Funds
CME Group is to collaborate with Crypto Facilities Ltd, a digital assets trading platform, to develop the CME CF Bitcoin Reference Rate (BRR), which will provide a final settlement price in US dollars at 4 pm London time on each trading day, and CME CF Bitcoin Real Time Index (RTI), which will allow users real-time access to bitcoin prices.
Both new products are expected to launch in the fourth quarter of 2016.
The BRR will aggregate the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day, transparent reference rate of the US dollar price
The European Securities and Markets Authority (ESMA) has issued two Opinions proposing amendments to its draft Regulatory Technical Standards (RTSs) under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR).
ESMA proposes to revise the RTS on non-equity transparency – which includes requirements in respect of bonds, structured finance products, emission allowances and derivatives – and the RTS on the methodology for the calculation and application of position limits for commodity derivatives. The Opinions were produced in response to proposed amendments by the European Commission to these draft RTSs.
MiFID II will extend transparency requirements to
UnaVista, London Stock Exchange Group’s global regulatory reporting platform, has partnered with regulatory reporting testing and compliance firm, Kaizen Reporting giving UnaVista clients access to Kaizen Reporting’s ReportShield service, which offers quality assurance testing of MiFID transaction reports at a field level,
as well as governance training and consultancy. UnaVista’s market leading Approved Reporting Mechanism (ARM) already provides clients with advanced validation checks to ensure submitted data is valid. Kaizen Reporting’s ReportShield testing service, combined with UnaVista’s Reconciliation service, will allow firms to test the quality of their source data for valid but incorrect information. Firms can then correct the
Up to 50 per cent of remaining investor assets will likely leave US prime money market funds ahead of major regulatory reforms in October, says Moody's Investors Service. However, demand for euro prime funds is expected to be resilient despite record low yields.
Total assets in the ten largest Moody's-rated offshore US Dollar prime funds fell 10 per cent in 1Q 2016 as investors sought out higher yielding opportunities for their cash following year-end.
"We expect US prime fund managers to limit investments in securities with maturities past October as they proceed cautiously in anticipation of the switch to floating
To help alternative investment managers better manage their liquidity and cash flow, Northern Trust Hedge Fund Services has enhanced its suite of treasury services with the addition of a proprietary Cash Projection service.
The service provides a flexible and comprehensive forecast of cash flows, allowing clients to monitor all upcoming cash activity and account balances.
“In today’s financial markets, fund professionals need timely and accurate cash balance information,” says Peter Sanchez, head of Northern Trust Hedge Fund Services. “We’re moving beyond beginning-of-day cash balance reports to offer tools that deliver real-time updates so clients can actively manage their liquidity and
The London Metal Exchange (LME) has launched LMEshield, a new electronic warehouse receipt system for the global commodities market. The first receipt was issued by Henry Bath & Son Ltd on behalf of BNP Paribas Arbitrage SNC.
LMEshield is a custody tool that issues and manages electronic receipts relating to commodities stored off-warrant in a range of global locations. At go-live, LMEshield is available in 19 jurisdictions, including countries new to the LME storage network such as India, South Africa and Chile.
“We recognise that there is a need for a reliable standard for warehousing worldwide,” says Matthew Chamberlain (pictured),
The hedge fund industry saw net outflows of investor capital in Q1 2016, totalling USD14.3 billion, with CTAs and multi-strategy funds the only major strategies to see new inflows, according to figures released by Preqin.
This continues from the USD8.9 billion overall net outflows that funds recorded in Q4 2015, and is in contrast to the USD28.8 billion that the industry gained in investor capital in the same period last year. Overall, the total assets under management held by hedge funds globally fell 0.48 per cent in the quarter, to stand at USD3.13tn at the start of Q2.
CTAs and
PGIM’s UCITS platform has surpassed USUSD1 billion in assets, as of 31 March, 2016, through its first 10 funds with more funds to be launched in the coming year.
The funds are based on existing strategies managed by PGIM’s wholly-owned investment managers, PGIM Fixed Income, Jennison Associates, QMA, and Pramerica Real Estate Investors. The funds are available to institutional investors or to individual investors through intermediaries and institutional fund platforms.
“Growing our UCITS product line is a significant initiative for PGIM across our multi-manager model since adopting our new brand earlier this year,” says David Hunt (pictured), CEO of PGIM.
CME Group has reported record revenue of USD934 million and record operating income of USD574 million for the first quarter of 2016. Net income was USD368 million and diluted earnings per share were USD1.09.
Adjusted for non-recurring items, net income would have been USD390 million and diluted earnings per share would have been USD1.151.
"Our record first-quarter financial performance was driven by our highest quarterly average daily volume to date, including record volumes in energy, overall options and electronic options," says CME Group Executive Chairman and President Terry Duffy (pictured). "We delivered record revenue and operating income, and 17
Tradition Group is planning to launch Elixium, a new EU-regulated Multilateral Trading Facility (MTF) for collateral and secured deposits, in May 2016.
Elixium has been developed to address the growing need for a transparent, open to all, peer-to-peer, regulated marketplace. It seeks to address the growing liquidity concerns that have emerged as a result of changes in regulation and the subsequent composition and availability of balance sheets.
Elixium uses a standardised legal structure, uniform collateral schedules and an underlying credit matrix which allows for rapid counterparty diversification and helps spread counterparty risk to provide a solution that brings all market
