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BCM
FinTech & Cryptocurrency RegulationEmerging Trends
Webinar for
Interactive Brokers
by
BCMstrategy, Inc.
12 February 2020BCMstrategy, Inc. | www.bcmstrategy2.com
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Disclosures
This material is provided for information only and is not an offer to sell or the solicitation of an offer to buy any financial instrument or asset class
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
BCMstrategy, Inc. is not affiliated with Interactive Brokers LLC, or any other FINRA broker-dealer.
The information provided in this presentation is believed to be accurate, but the accuracy and completeness of the information is not guaranteed.
Past performance is not indicative of future results.
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Agenda• Identifying Inflection Points/Predictable Policy Risk
• What To Expect (FinTech Regulation)• Banking/Credit Intermediation• Crowdfunding• Insurtech
• What to Expect (Cryptocurrency/Stablecoin Regulation)
• What to Expect (CBDC policy)www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
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www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
How To Trade The News
Top Ten Rules Recap
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Rule 1 – Be Objective
Beware
• Emotions (Denial and Disbelief)
• Surprise/ Justification
• The Lemming Effect
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Identifying Policy Momentum
• Rule 2: The Trend Is Your Friend…even if you disagree with the direction of policy
• Rule 3: Be Strategic
• Rule 5: Be Relentless
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Rule 4: Economic Data Rule 9: Alternative Data Rule 9: New Data
GDP
PMI
Trade Flows
Habit Data
IoT-Generated Data
New Combinations of Data
Machine-Generated Data
New Correlations
Language Data
Rule 4 and Rule 9: Data Types
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Rule 10: Distinguishing Rhetoric from Action
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
Rhetoric Action
The News Cycle, including Leaks Today’s action generates tomorrow’s headlines
Source: BCMstrategy, Inc.
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Key Take Aways
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• Policy Risk Can – And Should – Be Measured
• Advanced technology can • minimize headline risk, • increase operational efficiencies, and • increase strategic opportunities.
• Nowcasting and predictive analytics provide strategic advantages to investors when applied to public policy risk.
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www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
Planning Ahead – Predictable Inflection Points
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Identifying Inflection Points
• Rule 8: Nowcasting• Align time horizons (meetings vs. options
expiration dates)• Revisit assumption daily based on new facts• “Past performance does not always indicate
future results”
• Rule 7 and Rule 10: Action vs. Rhetoric vs. Leaks• Look past the headlines• Don’t look back
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
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Know Your Policymakers
• The EIFG Entities:• E: European (ECB, EP, EC, EBA,
EIOPA, ESMA, ESM, EFSF)• I: International (IMF, IAIS, IAEA,
BIS, IOSCO, BIS Innovation Hub, etc.)
• F: Cross-border (FSB)• G: HOSG, Ministerials (G7, G20,
G24)
• National Processes
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www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
FinTech Policy – Data and MacroTrends
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FinTech Policy
Jan 2019 vs Jan 2020
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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InsurTech
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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Crowdfunding
ICO
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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MacroPru & Data Privacy
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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FinTech
2020 Themes & Trajectories
ScaleEconomic Data and its relationship toMonetary PolicyMacroprudential Policy
Key Issues
InteroperabilityAnti-DiscriminationData: Privacy, Localization, OwnershipTrade PolicyDigital Chapters of trade agreementsMutual recognition/equivalence/reciprocity (regulatory standards)
MacroThemesSandboxes are OUT; mainstreaming into existing frameworks is INFunctional Regulation = increased operational and compliance costs for FinTech firms (and increased regulatory risk)
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www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
Source: Statista
Source: Bank for International Settlements
Source: De Nederlansche Bank
Source: Financial Stability Board
Source: De Nederlansche Bank
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Payments – Data and MacroTrends
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Payments
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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Payments --2020 Themes & Trajectories
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
• Low frequency/high impact activity• Ancillary areas generate forward policy
momentum• DLT• Non-bank access
MacroThemes
• Accessibility/Inclusion• Data Gathering• Monetary Policy
Key Issues
• Competition issues
Key Overlap – electronic currencies
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Cryptocurrency, Stablecoins, and CBDC Policy
Data and MacroTrends
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Crypto &Stablecoins
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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CryptoJan 2019 vs
Jan 2020
Source: BCMstrategy, Inc. www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
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CBDC
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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CBDCJan 2019 vs
Jan 2020
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategySource: BCMstrategy, Inc.
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Official Sector Data Tells Us Policymakers are Just Warming Up
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Crypto & CBDC
2020 Themes & Trajectories
www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
• Fading as a focus of attention• Securities enforcement actions
Cryptocurrency
• Wholesale (inter-corporate, inter-bank) initial priorities
• Transparency priorities• Monetary Policy
CBDC – 2020 is the focus
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Learn More –Monthly and Weekly Analysis Available to subscribers via your Interactive Brokers Workstation
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Additional Resources
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Traders’ Academy Online CoursePresentation
Traders’ Insight BlogContributor
Disruption & Data Blog
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www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
About BCMstrategy, Inc.
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The Value
Increased efficiency Better Strategic DecisionsFaster Information Acquisition
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About BCMstrategy, Inc.
BCMstrategy, Inc. is a start-up company
using patented technology to provide
investors and executives with transparent,
objective data from the public policy
process so they can make better decisions
faster and better than their competitors.
For information about our Pilot Program or
to learn more, please contact us. www.bcmstrategy2.com | bringing the data revolution to policy intelligence | @bcmstrategy
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Gain the ultimate competitive edge
See what matters most
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