Is it safe to trust the machines?
Bank algos may superficially appear to be well-tested – but the process may be open to any number of unexpected flaws, according to Steve Wilcockson, industry manager at big data specialist firm MathWorks.
Treasury & Capital Markets/TCM
Breaking dawn: the new reality for the buy-side
Enlightened buy-side firms are facing the challenges of high-touch regulation, fragmented liquidity and ongoing cost pressures head on and developing new business models and approaches at every stage of their workflow.
Volante rolls out T2S Accelerator
Fintech vendor Volante Technologies has launched its T2S Accelerator, which is designed to help financial services firms to prepare for the T2S settlement platform.
Fidessa and Celent call for MiFID II clemency on dark pools
Regulators should consider carefully the implications of their actions, and not be too hasty to censure or restrict trading activity on dark pools, according to a report released by analyst firm Celent this week. The findings have been supported by senior financial services executives at Fidessa, who have called for investor choice to be maintained.
ICE acquires Singapore Mercantile Exchange and clearing house
IntercontinentalExchange is to acquire Singapore Mercantile Exchange, including the venue’s clearing house, in a deal that will give it a foothold in Asia for the first time. SMX offers futures for metals, currencies, energy and agricultural commodities.
EMIR will push collateral calls “1000%” – but don’t cry about it …
Market participants need to be sure they understand how their collateral is being handled. They also need to make sure they are ready for EMIR, according to financial executives at the Mondo Visione Exchange Forum this week.
Exchange tie-ups “not worth the air miles they are written with”
The wisdom of emerging market exchange deals was a subject of controversy at the Mondo Visione exchange forum in London on Wednesday, with some participants lambasting such deals as “not worth the air miles they were written on”. Others had a more positive view.
Focus on raising capital or lose out to private equity, exchanges told
Large exchange groups face a backlash from businesses trying to raise capital if they do not change to address this part of their function, leading to the emergence of private equity markets and more political interference and protectionism.
February start for derivative reporting as EC rejects ESMA request for delay
The European Commission has rejected a request from the European Securities and Markets Authority to delay the reporting of exchange traded derivatives, with the effect that all derivatives trades will have to be reported to registered trade repositories from 12 February next year.
ICAP and Interactive Data target OTC data conundrum
ICAP and Interactive Data Corporation have begun a collaboration aimed at making pre-trade price information more easily available for institutional investors and risk managers.
Commodity trading analytics: exploiting a new set of options
Commodity traders are rapidly adopting new analytics tools to help, testing how a combination of powerful cloud-based processing systems and increasingly sophisticated analytics tools can boost their bottom line.
T2S: time to seize the day
To prepare for the overhaul to settlement in Europe, financial institutions need to face up to T2S and work closely with their settlement service providers to ensure that they maximise the business benefits. It’s time to seize the opportunities presented by the T2S initiative.
Portugal’s CGD Securities embraces cloud connection to Brazil
Portugal’s Caixa Geral de Depositos bank is planning to grow its trading business in Brazil, using a hosted service provided by SunGard.
Moscow Exchange debuts cleared OTC derivatives market
Moscow Exchange has opened its new cleared OTC derivatives market, marking a major step towards Russia’s G20 commitments. But some observers still have doubts about Russia’s reputation as an investment destination.
US banks “not prepared” for Dodd-Frank swap rules
A surprisingly high proportion of US banks are still not prepared to comply with Dodd-Frank’s regulations on swaps, despite the impending arrival of mandatory trading on swap execution facilities, according to Charley Rich, vice president of product management at tech firm Nastel.
Swift completes acceptance testing for T2S
Swift has completed network acceptance testing for its connectivity service for T2S, the EU project to reform Europe’s post-trade infrastructure.
Squawker completes European launch
Sell-side only block trading network Squawker has completed its pan-European rollout, connecting 70 sell-side firms to the new venue, which promises ‘algorithm-free’ trading in 13 European countries.
Nasdaq signs algo testing deal with Thesys
Nasdaq OMX is planning to launch a test facility for algo trading early next year. The Algo Test Facility will be developed jointly with Thesys Technologies, a subsidiary of Tradeworx,
Race for speed intensifies as HFT goes global
Trading firms need to upgrade their technology as often as every three months or face getting left behind by the ferocious pace of competition, according to specialists behind the HFT industry’s breakneck expansion into the world’s emerging markets and untamed asset classes.
Markit masses support for open messaging service
Financial information services company Markit is aiming to create the largest financial markets messaging community and remove barriers to cross-market communication through its open messaging initiative and supporting technology, Markit Collaboration Services.
Trading arms race intensifies with new social media tool
A new tool designed to help banks and their clients gain a decisive trading advantage over their rivals based on Twitter posts has been launched by UK-based fin tech firm Eagle Alpha.
