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A-Team Insight Brief

DSB Announces 2024 Consultation Schedule for OTC Derivatives Reference Data Services

The Derivatives Service Bureau (DSB) has outlined its 2024 consultation plan focusing on the OTC International Securities Identification Number (ISIN), Unique Product Identifier (UPI), and Classification Financial Instrument (CFI) services. The consultation paper will be released on 30 April 2024, allowing for feedback until 31 May 2024, and concluding with a Final Report on 16 July 2024.

For the first time, the consultation will include the new UPI services. Key topics will include user type functionality, the Traded on a Trading Venue (ToTV) Service; and fair cost apportionment across service provisions. The consultation, in conjunction with the ongoing complementary work of the DSB industry representation groups, aims to align DSB services with evolving market practices, technological advancements, and regulatory demands.

UK and US Agree Collaboration on Testing and Mitigating Risks of AI Models

The UK and US have signed a landmark artificial intelligence (AI) agreement to collaborate on testing and mitigating the risks of AI models. The deal is the first global bilateral agreement on AI safety, bringing together the UK and US governments to share technical knowledge, information and talent on AI safety. The deal was signed by UK Technology Secretary Michelle Donelan and US Commerce Secretary Fina Raimondo.

Under the deal, the UK’s new AI Safety Institute and the subsequent US organisation, which is yet to begin work, will exchange research expertise with the aim of mitigating the risks of AI, including how to independently evaluate private AI models from organisations such as OpenAI. The partnership is modelled on the security collaboration between GCHQ and the National Security Agency.

Clearwater Analytics to Acquire Risk and Performance Analytics Solutions from Wilshire

Clearwater Analytics, a provider of software-as-a-service (SaaS) based investment management, accounting, reporting, and analytics solutions, has entered a definitive agreement to acquire risk and performance analytics solutions from Wilshire Advisors, a financial services firm. Clearwater will acquire Wilshire AxiomSM, Wilshire AtlasSM, Wilshire Abacus and Wilshire iQComposite, which cover fixed income analytics, equity analytics and performance measurement, accounting, and GIPS compliance support analytics. These solutions will be merger with Clearwater’s risk and performance analytics platform.

The partnership will be co-branded as Clearwater Wilshire Analytics and will allow both companies to provide enhanced analytical capabilities for investment managers and institutional asset owners. The transaction is expected to close in the second quarter of 2024.

Cboe Clear Europe Announces Major Support for Launch of Securities Financing Transactions Clearing Service

Cboe Clear Europe, the Amsterdam-based pan-European clearing house, has announced that Bank of America and State Street are among the latest to support its forthcoming Central Counterparty (CCP) clearing service for securities financing transactions (SFTs), with the service expected to launch in Q3 2024, pending regulatory approval. This new commitment expands the initial group to nine participants, including prominent banks, clearing firms, asset managers, and custodians, aiming to enhance the efficiency and risk management of SFTs in European cash equities and ETFs.

The service, which addresses the regulatory and operational challenges posed by Basel III and IV frameworks, aims to mitigate capital demands and credit risks by providing a streamlined clearing and settlement process. It is designed to reduce risk-weighted assets for clients, improve settlement efficiency, and support the growth and operational practices within the European SFT market.

Bloomberg Secures Contracts to Provide Electronic Trading Platforms to ECB and Other Eurosystem Central Banks

Bloomberg has been awarded three significant framework agreements with the European Central Bank (ECB) and other National Central Banks within the Eurosystem for the supply of Electronic Trading Platforms (ETPs) for trading in government bonds denominated in Euro, USD and JPY, alongside USD and JPY Interest Rate Swaps, and futures contracts.

Bloomberg’s Netherlands-based Multilateral Trading Facility (MTF), BTFE, will host any trades, with futures trading supported by Bloomberg’s Tradebook ISV and its EMSX execution management system.

