BGC Group to Acquire OTC Global Holdings, Expanding Energy and Commodities Business

BGC Group, Inc., the global brokerage and financial technology company, has agreed to acquire OTC Global Holdings, LP (‘OTC’), the largest independent institutional energy and commodities brokerage firm. The acquisition will bolster BGC’s Energy, Commodities, and Shipping (ECS) division by diversifying and expanding its global footprint. OTC offers brokerage services across key sectors such as crude oil, natural gas, petrochemicals, and biofuels, with operations spanning North America, Europe, and Asia.

Howard Lutnick, Chairman and CEO of BGC Group, commented: “OTC has built a premier global energy, commodities, and shipping business that is supported by world class talent. This acquisition will complement our existing ECS business and will enhance our ability to deliver a comprehensive, best-in-class offering to our global client base. We look forward to welcoming the OTC team onto the BGC platform, combining our innovative solutions to drive greater results for our clients.”

Joe Kelly, CEO of OTC Global Holdings, added: “BGC has an incredible offering with a proven track record of growth and innovation. We have built something very special and unique at OTC.  We look forward to joining BGC’s platform and believe that together we will become a leading global broker for energy, commodities, and shipping products, delivering unparalleled value to our clients worldwide.”

The transaction, structured as a predominantly cash deal, is subject to regulatory approvals and other customary conditions. Jefferies LLC serves as the exclusive financial advisor to OTC Global Holdings.

OptAxe Receives FCA Authorisation to Operate Multilateral Trading Facility for FX Options

OptAxe, the centralised trading platform focused on FX options, has been granted authorisation by the UK’s Financial Conduct Authority (FCA) to operate as a multilateral trading facility (MTF). This approval marks the completion of a two-year process, allowing OptAxe to provide an innovative solution for axe-driven FX options trading. The platform aims to address key challenges in the market, such as lack of transparency, fragmented pricing, and inefficiencies in bilateral trading processes.

By centralising and automating the distribution of FX options axes, OptAxe aims to improve price discovery, execution quality, and overall market efficiency. The platform is fully operational and offers diverse connectivity options, including Web GUI and APIs like FIX and REST, enhancing access to liquidity and streamlining trade execution for market participants.

Chris Jackson, CEO and Co-Founder of OptAxe, commented: “We set out to bring much-needed innovation to the FX options market, improve liquidity discovery and unlock previously untapped trading opportunities. OptAxe is a fully centralised, regulated venue for liquidity discovery, dissemination and execution that empowers trading participants with actionable insights from centralised liquidity information. We automate manual, bilateral processes and consolidate available axe inventory into a single platform, effectively acting as a multi-issuer, not a multi-dealer platform, RFQ-based venue”.

Yorke O’Leary, COO and Co-Founder of OptAxe, added: “Securing FCA approval to operate a regulated MTF for FX options trading is a significant milestone for OptAxe and represents a step-change in how the industry operates. Globally, capital costs are rising and market participants urgently need to access, recycle and clear more FX options risk, whilst still facing inefficient distribution practices, complex price discovery methods and expensive execution outcomes. With OptAxe, all market participants can easily access a centralised source of actionable axe inventory with evidence-based pricing that meets the demands of the trading community today and tomorrow.”

Hashnote’s US Yield Coin (USYC) Now Available on Canton Network, Offering Privacy-Enhanced, Tokenised Yield Solutions

Hashnote, the on-chain digital asset manager backed by DRW and Cumberland, has made its yield-bearing US Yield Coin (USYC) accessible on the Canton Network, a blockchain platform developed by Digital Asset with contributions from over 30 financial industry leaders. The Canton Network’s privacy features allow USYC holders to manage collateral without third-party visibility, enhancing security and discretion.

USYC is a tokenised asset that invests in reverse repo activities on government-backed bonds, providing short-term, risk-free returns. The asset currently has $300 million in assets under management (AUM). Through Canton’s Global Synchroniser, USYC holders benefit from privacy-protected, atomic transactions across applications on the network. Additionally, Hashnote is one of the first apps approved to mint Canton Coin, the network’s native utility token, allowing USYC holders to earn rewards through their interactions on the platform.

