ICE Bonds and MarketAxess to Connect Liquidity Networks for Enhanced Fixed Income Trading

ICE Bonds, a division of Intercontinental Exchange, and fixed-income electronic trading platform operator MarketAxess Holdings Inc., are collaborating to integrate their liquidity networks. The partnership aims to boost efficiency and access to deeper liquidity in the fixed income markets, for the benefit of both the institutional and wealth management sectors.

The integration, establishing connectivity between ICE Bonds’ automated trading system, ICE TMC, and MarketAxess’ Open Trading network, is designed to expand the reach and depth of liquidity pools for each company’s global user bases, promoting enhanced price transparency and best execution. By combining ICE Bonds’ strength in retail brokerage and wealth management with MarketAxess’ dominance in institutional trading, the collaboration seeks to improve overall market liquidity and trading outcomes for all participants.

Taskize Launches Mailbox Analyser to Track and Quantify Email Impact in Post-Trade Operations

Taskize has introduced Mailbox Analyser, a new tool designed to track and quantify the impact of email communication in post-trade operations. Given the substantial volume of emails handled by custodian banks—often exceeding a million annually—the new tool addresses the challenges posed by high email traffic, such as errors and auditing difficulties.

Mailbox Analyser helps firms understand their email usage by identifying the types of client enquiries and clients that generate the most emails, and by offering insights into resolution times and efficiency. Integrated with the Taskize platform, it monitors email traffic and automatically generates detailed analytics on activity levels, resolution times, staff performance, and query trends. This data can help banks to allocate resources more effectively, improve client satisfaction, and enhance the efficiency and compliance of their communication processes.

tanX Achieves $1 Billion Quarterly Spot Trading Volume

Dubai-based digital asset trading platform tanX reported a significant milestone in Q2 2024, processing $1 billion in spot trading volume across 3 million transactions, reflecting a 70% increase from the previous quarter. The platform’s success is set against a backdrop of rising interest in decentralised trading solutions, particularly in the wake of FTX’s collapse, which has driven traders towards non-custodial and safer methods of executing trades and storing assets.

tanX, operating as a decentralised exchange (DEX) on Ethereum, emphasises compliance, regulation, and transparency, catering to institutional clients through specialised liquidity lines. tanX bridges the two models of decentralised and centralised exchanges (CEXs), allowing CEXs to integrate its non-custodial trading solutions while maintaining their existing user experience, underscoring the platform’s innovative approach in a regulatory stringent environment.

Baton Systems Adds JSCC to CCP Network

Baton Systems has achieved successful bi-directional integration with the Japanese Securities Clearing Corporation (JSCC) via its Core-Collateral ecosystem. The integration allows JSCC’s Clearing Member clients to directly access APAC’s largest central counterparty (CCP), enhancing efficiency by providing normalised data and real-time balance updates. The addition of JSCC complements existing integrations, including SGX, expanding Baton’s network to thirteen CCPs, handling 95% of global initial margin.

Baton’s Core-Collateral platform automates the movement of cash and securities, offering users consolidated and real-time updates on margin requirements and collateral eligibility. The integration of collateral eligibility data into Baton’s API further streamlines the management process by enabling automated, real-time determinations of eligible assets. This reducing operational burdens, improving decision-making, and enhancing financial efficiency and net interest income for firms, according to the company.

Tucker Dona, Head of Business Development and Client Success at Baton Systems, commented: “The addition of JSCC to the Baton Core-Collateral ecosystem is a big step to increasing access to the most strategically important CCPs for our clients. As a result, we are able to assist more FCMs and Clearing Members globally to automate and optimise a significant proportion of their collateral holdings. This is incredibly important in helping these firms reduce dependency on manual processes and optimise collateral management at a time when market volatility and a higher interest rate environment place growing pressure on the margin posting process.”

valantic FSA Partners with Nasdaq to Develop Nasdaq Rates Trader for Nordic and Baltic Markets

valantic FSA, the electronic trading and automation solutions provider, has announced a partnership with Nasdaq to develop Nasdaq Rates Trader, a new web-based user interface for Nasdaq’s Nordic and Baltic fixed income markets. The interface will offer access to Nasdaq’s data and trading functionalities through a modern and intuitive front-end.

Key features include advanced data visualisation and customisable workspaces. The beta testing phase for the new UI is scheduled to begin in February 2025, with a full launch planned for October 2025.

Horizon Trading Solutions Launches Mutualised Hosting Services in Partnership with TNS

Electronic trading and algorithmic technology provider Horizon Trading Solutions has partnered with financial market infrastructure vendor Transaction Network Services (TNS), to launch its new mutualised hosting services.

