RMA Issues SFTR Reporting Contract Template

Following the January release of the final SFTR report by ESMA, the US-based Risk Management Association has issued a new standard legal agreement to address mandatory reporting obligations for SFTR, ahead of its initial go-live date of April 11. The template follows in the footsteps of the Master Regulatory Reporting Framework launched by the International Securities Lending Association (ISLA) and a number of other industry associations back in December, which is applicable to both EMIR and the first phase of SFTR. According to ISLA, the agreement has been designed to remain effective even after the UK leaves the EU.

BIS Releases The Green Swan, a Book Dedicated to the Dangers of Climate Change

A ‘must read’ in times of devastation caused by climate change, the Bank for International Settlements has released a book titled ‘The Green Swan – Climate change and financial system stability: what role for central banks, regulators and supervisors?’. The book considers challenges of climate change and how to address these new risks within central banks’ financial stability mandate. Importantly, it notes that traditional backward-looking risk assessments and existing climate-economic models cannot anticipate accurately enough the form that climate-related risks will take. These include ‘green swan’ risks: potentially extremely financially disruptive events that could be behind the next systemic financial crisis.

US Restricts Pre-Release of Economic Data to Thwart ‘Unfair’ Early Algo Access

The US Bureau of Labor Statistics has restricted the pre-release of Labor Dept. economic data announcements to prevent pre-loading of potentially market-moving data into accredited news organizations’ clients’ trading algorithms, giving them an unfair advantage. According to the Office of the Inspector General, these news organizations were “are able to profit from their presence in the lock-up by selling, to traders, high speed data feeds of economic data formatted for computerized algorithmic trading. Because these news organizations have pre-release access, they are able to pre-load the data … allowing their clients to get this information faster than the general public.”

Horizon Enhances Equity Derivatives EOMS

Horizon Software has released a new version of its sell-side equity derivatives EOMS product, adding improvements to the automation of client order / execution workflow including a more efficient workflow to create and trade derivatives strategies and improve performance. The solution supports a trading scope of over 10 million instruments.

Exablaze Adds Super-Fast Network Devices

Exablaze, a provider of ultra-low latency network devices, has released two new network adapters: ExaNIC X25 and ExaNIC X100. Exablaze says that in both live trading and benchmark tests the network adapters proved to be the fastest available, and have set a new record for low-latency performance. The exceptional speed of the Network Interface Cards (NICs) is due to the unique hardware, software and firmware architecture developed by Exablaze. The ExaNIC X25 is available now, while the ExaNIC X100 is expected to ship late in Q1.

DASH Delivers Alternative Trading System for US Listed Options Market

DASH Financial Technologies, a capital markets technology and execution provider, has released an enhanced liquidity solution within its agency listed-options routing suite, SENSOR. The solution, DASH ATS, is an alternative trading system designed to solve the liquidity sourcing challenges inherent in the US listed options market. Through DASH ATS’s automated Request for Quote process, a diverse network of market makers and liquidity providers can respond to client orders with their quotes. By combining the DASH ATS with SENSOR smart routing, clients can benefit from this liquidity within their routing workflow.

FCA Renews Data Strategy

The Financial Conduct Authority (FCA) has renewed its data strategy published in 2013, taking into account the evolution of technology and aiming to transform how it works. The new strategy will be delivered over five years and is designed to make the FCA smarter in the way it uses data and advanced analytics so that it can transform how it regulates and reduce the burden on firms. The initial focus includes increasing data science resources, developing data and analytics skills, and deploying new tools. The FCA has also started work on a new data collection platform that will replace Gabriel.

TP ICAP Plans to Buy Louis Capital Markets and MidCap Partner

TP ICAP intends to buy European brokerage group Louis Capital Markets and MidCap Partners for $21 million in cash. It will also pay deferred sums based on non-contingent and contingent considerations. The interdealer broker expects to complete the deal in the first quarter of 2020, strengthening its equity, equity derivatives and fixed income product line-up and its position in Continental Europe. Louis Capital operates in London and Paris, with other offices in New York, Hong Kong and Tel Aviv.

TAIFEX Plans Real-time Market Data Feed

The Taiwan Futures Exchange (TAIFEX) is planning to provide a real-time market data feed from March 23, 2020. The feed will be introduced at the same time as continuous trading on Taiwan’s stock market, which currently uses the call auction trading method during trading hours. TAIFEX’s existing data feed disseminates a snapshot of prices and volumes of the best five bids eight times a second. From March 2020, market participants and data vendors can choose to connect to the new real-time or existing data feed.

ESMA Announces MiFID Scheduled Publication Dates for 2020

The European Securities and Markets Authority (ESMA) has published its 2020 calendar of MiFID II/MiFIR relevant publications for the transparency regime and systematic internalisers’ tests, to assist market participants planning for the next 12 months. The calendar covers non-daily publications (excluding daily reference data and transparency calculations for recently-listed instruments). Double volume cap data will also be released on the fifth working day of each month.

From April onwards, ESMA for the first time plans to publish transparency and systemic internalisers calculations for derivatives. These were not included in 2019 due to data quality issues.