Leo Mizuhara, Founder and CEO of Hashnote, commented: “What particularly stands out for us, and for many of our clients, is the privacy of your assets and transactions when using Canton, which can be crucial for trading use cases. The setup allows us to reduce counterparty and settlement risks and optimise capital efficiency without sacrificing privacy. Furthermore, USYC is fully composable on the Canton Network, so participants can create additional utility around USYC by including it in their trading, cash, and risk management workflows.”

Eric Saraniecki, Co-Founder and Head of Network Strategy at Digital Asset, added: “Access to tokenised real-world assets on-chain has been steadily on the rise and we are now seeing demand from institutional investors who want to utilise these assets across daily margin, cash and risk management activities. Privacy is required to make this a reality, unlocking cash equivalents for use as collateral 24/7, in real-time, and connecting Hashnote’s customers to the largest and most diverse network for tokenised real-world financial assets.”

Nasdaq Launches XVA Accelerator for Enhanced Risk Modelling

Nasdaq has unveiled a new machine learning-driven methodology for conducting risk calculations and generating predictive analytics for investment portfolios. The innovative functionality will be integrated into Nasdaq’s Calypso platform, widely used by banks, insurers, and other financial institutions to access capital markets, manage risk, and comply with regulatory reporting requirements.

The new system, XVA Accelerator, is designed to address the increasing complexity of derivative pricing models, particularly the computationally intensive process of calculating Value Adjustments (XVA) in over-the-counter (OTC) derivatives trading. These adjustments, which include Credit Valuation Adjustments (CVA), account for the risk, funding, and capital costs inherent in such transactions. Nasdaq’s solution employs advanced machine learning alongside mathematical modelling to significantly improve the speed and efficiency of these calculations.

At the core of the XVA Accelerator is a technique based on Chebyshev Tensors, developed in collaboration with MoCaX Intelligence. This patented approach allows for the rapid convergence of scenario-based risk assessments, reducing the time and computational power required for the most complex calculations by up to 100-fold. This enhancement is critical as banks face rising regulatory demands, such as those introduced under Basel III Endgame, which require more granular risk assessments and frequent intraday recalculations.

The technology enables financial institutions to run risk models across millions of scenarios with fewer computational resources, reducing both the physical infrastructure and energy requirements typically associated with such processes. This is especially valuable during periods of market volatility, allowing firms to quickly adjust to changing conditions without sacrificing accuracy or transparency.

By streamlining risk calculations and enhancing the ability to model complex derivatives, the XVA Accelerator empowers financial institutions to better manage risk, optimise trading strategies, and reduce operational costs. As part of Nasdaq’s broader Calypso platform, it reflects the company’s commitment to advancing industry-wide modernisation and operational efficiency across global financial markets.

Amberdata Partners with Thalex to Enhance Crypto Derivatives Analytics

Amberdata, the digital asset data and analytics provider, has entered into a partnership with Thalex, the crypto options, perpetuals, and futures exchange. The collaboration integrates Amberdata’s blockchain and crypto asset data with Thalex’s derivatives trading platform. As part of the partnership, Thalex will enhance its user experience by offering real-time analytics, including BTC and ETH volatility curves, term structure, open interest, and more.

The new “Statistics” tab on Thalex will provide users with exclusive access to insights powered by Amberdata, aiming to enrich the trading experience as the DeFi derivatives market continues to grow.

Greg Magadini, Director of Derivatives at Amberdata, commented: “Partnering with Thalex provides us the opportunity to show traders the vast amount of strategies available in the option markets. Having a good platform to execute on combined with solid analytics is all a trader needs to find lucrative trade structures in the nascent crypto volatility market.”

Hendrik Ghys, CEO and Co-Founder of Thales, added: “This is a natural collaboration. Amberdata positions traders to take views on volatility. Thalex enables traders to turn such views into positions. We’re excited about this extension of our partnership which brings market data visualizations powered by Amberdata to our user interface.”

