Operations & Technology Industry News

Delegating reporting the way to go – The TRADE poll    < 2014-03-03 >

Nearly70% of respondents to theTRADEnews.com February poll believe buy-side firmsshould outsource derivatives trading obligations under the European marketinfrastructure regulation (EMIR). The pollfound 68% of respondents support delegating reporting, while 32% voted against. Marketparticipants, both buy- and sell-side firms, have been required to reportderivatives trades to one of six trade repositories since 12 February.  Under EMIR, institutional investors alwaysmaintain the responsibility

Institutions reluctant to Twitter trade despite offerings    < 2014-02-28 >

Traditional asset managers have not recalibrated newsanalytics to include data from social media sites like Twitter, although areexpected to in the future, a conference has heard. Speaking at the Alpha Innovation Required (AIR) Summit inFort Lauderdale on Wednesday, Armando Gonzalez of news analytics providerRavenPack, said institutional investors had shown little aptitude toincorporate Twitter data into trading strategies despite a growing number ofproducts offering the function. “We don’t k

Collateral management competition heats up with Clearstream launch    < 2014-03-06 >

Clearstream has launched a bilateralcollateral management service for OTC derivatives as part of its GlobalLiquidity Hub. The Deutche Börse-owned clearer said the servicewill cover the full lifecycle of collateral management activity includingmark-to-market, margining, portfolio reconciliation and settlement follow-up. Clearstream said collateral management willhelp customers overcome collateral fragmentation created as a result of regulatorchanges in both the banking sector and OTC derivativ

Nasdaq OMX becomes first EMIR-compliant clearing house    < 2014-03-19 >

Nasdaq OMX Clearing has become the firstclearing house to receive approval from European regulators under the Europeanmarket infrastructure regulation (EMIR). The news comes after Eurex’s applicationwas turned down by the College of Regulators last week. Approval of Nasdaq OMX’s applicationtriggers a countdown to mandatory clearing of OTC derivatives under EMIR, whichwill see regulatory standards drawn up by the end of this year. The Swedish regulator the SFSA approvedNasdaq OMX Clearing’s a

Oslo Børs goes interoperable with LCH deal    < 2014-03-24 >

LCH.Clearnet has begun clearing listedsecurities on the Oslo Børs and Oslo Axess exchanges in Norway. Clearing will be offered via LCH.Clearnet’sEquityClear service and will cover equities including ETFs on an interoperablebasis with Oslo Børs’ own clearing house, Oslo Clearing. The deal expands the availability ofinteroperable clearing to Norway, the first national exchange in the Nordicregion offering choice of clearing house for market participants. Nasdaq OMX offers clearing throughinter

OTC options clearing not mandated but beneficial    < 2014-04-04 >

The benefits of cross-margining are drivingthe US’ Options Clearing Corporation (OCC) to launch a clearing service for OTCoptions despite it not being mandated. The new service will begin with the clearingof OTC S&P 500 equity index options, and the OCC said it was open to looking atother products as well in the future. It’s set to launch as early as next monthfor dealer-to-dealer trades and August for dealer-to-client trades. Carolyn Mitchell, OCC’s first vice-president of business dev

Eurex Clearing receives regulatory nod    < 2014-04-10 >

Eurex Clearing has received regulatory approval from Europeanregulators under the European market infrastructure regulation (EMIR), afterpreviously been turned down. The Deutsche Börse-owned clearing house today announced its nationalcompetent authority, the Federal Financial Supervisory Authority (BaFin),approved its application as a clearing house. It follows approval from theCollege of Regulators, which includes the European Securities and MarketsAuthority, central banks and supervisory aut

Barclays iPad app makes research available on the go    < 2014-04-23 >

Barclays has launched aniPad app for institutional clients to access its research, data andanalytics.  The app, which is availablefrom the Apple App Store, is integrated with clients’ existing Barclays Liveprofiles. "Clients are lookingfor the content that is most relevant to their investment decisions,"Larry Kantor, head of research, said. "Barclays Live for iPad allowsclients to access the content they want, when they want it, by deliveringmarket intelligence that is tailored to their spec

US veteran to lead Liquidnet technology team    < 2014-04-23 >

Block crossing network operator Liquidnet hasappointed former Wells Fargo and Deutsche Bank executive Bob Garrett as its newhead of technology. Garrett will be based in New York and will jointhe firm’s management team. He will report to Liquidnet chief operating officer,John Kelly. According to a statement, Garrett willcoordinate “with business leaders and product managers in the development ofproducts, solutions and processes”. “We continue to accelerate the growth of ourbusinesses includi

Citi launches block price app on Bloomberg    < 2014-04-17 >

Bloomberg said growing numbers of brokers andtheir clients are seeking out solutions to help trade in size electronically,by bringing traditionally high-touch services into an electronic environment. Citi has launched an app to help investorsget access to block prices on the Bloomberg Professional Service. The app, called Total Touch Price, is anenhancement to Citi’s Total Touch block execution platform and will enableBloomberg users to request bespoke prices for block orders, integrated int

