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Dutch bank ABN Amro's collaboration with AI platform Complidata to automate its trade finance operations marks a significant development in the financial industry. By leveraging Complidata's TradeSpeed, ABN Amro aims to streamline its documentary tra https://lnkd.in/eX4ZV5MW

🚀 Discover how trade finance is evolving through digitalization! In this insightful article, Finastra's Head of Trade & Supply Chain Finance, Iain MacLennan, delves into the rapidly changing landscape of global trade finance. He discusses the shift from static data to insight-driven systems, leveraging leading technologies and AI for compliance and scalability. 📖 Read the full article here: https://okt.to/jxzfFB #TradeFinance #Innovation #Agility #Fintech

Revolutionizing Trade Finance: Industry trends reveal a shift towards ecosystem-based models, integrating AI and digital platforms for enhanced efficiency and access to financing for businesses of all sizes. #TradeFinance #DigitalTransformation #SupplyChainFinance #bankingindustry #NFT #finance #fintech https://lnkd.in/eE5D_PiN

Thanks Global Trade Review (GTR) and Shannon Manders for organizing, and Geoff Brady for hosting! It was great to get together with Standard Chartered's Jordane ROLLIN, IBM's Juanjo Ruiz, Citi's Bayo Gbowu Sr., R3's Dr Alisa DiCaprio, and Cleareye.ai's Mariya George to discuss the current progress in digitizing trade finance, a topic close to all our hearts. Collaboration in trade finance between banks and fintechs with support from regulators has become more common, experimental, and cost-effective. This is crucial for driving innovation, with a lot of activity focused on generative AI and large language models - ultimately creating benefits for importers and exporters. Financial institutions have also shifted their mindset; they are now more comfortable with an “à-la-carte” approach to digitizing their trade finance processes, often trialing multiple solutions in a sandbox before progressing. We look forward to more events in the future! _____________________________ Read the full article: https://lnkd.in/dh75ENJB Ben Arber Matthias Verbeke Roderick Trekels Sam Curtis Alex Gray

Tokenization Tier List: Tokenized MMFs vs. EU Regulated Stablecoins 🚀 In our series exploring the tokenization of financial instruments, we rank assets from S-Tier (high efficiency gains and ready for implementation) to E-Tier (minimal benefits and not ready). Following our look at Sovereign-Bonds, we turn to another key collateral and important settlement asset in DLT-based capital markets: Tokenized Money Market Funds (MMFs) and E Money Tokens (EMTs). Here's why I believe MMFs are superior to EMTs for institutional investors. 💡Understanding Money Market Funds and E-Money Tokens Both MMFs and EMTs aim to provide investors with a stable value asset, engaging in liquidity transformation to maintain minimal price volatility. However, there are also some significant differences: 📜 EU Regulatory Framework: MMFs are regulated by MiFID II and MMFR, ensuring strict oversight for investor protection. Conversely, EMTs, regulated under MiCAR, benefit from easier accessibility and greater flexibility for both (retail) investors and issuers, due to a more lenient regulatory environment compared to MMFs. On the other hand, that might also come with increased risks for potential investors. 🔍Issuer Background: MMFs are typically backed by established banks or fund issuers attracting institutional investors. EMTs, however, are more appealing to retail investors and often issued by (regulated) digital asset firms, although this may change with MiCAR, as already multiple traditional firms announced their interest in issuing EMTs under the new regulation. 💰Interest Payments: A critical advantage of MMFs over EMTs is the ability to pay interest. Regulated stablecoins like EMTs (and asset-referenced token) in the EU are prohibited from offering interest payments, making MMFs more attractive, especially for institutional investors that are more cost sensitive. Tier Assessment🥇: E-Money Tokens: B-Tier for their regulatory readiness and flexibility, but their appeal is reduced by the lack of interest payments and higher potential risks. Tokenized MMFs: A-Tier due to their regulatory protections and ability to pay interest. They're poised for S-Tier as regulatory frameworks evolve, given their potential in future DLT markets. Notably, traditional institutions like JPM have already leveraged tokenized MMFs for capital market transactions, underscoring their potential as a collateral asset. 📩 Conclusion While EMTs offer a digital entry point and remain perhaps the most secure option that is easily accessible for retail investor, tokenized MMFs stand out for institutional investors, offering stability, regulatory safety, and interest earnings potential. In my view, as DLT-based capital markets develop, tokenized MMFs are poised to be the preferred option within the institutional landscape. This analysis is my personal viewpoint. What are your thoughts? Agree or disagree? Let's discuss below! #Blockchain #Tokenization #DLT #MMF #TierList #Stablecoins

In a discussion at EuroFinance International Treasury Management, Carl Burman, Maersk and Andres Tcach, Stability AI discussed the intersection of #AI’s potential in #treasury and the challenges and responsibilities of its ethical use in the wider business world. Read more about what was discussed here >> https://lnkd.in/ez5yhNyS #EuroFinanceIntl

