Weekly Roundup

Nasdaq to Acquire Adenza: Nasdaq is finalizing a $10.5 billion deal to acquire fintech software firm Adenza from private equity firm Thoma Bravo. The deal would be the biggest acquisition in Nasdaq’s history and is part of the exchange’s larger strategy to become a more tech-centric company.

Binance Asset Freeze: Binance.US and the SEC are working on a deal that would avoid a total asset freeze and protect Binance.US customer funds. US District Judge Amy Berman Jackson said, “Shutting [Binance.US] down completely would create significant consequences not only for the company but for the digital asset markets in general.”

McKinsey AI Report: McKinsey Global Institute released a report claiming that generative AI has the potential to add $4.4 Trillion in value to the global economy. McKinsey had previously predicted that AI would automate half of all work between 2035 and 2075, but the recently released technology has accelerated the company’s forecast to be between 2030 and 2060.

Bipartisan AI Bills: Last Thursday, US senators introduced two bipartisan bills on artificial intelligence. One bill would require transparency from the US government around its use of AI. The second would require an office to be set up to determine if the US is remaining competitive in the space.

SEC AI Regulation: The SEC is set to propose a regulatory plan to combat conflicts of interest surrounding brokerages leveraging AI. Since his appointment, SEC Chair Gensler has expressed concerns over whether brokers and financial advisors are making recommendations that are in clients’ best interests. The SEC plans to propose requiring more robo-advisers to register as money managers, thus meeting additional regulatory requirements. Another consideration is requiring large brokers to calculate customer reserve deposit requirements daily, versus weekly.

SEC Education Campaign: The SEC launched a public service campaign that encourages older investors to continue learning when it comes to protecting their hard-earned money from investment fraud. The campaign includes a new television campaign, “Never Stop Learning,” which is available in English and Spanish, as well as informational videos.

NY Non-Competes: The New York State Senate has approved two bills that would prohibit or limit the use of non-compete agreements in New York. The bills must pass the New York State Assembly and receive final approval from New York Governor Kathy Hochul to become law.

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

    • Adam Inzirillo, Head of North American Equities at Cboe Global Markets, spoke with Traders Magazine about what is happening with CBOE and the industry as a whole. He covered market trends, the SEC’s market structure proposals, pre-market and after-market trading, DEI, and more.
    • Prashant Yerramalli, Former Chief of Staff to SEC Chair Gensler, was hired as vice president of operations and regulatory affairs at retail trading platform Public. He will drive new product development, manage Public’s overall risk profile, and support the legal and compliance teams on regulatory matters.
    • Kate Linebaugh, The Wall Street Journal “The Journal” Co-Host, spoke with SEC Chair Gary Gensler about his crypto crackdown, including the SEC’s cases against Binance and Coinbase.
    • James Penny, Chief Investment Officer of TAM Asset Management, spoke with Bloomberg about the current AI craze, comparing it to the dot-com era. “Companies that even mention the word AI in their earnings are seeing boosts to their share price, and that smells very much like the dot-com era. I think the market has got a little bit over its skis. I’d put much larger odds on it coming down from here,” said Penny.
    • Modern Markets Initiative CEO Kirsten Wegner and research fellow Anush Musthyala published a report “Stability in Turbulent Times: A Quantitative Analysis of the Liquidity and Narrowed Bid-Ask Spreads Provided by Automated Trading.” The report reviews the history of automated trading and analyzes multiple savings vehicles utilized by American investors, including 401(k) plans, Individual Retirement Accounts (IRAs), 529 college savings plans, public pension plans, ABLE plans, and ETFs to document the benefits of market automation in saving investors’ money with lower trading costs and narrower bid-ask spreads.