“Problematic” US shutdown causes SEF blues at the EU
The European Commission has expressed concerns that the US government shutdown is preventing a deal between the EU and US regulator, just as new swaps rules come into force for firms based both inside and outside the US.
Competition for Russia heats up as TMX boosts Moscow link
Trading infrastructure provider TMX Atrium has released a set of options for trading Russia through its connection to Frankfurt’s Equinix FR2 IBX data centre and the Moscow Exchange – a move designed to shepherd customers as rival providers stake out their own claims to the Russian market.
CCP proliferation clouds Asian OTC derivatives markets reform
Most emerging Asian countries have developed or are developing their own CCPs and trade repositories in response to global reforms of OTC derivatives markets – but proliferation of CCPs is a concern, according to new research by analyst firm Celent.
Germany’s Eurex to support new SL-x securities lending platform
Eurex clearing, the post-trade arm of Germany’s Eurex derivatives exchange, is to act as the clearing house for new securities borrowing and lending venue SL-x Trading Europe when it launches in Q4 this year.
Corporate actions: standard and deliver
The complexity of corporate actions has stymied automation efforts for more than a decade. But there could be light at the end of the tunnel …
Flurry of initiatives show confidence in ‘on time’ T2s
Momentum is building behind the European Central Bank’s (ECB’s) Target2-Securities (T2S) settlement platform. With the ECB confirming the platform will be delivered on time, further proof of the industry’s confidence in the initiative has come via a series of announcements regarding connectivity to T2S.
Securities settlement: the guessing game
With implementation of Europe’s Target2-Securities beginning in 2015, financial institutions are still defining their strategies and business models. Some questions remain to be answered.
Euroclear and South Africa’s CSD plot fund platform
South African central securities depository Strate and Belgium’s Euroclear are planning a new collaboration to make South Africa’s mutual fund transactions more electronic –including the creation of a centrally hosted mutual fund settlement and custody platform.
Commerzbank and Clearstream to launch OTC derivatives support service
Germany’s Commerzbank and Benelux-based Clearstream are planning to launch a new service designed to help customers in the G20 nations gear up for central clearing of OTC derivatives.
BCS upgrades pre-trade risk checks to meet new algo trading regs
Russian broker BCS Prime Brokerage plans to install a new pre-trade risk system called TripleCheck, which it says will help it to meet tough new regulations on algorithmic and proprietary trading.
Italy’s ICBPI deploys Milan trading tools
Italian banking group Instituto Centrale Banche Popolare Italiane has introduced a new trading and recording system across its Milan operations, which it says will help it to better keep up with changing regulation and offer a better service for its traders.
Borsa Istanbul revitalises Turkish capital markets
Created in April 2013, Turkey’s new Borsa Istanbul exchange is at the heart of an ambitious project to turn Istanbul into a major global trading centre. With the country’s economy ascendant, Turkey has a lot to offer, according to Ali Çöplü, chief information officer of Borsa İstanbul.
Nasdaq OMX connectivity disaster highlights stumbling markets
A three-hour trading crash at Nasdaq OMX caused by a connectivity issue has once again put the spotlight on trading technology and the resilience of financial markets, which have been sorely tested in recent months and years.
Goldman Sachs trading error is “a warning to all”
Financial industry analysts have warned that investors should be careful about how they approach automated trading, following news that a trading error at Goldman Sachs lost the firm $100 million on Tuesday.
From collateral to liquidity management: the importance of a Golden Repository
A fragmented data architecture can threaten a financial institution’s ability to keep track of its assets. All too often, front office systems are separated into individual asset classes and lines of business, making the integration of the transaction flows from these systems very difficult.
Stand by for light speed: high performance computing in financial services
Most debates about High Performance Computing in financial services quickly turn into conversations about high frequency trading, but there are many more reasons for getting the best of out of systems. Electronics and computer technology have always been pushing the boundaries of smaller, faster, cheaper (or at least, ‘more affordable’) and financial services firms have always been quick to take advantage of the latest advances.
Investment banks must provide “immediate” service improvement says TABB
As the world’s banks continue to struggle with severe regulatory change, economic turbulence and technological evolution, a new report by analyst firm Tabb Group says that financial institutions will have to provide immediate, friction-free access to content, community and execution, or face extinction.
Japan gears up for OTC derivatives clearing in 2014
Financial services firms in Japan are taking early steps to prepare for new rules on OTC derivatives, according to a new survey carried out by fintech company Calypso in Tokyo.
New GMEX derivatives exchange plans global conquest
An international derivatives market called Global Markets Exchange Group International has been launched by co-founders Hirander Misra and Vj Angelo, in a bid to target new business opportunities created by changing financial regulation.
