In other FinTech news, Liquidnet has a new president, PPM America looks to the cloud, IHS Markit gathers ESG data, ISDA has a CDS protocol for Germany, and KACE Pro embraces streaming FX options pricing.
CMB Wing Lung Bank Revamps Back Office
The Hong Kong-based CMB Wing Lung Bank has implemented a back-office custody solution from post-trade financial technology vendor GBST in an effort to grow its custody banking business, officials say.
The bank, which is a subsidiary of China Merchants Bank, is using GBST’s Syn~Ops Custody product to clear, settle and account for its global custody activity in a single system, officials say. The China Merchants Bank is already using GBST’s capital markets technology solutions.
The Syn~Ops Custody platform is “a workflow-driven and cloud-capable solution” that helps prime brokers and custodians focus on customers and cut the costs of operations through automation, officials add. The offering is part of the Syn~ suite of products that includes post-trade solutions for middle and back-office functions, and lowers operational costs and improves sell-side customer service.
“Our partnership with CMB Wing Lung Bank demonstrates our continued customer growth within the important local market segment, leveraging the capability we have developed for international investment banks and brokers in the region,” says Denis Orrock, head of Asia Pacific at GBST, in a prepared statement.
GBST, which has offices in Hong Kong and Singapore, reports that Haitong International, Deutsche Bank and Raymond James are customers.
Liquidnet Names New President
Liquidnet, a global institutional investment network, reports the appointment of Brian Conroy as president, effective immediately. Conroy, a 30-year financial-services veteran, joins from Fidelity International in London. Prior to his time in London, he was president of Fidelity Capital Markets. At Liquidnet, Conroy will be based in New York, reporting directly to Seth Merrin, the firm’s CEO and founder.
PPM America Deploys CloudMargin Platform
PPM America, Inc. (PPM), a Chicago-based subsidiary of U.K.-based Prudential plc, has just gone live with a CloudMargin collateral and margin management solution that runs via cloud computing, officials say.
The investment management firm, which has $119.16 billion in assets as of Jan. 31, 2019 including $9.31 billion managed by PPM Finance Inc., is using CloudMargin for its collateral management margin workflow, collateral optimization and trade reconciliation with counterparties and futures commission merchants (FCMs), officials say. (PPM Finance manages commercial mortgage loans and certain real estate investments.)
Before selecting CloudMargin, PPM “had engaged in a comprehensive search for an enterprise collateral management solution that would meet its stringent requirements for workflow, optimization and reconciliation for the wide range of instruments in its portfolio,” according to CloudMargin officials.
The CloudMargin workflow facilitates the following agreements and types of transactions:
- ISDA collateral service agreements for bilateral over-the-counter (OTC) derivatives;
- Cleared over-the-counter (OTC) transactions;
- Exchange-traded futures and options;
- And Master Securities Forward Transaction Agreements (MSFTAs) for mortgage-backed securities and TBA (To-Be-Announced) mortgage-backed instruments.
“The collateral workflows have been streamlined at PPM with the implementation of CloudMargin,” CloudMargin officials say in a statement. “With the tool, PPM is able to quickly onboard new counterparty relationships and add new accounts to existing relationships in short order. PPM noted the implementation and support staff have been great partners in helping achieve their goals.”
CloudMargin is headquartered in London.
IHS Markit Brings ESG Data Collection to PE & VC Markets
IHS Markit, a specialist in the collection of information and analytics, reports the launch of an environmental, social and governance (ESG) data collection and reporting system for private equity firms, venture capital firms, and their portfolio companies and investors.
The new system is part of iLevel, its platform connecting participants in private capital markets.
ESG reporting in iLevel covers 29 metrics relevant to investors seeking data from portfolio companies and to PE or VC funds themselves, IHS Markit says, adding that general partners can customize the ESG metrics they want to collect based on their investor needs or portfolio companies’ characteristics.
ISDA Publishes German Bank CDS Protocol
The International Swaps and Derivatives Association (ISDA) reports the launch of its 2019 German bank credit default swap (CDS) protocol, designed to reflect changes being made to CDS on German bank reference entities.
Following a 2018 change in German law, ISDA points out, the country’s banks are able to issue two types of senior unsecured debt obligations: senior preferred and senior non-preferred.
The ISDA 2019 German bank CDS protocol allows parties to update certain existing transactions on German bank reference entities to apply the European senior non-preferred financial corporate transaction type, maintaining fungibility between legacy and new transactions, the association notes.
The text of the protocol and a link for adherence, along with answers to frequently asked questions, are available on the protocols section of ISDA’s website.
KACE Pro Offers Streaming FX Options Pricing
kACE, a division of Fenics Software Ltd., has unveiled the latest release of its platform, kACE Pro, which helps clients stream FX Options prices to internal and external clients, single dealer platforms, execution venues and third-party platforms, officials say.
“This new release allows our clients to stream FX Options prices to internal users, sales teams, wealth managers, or directly to their clients,” says Richard Brunt, managing director for kACE, in a prepared statement. “Our agnostic approach to front-end users means that our clients can distribute their prices via a wide range of channels and venues using a single kACE pricing and dealing engine.”
Streaming prices help kACE clients offer “tighter spreads to their clients, backed by bespoke dealing logic,” adds John Crisp, director of product strategy for kACE, in a statement. “We have also added automated hedging functionality that sends the delta hedge ticket directly to the cash-trading platform, minimizing quoting risk and reducing hedging costs and operational inefficiencies.”
The new functionality will be available to all existing clients, officials add.
kACE is the product brand for the solutions provided by Fenics, and was launched in July 2018 following the acquisition of Kalahari Ltd. by Fenics. The product range includes pricing, analytics, distribution and trading tools for many asset classes.
Fenics is part of BGC Partners, Inc., a global brokerage and financial technology company.
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