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The European Central Bank (ECB) will continue buying bonds despite Standard & Poor’s decision to downgrade Italy’s sovereign debt rating from A+ to A, says Schroders’ Azad Zangana…
Yesterday, Standard & Poor’s (S&P) cut Italy’s sovereign debt rating to A with a negative outlook, from A+. The primary two reasons for the downgrade are: Italy’s weakening growth outlook and; Italy’s weakening ability to carry out its fiscal reforms/consolidation in the face of rising political uncertainty related to the European sovereign debt crisis.
S&P has also downgraded its forecast for Italian GDP growth, and now forecasts 0.4% growth in 2012. This
The GlobeOp Forward Redemption Indicator for September 2011 measured 3.11%, up from 2.71% in August.
“September 2011 was the lowest September since the Index began,” says Hans Hufschmid (pictured), chief executive officer, GlobeOp Financial Services. “In fact, monthly redemptions have been lower year on year for the past 24 months running. Investor sentiment continues to be positive.”
The Indicator represents the sum of forward redemption notices received from investors in hedge funds administered by GlobeOp, divided by the AuA at the beginning of the month for GlobeOp fund administration clients. Forward redemptions as a percentage of GlobeOp assets under administration
Operational risk has come into greater focus in the last four to five years among OTC derivatives market participants, particularly in the wake of the financial crisis, according to a new report, Operational Risk Management in OTC Derivatives in Asia, from Celent.


OTC derivatives market volumes have recovered in the last year or so. The main worry with regard to the high volumes is the fact that a lot of these volumes are expected to shift to central clearing in the next few years. Moves are under way to ensure this in the leading Asian markets including Japan, Hong Kong,
JP Morgan’s Worldwide Securities Services (WSS) business plans to expand its Direct Custody and Clearing (DCC) business in Brazil and Russia, two key markets for JP Morgan’s sub-custody business.
JP Morgan already offers DCC in Russia but plans to increase its footprint in the market. As part of this growth, Katerina Sizova has joined JP Morgan as head of the business in Russia, and will be responsible for building product capabilities, executing on the firm’s growth strategy and enhancing the client experience. Sizova most recently was Global Head of Operations at the Renaissance Group, where she worked for 13
Managed futures gained 0.16% in August according to the Barclay CTA Index compiled by BarclayHedge. Year-to-date, the Index remains down 0.51%.
“Increasing volatility across global markets provided profitable opportunities for most of the major sectors,” says Sol Waksman (pictured), founder and President of BarclayHedge.
Six of Barclay’s eight CTA indices had gains in August. The Barclay Diversified Traders Index was up 1.19%, Discretionary Traders gained 0.96%, Systematic Traders added 0.60%, and the Agricultural Traders Index rose 0.57%.
“Global equity markets declined sharply as fears of Lehman redux took hold,” says Waksman. “The rally in bond prices proved to be
Two Guernsey firms are merging to create the largest independent fund administration business in the island. In the 50:50 deal, described as a merger of equals, Anson Fund Managers Limited and Bordeaux Services (Guernsey) Limited will join forces and trade under the Anson name.
Peter Radford of Bordeaux, who will be Chief Executive Officer of the merged entity, believes that the move will provide critical mass and, importantly, enable the business to remain independent. Anson principal John Le Prevost (pictured above right with Radford) will become a Senior Director and Professor Richard Conder will become the new chairman of Anson
Most hedge fund strategies experienced widespread and significant losses in August, contributing to a 3.42% fall in the Barclay Hedge Fund Index compiled by BarclayHedge. Year-to-date, the Index is down 2.50%.
“In what has been the worst month since Lehman’s failure in September 2008 when hedge funds dropped 6.99 percent, more than 83 percent of the 3,120 funds that have so far provided us with an August return have reported a loss,” says Sol Waksman (pictured), founder and President of BarclayHedge. “The Barclay Hedge Fund Index is now in negative territory for the first time in 2011.”
All but one of Barclay’s
Investment Technology Group, Inc. (NYSE: ITG), a leading agency research broker and financial technology firm, has launched algorithms for Mexican equities, including the proprietary Active algorithm, which has been customized for the structure and spread profile of the Mexican market.
The algorithms are available via ITG’s award-winning Execution Management System, Triton, as well as other widely used trading platforms and via FIX connection.
“Regulatory and technological changes are accelerating the move towards electronic trading in Mexico, and our tailored algorithms provide a valuable new tool for institutional asset managers seeking to access that market,” says Jeff Bacidore, Managing Director and
BNP Paribas Securities Services is extending its collateral management service to include centrally-cleared over-the-counter (OTC) derivatives introduced by new regulation, helping institutional investors reduce the associated costs and complexities.


Institutional investors have historically been used to dealing with “normal” non-centrally cleared OTCs. However, the introduction of the Dodd-Frank Act in the US and European Market Infrastructures Regulation is set to drive a significant amount of OTCs onto electronic platforms and cleared by central counterparties.


Delivered via a real-time view of both centrally and bi-laterally cleared trades, BNP Paribas’ service helps institutional investors manage both collateral and risk measurement across multiple
The Securities and Exchange Commission announced that on 14 September 2011, the Honourable Lawrence E Kahn, United States District Court Judge for the Northern District of New York, entered a default judgment against Defendants Christopher W. Bass, Swiss Capital Harbor-USA, LLC, Swiss Capital Harbor Fund A Partners, L.P., Swiss Capital Harbor Fund B Partners, L.P. and Swiss Capital Harbor Fund C Partners, L.P. (collectively, the "Defendants").
The default judgment permanently enjoins the Defendants from future violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and