The collaboration allows Horizon to utilise TNS’ robust hosting and hardware solutions as a colocation provider, enabling on-premise services at the Hong Kong Exchange (HKEX) data centre for multiple clients. This partnership aims to enhance Horizon’s service capabilities, offering clients reduced latency and improved time to market at competitive prices.

TNS, with its extensive experience in the Asia Pacific financial markets and partnerships with key institutions like HKEX, SGX, and JPX, aims to provide traders quick access to these markets with lower total ownership costs. This expansion reinforces the company’s commitment to the region, while strengthening Horizon’s service offerings.

Abaxx Commodity Futures Exchange Adopts ION’s XTP Technology for Energy Transition Markets

The Abaxx Commodity Futures Exchange and Clearinghouse has selected ION’s XTP technology to support its new market initiatives aimed at the ongoing energy transition. The Abaxx Exchange, which commenced trading in Singapore on 28 June, has collaborated with ION to deliver secure and scalable post-trade clearing and risk management solutions.

The Abaxx Exchange introduces five new centrally cleared, physically deliverable commodity futures contracts, enhancing market participants’ ability to manage energy transition strategies with improved price discovery and risk management tools. These contracts aim to establish benchmarks for global LNG and voluntary carbon markets, with future plans to include battery metals.

ION’s XTP technology is used by exchange clearing members, providing functionalities such as real-time position valuations, margining, and commission calculations. It also facilitates end-of-day processes including settlement calculations and report generation, ensuring robust support for the exchange’s operations.

Iress and Dow Jones Enhance Real-Time Market News Integration

Iress has extended its partnership with Dow Jones Newswires, enabling Iress news subscribers to access real-time market news across all asset classes and geographies. This service will be seamlessly integrated into customer workflows through Iress’s market data and trading software.

The partnership ensures that Iress’s global market data and trading customers can access premium content from Dow Jones Newswires, including selected articles from The Wall Street Journal, Barron’s, MarketWatch, and Investor’s Business Daily.

The collaboration aims to deliver enhanced market insights, leveraging Dow Jones’s global coverage and local reporting expertise in key markets such as Australia.

Iress’s CEO, Global Trading and Market Data, Jason Hoang commented: “It’s of critical importance that traders have access to trusted, accurate and timely information. Through this partnership, we believe that our clients can be confident that the information they use through Iress’s software is of the highest calibre and can be relied upon to help make better trading decisions.”

Dow Jones Newswires’ General Manager, Joe Cappitelli, added: “By integrating our real-time market news directly into customer workflows, Iress is creating even more value for their clients, enhancing their user experience and helping them make smarter investment decisions.”

DTCC Launches Public-Facing VaR Calculator for FICC

The Depository Trust & Clearing Corporation (DTCC) has introduced a new public-facing Value at Risk (VaR) calculator, designed to assist market participants in assessing potential margin and Clearing Fund obligations associated with membership in DTCC’s Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD).

The launch of the tool is timely, with U.S. Treasury clearing activity through FICC projected to increase by $4 trillion daily following the Securities and Exchange Commission’s expanded clearing mandate set for 2025 and 2026. DTCC’s VaR calculator enables firms to determine VaR and potential margin obligations for simulated portfolios accurately.

The calculator utilises FICC’s VaR methodology to allow users to estimate potential margin requirements based on given positions and market values. The calculator considers factors such as historical data, volatility and confidence levels to estimate VaR, increasing market transparency.

Tim Hulse, Managing Director, Financial Risk & Governance, at DTCC commented: “FICC understands the urgency and importance of evaluating firms’ risk exposure associated with the expansion of U.S. Treasury Clearing. The VaR calculator provides market participants with increased transparency into these obligations.”

This initiative underscores DTCC’s commitment to enhancing tools and access methods in support of the forthcoming expansion in U.S. Treasury clearing activity.

Substantive Research Reveals Increase in Investment Research Spending

Substantive Research, the research and data spend analytics provider, has released findings from its latest survey on investment research pricing, budgeting, and consumption for the first half of 2024. The survey assesses the impact of the FCA’s April 2024 Consultation Paper on “Payment Optionality for Investment Research,” which has sparked debate over whether European asset managers should revert research costs back to end investors after six years of absorbing these expenses due to MiFID II.

Key findings indicate an overall 2.2% increase in research budgets globally, with US budgets rising 15% as a proportion of assets under management (AUM) and European budgets increasing by 4%. Brokers continue to dominate, capturing 85% of the annual spend, albeit with a slight decrease, while spending on analytics and research tooling grows. The top 10 brokers maintain a significant share, slightly rising to 54.9%. This evolving landscape suggests a shift towards greater consumption and varied pricing strategies within the research market, with potential competitive impacts from the FCA’s proposed reforms.