TradingTech Insight Brief
R3 and Quant Selected to Develop Prototype for UK’s Regulated Liability Network
R3 and Quant have been chosen to create the technology prototype for the UK’s Regulated Liability Network (RLN) experimentation phase, an initiative led by UK Finance and supported by EY. This project aims to establish a unified platform facilitating various financial transactions using tokenised and traditional commercial bank deposits. The RLN will serve as a central innovation hub for digital transactions, with confirmed participants including Barclays, HSBC, Citi and Visa, among others. R3 will leverage its Corda platform for shared ledger capabilities, while Quant will enhance money interoperability through its Overledger platform.
The collaboration underscores the strategic aims of R3 and Quant in addressing the complexities of regulated financial environments through advanced ledger and API technologies. The prototype will explore multiple use cases across retail and wholesale payments, including ecommerce and bond issuance, supported by technology partners such as DXC Technology and Coadjute.
Central Asian Stock Exchange Implements QUIK Software from ARQA Technologies
The Central Asian Stock Exchange (CASE) in collaboration with ARQA Technologies, has successfully implemented QUIK software, significantly upgrading its trading platform in Tajikistan. ARQA Technologies was chosen through a competitive tender to replace the existing platform. The new system now serves as the matching backbone for CASE, handling client instructions, market data distribution, and pre-trade risk management.
The QUIK software, implemented within three months, is also used for primary public debt placements in Tajikistan, with plans to expand into secondary bond markets and other securities sectors in the future.
DSB Announces 2024 Consultation Schedule for OTC Derivatives Reference Data Services
The Derivatives Service Bureau (DSB) has outlined its 2024 consultation plan focusing on the OTC International Securities Identification Number (ISIN), Unique Product Identifier (UPI), and Classification Financial Instrument (CFI) services. The consultation paper will be released on 30 April 2024, allowing for feedback until 31 May 2024, and concluding with a Final Report on 16 July 2024.
For the first time, the consultation will include the new UPI services. Key topics will include user type functionality, the Traded on a Trading Venue (ToTV) Service; and fair cost apportionment across service provisions. The consultation, in conjunction with the ongoing complementary work of the DSB industry representation groups, aims to align DSB services with evolving market practices, technological advancements, and regulatory demands.
Cboe Clear Europe Announces Major Support for Launch of Securities Financing Transactions Clearing Service
Cboe Clear Europe, the Amsterdam-based pan-European clearing house, has announced that Bank of America and State Street are among the latest to support its forthcoming Central Counterparty (CCP) clearing service for securities financing transactions (SFTs), with the service expected to launch in Q3 2024, pending regulatory approval. This new commitment expands the initial group to nine participants, including prominent banks, clearing firms, asset managers, and custodians, aiming to enhance the efficiency and risk management of SFTs in European cash equities and ETFs.
The service, which addresses the regulatory and operational challenges posed by Basel III and IV frameworks, aims to mitigate capital demands and credit risks by providing a streamlined clearing and settlement process. It is designed to reduce risk-weighted assets for clients, improve settlement efficiency, and support the growth and operational practices within the European SFT market.
Bloomberg Secures Contracts to Provide Electronic Trading Platforms to ECB and Other Eurosystem Central Banks
Bloomberg has been awarded three significant framework agreements with the European Central Bank (ECB) and other National Central Banks within the Eurosystem for the supply of Electronic Trading Platforms (ETPs) for trading in government bonds denominated in Euro, USD and JPY, alongside USD and JPY Interest Rate Swaps, and futures contracts.
Bloomberg’s Netherlands-based Multilateral Trading Facility (MTF), BTFE, will host any trades, with futures trading supported by Bloomberg’s Tradebook ISV and its EMSX execution management system.
Euronext Completes Migration of Italian Derivatives Trading to Optiq, Finalising Borsa Italiana Integration
Euronext has announced the successful migration of Italian derivatives trading to its advanced trading platform, Optiq, marking the completion of Borsa Italiana’s markets integration into Euronext’s infrastructure. This milestone, achieved less than three years following the acquisition of the Borsa Italiana Group, is a critical component of the “Growth for Impact 2024” strategic plan, aiming to consolidate a unified liquidity pool and technology platform across Euronext markets.
The transition not only promises enhanced market efficiency and accessibility for investors and issuers but also aligns with Euronext’s objective to become Europe’s premier listing and trading venue. Looking ahead, Euronext is poised to fulfil the final goal of its strategic plan by extending Euronext Clearing to its listed financial and commodities derivatives by Q3 2024, anticipating significant synergies by the year’s end.
LIST Completes Final Phase of Borsa Italiana Migration to Euronext’s Optiq Technology
LIST, an ION company, has successfully concluded the third and final phase of transitioning its Borsa Italiana clients to Euronext’s Optiq trading platform, marking a significant milestone following the acquisition of the Borsa Italiana Cash and Derivatives markets by Euronext in April 2021. This latest phase focused on derivatives clients, completing the migration that began with the equity segment in March 2023 and the bond segment in October 2023.
To ensure a smooth transition to the new trading technology, LIST has upgraded its FastTrade trading solution, enabling seamless access to the Euronext pan-European ecosystem. This final stage also included the introduction of new software versions and improvements to data centre and telecoms infrastructure.
Euroclear Invests in Blockchain-Based Funds Marketplace IZNES
Euroclear has made a strategic investment in IZNES, a blockchain-based pan-European funds marketplace, aiming to enhance its Euroclear FundsPlace suite. The collaboration, pending customary closing conditions and regulatory approvals, will leverage IZNES’s technology and various distribution channels to address the landscape of European funds subscriptions and redemptions.
Founded in 2017, IZNES operates a platform designed to streamline the funds subscription process, offering increased transparency and an enhanced customer experience for management companies and institutional investors. The investment follows Euroclear’s previous acquisitions of MFEX in 2021 and Goji in 2023, underscoring its commitment to revolutionizing funds distribution through innovative solutions in France and across Europe.
Kasikorn Securities Selects ICE’s Portfolio Analytics for Enhanced Derivatives Management
Intercontinental Exchange, Inc. (ICE) has announced that Kasikorn Securities, under the Kasikorn Bank Group of Thailand, has selected ICE’s Portfolio Analytics-Derivatives for its derivatives management needs. The deal will provide Kasikorn Securities with ICE’s derivatives solution for pre-trade pricing, analytics, and post-trade risk management, which will be integrated into their Kasikorn’s OMS.
By leveraging ICE’s analytics application, Kasikorn Securities aims to enhance its capabilities in price discovery, decision support, and risk assessment across various asset classes and instruments.
Zayo Launches Waves on Demand Service Across Europe
Zayo Group, the global provider of fibre network infrastructure, has launched a new Waves on Demand service, providing bandwidth accessibility throughout Europe via its 400G-enabled lit-fibre network. The new service guarantees service activation within just five working days, a significant improvement over the standard 30+ day industry timeframe.
Utilising Ciena’s WaveLogic 5 technology, Waves on Demand allows for rapid scaling of bandwidth with capacities up to 800G on dedicated circuits. Initially available in major European connectivity hubs, including Frankfurt, London, Amsterdam, and Paris, Zayo plans to extend the service to Dublin, Manchester, and Milan by year-end.