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In June 2017, the European Energy Exchange (EEX) achieved a total volume of 181.2 TWh on its power derivatives markets (June 2016: 374.7 TWh).
The June volume comprises 106.5 TWh traded at EEX via Trade Registration with subsequent clearing. Clearing and settlement of all exchange transactions was executed by European Commodity Clearing (ECC).
EEX launched new contracts during the month offering its customers further hedging opportunities against the background of the impending split of the German-Austrian price zone. On 26 June, the Phelix AT Future for the Austrian market and further short-term maturities as well as a Non-MTF offering
CTAs suffered from another trend reversal and underperformed last week, according the latest weekly brief from Lyxor’s Cross Asset Research team.
Lyxor writes: “From a top down perspective, we maintain an underweight stance on CTAs. In our view, the trend following environment remains unbalanced and too reliant on equity markets. At the other end of the spectrum, Fixed Income Arbitrage outperformed and Event-Driven was fairly resilient last week. For the full month of June, both strategies outperformed.
“Recently, on several occasions we expressed our strong conviction on Fixed Income Arbitrage. This is a strategy that performs well when bond
Bats Europe has reported June volume and highlights for Bats LIS, its new block trading platform powered by BIDS technology, which saw more than EUR2.0 billion in notional value traded during the month, setting a new monthly record.
Bats, which completed the roll-out of Bats LIS to buy-side firms less than four months ago, also reported that 85+ buy-side firms are now connected and utilising the platform. Additionally, more than a dozen sell-side firms are connected to Bats LIS. Bats expects the number of firms using Bats LIS to continue to grow given the interest in the service.
In
Low volatility net asset value (LVNAV) money market funds (MMFs), a new fund category introduced as part of a new regulatory reform of the sector in Europe, will likely attract a large chunk of the almost EUR600 billion in assets currently held in prime constant net asset value (CNAV) funds, according to a new report from Moody’s.
Under the new regulation, prime CNAV MMFs will be phased out by January 2019.
LVNAV funds closely resemble the current CNAV model in risk and structure, but unlike CNAV funds allow the imposition of liquidity fees and redemption gates on investors under
Deutsche Boerse’s T7 trading technology is now live for Xetra trading on the Frankfurt Stock Exchange, putting both Xetra and Eurex derivatives trading on the same system.
Eurex Exchange, the European Energy Exchange (EEX) and the Bombay Stock Exchange (BSE) already are using T7 trading technology, while Vienna Stock Exchange and the Irish Stock Exchange will soon migrate their systems to T7. The new system reduces latency, meaning the time for order processing, even further.
Harmonising Xetra and Eurex trading technology also produces significant synergies and means lower development and maintenance costs for those participants who are active on
Much like a brooding teenager, cash has become a high maintenance asset class as a result of events over the last few years. Whether it is finding liquidity to put to work for new investment strategies (or, for that matter, support existing ones in terms of collateral management) or looking for ways to invest cash to improve investment yield, traditional approaches to liquidity management have become increasingly problematic.
This ‘liquidity conundrum’ has made it more important than ever that investors have solutions in place to find the right balance of how and where to invest cash. Northern Trust detailed this earlier
EEX Group has successfully reached an agreement with LCH Ltd (LCH) in London to novate, subject to member agreement, open positions in Dry Bulk Freight FFA and option contracts from LCH to its clearing house European Commodity Clearing (ECC) by the end of 2017.
Planning and technical preparation for the open interest transfer will begin immediately, ensuring that position holders electing to transfer to ECC from LCH experience a seamless transfer from one clearing house to another.
The agreement, which is subject to the necessary approvals from the EEX Supervisory Board, signifies a major development for the Dry Bulk
Gondor Capital’s two hedge funds continued to outperform in May firms’ domestic hedge fund Gondor Partners, LP climbing 9.68 per cent through May (+1.26 per cent MTD), beating its benchmarks, with the S&P 500 gaining 8.66 per cent and HFRX expanding 2.85 per cent during the same period.
Gondor’s offshore fund, the Gondor Partners, Ltd, closed the first five months of 2017 up 8.54 per cent (+ 0.73 per cent MTD), while the S&P 500 and the HFRX finished 8.66 per cent and 2.85 per cent respectively during the same period.
Portfolio manager Vincent Au points out that both
More than three quarters (77 per cent) of UK fund managers believe that the UK Government should have consulted the asset management industry more before commencing Brexit negotiations, according to a new report from MJ Hudson.
The report, based on a survey of more than 300 fund managers and investors in the UK, Europe and the rest of the world (ROW), also revealed that 80 per cent of UK fund managers do not believe the UK negotiation team has sufficient understanding of asset management in order to deliver a deal that works well for the UK industry; 63 per cent
The value of non-Treasury debt listed on The Warsaw Stock Exchamnge’s Catalyst debt market reached PLN81.8 billion at the end of Q4 2016, the markets highest ever value, according to a new Grant Thornton report.
In addition, the report reveals that during the whole of 2016, the value of instruments listed on Catalyst did not fall quarter on quarter for the first time in three years.
Grant Thornton’s fifth analysis of Catalyst, which opened in September 2009, suggests that it is more than a trading venue for Treasury debt, and that the growing segment of corporate bonds still represents
