Solutions
The Depository Trust & Clearing Corporation (DTCC) has released details on how its depository subsidiary, The Depository Trust Company (DTC), will introduce Settlement Matching, bringing enhancements to the settlement process and further reducing settlement risk.
In a paper titled “Increasing Certainty and Promoting Intraday Settlement Finality: A Service Description for Settlement Matching,” DTCC outlined the processing changes it will make in 2013 and 2014 to implement Settlement Matching for all clients. These processing changes at DTC will be subject to appropriate regulatory rule filings and approvals.
DTC will leverage existing infrastructure to provide participants with the ability to “authorise or
The number of exchange-traded derivatives (ETD) worldwide decreased in 2012 for the first time since 2004, falling by 15 per cent to 21 billion, according to statistics compiled by the World Federation of Exchanges (WFE).
The WFE, which annually conducts a survey on derivative markets, found that in 2012, 21 billion derivative contracts (11 billion futures and 10 billion options) were traded on exchanges worldwide – a decrease from the 25 billion traded in 2011.
The full WFE report on derivatives markets will be available following the annual IOMA conference held this year in Busan, South Korea, from 5 to
NYSE Euronext has announced global derivatives average daily volume (ADV) of 8.8 million contracts in February 2013, an increase of 24.7 per cent compared to February 2012, but a decrease of 7.6 per cent month-over-month.
This increase was primarily driven by stronger European derivatives volume, specifically fixed income derivatives ADV which increased 71 per cent year-over-year.
European derivatives products ADV in February 2013 totalled 4.4 million contract, an increased of 54.4 per cent compared to February 2012, but a decrease of 10.0 per cent from January 2013 levels. Excluding Bclear, NYSE Liffe’s trade administration and clearing service for OTC products,
Eurex Clearing has expanded its suite of segregation services by offering a UK CASS-compliant Omnibus Clearing Model as an additional alternative.
The new service complements the existing models – the Individual Clearing Model (ICM) and the Elementary Clearing Model (ECM).
It allows UK-domiciled clearing members to use the segregation rules for client assets (CASS) of the Financial Services Authority (FSA) in respect of client margin collateral. Goldman Sachs was the first clearing member deploying the new service model for its clients. Further clearing members are preparing to use the new segregation service.
The new service keeps margin collateral of clients
The Morningstar MSCI Composite Hedge Fund Index, an asset-weighted composite of nearly 1,000 hedge funds in the Morningstar Hedge Fund database, rose 1.9 per cent in January and advanced 6.3 per cent for the trailing 12 months.
Almost all Morningstar MSCI hedge fund indexes rose in January, and the trailing 12 months showed declines in only the short bias and systematic trading categories.
“Reduced global economic and political uncertainty during January fuelled a broad increase in appetite for risky assets,” says Philip Guziec, alternative investing strategist at Morningstar. “Excluding the short biased category, all hedge fund strategies were up for
The Dow Jones Credit Suisse Core Hedge Fund Index closed down 0.28 per cent in February as five of the seven index component strategies reported negative results for the month.
Fixed income arbitrage (-1.12 per cent) and global macro (-0.51 per cent) were the worst performers, while emerging markets (0.36 per cent) and long/short equity (0.37 per cent) were the two component strategies to finish the month in positive territory.
The Dow Jones Credit Suisse Core Hedge Fund Index provides daily published index values which seek to enable investors to track the impact of market events on the hedge fund industry.
The Credit Suisse Liquid Alternative Beta (LAB) Index was down 0.16 per cent in February, according to Dr Jordan Drachman, head of alternative beta strategies at Credit Suisse.
The event driven strategy was the strongest performer for the month, finishing up 0.17 per cent.
The long/short strategy was the worst performer of the six strategies finishing the month down 1.02 per cent.
MarketAxess, the operator of an electronic trading platform for US and European corporate bonds, emerging markets bonds and other types of fixed income securities, has completed its acquisition of Xtrakter a provider of regulatory transaction reporting, financial market data and trade matching services to the European securities markets.
In addition, MarketAxess has appointed Robert Urtheil as head of its European and Asian businesses.
Urtheil joins from Oliver Wyman, a management consulting firm, where he was a partner and global head of the firm’s market infrastructure practice. Previously, he spent 10 years at Deutsche Börse Group, most recently as head of
SEI has been selected by Sciens Alternative Investments, part of the Sciens Capital Management Group, to provide operational outsourcing services for the firm’s managed account platform.
Sciens sought to complement its own front-end technology and its newly released risk analytics and portfolio construction tool, SMART, by leveraging SEI’s data management and flexible reporting technologies.
SEI will provide Sciens with a comprehensive suite of operational outsourcing services in a straight-through-processing environment. Additionally, SEI will provide collateral and margin management to support Sciens’ middle office.
“With the launch of the SMART investor portal and the growth of the Sciens Managed
Interview with Rob Lane – “Our proposition revolves around market data and trading infrastructure. We can supply market data via consolidated or direct feed. How firms actually receive the content depends on the trading infrastructure,” explains Rob Lane (pictured), European Business Manager, Trading Solutions, at Interactive Data.
“We can deliver raw data straight from the exchange, or we can deliver a consolidated data feed. All the information comes down the pipe which is fully integrated to Interactive Data’s 7ticks trading infrastructure; so simply speaking, through this advanced connectivity, a client can pick and chose which content to use and when to
