Solutions
The CFTC has announced that Bloomberg SEF’s available-to-trade determinations (MAT determinations) for certain interest rate swap (IRS) and credit default swap (CDS) contracts are now self-certified.
This self-certification involves only certain IRS and CDS contracts made available to trade via earlier determinations that were self-certified on 16 January, 22 January and 27 January 2014, respectively.
These determinations became effective on 15 February, 21 February and 26 February 2014 meaning that the CDS contracts and IRS contracts in this MAT determination, whether listed or offered by Bloomberg or any other SEF or designated contract market (DCM), are subject to the
The push toward an exchange-traded derivatives (ETDs) market has exposed gaps in the post-trade process used by market participants to clear and settle these transactions.
That is according to a study from Greenwich Associates, sponsored by Omgeo, which says that recognising the need for greater efficiency in post-trade process, derivatives market participants are prepared to make investments to handle increased trade volumes.
In the report, Cleared Derivatives Processing: A Strategic Approach, Greenwich Associates spoke with over 50 buy-side operations professionals and found that trade confirmations in ETDs remain a largely manual process for institutional investors.
Despite the growing
The number of exchange-traded derivatives (ETD) worldwide increased by three per cent in 2013 to 22 billion contracts, according to statistics compiled by the World Federation of Exchanges (WFE).
The WFE, which annually conducts a survey on derivative markets, found that in 2013, 22 billion derivative contracts (12 billion futures and 10 billion options) were traded on exchanges worldwide – a 685 million increase above derivatives contracts traded in 2012.
The drop in equity derivatives (-5.3 per cent) is mainly explained by the size changing of the KRX (Korea Exchange) KOSPI 200 contracts, the weight of which is very
Clearstream, BNP Paribas Securities Services, Intesa Sanpaolo and BBVA are developing an asset servicing model for a market environment with TARGET2-Securities (T2S).
Clearstream will connect via its central securities depository to the T2S platform, hence attracting settlement flows, while the custodian bank partners will handle asset servicing at a domestic market level, bringing the company’s local market expertise to the model.
Target markets via these partners are Belgium, France and the Netherlands (with BNP Paribas Securities Services), Italy (with Intesa Sanpaolo) and Spain (with BBVA).
Development work is in progress with the aim for T2S readiness once Clearstream
LCH.Clearnet has expanded its compression offering to include multilateral compression via SwapClear, its interest rate derivatives clearing service.
Multi compression is in addition to SwapClear’s existing Solo and Duo compression capabilities and enables multiple members to simultaneously compress their trades with each other.
Compression reduces the number of trades and notional outstanding by terminating contracts with offsetting positions. This allows market participants to reduce their counterparty credit exposure and capital costs, as well as increase their operational efficiency through lower administrative and legal expenses.
In 2013, SwapClear compressed over USD83trn through its proprietary and TriOptima’s compression offering.
Half (51 per cent) of institutional investors are now actively seeking out investments through proactively contacting fund managers, with 5,600 investment professionals using Preqin’s platform to source potential investments.
Since the launch of Preqin’s fund marketing platform in November 2013, which provides overview information on all 2,100 funds in market, 200 funds targeting a total of USD50bn have signed up to directly engage approaches from accredited investors on the Investor Network, accounting for almost 10 per cent of funds being raised.
More funds are using the platform to help with fundraising with each passing week.
Traditional methods of
Advent Software’s Geneva portfolio management and fund accounting product was named Best Fund Accounting and Reporting System 2014 by the readers of Hedgeweek.
The fifth edition of the Hedgeweek Awards, presented in London on 3 February 2014, brought together the leading names in the global hedge fund industry to celebrate the achievements of the best performing managers and service providers in 2013.
The awards were determined by the votes of Hedgeweek’s 41,000 subscribers, who include institutional investors, wealth managers, fund managers, and other industry professionals at firms including fund administrators, prime brokers, custodians, law firms, custodians, and advisors.
BNP Paribas Securities Services has launched a reporting tool enabling intraday liquidity monitoring for investment banks, allowing them to optimise the use of their liquidity as well as prepare for continuing regulatory changes across the globe.
The service allows BNP Paribas to deliver customised reports on cash account balances globally, using its existing ‘NeoLink’ web portal for clients.
The first launch of the tool, to which several clients are already subscribed, sees reports on intra-day and end of day balances on multiple accounts delivered at predetermined times of day to specified recipients within the client organisation.
Beatrice
BT is launching BT One Voice Radianz, a service that unifies voice, mobile and data services and delivers them to members of the BT Radianz Cloud, a secure networked community for the financial services industry.
This is the first solution from the wider BT Global Services portfolio that is being made available to Radianz Cloud community members, which include banks, brokers, exchanges and clearing firms.
Companies choosing the unified communication solution will be able to access the service via their existing Radianz Cloud connections, expanding the range of specialist financial markets applications already available to community members.
One
US investors can now trade the Singapore Exchange’s (SGX) latest suite of Asian index futures: SGX MSCI Thailand Index Futures, SGX-PSE MSCI Philippines Index Futures and SGX MSCI India Index Futures.
SGX’s newest three index futures contracts, which are based on the MSCI Thailand Index, the MSCI Philippines Index and the MSCI India Index, have been certified by the US Commodity Futures Trading Commission (CFTC) and can now be directly offered and traded in the US.
The CFTC certification is a timely complement to SGX’s recognition as the first Asian clearing house to be approved as a derivatives clearing
