VRF and SASB Amalgamated into IFRS Foundation

The unification of ESG reporting standards took a further step this week when the Value Reporting Foundation, one of the early innovators in setting ESG disclosure guidance and founder of the Integrated Reporting Framework (IRF) and SASB Standards, was amalgamated into the IFRS Foundation. Their functions will continue within the International Sustainability Standards Board, which was created at the Glasgow COP26 summit last year.

MiFID ESG Requirements go Live, Compliance Caution Urged

The ESG reporting requirement under the amended Markets in Financial Instruments Directive (MiFID II) came into effect this week, with warnings from some market participants that the new regulation would add more costs and challenges to compliance teams. Financial infrastructure and data provider SIX, however, said the obligations needn’t overwhelm firms.

“Regulatory complacency is unwise for firms at this time, as the introduction of additional ESG requirements could add ongoing MiFID compliance issues. However, much of the sustainability data and criteria needed to comply with the suitability requirements under the MiFID II update is the same as that housed already for the EU SFDR and the Green Taxonomy,” said Janine Hofer-Wittwer, Senior Product Manager of Financial Information at SIX. “For market participants, the goal is to work with data providers able to source and distil the data and provide it in a way that is easy to implement, minimising the lift needed for the latest and future ESG regulatory requirements.”

Trading Technologies Launches Connectivity to NSE IFSC-SGX Connect for International Nifty Equity Derivatives Trading

Trading Technologies International, Inc. (TT), the global provider of trading software, infrastructure and data solutions has begun offering clients access to the popular Nifty equity derivatives through NSE IFSC-SGX Connect, a new joint initiative between Singapore Exchange and National Stock Exchange of India launched on July 29.

As one of the first technology providers to offer international market participants access to the NSE IFSC-SGX Connect, TT is giving global banks and other major financial institutions that use the TT® platform seamless access to Nifty equity derivatives alongside products from more than 50 other major international markets, including SGX Group.

QuantCube Launches Liquefied Natural Gas Commodity Trade Indicator

Alternative data specialist QuantCube Technology has launched a new QuantCube Liquefied Natural Gas (LNG) Commodity Trade Indicator, which aims to provide supply side commodity and energy futures traders with crucial insights at least one month in advance of official data, by tracking the import and export in volume of Liquefied Natural Gas.

Harnessing automatic identification system data to track the position of tanker ships in real time, the LNG Indicator is a significant addition to QuantCube’s suite of real-time international commodity trade indicators, which include Crude Oil, Iron Ore, and Coal.

Broadridge Opens APAC Headquarters Office in Singapore

Broadridge Financial Solutions has strengthened its presence in Asia-Pacific with a new office in Singapore that will be its APAC headquarters. The office brings together dedicated teams from product development, implementation and support, research insights, sales, marketing and finance.

“To better serve clients in Asia-Pacific on their digital transformation journeys and enable them to simplify their technology stacks to address cost pressures, inefficiencies and legacy systems, Broadridge is investing heavily in the region, and has expanded its bench of senior leaders based in Singapore,” says Samir Pandiri, president of Broadridge International.

DTCC Partners Kingfield to Automate Corporate Actions Claims

Depository Trust & Clearing Corporation (DTCC) subsidiary The Depository Trust Company (DTC) has connected its automated ClaimConnect corporate actions solution to the claims processing platform offered by Kingfield Corporation. By integrating ClaimConnect with the Kingfield platform, mutual clients, including State Street, will be able to automate claims from submission to settlement from their own proprietary systems.

Genesis Receives $20m in New Investments from Bank of America, BNY Mellon and Citi

Genesis Global, the low-code application development platform purpose-built for financial markets organizations, has followed its $200 million Series C funding announced in February with $20 million in new investments from Bank of America, BNY Mellon and Citi.

In 2021, Genesis tripled its revenue and the size of its team. Financial services firms use Genesis across the software value chain to automate spreadsheet processes, enhance existing systems, replace legacy technology and to build new, robust first-time applications.

Accenture Invests in Data and Performance Start-up pulsESG

ESG data and performance management company pulsESG has received an undisclosed investment from professional services giant Accenture, which plans to offer the Silicon Valley-based start-up’s services to its own clients. The software-as-a-service platform helps organisations integrate their internal data and investor-facing systems to help track and improve their sustainability credentials.

Data Management Tools Are Priority Investment Among Financial Services Firms

Investing in technology to optimise data and modernise data management are top priorities for financial services firms. Research by Broadridge Financial Solutions among 200 financial services professions at SIFMA Operations Conference in May 2022 shows towards 98% of respondents’ companies investing front-to-back-office workflow management, with 27% of respondents citing data management tools as their firm’s priority investment. Some 23% of firms are investing in AI and automation, 13% in human capital, 10% in cloud-native capabilities, and 8% in blockchain technologies.

On the downside, the research found 94% of firms continuing to face challenges around effective data use. Some 27%  of respondents said legacy or outdated technology are the biggest hurdle, and 23% poor data quality. challenges around effective data use. Some 27% said legacy or outdated technology stands out as their biggest , with 23% noting poor data quality. Nearly 19% said they are unable to quickly test, onboard, validate or maintain datasets.

Stacking up the stats, the research shows 57% of respondents confirming that their firms still have progress to make before they reach the advanced stages of their innovation and technology plans.

UK Governments Releases AI Rulebook

The UK government has released an AI rulebook with a view to protecting data and promoting responsible use of the technology. Proposals in the rulebook look to future regulation of AI and take a less centralised approach than the EU. AI is defined as ‘machines which learn from data how to perform tasks normally performed by humans. For example, AI helps identify patterns in financial transactions that could indicate fraud.’

The proposals are part of the Data Protection and Digital Information Bill that has been introduced to Parliament. Instead of giving responsibility for AI governance to a central regulatory body – as the EU is doing through its AI Act – the proposals allow different  regulators to take an approach suited to their industry, the aim being to create proportionate and adaptable regulation that allows AI to be rapidly adopted to boost productivity and growth.

Whatever the application, however, regulators must make sure developers and users follow six core principles: ensure AI is used safely; ensure AI is technically secure and functions as designed; make sure AI is appropriately transparent and explainable; consider fairness; identify a legal person to be responsible for AI; and clarify routes to redress or contestability.