Funds
Underwhelming performance in 2015 and high investor dissatisfaction have reduced inflows and demand for CTA funds, according to a report release by Preqin.
Having recorded returns of +10.85 per cent in 2014, their strongest performance since returning +15.70 per cent in 2010, CTAs saw further good performance in Q1 2015 as they posted returns of +4.29 per cent. However, negative returns in Q2 (-3.74 per cent) and Q3 (-0.16 per cent) saw volatile swings in CTA performance, and as of the end of October Preqin’s CTA benchmark has recorded YTD losses of -0.39 per cent. In contrast, all other hedge
The London Metal Exchange (LME) is planning to introduce a cap on the rent that can be charged by an LME-approved warehouse for metal held in a delivery queue, and an increased minimum load-out rate for metal stored in LME warehouses.
The LME’s decision comes in response to market-wide discussion and consultations.
Since 1 July 2015, the LME has sought feedback on a proposed increase in the standard load-out rate (LORI) and on suggested queue-based rent capping (QBRC) rules. It has received 20 responses to the consultations overall.
After considering respondents’ views, the LME now intends to impose
Euronext is to launch Spotlight options on ABN AMRO Group as of 26 November on its Amsterdam derivatives market. The options (ABN) follow the company’s successful IPO and listing on Euronext Amsterdam, that took take place on 20 November.
Spotlight options are a special segment on the derivatives markets of Euronext, dedicated to the development of new option classes on newly listed companies and other securities requested by market participants. These options give additional visibility to underlying assets through a unique combination of liquidity provider support and promotion by sponsoring brokers. The options classes initially have short-term maturities of one,
CLS Group (CLS), a provider of risk mitigation and operational services for the forex (FX) market, and Markit, a provider of financial information services, have launched a new FX settlement service for the cross currency swaps market.
Cross currency swap trades expose counterparties to significant settlement risk due to the high value of initial and final principal exchanges. The service provides a streamlined process for the payments related to these trades by incorporating them into CLS’s existing unique payment-versus-payment (PvP) settlement service. CLS receives settlement instructions from cross currency swaps electronically confirmed using MarkitSERV, the OTC derivatives trade processing service
Baird is to acquire Chautauqua Capital Management, a global investment manager based in Boulder, Colorado. The deal will enable Chautauqua Capital to focus on the performance of the firm’s global and international investment strategies while Baird provides the back office services and support for Chautauqua Capital clients.
The transaction is expected to close in early 2016.
Chautauqua Capital’s globally experienced investment team is led by Chief Investment Officer Brian Beitner, CFA. Beitner is a veteran investor who was previously a senior portfolio manager of Trust Company of the West’s Concentrated Core Equities portfolio management team, which he joined in
In this extract from November’s Preqin Hedge Fund Spotlight, Alastair Hannah takes a detailed look at CTA launches, different trading methodologies, strategies and markets traded, as well as providing an outlook for the rest of the year.
CTA launches
Fifty CTAs have launched in the first nine months of 2015 to 30 September (Fig 1). Although the number of funds launched this year is likely to grow as managers bring new funds to market in the final quarter, and also due to more data becoming available, 2015 looks set for the fewest CTA launches since 2006. Similarly, the proportion
ITG has added trading in India and Taiwan equities to the award-winning POSIT Alert crossing network. ITG now offers POSIT Alert in ten Asia Pacific markets, reflecting the ongoing demand for crossing tools in the region and reinforcing ITG’s global commitment to high quality, block size liquidity for institutional investors.
In addition to India and Taiwan, the POSIT Alert block crossing platform is now available for trading Australia, Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines and Singapore as well as 22 EMEA countries, Brazil, Canada, Mexico and the U.S.
Ofir Gefen (pictured), Head of Electronic Brokerage for ITG in
Exchange Data International (EDI), a provider of global security corporate actions, pricing and reference data, has fully implemented ISO 15022 messages for its Worldwide Fixed Income offering.
The EDI service provides a comprehensive overview of the global fixed income market. It covers new corporate, government bond and government agency issues from 150 countries, as well as changes to their terms and conditions.
The newly released ISO feed is available on its own or integrated with EDI’s existing Equity SWIFT ISO 15022 offering. It covers all messages, including cash flows, partial and full redemptions and conversions. It also captures defaults and bankruptcies.
Kevin Brady, EDI’s
The Chicago Board Options Exchange (CBOE) has created five new options-based strategy performance benchmark indexes that focus on options as risk management and yield enhancing investment tools
Index values for the new benchmarks, which are tied to the Russell 2000 Index (RUT), will be available on CBOE's website and from quote vendors beginning Monday, November 23, 2015.
Inspired by CBOE's flagship strategy benchmark series, the new benchmarks use RUT options to create a CBOE Russell 2000 PutWrite Index, a CBOE Russell 2000 Zero-Cost Put Spread Collar Index, a CBOE Russell 2000 30-Delta BuyWrite Index, a CBOE Russell 2000 Conditional
The Depository Trust & Clearing Corporation (DTCC) has launched its Data as a Service (DaaS) offering, the latest solution available through its centralised and dynamic data provisioning service.
The newest offering from DTCC Data Products transforms the way data is accessed and presented from DTCC’s clearing, settlement, asset servicing and derivatives trade reporting solutions, providing firms with new insights on trading activities across multiple asset classes.
DTCC has unparalleled access to financial markets data, enabling its clients to directly source reliable, enriched and unique market and reference data. The DaaS offering provides subscribers access to their own firm-specific transaction
