DTCC Outlines Plan For No-touch Post-trade Processing

DTCC has outlined a vision for institutional trade processing that aims to realise the goal of STP by eliminating manual touch points. In a white paper, Re-Imagining Post-Trade: No-Touch Processing Within Reach, the company explains the need for a new approach and plans for achieving no-touch processing, including an effective way to leverage existing infrastructure. “We have a plan to create an open, integrated and resilient post-trade infrastructure that eliminates redundancies and manual processing across an increasing set of asset classes. It is designed so the trade lifecycle can be managed from one platform,” says Matthew Stauffer, managing director at DTCC.

QuantHouse Adds Goldman Sachs SIGMA X MTF Data to API Ecosystem

Goldman Sachs has teamed up with QuantHouse to accelerate market data distribution from its SIGMA X European multilateral trading facility (MTF). The data is accessible via the QuantHouse API Ecosystem and can be used to identify auctions and find potentially untapped, addressable liquidity. SIGMA X MTF offers deep and diverse liquidity on the basis of non-discretionary crossing with flow from external participants and the Goldman Sachs franchise. A recent analysis of SIGMA X MTF auction activity by Goldman Sachs found there is often a surplus of unexecuted liquidity in periodic auctions.

AkinovA Deploys Trading Platform on OpenFin

AkinovA, an electronic marketplace for the transfer and trading of re/insurance risk, has selected OpenFin for the deployment of its trading platform. The integration with OpenFin allows users to access the AkinovA marketplace with an easy-to-use interface that looks and feels like a native app experience while enabling instant deployment and upgrades. AkinovA is the first insurtech company running on OpenFin.

SEC Further Delays Rule 606

On September 4, in response to a new request from the Financial Information Forum and the Security Traders Association, the SEC extended the compliance deadline for Rule 606 amendments. This represents the second extension for the routing practices regulation, which was first proposed in November 2018 with an original deadline of May 2019, and subsequently delayed to October 2019. The latest extension pushes the implementation deadline back to January 1, 2020 for all broker-dealers for Rule 606(a) and for self-routing broker-dealers for Rule 606(b), and to April 1, 2020 for broker-dealers who outsource routing activity.

FRTB Impact a Triple Threat, Finds ISDA

Final market risk capital rules will lead to a higher increase in bank capital requirements than previous estimates given by international regulators earlier this year, an undisclosed industry study has found, as reported by Risk.net – leading to concerns that the capital hike could force firms to scale back trading activities to meet the new rules.

In January 2019, the Basel Committee on Banking Supervision estimated the new regime would result in a 22% weighted average increase in capital. But a recent study by the International Swaps and Derivatives Association (ISDA) found that the impact could in fact be three times higher than expected.

New Money Laundering Division for FinCEN

The US-based Financial Crimes Enforcement Network (FinCEN) has launched its Global Investigations Division (GID), which will be responsible for implementing targeted investigation strategies rooted in FinCEN’s unique authorities under the Bank Secrecy Act (BSA) to combat illicit finance threats and related crimes, both domestically and internationally.

Matthew Stiglitz, a former Principal Deputy Chief in the US Department of Justice’s Criminal Division, will lead GID.

Australian and Singaporean Benchmarks Achieve EU Equivalence

From August 19, 2019 the legal and supervisory frameworks of Australia and of Singapore are held as equivalent to the EU benchmark regime, according to recent decisions published in the Official Journal of the European Union. The decisions are applicable to the administrators of financial benchmarks that are declared significant benchmarks by the Australian Securities and Investments Commission, and that are designated benchmarks based on Singapore’s Securities and Futures (Designated Benchmarks) Order 2018.

STOXX Registers as BMR Administrator

STOXX, the operator of Deutsche Boerse Group, has registered with ESMA as a benchmark administrator under the European Union’s Benchmark Regulation (BMR). The regulation was introduced by the EU following the high profile LIBOR manipulation scandals of 2012, and came into force in January 2018. Benchmark rate users have until January 1, 2020 to use non-authorised EU benchmarks or until December 31, 2021 to use third-party (non-EU) benchmarks.

CISI Selects Bloomberg Buy-side Solutions

China Industrial Securities International Financial Group (CISI), a full-service financial group listed in Hong Kong, has adopted a broad range of Bloomberg’s buy-side solutions including its buy-side order management system, transaction cost analysis, liquidity assessment and Bloomberg Vault. These solutions will enable the group to navigate a fast-evolving global regulatory environment as it positions for international growth. Pan Li, head of asset management at CISI, says: “Bloomberg remains our technology partner of choice. We believe its advanced technology will help us differentiate our offering and attract new clients globally.”

Axioma Enhances Canada Equity Risk Model

Axioma, a provider of enterprise risk management, portfolio management and regulatory reporting solutions, has added a new Canada equity risk model (AXCA4) to its next-generation Equity Factor Risk Model suite. The release builds on existing risk models, offering enhanced country-specific content to meet the risk-management needs of investors. The estimation universe for the Canada model contains over 440 stocks and ETFs, with coverage history from 1995. The enhanced data includes deep daily history and, for the first time, macro factors for residual gold and oil sensitivity.