Thomas in Blockland

Thomas in Blockland

Steve Grob

Director of Group Strategy at Fidessa

In addition to providing a regular commentary on the issues surrounding fragmentation Steve is responsible for Fidessa’s strategic development. This includes the development of new geographic markets and strategic partnerships and driving new industry initiatives.

Views 246

Thomas in Blockland

22.02.2017 11:45 am

Thomas the crossing network wasn’t happy. For years he had enjoyed helping his friends buy and sell things amongst themselves. Sometimes he would even step in directly and agree to buy or sell something himself, especially if there was there was an awful lot of it. But now he had a tricky choice to make.

The ruler of the land, The Regulator, had been convinced by the Exchanges that what he did was bad and so it had sent its messenger, known as MiFID 2, with a new directive. Basically Thomas could still help his friends, but only if he agreed not to play directly himself. He would also have to change his name to Dark MTF and wear a silly and ill-fitting cap that would stop him playing at all if he was too good at matching up buyers and sellers. The other alternative was even worse and meant that he could only buy and sell directly with his friends, but this would eat into all his hard earned pocket money (and, he would also have to change his name to Si).

Meanwhile things in Blockland weren’t looking too good either. For ages its inhabitants had always preferred to dine on large blocks but, more recently, the Algo Machines had starting crushing up their food for them. This was OK most of the time, but some of the machines were really annoying as they just ran around at high frequency leaving trails of crumbs for everyone else to try and follow. 

Thomas was too busy trying to get his new cap to fit and so he wasn’t much help, and it was left to the Exchanges to step in with a new idea. This approach made sense and was based on allowing people to fill out a slip saying what they would be prepared to trade if they could. Unfortunately though, the Exchanges provided people with three different places to send their slips to. And so no one knew if they were supposed to pick just one and hope they got lucky or write out three slips, post them all and risk getting overfed. The Algo Machines sensed another opportunity and began to ponder.

“Never mind”, said The Regulator. “Why don’t we all sit down and discuss this over a game of unintended consequences”…

Latest blogs

Darren Capehorn Icon Solutions

Unbanked and Unconnected: Supporting Financial Inclusion Beyond Digital

Many of us take it for granted, but accessing basic financial services is fundamental to our economic and social development. It is hard to ‘get on’ if you are forced to hide life savings under the mattress, or rely on predatory loan sharks for Read more »

Konstantin Demishev Archer Software

How Machine Learning Helps Fintech Companies Detect Fraud

Machine learning (ML) is one of the most discussed technological tools, and if in the past only a few companies could use it due to high cost and lack of resources, today many industries use ML. The financial sector is not an exception and embraces Read more »

Nish Kotecha Finboot and Bryan Foss, NED, Visiting Professor at Bristol Business School and member of the FRC Audit & Assurance Council

How Listed Companies Can Use Blockchain to Prevent Auditing and Reporting Malpractice and Avoid Scandal

Not too long ago, there was very little to link Wirecard, the disgraced payments platform in Aschheim, Germany, with Boohoo, the fast-fashion online retailer in Leicester, England, but both have recently been embroiled in high-profile scandals. Read more »

Leon Muis Yolt Technology Services

The Time for Financial Services to Become Truly Digital is Now

The financial services industry looks set to change dramatically over the next couple of years in response to COVID-19. The pandemic has certainly highlighted some inefficiencies and weak spots in current processes for many businesses, such as those Read more »

Granville Turner Turner Little

The Lockdown Money Revolution

Many Brits have found that lockdown has been beneficial for their money, having cut back on personal spending and managing to put away some extra cash. According to eToro, Brits with unspent discretionary income are set to accumulate £75.5bn in Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel