OSTTRA Launches New Service for Cross-Currency Swap Conversions

OSTTRA, the global post-trade solutions provider, has successfully carried out the first cross-currency swap conversions of USD/SGD swaps from SOR to SORA. This development is a part of OSTTRA’s ongoing efforts since 2021 to assist market participants in transitioning from legacy Libor benchmarks to new risk-free rates (RFRs). The conversion process generates overlay transactions, which are submitted for clearing to minimise risk and present value (PV) impact.

The first multilateral conversion involved eleven market participants, while a second run involved twenty-one participants. OSTTRA now plans to expand the service to cover other indices subject to cessation, such as MXN, PLN, ZAR and CAD. The new service is facilitated by OSTTRA’s triReduce and triBalance, with CCP connectivity provided via OSTTRA MarkitWire.

Novata Platform Incorporated into IQ:EQ ESG Offerings

Novata, an ESG data provider to private markets and investors, has signed a deal to embed its services with investor assistance group IQ:EQ. US-based Novata’s portfolio assessment platform will be incorporated into IQ:EQ’s various ESG solutions, which enable clients to gather, manage and deploy sustainability data.

Sustainable Fitch Launches Regulations Tracker

Clients of Sustainable Fitch can now access its ESG Regulations and Reporting Standards Tracker, which seeks to bring transparency to changes in the global sustainability disclosures space. The service is offered with Fitch Group, which provides the data backbone of the tracker, enabling companies to stay up to date with changes to compliance obligations.

WEF Convenes Team to Oversee ISSB Standards

The World Economic Forum (WEF) has brought together a team of experts to offer best-practices guidance to the International Sustainability Standards Board (ISSB). The group will monitor implementation and adoption of ISSB’s first set of standards, which are set to be unveiled by the end of this month, and offer insights and advice.

Arabesque Builds ESG Index with HSBC

Data vendor and asset manager Arabesque has jointly created an AI-supported ESG index with HSBC. The ESG Risk Improvers Index uses publicly available data and data from Arabesque’s ESG Book, a sustainability metrics platform built for financial institutions in conjunction with several large international banks.

GaiaLens Builds News Sentiment Tracker

A news sentiment scoring tool has been created to help investors gauge the ESG performances of listed companies. AI-backed GaiaLens Momentum AI assesses the scores against the United Nations’ Sustainable Development Goals, giving investors real-time visibility into their investments’ activities before they issue their periodic reports.

Cboe Europe Indices Now Included in BMLL Data Suite

Level 3 data and analytics provider BMLL has announced the integration of Cboe Europe Indices into its product suite, enhancing its existing Cboe historical data coverage for Europe, US, and Japan. This strategic move furthers BMLL’s commitment to expanding its data coverage for the benefit of global market participants.

BMLL’s clients, ranging from banks and asset managers to academic institutions and regulators, will now be able to utilise the company’s trading analytics for detailed analysis of both Cboe Europe’s indices and their constituents, accessible via multiple BMLL platforms, including BMLL Data Lab, BMLL Data Feed, and BMLL Vantage.

BNY Mellon Launches AI-Focused Digital R&D Hub in Dublin

BNY Mellon has announced the creation of a new Digital R&D Hub in Dublin, with an initial investment of €8 million. The hub will spearhead innovation in AI, machine learning, and data analytics. By the end of 2025, it’s expected to more than double the bank’s digital team in Dublin, creating 30 specialist jobs.

BNY Mellon’s recent increase in patent applications and successful AI initiatives such as its Predictive Analytics for Trade Settlement underline the bank’s commitment to technological innovation. Furthermore, the hub aims to boost local STEM talent development through collaborations with educational bodies and new recruitment efforts.

Eurex Launches First European Bitcoin Index Futures Contract for US Investors

The US Commodities Futures Trading Commission (CFTC) has approved the trading of Eurex FTSE Bitcoin Index Futures for US-based investors, beginning 29 May 2023. This milestone marks Eurex’s efforts to provide secure and regulated access to cryptocurrencies, making it the first exchange in Europe to offer Bitcoin index futures. Trading began outside the US on 17 April 2023, and the contract was developed with FTSE Russell and Digital Asset Research.

The futures contracts trade in EUR and USD and are equivalent to one Bitcoin, with cash settlement upon expiry. Since the launch, over ten members have traded hundreds of contracts, with further participants preparing to join.

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.