📍 Tools for MiCA Compliance: Ensuring Best Execution in Crypto Trading 📍 Great article by the Talos team on how best execution requirements are met. Here are the main points: The European Securities and Markets Authority (ESMA) has released its final report on draft technical standards for the MiCA regulation. This regulation aims to enhance investor protection, promote transparency, and establish a level playing field in the crypto-assets sector. A key component of MiCA is the "Best Execution" obligation, requiring crypto-asset service providers (CASPs) to achieve the best possible outcomes for their clients. Understanding the Best Execution Obligation Best Execution mandates that CASPs must take all necessary steps to secure the most favorable terms for clients. This involves considering various factors such as price, cost, speed, and likelihood of execution. Both buy-side and sell-side institutions must ensure that their execution strategies align with the best interests of the underlying investors, free from any bias or monetary incentives. Key Factors and Required Technologies for Best Execution Price 📍 Solution: Access multiple trading venues to discover the best prices, normalize data, and aggregate liquidity. 📍 Technology: Smart Order Router (SOR) to dynamically route orders based on real-time market conditions. Cost 📍 Solution: Evaluate both implicit and explicit transaction costs to provide a complete execution cost picture. 📍 Technology: Advanced analytics to calculate fees, commissions, and market impact. Speed 📍 Solution: Prioritize swift execution to capture favorable conditions. 📍 Technology: Low-latency infrastructure and adaptive algorithms for real-time order routing. Likelihood of Execution 📍 Solution: Assess trade execution probability across venues considering market liquidity and historical data. 📍 Technology: Continuous monitoring systems and data-driven decision tools. Demonstrating Compliance with Best Execution Pre-Trade: Establish connections to multiple venues to normalize and aggregate liquidity for a comprehensive market view. Use advanced algorithms for price discovery and order routing. Intra-Trade: Implement smart order routers (SOR) and high-performing algorithms to adjust order sizes and routes in real time. Incorporate historical and real-time data to refine execution strategies. Post-Trade: Utilize robust analytics and reporting platforms for transaction cost analysis (TCA) to assess execution outcomes. Document order handling and provide metrics related to best execution factors. By focusing on these strategies and technologies, institutions can effectively meet MiCA’s Best Execution obligations, ensuring fair and transparent trading practices while fostering investor trust in the rapidly evolving crypto-assets market. https://lnkd.in/dPhC_RAt Emi Lorincz Frank van Zegveld #web3 #digitalassets

Overbond to integrate European fixed-income transaction data from Deutsche Börse into its AI-aggregated data feeds and automated bond trading - Overbond AI will use this data set to generate a robust European fixed-income trading data set and enhance the precision of Overbond liquidity scoring, risk tiering and margin modeling―all of which will be available to Clearstream clients. Through the partnership with Deutsche Börse and Clearstream, Overbond will gain access to settlement-level fixed-income transaction data derived from the 170 million transactions that Clearstream processes annually across 100 currencies and 60 domestic markets. Combining Clearstream transaction data for European instruments with data from Overbond partners that provide binding quote data from all-to-all trading platforms will create the most robust European AI training data set available for the benefit of a better informed fixed-income trading in the EU. “Complete and accurate data is a foundational tool for achieving consistent profitability in the bond markets. Incorporating Clearstream data into the training set for Overbond AI is a game-changer. It allows us to create a great tool for traders of European debt and enables them to automate up to 40% of their trades using Overbond,” said Vuk Magdelinic, CEO of Overbond. “This partnership is a great milestone for the fixed-income industry as it combines our bond settlement data with Overbond’s AI and cloud-based technology,” said Dr. Alireza Dorfard, Head of Market Data + Services at Deutsche Börse. “It is in line with our ongoing efforts to collaborate with partners on providing state-of-the-art solutions in financial markets.” Read more here: https://lnkd.in/gTmNyhap

Quantitative Finance: Powering Financial Transformation 📊 In today's dynamic financial landscape, quantitative finance plays a pivotal role in driving innovation and shaping the future of finance. Here's why it's in high demand: Data Mastery: Quantitative finance professionals excel in harnessing vast amounts of data to derive actionable insights, enabling data-driven decision-making and strategic planning. Risk Mitigation: With sophisticated risk models and analytics, they navigate complex financial landscapes, ensuring robust risk management strategies and regulatory compliance. Algorithmic Trading: Leveraging advanced algorithms, they optimize trading strategies, capitalize on market trends, and enhance investment performance. Fintech Revolution: In the fintech realm, quantitative finance expertise fuels technological advancements, powering innovations in digital banking, payment solutions, and personalized financial services. Cross-Industry Impact: Beyond traditional finance sectors, their expertise is sought after in insurance, consulting, tech startups, and even healthcare, where data-driven financial insights are invaluable. Tech Integration: Integrating cutting-edge technologies like AI, machine learning, and blockchain, they revolutionize financial processes, from predictive modeling and fraud detection to automated trading systems. Strategic Leadership: Quantitative finance professionals are strategic leaders, guiding organizations through financial complexities, optimizing resources, and driving sustainable growth strategies. In essence, the demand for quantitative finance talent stems from their ability to harness data, manage risks, drive innovation, and lead organizations towards financial excellence in an ever-evolving global economy.

Recently, Standard Chartered and Synpulse published a report focusing on the tokenization of real world assets (RWAs). They project that the tokenization market will grow to $30.1 trillion in the next decade, with trade finance accounting for 16% or $4.8 trillion. This segment is expected to be among the top three categories of tokenized assets worldwide. Read the report summary on Ledger Insights: https://lnkd.in/eDFFSptQ View the full report: https://lnkd.in/eBw67tKz