DTCC Unveils Digital Launchpad to Accelerate Adoption of Digital Assets

The Depository Trust & Clearing Corporation (DTCC) has introduced the DTCC Digital Launchpad, a new industry sandbox designed to foster collaboration and accelerate the adoption of digital assets across financial markets. This open ecosystem will bring together market participants, technology providers, and other stakeholders to co-develop and pilot solutions that address key challenges such as data interoperability and liquidity.

With tokenised securities projected to reach $16 trillion by 2030, the DTCC Digital Launchpad aims to resolve industry fragmentation caused by conflicting standards and processes. The platform offers distributed ledger technology (DLT) infrastructure and scalable tools from DTCC’s Digital Assets suite, enabling firms to explore digital asset innovations without building their own systems. The initiative features two tracks: an Industry Launchpad for collective industry efforts and a Client Launchpad offering tailored support for firms to develop bespoke digital asset solutions.

Frank La Salla, DTCC President, CEO and Director, commented: “DTCC Digital Launchpad will unify stakeholders from nearly every corner of the financial markets to solve the challenges facing adoption of digital asset technology. As an industry-owned and governed infrastructure for the world’s largest capital markets, DTCC is uniquely suited to drive industry collaboration under the banner of a larger goal: building a digital asset ecosystem that’s as safe and sound as the one we have for traditional securities today.”

Murex Partners with Kaiko to Enhance MX.3 Platform with Digital Asset Data

Murex, the capital markets technology provider, has formed a strategic partnership with cryptocurrency market data vendor Kaiko. This collaboration integrates Kaiko’s comprehensive digital asset insights into Murex’s MX.3 platform, enhancing its real-time portfolio management capabilities. MX.3 users can now more effectively value digital asset portfolios, assess market risks, and compare proprietary analytics with industry-leading data.

The combined expertise of Murex’s cross-asset platform and Kaiko’s cryptocurrency data aims to help financial institutions better manage risks and optimise strategies in the growing digital asset market. With over 300 clients globally and 60,000 daily users, MX.3 is poised to strengthen its role in both traditional and digital financial operations.

Solene Khy, Head of Product Management, Commodity, Equity, FX and Digital Assets at Murex, commented: “Digital assets are not like traditional assets. They have their own specificities in many respects. For market data sourcing and management, we believe that our partnership with Kaiko, a strategic crypto market data player, will help our clients in the development of their digital assets strategies. This will complement our digital assets offer with the right coverage of assets and curve structures to manage digital assets risk.”

Ambre Soubiran, CEO of Kaiko, added: “We’re thrilled to collaborate with Murex to facilitate real-time portfolio management. This partnership will extend the reach of our cryptocurrency market data and indices, providing substantial value to Murex’s global client base as they look to expand into the digital asset market.”

TS Imagine to Acquire PrimeOne from S&P Global, Enhancing Risk Management and Prime Brokerage Solutions

TS Imagine has entered into a definitive agreement to acquire PrimeOne, a provider of operational risk management solutions, from S&P Global. PrimeOne’s platform offers key services such as stock borrowing, lending, and margin management, which will complement TS Imagine’s existing technology. The acquisition will allow TS Imagine to provide a comprehensive solution combining prime brokerage infrastructure and real-time risk analytics, streamlining workflows and improving operational efficiency for clients.

The integration of PrimeOne’s tools with TS Imagine’s RiskSmart platform aims to enhance real-time risk monitoring by leveraging PrimeOne’s operational and financing data. Additionally, PrimeOne’s expertise in swaps will support the expansion of TS Imagine’s TradeSmart OEMS to cover more asset classes. The deal is expected to close next month, with product enhancements to follow shortly after.

ISDA Ops by Validus: Streamlining ATE and CSA Threshold Complexity

Validus Risk Management recently launched ISDA Ops, an advanced platform that simplifies the complex task of managing ISDA Additional Termination Events (ATEs) and Credit Support Annex (CSA) thresholds. By automating calculations and real-time monitoring, ISDA Ops addresses the intricate challenges financial institutions face with customized terms and vast data volumes, enhancing efficiency and reducing operational risk. 

The management and monitoring of complex ISDA ATEs and CSA thresholds present significant challenges owing to the intricate nature of the agreements and the sheer volume of data that needs to be tracked and analysed in real time. 

