ION Connects to Newly Launched FMX Futures Exchange, Enhancing Client Trading Capabilities

ION, the trading and workflow automation software vendor, has connected to the FMX Futures Exchange, which opened on 23 September 2024. With this integration, clients can now access and trade on the new US interest rate futures exchange through ION’s suite of execution and post-trade products. The FMX Futures Exchange, backed by major investment banks and BGC Group, offers a state-of-the-art trading system with significant capital savings through LCH’s cross-margin capabilities.

ION’s technology supports the full lifecycle of cleared derivatives trading on FMX, spanning front-, middle-, and back-office operations. This seamless connection enables banks and brokers using ION’s platforms to offer enhanced execution and clearing services from the first day of the Exchange’s operations.

Robert Allen, President of FMX Futures Exchange, commented: “The combination of the FMX Futures Exchange with LCH will provide clients with choice, innovative execution technology, and potentially significant cross-margin capabilities.”

Francesco Margini, Chief Product Officer for Cleared Derivates, ION Markets, added: “We are always very pleased to support new major exchange initiatives. The joint effort with FMX Futures Exchange demonstrates once again the effectiveness of ION’s front-to-back product strategy: the powerful combination of modern, integrated solutions across execution and clearing removes the technical barriers often hindering market readiness and participation.”

GLEIF Open Mumbai Office as Indian Use of LEIs Surges

The Global Legal Entity Identifier Foundation (GLEIF) has expanded its operations to India, opening an office in Mumbai where it intends to gain a deeper understanding of local markets.

The non-profit organisation, which provides universal identification codes for companies and assets to make it easier to verify and map data to them, said India has been among the top-five legal entity identifier (LEI) growth areas in the past four years.

“The LEI has become a key tool in enabling trust and transparency across the Indian financial ecosystem, thanks to a proactive regulatory agenda advanced by the Reserve Bank of India,” GLEIF said. “Significant levels of new LEI issuance in the region annually, as well as high levels of LEI renewals, can be attributed directly to this extensive regulation and the need for organisations to comply.”

Meanwhile, the International Standards Organisation (ISO) has expanded the LEI technical standard to include GELIF’s digitally signed, tamper-resistant verifiable credentials, know and vLEIs.

“This is a pivotal moment in the evolution of digital organisational identity,” said GLEIF chief executive Alexandre Kech. “The inclusion of the vLEI in ISO 17442 solidifies its role as the global benchmark for secure, digital verification of legal entities. As the vLEI gains traction, it promises to revolutionise how businesses authenticate and trust each other, enabling seamless interactions in a way that has never been possible before.”

Refreshed DTCC Fixed-Income Master Data Updates More Frequently

Bond traders and investors can now receive more frequently updated data on assets with an enhancement to the Depository Trust & Clearing Corporation (DTCC)’s security master data file service.

DTCC’s Corporate Fixed Income Premium Intraday Reference Data has been retooled to refresh every half-hour 23 times a day, the organisation said. It will also include 20 new data elements, including security description, bond duration, interest rate and coupon frequency.

The update has been partly driven by the advent of T+1 trade reporting.

“Intraday corporate fixed income data is critical for the identification, valuation, trading, and settlement in the secondary market,” said Tim Lind, managing director of DTCC data service. “The T+1 transition requires firms to operate more quickly within shorter timeframes. Having access to underlying security data on a timelier basis can help firms achieve that objective.”

BGC Group to Acquire OTC Global Holdings, Expanding Energy and Commodities Business

BGC Group, Inc., the global brokerage and financial technology company, has agreed to acquire OTC Global Holdings, LP (‘OTC’), the largest independent institutional energy and commodities brokerage firm. The acquisition will bolster BGC’s Energy, Commodities, and Shipping (ECS) division by diversifying and expanding its global footprint. OTC offers brokerage services across key sectors such as crude oil, natural gas, petrochemicals, and biofuels, with operations spanning North America, Europe, and Asia.

Howard Lutnick, Chairman and CEO of BGC Group, commented: “OTC has built a premier global energy, commodities, and shipping business that is supported by world class talent. This acquisition will complement our existing ECS business and will enhance our ability to deliver a comprehensive, best-in-class offering to our global client base. We look forward to welcoming the OTC team onto the BGC platform, combining our innovative solutions to drive greater results for our clients.”

Joe Kelly, CEO of OTC Global Holdings, added: “BGC has an incredible offering with a proven track record of growth and innovation. We have built something very special and unique at OTC.  We look forward to joining BGC’s platform and believe that together we will become a leading global broker for energy, commodities, and shipping products, delivering unparalleled value to our clients worldwide.”

The transaction, structured as a predominantly cash deal, is subject to regulatory approvals and other customary conditions. Jefferies LLC serves as the exclusive financial advisor to OTC Global Holdings.

OptAxe Receives FCA Authorisation to Operate Multilateral Trading Facility for FX Options

OptAxe, the centralised trading platform focused on FX options, has been granted authorisation by the UK’s Financial Conduct Authority (FCA) to operate as a multilateral trading facility (MTF). This approval marks the completion of a two-year process, allowing OptAxe to provide an innovative solution for axe-driven FX options trading. The platform aims to address key challenges in the market, such as lack of transparency, fragmented pricing, and inefficiencies in bilateral trading processes.

By centralising and automating the distribution of FX options axes, OptAxe aims to improve price discovery, execution quality, and overall market efficiency. The platform is fully operational and offers diverse connectivity options, including Web GUI and APIs like FIX and REST, enhancing access to liquidity and streamlining trade execution for market participants.

Chris Jackson, CEO and Co-Founder of OptAxe, commented: “We set out to bring much-needed innovation to the FX options market, improve liquidity discovery and unlock previously untapped trading opportunities. OptAxe is a fully centralised, regulated venue for liquidity discovery, dissemination and execution that empowers trading participants with actionable insights from centralised liquidity information. We automate manual, bilateral processes and consolidate available axe inventory into a single platform, effectively acting as a multi-issuer, not a multi-dealer platform, RFQ-based venue”.

Yorke O’Leary, COO and Co-Founder of OptAxe, added: “Securing FCA approval to operate a regulated MTF for FX options trading is a significant milestone for OptAxe and represents a step-change in how the industry operates. Globally, capital costs are rising and market participants urgently need to access, recycle and clear more FX options risk, whilst still facing inefficient distribution practices, complex price discovery methods and expensive execution outcomes. With OptAxe, all market participants can easily access a centralised source of actionable axe inventory with evidence-based pricing that meets the demands of the trading community today and tomorrow.”

Hashnote’s US Yield Coin (USYC) Now Available on Canton Network, Offering Privacy-Enhanced, Tokenised Yield Solutions

Hashnote, the on-chain digital asset manager backed by DRW and Cumberland, has made its yield-bearing US Yield Coin (USYC) accessible on the Canton Network, a blockchain platform developed by Digital Asset with contributions from over 30 financial industry leaders. The Canton Network’s privacy features allow USYC holders to manage collateral without third-party visibility, enhancing security and discretion.

USYC is a tokenised asset that invests in reverse repo activities on government-backed bonds, providing short-term, risk-free returns. The asset currently has $300 million in assets under management (AUM). Through Canton’s Global Synchroniser, USYC holders benefit from privacy-protected, atomic transactions across applications on the network. Additionally, Hashnote is one of the first apps approved to mint Canton Coin, the network’s native utility token, allowing USYC holders to earn rewards through their interactions on the platform.

Leo Mizuhara, Founder and CEO of Hashnote, commented: “What particularly stands out for us, and for many of our clients, is the privacy of your assets and transactions when using Canton, which can be crucial for trading use cases. The setup allows us to reduce counterparty and settlement risks and optimise capital efficiency without sacrificing privacy. Furthermore, USYC is fully composable on the Canton Network, so participants can create additional utility around USYC by including it in their trading, cash, and risk management workflows.”

Eric Saraniecki, Co-Founder and Head of Network Strategy at Digital Asset, added: “Access to tokenised real-world assets on-chain has been steadily on the rise and we are now seeing demand from institutional investors who want to utilise these assets across daily margin, cash and risk management activities. Privacy is required to make this a reality, unlocking cash equivalents for use as collateral 24/7, in real-time, and connecting Hashnote’s customers to the largest and most diverse network for tokenised real-world financial assets.”

Nasdaq Launches XVA Accelerator for Enhanced Risk Modelling

Nasdaq has unveiled a new machine learning-driven methodology for conducting risk calculations and generating predictive analytics for investment portfolios. The innovative functionality will be integrated into Nasdaq’s Calypso platform, widely used by banks, insurers, and other financial institutions to access capital markets, manage risk, and comply with regulatory reporting requirements.

The new system, XVA Accelerator, is designed to address the increasing complexity of derivative pricing models, particularly the computationally intensive process of calculating Value Adjustments (XVA) in over-the-counter (OTC) derivatives trading. These adjustments, which include Credit Valuation Adjustments (CVA), account for the risk, funding, and capital costs inherent in such transactions. Nasdaq’s solution employs advanced machine learning alongside mathematical modelling to significantly improve the speed and efficiency of these calculations.

At the core of the XVA Accelerator is a technique based on Chebyshev Tensors, developed in collaboration with MoCaX Intelligence. This patented approach allows for the rapid convergence of scenario-based risk assessments, reducing the time and computational power required for the most complex calculations by up to 100-fold. This enhancement is critical as banks face rising regulatory demands, such as those introduced under Basel III Endgame, which require more granular risk assessments and frequent intraday recalculations.

The technology enables financial institutions to run risk models across millions of scenarios with fewer computational resources, reducing both the physical infrastructure and energy requirements typically associated with such processes. This is especially valuable during periods of market volatility, allowing firms to quickly adjust to changing conditions without sacrificing accuracy or transparency.

By streamlining risk calculations and enhancing the ability to model complex derivatives, the XVA Accelerator empowers financial institutions to better manage risk, optimise trading strategies, and reduce operational costs. As part of Nasdaq’s broader Calypso platform, it reflects the company’s commitment to advancing industry-wide modernisation and operational efficiency across global financial markets.

MDXT Acquires UK Spreadsheet Optimiser Schematiq

MDX Technology (MDXT), a provider of data distribution and collaboration technology to financial institutions, has acquired spreadsheet optimisation technology firm Schematiq, creating a platform that it says lets clients share data and models faster and more efficiently.

Recognising that the financial industry still relies heavily on spreadsheets to organise and manage their data, MDXT said that the acquisition will help clients of the London-based company convert their models into code and APIs that can be scaled for trading and enterprise uses.

“Despite industry-wide efforts to reduce reliance on Excel, it is still critical to operations and our customers are looking to us to support them scale invaluable IP held in these complex models,” said MDXT chief executive Nigel Someck.

The deal was approved for an undisclosed sum.

MDXT’s low-code platform is used by financial institutions, including HSBC, and financial services companies such as Bridgewater and Intercontinental Exchange (ICE Data Services) to build over-the-counter price-sharing and trading workflows.

The newly augmented company will continue to be headed by Someck while Schematiq founder Darren Harris has been appointed as chief product officer.

“This collaboration is not just a strategic fit for both companies but a transformative move for the entire industry,” said Harris. “Together, we will drive innovation, expand market influence, and deliver exceptional value to our clients. The future is incredibly exciting.”

Amberdata Partners with Thalex to Enhance Crypto Derivatives Analytics

Amberdata, the digital asset data and analytics provider, has entered into a partnership with Thalex, the crypto options, perpetuals, and futures exchange. The collaboration integrates Amberdata’s blockchain and crypto asset data with Thalex’s derivatives trading platform. As part of the partnership, Thalex will enhance its user experience by offering real-time analytics, including BTC and ETH volatility curves, term structure, open interest, and more.

The new “Statistics” tab on Thalex will provide users with exclusive access to insights powered by Amberdata, aiming to enrich the trading experience as the DeFi derivatives market continues to grow.

Greg Magadini, Director of Derivatives at Amberdata, commented: “Partnering with Thalex provides us the opportunity to show traders the vast amount of strategies available in the option markets. Having a good platform to execute on combined with solid analytics is all a trader needs to find lucrative trade structures in the nascent crypto volatility market.”

Hendrik Ghys, CEO and Co-Founder of Thales, added: “This is a natural collaboration. Amberdata positions traders to take views on volatility. Thalex enables traders to turn such views into positions. We’re excited about this extension of our partnership which brings market data visualizations powered by Amberdata to our user interface.”

S&P Global Unveils Scientist-led Climate Research Group

S&P Global has established a Climate Centre of Excellence, bringing together scientists and strategists to help guide the data and ratings company’s environment and nature research and methodologies.

The centre will harness the company’s market and ESG datasets to generate sustainability-linked information that can be used by clients of the company’s S&P Global Market Intelligence, S&P Global Ratings, S&P Global Commodity Insights, S&P Global Mobility and S&P Dow Jones Indices businesses.

“To push the frontiers in climate research, S&P Global scientists are diving into some of the most complex data and modelling challenges in the physical and economic sciences,” said the centre’s chief science officer Terence Thompson. “We are bridging multi-disciplinary gaps and perspectives to enable advancements in our science-driven methodologies providing actionable information on climate-related risks and opportunities.”

Among the themes the centre aims to tackle are physical and climate hazards, probabilistic risk modelling and supply-chain exposure.