Solutions
Short selling of global equities has fallen 38 per cent over the last year while investors have recently moved heavily into bank stocks, according to a new fund flow analytics tool launched by Data Explorers, a provider of short selling and securities lending data.
Data Explorers’ Portfolio Analytics dashboard is a tool for fund managers to navigate long and short fund flow in the otherwise opaque securities lending market.
“With so few shorts to cover, markets could drop if worldwide economic conditions deteriorate,” says Will Duff Gordon, senior analyst at Data Explorers. “Short selling can act as a brake on
Derivix, a financial services software company, has secured investment from J.P. Morgan and S.A.C. Venture Investments, an affiliate of S.A.C. Capital Advisors.
Derivix’s analytics functionality, broker-neutral execution and portfolio risk platform provides clients with solutions to meet the increasingly competitive challenges of derivatives trading.
The investments follow a year of continued growth by Derivix. In 2009, the company increased its client base, continued its product development and further expanded its partner programme.
The new investments will enable Derivix to enhance its product by powering continued product innovation, expanding its sales and customer support infrastructure, and fuelling its entry into new
LCH.Clearnet has cleared the first credit default swap index contracts.
Both regulators and market participants have been keen to see clearing for CDS introduced to bring security and transparency to the OTC derivatives markets.
The service, launched in response to this demand, has seen support from clearing members.
The introduction of clearing brings greater protection to the CDS market, enabling market participants to benefit from reduced counterparty risk, straight through processing, post-trade anonymity, and a track record in risk and default management.
Initially, the service covers European indices, with the intention to expand the offering based upon market demand.
Christophe
NYSE Liffe, the Europe-based derivatives business of NYSE Euronext, says its multi-serial options on Euribor have traded over two million lots in two months.
NYSE Liffe launched multi-serial options on Euribor on 19 January to offer further hedging opportunities to customers.
Multi-serial options are long dated non-quarterly delivery months, delivering into quarterly futures.
Since launch, the new Euribor multi-serial options have traded 2.2 million contracts.
The Euribor options market has an average daily turnover of 716,000 contracts in 2010 – a 51 per cent increase on a record 2009 – and open interest currently stands at over 14
RiskMetrics Group, a provider of risk management and corporate governance services, is to partner with Syncova, a margin management services provider, to deliver a solution for risk based margin management via the Optima platform for hedge funds and prime brokers.
Kaylash Patel, head of institutional business EMEA, RiskMetrics Group, says: “Leveraging RiskMetrics Web Services, Optima platform users will receive seamless delivery of integrated, intraday risk and margin analysis, which will enable them to generate interactive and customisable real-time reports across multiple asset classes.”
Liam Huxley, chief executive of Syncova, adds: “Prime brokers and hedge funds will both benefit from the
NYSE Liffe’s FTSE 100 Dividend Index futures contract has traded its millionth contract.
The contract, which was launched in May last year, is available both through Liffe Connect and Bclear, the exchange’s trade administration and clearing service.
NYSE Liffe launched a similar contract based on the CAC 40 dividend index late last year.
Both indices represent the cumulative value of ordinary cash dividends declared by the individual constituents each index over a one-year period, calculated in terms of index points.
Jonathan Seymour, director of equity derivatives and OTC services at NYSE Liffe, says: “Predicting companies’ dividends became harder from the
Rapid Addition, a software solution provider to the electronic financial markets, has launched a free-to-use portal for the electronic dealing community.
ElectronicDealing.com is a secure portal that ensures consistency of FIXatdl files, saving the industry money, and simplifies the publication, distribution, and downloading of tools and artifacts for the electronic dealing community.
FIXatdl (financial information exhange algorithmic trading definition language) allows firms receiving orders to specify exactly how their electronic orders should be expressed.
Orders built using FIXatdl can then be transmitted from traders’ systems via FIX Protocol, which is a series of messaging specifications for the electronic communication of
Toby Nangle, Director, Multi-Asset and Fixed Income Team at Baring Asset Management, unravels the funding implications of the UK’s latest Budget.
The UK government funding requirement for 2009/10 was forecast in today’s Budget to be GBP167 billion, a substantial rise from GBP25 billion in 2009/10.
Historically, the Treasury has been reluctant to make use of Inflation-Linked (IL) Gilts, preferring to issue the great majority of its debt in fixed-rate instruments. Should this change?
The argument for moving the greater part of the present funding to Inflation-Linked appears compelling. Since the introduction of FRS17 linked pension fund liabilities directly to
Eurex Clearing has launched a real-time risk data distribution service called Enhanced Risk Solution.
It is the first central counterparty worldwide to offer risk management and margining data in real-time to its trading and clearing members.
The Enhanced Risk Solution is available across all asset classes and products – including derivatives, cash equities, bonds and repo transactions – for all connected exchanges and trading venues where Eurex Clearing offers clearing services.
The new service is free of charge and will allow all members to optimise their intra-day risk monitoring, risk controlling and treasury management towards Eurex Clearing.
“Our Enhanced Risk
Broadcort, a clearing division of Bank of America Merrill Lynch, has expanded its clearing and execution business for institutional broker-dealers by attracting more than a dozen new clients in the second half of 2009, and six additional new clients already in 2010.
"With our open architecture, robust third-party connectivity, high capacity and outstanding service culture, we believe we are setting a new standard in the institutional clearing space," says Michael Bird, head of Broadcort. "We would like to thank all of our clients who entrust their business to us every day."
Broadcort operates with Bank of America Merrill Lynch’s execution