• Complexity of Customized Terms: ATEs allow parties to specify a nearly unlimited range of events that can trigger the termination of an ISDA Master Agreement. These can include credit-related defaults, significant declines in a fund’s net asset value (NAV), or incorrect tax representations. The highly customizable nature of these terms results in a complex mix of structured and unstructured data making standardization difficult and requiring bespoke solutions for monitoring each agreement. 

• Volume of Data Across Multiple Counterparties: Financial institutions often manage thousands of trading lines across numerous counterparties, each with their own specific ATEs and CSA Thresholds. Keeping track of these varied terms manually is not only time-consuming but also prone to errors, increasing operational risk. 

• Real-Time Monitoring Requirements: The dynamic nature of ISDA markets necessitates real-time monitoring of ATEs and CSA thresholds. Delays in identifying breaches or potential collateral calls can lead to undetected exposures and financial losses. 

• Complex Calculations for Collateral Management: CSA Thresholds determine the level of unsecured exposure tolerated before collateral is required. Calculating these thresholds accurately involves complex computations that factor in live market data, exposure levels, and specific contractual terms. 

• Regulatory Compliance and Risk Management: Regulatory frameworks demand stringent risk management practices, including the effective monitoring of counterparty risk and collateral adequacy. Failure to comply can result in regulatory penalties and reputational damage. 

ISDA Ops addresses these issues by providing an intelligent and scalable approach to constructing ATE and CSA Threshold conditions. The platform allows users to analyse and test conditions using live and forecasted data, enabling real-time, proactive decision-making. 

“Managing ISDA ATEs and CSA Thresholds has been a complex task for risk management teams,” said Alain Smith, Head of Client Engagement at Validus Risk Management. “ISDA Ops provides a clear, consolidated view of the data, helping users identify potential breaches and model future risks more effectively,” he said. 

Key features of ISDA Ops include: 

• Automated Tracking and Calculation: Automatically calculates and tracks ISDA ATEs and CSA Thresholds across all counterparties, streamlining risk management processes. 

• Real-Time Risk Management: Enables proactive decision-making by identifying potential collateral calls early, improving management of counterparty and liquidity risks. 

• Enhanced Reporting: Offers intelligent reporting tools that simplify tracking and updating ISDA terms, increasing transparency. 

• Scenario Analytics: Allows users to simulate potential future scenarios using live and forecasted data, proactively addressing potential risks. 

ISDA Ops integrates with Validus’s Horizon platform, including RiskView for hedging monitoring and reporting, TradeView for front-office hedging, and PortfolioView for portfolio-level risk management. This integration enables CSA Thresholds to be updated and monitored within RiskView and incorporates PortfolioView data for condition testing. 

Validus plans to deliver further enhancements to ISDA Ops before the end of the year, incorporating generative AI to efficiently parse complex language and improve data retrieval. Earlier in June, the company announced upgrades to TradeView, enabling automation of pre-trade checks. 

Connamara Technologies Powers Zero Hash with EP3® Matching Engine for Digital Asset Platform

Zero Hash, the crypto and stablecoin infrastructure provider, has successfully implemented its digital asset platform using the EP3 matching engine from Connamara Technologies, the exchange infrastructure solutions provider.

By leveraging the capabilities of EP3, a scalable and adaptable platform tailored to the dynamic needs of emerging asset markets, Zero Hash aims to enhance its ability to match orders, manage risk, and explore new market opportunities, bolstering its infrastructure for diverse applications such as cross-border payments, trading, tokenisation, and more.

Jim Downs, Co-Founder and CEO of Connamara Technologies, commented: “Zero Hash has assembled a top-notch business and engineering team, and we are honoured that they selected EP3 and Connamara Technologies as technical partners in creating a world-class crypto infrastructure.”

Adam Leaman, Zero Hash Chief Client Officer and Founding Team member, added: “The team at Connamara provides deep technical expertise and market knowledge that has helped Zero Hash scale critical aspects of our product offering to meet market demand. The digital asset space is constantly evolving and Connamara’s ability to adapt and evolve has played a pivotal role in our success.”