Our free FinTech roundup also includes alliance news for State Street & Virtus, BNPPSS & BlackRock, and KPMG & IHS.
Bitnomial Exchange Designated as a Contract Market
Chicago-based Bitnomial Exchange has gotten the greenlight from commodities regulator CFTC to become a designated contract market (DCM), which means that it can launch as a Bitcoin futures and options exchange.
“The CFTC issued the order under Section 5 of the Commodity Exchange Act (CEA) and CFTC regulation 38.3(a),” according to the CFTC. “After review of its application and associated exhibits, the CFTC determined that Bitnomial Exchange demonstrated its ability to comply with the requirements of the CEA and the CFTC’s regulations applicable to DCMs.”
“The order requires, among other terms and conditions, that Bitnomial Exchange comply with all provisions of the CEA and all requirements in the CFTC’s regulations, as may be amended or adopted, that are applicable to DCMs. Bitnomial Exchange also must comply with all representations and submissions made by it in support of its application for designation as a contract market,” according to the CFTC.
CFTC Approves Bitnomial Exchange for US Bitcoin Futures and Options Trading with Margin and Physical Delivery
The Bitnomial Exchange “will list margined and physically delivered Bitcoin futures and options, the first and only startup exchange to achieve these capabilities,” according to Bitnomial officials.
“We are building the Bitcoin Product Complex, a suite of interrelated financial products, starting with quarterly Bitcoin futures, micro futures, and options. Additionally, our products initially trade on 37 percent margin and are settled on-chain instead of book entry,” says Luke Hoersten, founder and CEO for Bitnomial, in a prepared statement.
Bitnomial reports that it is “coordinating user acceptance testing for trading and delivery starting on April 27, 2020 and customers may sign up on our website to participate.”
State Street & Virtus to Develop CLO & CDO Solutions
State Street Corp. is working with the technology vendor Virtus Partners to create technology management solutions for State Street clients in the U.S. and Europe that will build upon the firm’s front, middle and back office services for collateralized loan obligations (CLOs) and collateralized debt obligations (CDO).
The new alliance between Virtus, recently acquired by FIS, and State Street “will leverage Virtus’ Business Process-as-a-Service solution to provide services jointly to CLO and CDO clients,” according to State Street’s announcement.
“Virtus will provide collateral administration services and State Street will provide trustee services, registrar services, transfer agent services, paying agent services, bank account services and custodian services,” according to State Street.
FIS acquired a majority interest in Virtus on Jan. 2, 2020, so that FIS can offer support for “the full lending value chain across the buy and sell sides,” so that clients can add funds and grow their assets under management (AUM), FIS officials say. The acquisition will yield “a single, front-to-back-office platform that delivers pre- and post-close functionality, spans liquid and illiquid strategies, and supports both the buy and sell sides.”
FIS is a vendor serving merchants, banks and capital markets firms globally, and is based in Jacksonville, Fla.
BNP Paribas Group Works With BlackRock
Custodian BNP Paribas Securities Services (BNPPSS) and BlackRock Solutions have formed an alliance that will combine the middle office, fund administration and custody services of BNPSS with the investment management infrastructure of Aladdin for what’s being described as an integrated end-to-end investment management solution, officials say.
BlackRock’s Aladdin is an investment management and operating platform that offers risk analytics, portfolio management, and support for trading, operations, compliance, and accounting via a single platform, officials say.
The alliance will allow BNPPSS to leverage “Aladdin to perform middle office outsourced services maintaining Aladdin’s Investment Book of Record as the trusted source of data,” officials say.
The new collaboration extends an existing relationship with BlackRock —BNPPSS is a client of eFront, which BlackRock acquired last year, officials say. BNPPSS offers eFront Invest’s asset servicing solutions to alternative asset managers. The extended alliance means that BNPSS will be joining the Aladdin Provider network.
“This innovative operating model, which is already live and co-designed with our mutual client, BNP Paribas Asset Management, will combine all the advantages of a leading front office platform with those of our middle and back office capabilities and multi-local expertise,” says Arnaud Claudon, head of asset owners and managers client lines at BNPPSS, in a prepared statement.
BNPPSS reports that it is ranked as the world’s fifth largest global custodian with €10.5 trillion in assets under custody, officials say. The firm offers custody, fund administration and middle and back office services.
KPMG to Offer Training for IHS Tax Solutions
Accountancy and professional services provider KPMG is expanding its alliance with vendor IHS Markit so that it can develop solutions and train end-users in the usage of the IHS tax services, officials say.
“This strategic alliance will foster innovation, leading to the development of new solutions needed to meet our customers’ biggest operational tax challenges,” says William Sheridan, managing director, tax solutions, IHS Markit, in a prepared statement.
In addition, the alliance enables KPMG’s Information Reporting and Withholding (IRW) professionals to “train end-users on the IHS Markit Tax Solutions toolset for tax form validation and due diligence, withholding, transactional taxes, such as Section 871(m) and other operational tax solutions,” officials say.
The IHS Markit Tax Solutions focus on tax compliance via electronic platforms to help tax, onboarding and accounts payable teams, officials say. In addition, the service offers internal specialists who provide customer support for more than 150 jurisdictions. IHS Markit is an information, analytics and solutions provider.
Need a Reprint?