TradingTech Insight Brief
Tokenovate and GMEX ZERO13 Execute World’s First Smart Legal Contract for Carbon Credit Derivatives
Tokenovate, a provider of distributed financial market infrastructure, and ZERO13, a GMEX Group initiative around climate fintech, have successfully executed the world’s first smart legal contract for voluntary carbon credit (VCC) derivatives trades, based on the 2022 ISDA Verified Carbon Credit Transactions Definitions.
The partnership demonstrated the creation of a blockchain-based, high quality, smart legal contract for waste to energy VCC trades, which were conducted on the SECDEX exchange, between Maverik Inc. and Tempus USA Inc. Tokenovate and ZERO13 will continue to enable VCC trades using distributed ledger technology-based smart legal contracts, supporting global net zero and energy transition goals by 2030.
FlexTrade Unveils AI-Driven Functionality in FlexTRADER EMS
FlexTrade Systems has announced the incorporation of artificial intelligence (AI) technology into its multi-asset solution, FlexTRADER EMS. FlexA, a voice-activated application created by FlexTrade’s data science team, is designed to revolutionise the interaction between traders and their technology platform by applying natural language to parse and control the solution through voice commands or a text-based chat interface.
This innovative application allows traders to easily handle vast amounts of information beyond the traditional 2D grid visualisation and input devices. FlexA enables users to gain an in-depth understanding of orders, request tailored reports on historical trading with specific visual formats, and automate actions to accelerate workflow. This launch signifies one of the first practical applications of AI technology directly within an OEMS solution, according to the company.
OpenFin Secures £35 Million in Series D Funding to Boost Adoption of its OS
OpenFin, the operating system (OS) for enterprise productivity, has raised $35 million in a Series D investment round led by Bank of America, with significant contributions from Pivot Investment Partners and ING Ventures. CME Ventures, CTC Venture Capital, SC Ventures and Tribeca Early Stage Partners also participated. The investment aims to fast-track the adoption of OpenFin OS across the financial industry and beyond. Presently used by over 3,800 banks and asset management firms in more than 60 countries, OpenFin’s web-based OS is increasingly becoming a standard in financial services.
The latest funding comes amid a period of record growth for OpenFin, spurred by the swift adoption of OpenFin Workspace, the OS’s visual interface. Launched in 2021, the Workspace includes an app launcher, notification centre, universal search and enterprise browser, helping to simplify user experiences across internal and reduce operational risk.
TMX Group and Clearstream Banking Set to Launch Canada’s First Domestic Triparty Repo Capability
TMX Group Limited and Clearstream Banking S.A., part of Deutsche Börse Group, have announced plans to introduce an automated Canadian Collateral Management Service (CCMS), including the first domestic triparty repo capability in Canada. Developed collaboratively, the CCMS aims to provide a customised mobility and liquidity solution for Canada’s secured finance industry, with the new service enabling clients to meet the continuously evolving collateral demands of current markets.
Scheduled for launch in Q3 2023, the CCMS is intended to optimise and collateralise securities finance activities across the Canadian market. Initially, the CCMS will cater to participants in Canada’s secured funding market, enhancing transaction cycle efficiency. Additionally, it will facilitate the industry’s shift to a T+1 settlement cycle for Canadian and US markets in 2024, boosting efficiency and collateral mobility while reducing operational risk.
Principal Financial Group Selects QUODD’s Universe+ for Tailored Market Data Access
QUODD, a market data on demand provider for the global financial services sector, has announced that Principal Financial Group has become part of its growing client base for the Universe+ platform. Universe+ is an API-driven, cloud-based solution offering comprehensive security pricing, reference data, and analytics across all asset classes, including mutual fund, equities, and fixed income pricing data, specifically designed as a middle to back-office research tool.
Universes+’s capabilities are a cornerstone of QUODD’s digital offering, allowing users to monitor price fluctuations, access reference data and corporate actions on demand, and manage price validations and challenges. The platform facilitates on-demand market data consumption across all business lines and operational workflows, making it an effective tool for middle and back-office functions.
London Stock Exchange’s Data Centre Migration Boosts Market Quality and Efficiency
The London Stock Exchange Group (LSEG) has reported substantial improvements in market quality and performance following its data centre migration and upgrade in February this year. The data centre, which caters to the London Stock Exchange, Turquoise, and TRADEcho services, is not only more innovative and robust but also eco-friendly, powered entirely by green energy.
The upgrade led to a 50% reduction in average round-trip latency for equities and a 66% reduction for ETFs, leading to swifter, more predictable order confirmations. The London Stock Exchange’s role as a price-former in UK Equities has also been enhanced, with a 9% increase in FTSE 100 EBBO settings and a 5% increase in the FTSE 100 EBBO Size Contribution.
SIX Integrates with FlexTrade’s Spark EMS to Provide Real-Time Global Market Data
SIX, the worldwide financial data provider, and FlexTrade Systems, the multi-asset execution and order management systems vendor, have integrated real-time global market pricing and reference data from SIX into the Spark cloud-based Execution Management System (EMS). This collaboration enables traders utilising Spark EMS to stream real-time global market data across multiple platforms, including desktop, browser, and API.
The new service using the SIX API, in conjunction with FlexTrade’s cloud-based EMS, delivers an off-the-shelf trading solution that aims to expedite time-to-market for new fund launches. The newly integrated service is now ready for client deployment.
VECTALIS Acquires BrokerHub, Bolstering Its Equity Derivatives Front-to-Back Solution
OTC equity derivatives workflow vendor VECTALIS has announced its acquisition of BrokerHub, a fellow financial technology company. By unifying their forces after years of competition, the two firms aim to provide crucial services to market participants, encompassing price dissemination from interdealer brokers to investment banks, block trade reporting to multiple exchanges, and the generation and reconciliation of confirmation tickets and broker fees, respectively.
This amalgamation of services promises to provide a comprehensive platform covering the front-to-back office for inter-dealer brokers and investment banks running equity derivatives desks, aiming to offer improved and more efficient workflows for clients.
Arqaam Capital Partners with Horizon Software for Advanced Electronic Market Making Solutions
Arqaam Capital, a UAE-based financial services broker, has established a partnership with electronic trading and algorithmic technology provider Horizon Software, under which Horizon’s Electronic Market Making solutions will be utilised for Arqaam Capital’s newly established market making desk. Arqaam will leverage Horizon’s existing connectivity to the ADX and DFM exchanges in UAE to conduct market making on stocks, derivatives, and ETFs in the Middle East region.
The partnership is intended to solidify Arqaam Capital’s position as a leading market maker and liquidity provider. It will also aid in the diversification of Arqaam’s revenue streams, enhancement of electronic trading products, and the delivery of high-quality services to clients.
Boubyan Bank Adopts Murex’s MX.3 for Sharia-Compliant Treasury Operations via MXGO
Boubyan Bank, a prominent Islamic financial institution based in Kuwait, is adopting Murex’s MX.3 for Islamic Finance to facilitate its Sharia-compliant treasury operations using MXGO, a customisable treasury and trading solution, designed by Murex, that caters to rapidly expanding local banks. MXGO can be delivered on-premises, on the cloud or as a fully managed SaaS solution, with the capacity to expedite delivery and reduce the total cost of ownership.
The MX.3 platform will provide a front-to-back-to-risk solution to expedite the delivery of new products to clients, including FX spot, forward Waad, FX swap, profit rate swaps, cross currency swaps and sukuks. The scope also includes collateral management, value at risk, accounting and hedge accounting.