In other FinTech news, Kaizen’s MiFIR offering supports APA, AllianceBernstein will use ICE’s Liquidity Indicators, Linedata debuts trade execution analytics, and BNP Paribas joins the new U.S. Alliance for Sustainable Finance.
U.K. MTFs Can Operate as Exempt SEFs
The U.S. Commodity Futures Trading Commission (CFTC) has issued an amended order that will allow an additional four multilateral trading facilities (MTFs) authorized within the European Union to be exempted from the requirement to register with the CFTC as swap execution facilities (SEFs).
The four additional United Kingdom-based exempted MTFs are Creditex Brokerage LLP, Currenex, FX Connect, and Thomson Reuters.
The new MTFs bring the number of exempted MTFs and OTFs (i.e., organized trading facilities) to 20 European Union-authorized trading venues.
Kaizen Reporting’s MiFIR Offering Supports APA Trade Reporting
Kaizen Reporting, the London-based specialist regulatory reporting company, has announced it is extending its assurance service, ReportShield, to cover MiFIR trade reporting, officials say.
Under MiFID II, investment firms must report on trades and transactions. “Trade reporting improves the near to real-time trade transparency information published to potential investors. Financial details of trades are reported to an Approved Publication Arrangement (APA) for dissemination to the market,” according to Kaizen officials. “In transaction reporting trade details must be reported in T+1 to an Approved Reporting Mechanism (ARM) which validates the data before sending the reports to regulators.”
In addition, Kaizen officials report that they have hired Chris Machin to help develop the vendor’s new testing service; Machin helped develop the MiFIR real-time reporting solution TRADEcho.
Machin’s background in global banking includes posts at UBS and Credit Suisse where was involved in operations and client services, officials say. He will bring subject-matter expertise on major regulatory regimes such as MiFIR, CSDR, SFTR, MAR, EMIR and Dodd-Frank. He was most recently head of client support at Simplitium, where he partnered with the London Stock Exchange Group (LSEG) to develop the APA TRADEcho.
Kaizen’s ReportShield assurance service is a set of four controls that test for the accuracy and completeness of regulatory reports, officials say.
AllianceBernstein Embraces ICE’s Liquidity Indicators
Intercontinental Exchange, Inc. (ICE), an operator of global exchanges and clearinghouses and a provider of data and listings services, reports that AllianceBernstein L.P. (AB) has picked ICE Data Services’ ICE Liquidity Indicators to “help support AB with its investment management, liquidity risk management and regulatory compliance obligations.”
ICE Liquidity Indicators offers a “suite of solutions designed to directly support clients in dealing with these [regulatory] challenges,” combining “liquidity modeling techniques with user-defined inputs to simulate liquidation scenarios across millions of fixed income, equity, and derivative instruments. These capabilities are designed to offer actionable oversight at the security-level, portfolio-level, and across the complex through a flexible user interface, compatible content delivery mechanisms, and multi-layered reporting services,” according to ICE’s statement.
Intercontinental Exchange is a Fortune 500 and Fortune Future 50 company, formed in 2000, and the parent company of the New York Stock Exchange (NYSE), officials note.
Linedata Debuts Trade Execution Analytics via TI
Linedata, a French provider of credit and asset management technology, data and services, reports that it is launching a suite of execution analytics, in conjunction with Trade Informatics (TI), a quantitative analytics firm. This partnership will employ TI’s broker-neutral trading engine, officials say.
The partnership will enable clients to “minimize cost and maximize performance by creating workflows that tie order source alpha directly to their execution strategy,” the companies say in a statement.
“We continue to seek out partners that drive better decisions into our clients’ workflow,“ Michael de Verteuil, deputy managing director in charge of business development at Linedata, says in a statement.
Linedata tallied revenues of €179.0 million ($203.3 million) in 2017.
BNP Paribas Helps Found U.S. Alliance for Sustainable Finance
BNP Paribas officials announced last week that the banking giant is one of the 15 founding members of the U.S. Alliance for Sustainable Finance (USASF), officials say. The news broke during the inaugural Sustainable Finance Week in New York City.
The alliance, created via the media and trading systems giant Bloomberg, supports the “global mobilization of private capital in response to climate change concerns,” officials say.
The alliance’s aim is “to drive investment in clean energy and climate resilience projects across the U.S.,” officials say. “The alliance will provide the resources and expertise needed to identify and streamline existing climate-finance initiatives, encourage greater transparency across climate-related financial risks and opportunities, and ultimately, drive more capital to sustainable investments.”
The founding members of USASF are: Bank of America, BNP Paribas, Citi, Crédit Agricole CIB, Credit Suisse, Goldman Sachs, HSBC, JPMorgan Chase, Macquarie Group, Morgan Stanley, Neuberger Berman, Nuveen, S&P Global, Trillium Asset Management, and Wells Fargo. The USASF will also join the global network of Financial Centres for Sustainability (FC4S) convened by the United Nations Environment Programme, officials add.
“As one of the 15 founding members of USASF, BNP Paribas believes that this alliance will stimulate further climate-friendly and sustainable finance innovation across the U.S. capital markets,” says Jean-Yves Fillion, CEO of BNP Paribas USA and chairman of CIB Americas, in an official statement. “We are confident that the financial services industry can help be a positive force for change due to its central role in financing the economy, and we look forward to working with the USASF to meet the Paris Agreement targets.”
More information regarding the USASF is here.
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