TradingTech Insight Brief
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.
Adaptive Announces Performance Breakthroughs with Aeron Technology on Google Cloud
Adaptive Financial Consulting (Adaptive) has announced significant performance improvements for its Aeron technology, a cloud-native, open-source, low-latency message transport and cluster technology, following extensive testing on Google Cloud infrastructure. The collaboration between Adaptive and Google Cloud showcased Aeron’s ability to deliver microsecond latency and millisecond recovery, enabling low-latency, resilient trading systems without relying on traditional on-premises infrastructure.
Aeron comprises Aeron Transport, which facilitates messaging, and Aeron Cluster, designed for zero downtime, 24/7 trading systems. Aeron Premium adds an extra suite of components that further enhance performance, security, fault tolerance, and recovery. Aeron Premium employs components for kernel bypass, significantly reducing packet processing overhead and thereby enhancing network transport speeds.
Imandra Brings AI-Powered Automated Reasoning and Digital Twin Technology to European Exchange Landscape
Imandra, an innovative AI startup, has made significant gains in the European exchange market with its flagship product, Imandra Markets, which now oversees technology responsible for about 25% of all European equities trading. Imandra Markets offers a comprehensive suite of AI-powered services aimed at enhancing the design, testing, calibration, and auditing of complex financial systems. This enables exchanges and trading venues to significantly improve their business intelligence and system resilience.
Imandra’s digital twins simulate real-world applications in a secure, virtual environment, employing AI-powered logical reasoning to verify system behaviour. This enables users to identify defects and inefficiencies early, before systems process any data or trades. This approach is significantly more efficient and cost-effective for eliminating problems than addressing them in later stages, according to the company.
Tokenbridge Introduces New Features to Enhance Tokenised Model Portfolios in Wealth Management
Tokenbridge, the token aggregator and distribution platform, has unveiled a set of new features aimed at revolutionising the wealth and fund management industry through the support of tokenised model portfolios. The new functionalities facilitate seamless integration and automation between tokenised and traditional finance (TradFi) assets, streamlining the construction, distribution, and evaluation of model portfolios.
The new features are designed to reduce the complexity, volume, and cost of managing portfolios, enhancing connectivity between model portfolio providers, distributors, and clients through smart contracts. For investors, the features offer flexibility and personalisation in portfolio management, aligning investment preferences across both tokenised and un-tokenised ecosystems.
S&P Global Introduces AI-Enabled Search on Marketplace Platform
S&P Global has launched a new AI-enabled search feature on its Marketplace platform, designed to transform how users discover the company’s data and solutions offerings across its five divisions and from curated third-party providers.
The Generative AI search, developed in collaboration between S&P’s Market Intelligence and Kensho divisions, offers a more intuitive and efficient search experience by using a large language model to understand natural language queries and recommend relevant data sets and services.
SimCorp Partners with Venn by Two Sigma to Enhance Multi-Asset Portfolio Management
SimCorp, the investment management solutions provider, has announced a strategic partnership with Venn by Two Sigma, aimed at revolutionising the management of multi-asset portfolios. The collaboration integrates SimCorp’s Axioma’s equity factor models with Venn’s advanced factor analytics, addressing the increasing complexity in portfolio management as investors shift from traditional asset allocations to more diverse investments, including private markets.
Through the partnership, Venn’s users will gain access to enhanced equity risk factors from the Axioma US and Worldwide Equity Factor Risk Models, enabling them to achieve deeper insights into risk and expected returns.