Euronext Completes Migration of Italian Derivatives Trading to Optiq, Finalising Borsa Italiana Integration

Euronext has announced the successful migration of Italian derivatives trading to its advanced trading platform, Optiq, marking the completion of Borsa Italiana’s markets integration into Euronext’s infrastructure. This milestone, achieved less than three years following the acquisition of the Borsa Italiana Group, is a critical component of the “Growth for Impact 2024” strategic plan, aiming to consolidate a unified liquidity pool and technology platform across Euronext markets.

The transition not only promises enhanced market efficiency and accessibility for investors and issuers but also aligns with Euronext’s objective to become Europe’s premier listing and trading venue. Looking ahead, Euronext is poised to fulfil the final goal of its strategic plan by extending Euronext Clearing to its listed financial and commodities derivatives by Q3 2024, anticipating significant synergies by the year’s end.

Microsoft Selects Solidatus as a Partner in Renewed Data Governance Platform

Microsoft has named Solidatus as its preferred data lineage integration partner as part of renewed data governance in Microsoft Purview. The new software-as-a-service (SaaS) platform provides intuitive business-friendly interaction, seamless integration across data sources, AI-driven efficiency, and actionable insights, empowering users to enhance data governance processes.

Microsoft will extend the value of Microsoft Purview for customers through pre-built integrations with a select group of technologies. Solidatus, a provider of data lineage, is one of these and will provide Microsoft Purview customers with best-in-class data lineage and its capabilities in fine grain lineage, visualisation and version control, strengthening data governance efforts and fostering more resilient businesses.

“Purview customers will gain a unified and actionable view of their governance workflows, empowering them to tackle their most pressing data challenges,” says Philip Dutton, CEO at Solidatus.

Informatica Takes Intelligent Data Management Cloud to Saudi Arabia

Informatica, a vendor of enterprise cloud data management, has set up its AI-powered Intelligent Data Management Cloud (IDMC) in Saudi Arabia, claiming a first in the kingdom. The provision includes establishing a point of delivery in Riyadh that supports local, scalable, cloud-first data management services. Informatica launched its first regional point of delivery in Abu Dhabi, UAE in 2023.

The investment underpins Informatica’s commitment to further the Saudi government’s Vision 2030, which includes digitally empowering all sectors of the economy. Jitesh Ghai, chief product officer at Informatica, comments: “Saudi Arabia is making headway on its journey to become a technology hub for the Middle East and is creating a solid cloud foundation to realise its Vision 2030 ambitions. By having a significant cloud, data, and AI presence in the kingdom, we will be providing organisations with an in-country AI-powered data infrastructure to run their cloud-based technology solutions.”

LIST Completes Final Phase of Borsa Italiana Migration to Euronext’s Optiq Technology

LIST, an ION company, has successfully concluded the third and final phase of transitioning its Borsa Italiana clients to Euronext’s Optiq trading platform, marking a significant milestone following the acquisition of the Borsa Italiana Cash and Derivatives markets by Euronext in April 2021. This latest phase focused on derivatives clients, completing the migration that began with the equity segment in March 2023 and the bond segment in October 2023.

To ensure a smooth transition to the new trading technology, LIST has upgraded its FastTrade trading solution, enabling seamless access to the Euronext pan-European ecosystem. This final stage also included the introduction of new software versions and improvements to data centre and telecoms infrastructure.

Euroclear Invests in Blockchain-Based Funds Marketplace IZNES

Euroclear has made a strategic investment in IZNES, a blockchain-based pan-European funds marketplace, aiming to enhance its Euroclear FundsPlace suite. The collaboration, pending customary closing conditions and regulatory approvals, will leverage IZNES’s technology and various distribution channels to address the landscape of European funds subscriptions and redemptions.

Founded in 2017, IZNES operates a platform designed to streamline the funds subscription process, offering increased transparency and an enhanced customer experience for management companies and institutional investors. The investment follows Euroclear’s previous acquisitions of MFEX in 2021 and Goji in 2023, underscoring its commitment to revolutionizing funds distribution through innovative solutions in France and across Europe.