BNP Paribas unveils CCP outsourcing service    < 2014-04-24 >

BNPParibas Securities Services is offering to manage collateral and centralsecurity depository (CSD) connectivity for clearing houses in Europe, ahead of incomingOTC derivatives rules. JulienKasparian, head of UK sales and relationship management, banks and brokerdealers, at BNP Paribas Securities Services, said he has had advanceddiscussions with central counterparties (CCPs) to absorb some of theircollateral management responsibility. Theservice would allow a CCP to have an account with a

Nasdaq OMX lowers clearing fees    < 2014-05-01 >

NasdaqOMX Clearing is introducing lower clearing fees for Swedish krona fixed incomeproducts and extending its collateral list to include additional assets. Theclearing house was the first to be approved by European regulators under theEuropean market infrastructure regulation, triggering the countdown tomandated clearing expected as early as December this year. NasdaqOMX is introducing two new fee and rebate models for clients of SEK fixedincome products from 1 January 2015. "To qualify f

VOLEX launches high-speed assault on US options market    < 2014-04-28 >

VOLEX Execution Services has unveiled a high-speed routingalgorithm as part of the expansion of its offering to US options traders. A unit of Volant Trading, VOLEX Execution Services said its VOLEXTake Out tool aggressively sweeps displayed and hidden liquidity, withsub-millisecond order processing times. Volant had previously worked with a few select bulge-bracketfirms but will now expand its execution services business to reach a wider range ofoptions market participants. VOLEX Take Out is

Brokers demand increased CCP standardisation    < 2014-05-02 >

Clearing members are calling for more standardisation of individual segregation models being offered by central counterparties (CCPs), as part of new European derivatives rules.  CCPs have had to re-apply for authorisation under the European market infrastructure regulation.  Four CCPs – Nasdaq OMX Clearing, EuroCCP, KDPW_CCP and Eurex Clearing – have been approved so far, triggering the countdown to mandated clearing, expected as early as December this year. Under the new rules, CCPs are re

Technology trials    < 2013-02-15 >

Are exchanges able tocope with new technology? Competition amongst exchanges has always had a technologicalelement, but in the age of high-frequency trading (HFT) the role of technologyhas come to the fore. This has forced exchanges to compete for low-latencybusiness through technological upgrades to shave fractions of a second frommore message traffic on their systems. HFT is a natural consequence of theelectronification of trading, which has given rise to complex algorithmictrading strateg

Euroclear deal sees T+2 hit UK and Ireland next October    < 2013-12-03 >

The UK and Ireland are to cut theirstandard settlement cycle to T+2 in October next year as part of a deal betweenEuroclear and exchanges operating in the two countries. Rules in the EU central securitiesdepositories regulation will mandate the introduction of a standard two-daysettlement cycle, T+2, across Europe in 2015, with 1 January that year seen asthe likely deadline for implementation. The early move in the UK and Ireland is theresult of cooperation between the London Stock Exchange,

Quarter of buy-siders using outdated tech - report    < 2013-02-12 >

One in four investment management firms arerunning their business on outdated technology systems, according to researchfrom SimCorp StrategyLab. In a report on legacy systems, SimCorpStrategyLab also found buy-side firms were spending large amounts of money onmaintaining existing systems instead of seeking more cost-effectivealternatives. The survey of 500 buy-side firms found thatslightly more than 25% of respondents are running core business processes onoutdated legacy systems. With budget

Charles River teams up with TCA specialist    < 2013-02-10 >

Investment management solutions providerCharles River has formed a strategic partnership to provide transaction costanalysis (TCA) in its main software suite. The deal with SJ Levinson & Sons’ TCAservices through the Charles River Investment Management Solution (IMS) isintended to help buy-side firms lower trading costs by measuring investmentstrategies and broker performance effectively in a single system. Charles River said the service would buildon its existing TCA capabilities by embe

FIX tackles TCA standardisation and HFT    < 2014-02-12 >

Message standards body FIX Trading Community isworking to standardise transaction cost analysis (TCA), while optimising itsmessaging for high-frequency trading (HFT). FIX’s TCA Working Group has released guidelinesfor TCA in equities to help market participants to determine the cost oftrading at any or all points in the investment cycle. Buy-side firms have long sought clarity on TCA,as the absence of standards is believed to undermine firms’ ability to assessexecution performance objectivel

Regulatory change limiting operations - report    < 2014-02-10 >

The high volume of regulatory change affecting the financialservices industry has limited the capacity for firms to do business, a reportcommissioned by technology solutions provider SunGard has found. Over half of more than 400 executives from around the worldsurveyed said post-crisis regulatory change – including new rules within theDodd-Frank Act, Basel III and the European market infrastructure regulation,for example – has impinged the ability to do business. The report also found half of

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