TradingTech Insight Brief
Sigma Broking Expands Partnership with ION to Utilize XTP Execution Suite for LME Trading
ION, the solutions vendor for capital markets, commodities, and treasury management, has extended its partnership with international brokerage firm Sigma Broking. Sigma will now deploy ION’s XTP Execution (XTP-E) suite, enhancing its capability to trade listed derivatives on the London Metal Exchange (LME).
Sigma Broking, offering broking and execution services across various financial markets, provides its institutional customers with access to various exchanges and products, including tailored hedging strategies and execution services. The use of ION’s XTP-E suite is set to bolster Sigma’s front-office execution capabilities, further solidifying its status among the LME’s Category 1 Ring Dealing members, and supporting its strategic objectives in commodities trading and risk management.
Sterling Trading Tech Expands into Asia
Sterling Trading Tech (STT), the independent OMS, risk and trading platform vendor, has unveiled its strategic expansion into Asia for 2024, targeting the key financial hubs of Korea, Hong Kong, and Singapore. This initiative is driven by the demand for more sophisticated OMS and Risk solutions in Asia, and will cater to the needs of local and cross-border clients, particularly those operating in the US.
STT’s multi-asset OMS is designed for firms trading in US equities and options, offering features such as real-time balances, advanced margin methods, customisable risk controls, API connectivity and international order processing beyond US trading hours.
FlexTrade Integrates with Coinbase Prime for Enhanced Digital Asset Trading
FlexTrade Systems, the multi-asset execution and order management systems provider, has announced its integration with Coinbase Prime, a prime broker platform for digital and crypto assets. This collaboration allows FlexTrade’s clients to access a significant liquidity pool for digital assets through its FlexTRADER EMS and FlexONE OEMS.
The integration offers users seamless connectivity, a consolidated view of market depth, and streamlined order placement within the FlexTRADER and FlexONE platforms. The move is part of FlexTrade’s ongoing efforts to expand its digital asset trading capabilities, providing institutional-grade trading, compliance, and analytics across the digital asset and cryptocurrency markets.
Imandra Achieves ISO 27001 Certification, Strengthening Its Position in Financial AI Solutions
Imandra, a startup in the field of automated reasoning for financial and safety-critical software systems, has been awarded the ISO 27001 certification, underscoring the company’s commitment to the highest standards of information security and data privacy. The certification recognises the company’s adherence to the international standards for cybersecurity, through the establishment of a robust Information Security Management System (ISMS).
Imandra’s flagship product, Imandra Markets, now oversees around 25% of all European equities trading. By offering advanced AI-powered services for the design, testing, and auditing of complex financial systems, Imandra enhances business intelligence and system resiliency for exchanges and trading venues.
QuantCube Technology Launches Advanced Agricultural Yield Forecasts for Key Commodities
QuantCube Technology, specialists in alternative macroeconomic data, has introduced a series of four QuantCube Agricultural Yield Forecasts, offering early estimates for corn, soybean, wheat, and rice yields on regional, national, and global scales. Utilising proprietary models together with agricultural expertise, these forecasts provide daily yield predictions four months ahead of the US Department of Agriculture’s (USDA) forecasts, with an average accuracy of 92%,
Quantcube’s approach leverages real-time meteorological data with the company’s own Vegetation Index, which provides an accurate view of the overall wellness of key crop groups throughout their development. Aimed at financial institutions, commodity traders, and governmental bodies, QuantCube’s coverage now extends to over 20 countries.
SIX Partners with Clearstream to Enhance Reference Data Distribution Through Connexor and D7 Integration
SIX, the Swiss financial market infrastructure provider, has entered into a strategic partnership with Clearstream to integrate SIX’s Connexor platform with D7, Deutsche Börse’s digital post-trade platform. The collaboration aims to digitise and standardise the processing and distribution of financial instrument reference data, aligning with the German eWpG regulation and responding to market demands for more standardisation.
The integration of Connexor and D7, provisionally scheduled to be activated in 2H 2024, promises to streamline reference data management, enhance regulatory compliance, and improve data quality through automation. By providing a unified access point through D7, the partnership also aims to simplify reporting obligations for issuers, reducing process costs and enhancing data efficiency.
OSTTRA and Baton Systems Partners to Launches FX PvP Service to Mitigate Bilateral Settlement Risk
Post-trade solutions provider OSTTRA, has unveiled a new FX PvP (Payment versus Payment) settlement orchestration service, aimed at reducing bilateral settlement risk among participants. Delivered on distributed ledger technology (DLT) from Baton Systems, the initiative seeks to enhance intraday funding, liquidity, and credit risk management. The service, which facilitates the settlement of transactions not covered by CLS, including trades such as offshore Chinese renminbi, addresses the Bank for International Settlements’ call for increased PvP adoption in FX transactions to lower settlement risks.
The service forms part of OSTTRA’s wider strategy to reform OTC market structures, potentially evolving to include settle-to-market functionalities that could decrease derivative counterparty exposures and the associated regulatory capital requirements. HSBC and Wells Fargo, early adopters of Baton’s CoreFX offering, are expected to join the service in the first half of 2024.
Aquis Markets Introduces Conditional Order Functionality to Enhance Trading Efficiency
Aquis Markets, the pan-European equities trading arm of Aquis Exchange PLC, has introduced conditional order functionality on its Aquis UK and Aquis EU platforms. This enables members to simultaneously post liquidity across multiple venues without the risk of over-trading. Through this functionality, members can issue an ‘Indication of Interest’ (IOI), which may trigger a ‘firm-up invite’ for potential matches. Acceptance must then occur within a 300 microsecond window, upon which trades will take place on the Aquis Matching Pool (AMP), Aquis’s dark pool.
Members can also set a Minimum Execution Size and specify Large-in-Scale (LIS) executions, ensuring that orders meet specific size criteria. Additionally, Aquis has broadened trading strategies by allowing regular conditional orders to match with AMP liquidity or other conditional orders, and by enabling interaction with clients of OptimX, a block trading consolidator set to launch later this quarter.
Trading Technologies Announces Connectivity to EPEX SPOT for European Power Trading
Trading Technologies International, Inc. (TT), has unveiled its new connection to the European Power Exchange (EPEX SPOT), the largest power exchange in Europe, marking a significant expansion into the European physical power markets via the TT platform. This strategic move, developed in partnership with a major European energy supplier, introduces a continuous intraday power trading capability to TT’s clients, offering a fully co-located service.
EPEX SPOT, headquartered in Paris and operating as an independent subsidiary of the European Energy Exchange (EEX), spans power markets across 13 European countries. The integration with TT allows traders to leverage algorithmic trading tools and comprehensive risk management solutions. The initiative aims to foster competitive pricing and greater choice for European electricity consumers, aligning with the broader objectives of market transparency and efficiency.
Goldman Sachs Surpasses 99% Same-Day Affirmation Rate with DTCC’s CTM’s M2i Workflow
With T+1 settlement now just three months away, Goldman Sachs & Co. LLC has achieved over a 99% same-day affirmation rate and significant improvements in settlement rates for transactions using DTCC’s CTM’s Match to Instruct (M2i) workflow in Q4 2023. This includes a 38% decrease in same-day affirmation exceptions and a 64% reduction in US settlement fails by value among investment manager counterparties.
CTM’s M2i workflow, a central matching service for cross-border and domestic transactions across multiple asset classes, is a key component of DTCC’s Institutional Trade Processing (ITP) suite and facilitates central matching and auto-affirmation for DTC-eligible securities, significantly improving same-day affirmation rates and efficiency in trade processing.