Solutions
SEI has expanded its capabilities related to the processing and accounting of side pocket investments for fund managers.
SEI spearheaded the design and development of expanded functionality intended to provide managers with greater processing control, efficiencies, and risk reduction capabilities related to these pools of separate illiquid assets.
Over the past several years, side pocket investments have become more prevalent in hedge funds amid liquidity issues in the market, and as a result, the processing of these assets has come under greater scrutiny.
Side pocket investment processing is typically performed manually because methodologies are unique across managers and complex in
NYSE Arca Europe, NYSE Euronext’s pan-European multilateral trading facility, says its market share has reached a significant milestone, with an average of 1.10 per cent and 1.02 per cent traded in transaction value on the FTSE 100 and FTSE 250 stocks respectively in the last week.
Virginie Saade (pictured), head of NYSE Arca Europe, says: “The diversity of our market participants combined with the consistently ultra low latency of our Universal Trading Platform have allowed our volume and market share to reach new record levels.”
NYSE Arca Europe provides trading access across Europe. Launched in March 2009, the platform
In March 2010 the international derivatives exchanges of Eurex Group recorded an average daily volume of ten million contracts, a decline of 17 percent from March 2009.
Of those, 7.1 million were Eurex contracts and 2.96 million contracts were traded at the US-based International Securities Exchange.
In total, 163.7 million contracts were traded at Eurex (March 2009: 172.3) and 68.1 million at the ISE (March 2009: 96.7).
The equity index derivatives product segment recorded 69.5 million contracts (38.5 million index futures and 31 million index options), down from 92.5 million contracts the year before.
Futures on the Euro Stoxx 50
Citi has launched an algorithmic trading platform for its institutional equity trading clients.
The platform offers execution logic and extensive customisation capabilities.
Citi algorithmic trading strategies incorporate smart routing technology along with the diverse liquidity and anti-gaming benefits of the Citi Match Crossing Network.
“Citi is proud to bring the next generation of algorithmic trading to our institutional clients,” says Young Kang, global head of algorithmic products at Citi. “Citi Algorithmic Trading capitalises on Citi’s extensive global trading expertise, our world class technology, and unparalleled market liquidity. It is designed to bring together our global capabilities with the firm’s substantial
BNY Mellon Asset Servicing and Investor Analytics have been selected by Reich & Tang Asset Management to provide money market stress tests that will model the impact of interest rate shocks, credit risk shocks and liquidity risk shocks on its funds.
The new service, available through BNY Mellon’s alliance with Investor Analytics, will help money market funds comply with Rule 2a-7 issued by the US Securities and Exchange Commission.
The rule, which becomes effective on 5 May, requires money market funds to examine combinations of potential stresses.
"Our selection of BNY Mellon Asset Servicing was based on its ability to
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
