NYSE Euronext Hopes to Redeem LIBOR
A subsidiary of NYSE Euronext — the NYSE Euronext Rate Administration — will be the new administrator for the London Interbank Offered Rate or LIBOR and exchange officials are hoping they can redeem the reputation of the interest rate benchmark, tarnished by scandal.LIBOR reference rates are used for short-term interest rates based upon averages of interbank deposit rates used by major global banks.
“As part of a leading global exchange and market infrastructure group, NYSE Euronext Rate Administration Limited is uniquely placed to restore the international credibility of LIBOR,” say NYSE Euronext officials.
Yet industry observers and participants such Gary Gensler, CFTC chairman, have been urging firms to move away from the use of LIBOR. They cite its inherent flaws and the recent scandal in which major participating banks kept LIBOR rates artificially low via fraud and collusion before and during the Great Recession. The British Bankers’ Association, overseer of the LIBOR process, ultimately agreed to let regulators take control of the process. The Hogg Tendering Advisory Committee led the selection process to designate the new LIBOR administrator.
NYSE Euronext officials say the transfer of LIBOR administration from BBA LIBOR Ltd, the subsidiary of the British Bankers’ Association, to NYSE Euronext is expected to be complete early next year once the Financial Conduct Authority approves the transaction.
Omgeo CTM and Eze OMS Launch Matching Link
Post-trade services vendor Omgeo and Eze Software Group have launched an interface to automate futures and options matching between the Eze OMS and Omgeo Central Trade Manager, say officials. The new link will match domestic and cross-border exchange-traded derivatives, equities and fixed-income transactions. The interface was developed using Omgeo CTM’s XML-based messaging format.
The interface targets Eze OMS buy-side users and broker counterparties that need support for matching and high-volume trading, say officials. In addition to Omgeo CTM, the Eze OMS links to Omgeo OASYS, an allocation and confirmation service for US securities, say officials. Eze Software Group and Omgeo officials say they have more than 175 clients live on their joint offerings.
Ageon Goes Global with Markit EDM
Aegon Asset Management will roll out Markit’s Enterprise Data Management platform (formerly Cadis) across its global operations, say Markit and Aegon officials. The firm, which has €250 billion ($372 billion) in assets under management, will deploy Markit EDM to support data management processes across multiple business units.
“We’ve been a Markit EDM customer for over seven years via Kames Capital in the UK,” says Keith Rake, global chief operating officer for Aegon Asset Management in a statement. Initially, an Aegon division became a Markit EDM customer in 2005 when Kames Capital, previously Aegon Asset Management UK, implemented the platform for its data management operations, officials say.
Markit EDM also acts as the firm’s investment book of record (IBOR) and historical database for reporting. Markit EDM’s central data hub will be deployed in Aegon USA Investment Management (US), Aegon Asset Management (Netherlands) and TKP Investments (Netherlands).
Riyad Bank to Deploy Calypso Platform
The Saudi Arabian firm Riyad Bank has selected Calypso Technology to provide support for treasury operations, structured products, and hedge accounting, officials say. The bank will roll out the Calypso platform in a bid to align its treasury operations with international and Islamic financial industry standards. Calypso will also support the cross-asset requirements of the bank’s FX (cash and derivatives), money market, interest rate derivatives, fixed income and commodities (including precious metals and derivatives) operations, officials say.
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