Weekly Roundup

24/7 Trading: Robinhood will be the first US brokerage to provide overnight weekday trading for individual stocks. The brokerage will allow round-the-clock trading in 43 securities for some users starting next week, with the official rollout in June.

Trading Data: Institutional brokerage firm Themis Trading released a report claiming that Depository Trust & Clearing Corp. (DTCC) is selling sensitive trading data that sophisticated traders can use to profit at the expense of more traditional investors. While DTCC disputed the report, investors continue to voice concerns.

Generative AI: Artificial Intelligence is taking the world by storm. Generative AI program ChatGPT gained 100 million users in just two months, a record pace. Big technology companies are investing billions in AI, and startups are racing to develop business models around the technology. While investors try to gauge the impact of AI across industries, stocks are “swinging wildly in both directions.”

AI Legislation: Senate Majority Leader Chuck Schumer (D-NY) proposed a new framework to guide future artificial intelligence legislation and regulation. He is currently seeking feedback from AI stakeholders on his proposal. Other members of Congress are also considering legislation to address AI concerns.

Network of Networks: Microsoft, Goldman Sachs, Deloitte, and others have teamed up to launch a new blockchain network. Canton Network is aimed at linking disparate institutional applications, potentially encouraging broader adoption of distributed ledger technology in financial markets.

Market Manipulation: US officials are investigating whether market manipulation caused the recent volatility in banking shares. White House press secretary Karine Jean-Pierre said the Biden administration is closely monitoring the situation, but any possible action would be taken by the SEC.

Crypto Interest: According to The Wall Street Journal, Miami is losing interest in crypto. Attendance at this year’s Miami NFT conference was down 1,500 from last year, and major hotels that once accepted crypto no longer do. Mayor Francis X. Suarez, who once referred to Miami as the world’s crypto capital, has switched his focus to tech startups, their financial backers, and AI.

Bittrex Bankruptcy: On Monday, crypto exchange Bittrex filed for bankruptcy. The exchange said the filing will not impact Bittrex Global, its operations outside of the US. Last month, the SEC sued Bittrex for operating unregistered securities. Separately, Bittrex agreed to pay $29 million in fines to the US Treasury Department last month.

Crypto Goes Public: Even with the current regulatory scrutiny around crypto, small crypto firms, like Bitdeer Technologies, are going public. Market factors, including rising interest rates, have helped bring a market rebound of riskier assets, like crypto and technology stocks. IPOs can help these smaller firms access additional capital through large pools of individual and institutional investors who wouldn’t invest otherwise.

Spot Bitcoin ETF: Cboe Global Markets filed a proposal with the SEC to list and trade shares of a spot bitcoin ETFby Cathie Wood’s Ark Invest and crypto investment product firm 21. The SEC rejected Cboe’s previous two proposals as well as over a dozen other proposals from firms for spot bitcoins ETFs, including Grayscale, Fidelity, and NYDIG.

In the Mix: This Week’s Top FinTech Thought Leader

  • Kirsten Wegner, Modern Markets Initiative CEO, and Research Fellows Arthur Boissavy-Millelire and Anush Musthyala, released a report titled “Overview: Intelligent Tick Size in Securities Trading.” The report provides a high-level introductory overview and comparative analysis of papers on tick size. Topics presented include what a tick size is, how tick size works, proposed metrics for calculating an optimal tick size, the negative impact of a tick too wide or too narrow, and the unintended consequences if a tick size is incorrectly calibrated. The review comes amid an SEC proposal to establish an “intelligent tick” regime.

  • Lori Heinel, Global Chief Investment Officer at State Street Global Advisors, wrote an opinion piece for the Financial Times discussing market volatility. She highlighted the importance of diversification, innovation in markets, access to liquidity pools, and risk management.

  • Brian Armstrong, CEO of Coinbase, spoke with CNBC about Coinbase’s plans in the US amid the company’s ongoing battle with the SEC: “I don’t think he’s necessarily trying to regulate the industry as much as maybe curtail it. But he’s created some lawsuits, and I think it’s quite unhelpful for the industry in the US writ large, but it also is an opportunity for Coinbase to go get that clarity from the courts that we feel will really benefit the crypto industry and also the US more broadly.”