TradingTech Insight Brief
CME Group and DTCC Launch Enhanced Cross-Margining for Clearing Members
CME Group, in collaboration with The Depository Trust & Clearing Corporation (DTCC), has officially initiated their advanced cross-margining system. This development introduces capital efficiency improvements for clearing members involved in trading and settling both U.S. Treasury securities and CME Group Interest Rate futures.
The upgraded framework now permits eligible members from both CME Group and DTCC’s Government Securities Division to cross-margin a broader range of products, such as SOFR futures, Ultra 10-Year U.S. Treasury Note futures, and Ultra U.S. Treasury Bond futures, alongside FICC-cleared U.S. Treasury notes and bonds. Additionally, repo transactions backed by Treasury securities with over a year until maturity are also eligible for the enhanced arrangement.
S&P Global Market Intelligence Integrates Nikkei News Offering into S&P Capital IQ Pro Platform
S&P Global Market Intelligence has announced an enhancement to its S&P Capital IQ Pro platform through the integration of Nikkei’s comprehensive news service, a move stemming from their partnership initiated in 2022. The integration will provide users with insights into the Asia-Pacific financial markets, regulatory changes, corporate developments, and emerging trends.
The collaboration between S&P and Nikkei marries editorial with advanced data analytics, offering a one-stop solution for APAC market intelligence. Additionally, Nikkei News will soon become available via feed delivery, in a machine-readable format optimised for Natural Language Processing (NLP) applications. This content will feature metadata tagging, enhancing its usability and ensuring better compatibility with NLP tools.
R3 Unveils R3 Digital Markets to Facilitate Digital Asset Adoption with Kate Karimson at the Helm
DLT technology and services company R3 has introduced R3 Digital Markets, a solution suite aimed at empowering firms to leverage digital assets and currencies. The new offering, underpinned by R3’s tokenisation platform, Corda, is designed to enhance efficiency and reduce costs within financial markets seamlessly integrate Distributed Ledger Technology (DLT) into fundamental business practices.
To lead the roll out of the new suite, R3 has appointed financial technology leader and capital markets expert Kate Karimson as Chief Commercial Officer. Karimson joins R3 with a proven track record, following leadership roles at CME Group, BrokerTec, ICAP and LedgerEdge.
Databento Becomes Authorised Distributor of ICE Data
Databento, specialists in APIs for real-time and historical market data, have become an authorised distributor of ICE data with the launch of their latest datasets: ICE Futures Europe iMpact (IFEU.IMPACT) and ICE Endex iMpact (NDEX.IMPACT).
Sourced from ICE’s iMpact multicast futures and options market data feed and picked up at ICE’s colocation facilities in Basildon, UK and at 350 E. Cermak in Chicago, the data feed is then transported over a private backbone to CyrusOne Aurora I, the site of CME’s matching engine, for capture and redistribution. This arrangement provides Databento’s users with consistent timestamping between CME and ICE’s futures markets.
BNY Mellon and ING Join CLSNet to Enhance FX Market Efficiency and Risk Reduction
BNY Mellon, the world’s largest custodian bank, and ING, the largest Dutch bank, have joined CLS’s CLSNet service, whose user base now includes eight of the top 10 global banks. The service aims to reduce settlement risk and improve operational efficiency, particularly in the FX market where risk mitigation is increasingly critical, especially in emerging market currencies and other expanding market segments.
CLSNet has seen significant growth this year, indicating strong industry support for the service. It has consistently recorded high average daily notional values of net calculations, surpassing USD 115 billion over the past 12 months, reaching a record daily notional value of USD 445 billion netted on 20 December 2023.
Danske Bank Selects Broadridge’s Tbricks for Enhanced Multi-Asset Trading and Market Making
Danske Bank has adopted Broadridge Financial Solutions’ Tbricks multi-asset trading and market making platform, to upgrade its trading, pricing, and position management capabilities across its various locations. The integration with Tbricks aims to streamline Danske Bank’s operations, enhance strategic focus, and ensure long-term cost efficiency.
According to the company, the decision reflects a broader trend in the capital markets sector, where firms increasingly seek adaptable, modular solutions that blend speed and accuracy with the necessary agility to navigate the dynamic financial market landscape.
Cboe Digital Launches Margined Bitcoin and Ether Futures
Cboe Digital has launched margined futures for Bitcoin and Ether, becoming the first U.S. regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform. This development, supported by Blockfills, DV Trading LLC, Jump Trading Group, Marex, Toa Capital Partners and Wedbush, is seen as a major step towards unifying the crypto spot and futures market.
Following the launch Cboe Digital now plans to expand its product suite to include physically delivered products, pending regulatory approval.
Zayo Group Expands Near-Net Fibre Connectivity Across Europe, Targeting Key Cities in 2024
Zayo Group, the global provider of fibre network infrastructure, has announced a significant expansion of its near-net connectivity across Europe, aiming to enhance its high-speed low-latency network solutions across UK, Ireland, The Netherlands, Germany, and France, enabling up to 100G connectivity for clients in close proximity to Zayo’s fibre infrastructure.
The initiative aims to help clients more easily adopt cloud systems and innovative technologies major cities such as London, Manchester, Amsterdam, Stuttgart, Berlin, Dublin, and several French markets throughout 2024.
LoopFX Collaborates with FactSet to Integrate Its FX Trading Technology into Portware System
LoopFX, the FX trading venue for large spot trades, has announced a strategic partnership with FactSet to integrate LoopFX’s unique ‘Peer-To-Bank’ matching engine technology into Portware, FactSet’s FX execution management system (EMS). Set to commence in early 2024, the integration is designed to streamline FX trading for FactSet’s clients, enabling them to access LoopFX’s services directly through their existing Portware trading interface.
LoopFX’s technology is designed to facilitate large FX trades, typically over $10 million, by offering a dark pool for large block liquidity. This approach aims to minimise information leakage, reduce trading costs and enhance execution efficiency for both buy-side and sell-side clients.
Liquidnet Integrates bondIT’s Advanced Credit Analytics
Liquidnet has partnered with investment technology provider bondIT, to integrate bondIT’s Scorable Credit Analytics into its Fixed Income electronic trading platform. This collaboration between the two companies will enable over 700 member firms to access enhanced insights within the Liquidnet application, aiding in predicting market trends and credit risks.
The partnership comes at a time of increasing demand for fixed income securities, attributed to attractive yields not seen in over a decade. Scorable’s use of data science, Explainable AI, and Machine Learning, aims to help investors anticipate changes in credit ratings and identify market opportunities ahead of time.