, and institutional clients all play a role in shaping what we build,” said Montesano. “When they tell us what they need, we work with them to design, build, and deploy it in a scalable way.” 

      As Cboe continues to expand its options infrastructure and capabilities—including growing offerings in cryptocurrency-linked index products and cross-platform protocol enhancements like BOEv3—Montesano said the company’s focus remains on delivering trusted, competitive markets. 

      “We believe the U.S. derivatives market is the most sophisticated in the world, and Cboe plays a central role in that ecosystem,” he said. “The addition of complex orders on BZX is another example of how we’re strengthening that foundation—offering more choice, more consistency, and more value to our participants.” 

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