In other FinTech news, private equity firm Bregal Sagemount invests in Options and the CLS Group has made a major endorsement.
CloudMargin Site Features Interactive Tools
CloudMargin, a London-based vendor of web-based collateral and margin management solutions, has just launched what it says is an interactive “FlightPlan” microsite to help firms “navigate the uncleared margin rules and other regulations impacting their collateral management function,” officials say.
The microsite, designed by Eight Arms, offers interactive digital tools such as a map for identifying regulations in major jurisdictions around the globe, a readiness checklist and solutions comparisons — “all tailored to the inputs the user provides within each tool,” officials say. “The site also features a resource hub populated with additional industry tools, blog posts and articles.”
The site is intended to help industry participants “identify and tailor information most pertinent to their business and plan for the continued rollout through 2020 of regulations and mandates, including those coming into effect in September.”
Since 2009, authorities across the globe have been pushing to institute measures to bring new safety levels to the over-the-counter (OTC) derivatives market via central clearing, and the posting of initial margin (IM) and variation margin (VM) for derivative transactions not centrally cleared, officials say.
The new rules for OCT central clearing took effect in 2012, and uncleared margin rules have been implemented starting last year and continuing until 2020, officials say.
“Among the upcoming new collateral requirements facing the financial industry are the Sept. 1 end of the forbearance period on VM in multiple jurisdictions,” according to CloudMargin officials. Other deadlines to consider are: the Dec. 15 deadline related to FINRA 4210; the Jan. 3, 2018 deadline for physically settled foreign exchange (FX) forwards; and the ongoing rollout of IM rules.
“We want this to be a go-to resource for firms affected by these new regulations, whether they operate in one country or in regions throughout the world,” says Kari Litzmann, CloudMargin’s chief marketing officer (CMO), in a prepared statement.
The site features insights from diverse market participants and service providers such as regulatory consultancy Derivatives Risk Solutions (DRS) and automated documentation specialist SmartDX, officials say. The regulatory mapping has been provided by DRS while SmartDX provides an industry standard for automating trade and relationship document generation, collaboration and processing.
Private Equity Firm Bregal Sagemount Invests $100M in Options
Options, a provider of cloud-enabled managed services to capital markets, has gotten a $100 million investment via Bregal Sagemount, a New York-based private equity firm targeting growth-oriented investments, officials say.
The transaction is intended to “enable the firm’s executive team to pursue strategic growth initiatives, invest further in platform innovations, and expand Options’ reach in key financial centers globally,” officials say.
Options, which got its start in 1993 as a hedge fund technology services provider, reports that its revenues “have more than doubled from 2014 to 2016,” officials say. “In the same period, the firm has grown its staff from 110 to close to 200 and established a presence in London, New York, Belfast, Hong Kong, Singapore, Toronto, Dublin, Geneva, and the Caribbean.”
The Bregal Sagemount investment is intended to build upon this momentum, “enabling the management team to invest in the people and technology required to scale the business, while ensuring the ability to deliver multifaceted IT solutions and a customer centric engagement and support model is maintained,” officials say.
Options officials declined to release additional terms of the transaction.
Bregal Sagemount is “a growth-focused private capital firm with $1.7 billion in committed capital,” according to the firm. Targeted sectors include software, digital infrastructure, healthcare IT services, business and consumer services, and financial technology / specialty finance.
CLS Endorses FX Global Code & Sets Up Register for Settlement Members
CLS Group (CLS), a provider of risk mitigation and operational services for the global foreign exchange (FX) market, reports that it has signed a statement of commitment to the FX Global Code, acknowledging it as “a good practice in the wholesale foreign exchange market.”
“CLS Bank International (“Institution”) has reviewed the content of the FX Global Code (“Code”) and acknowledges that the Code represents a set of principles generally recognized as good practice in the wholesale foreign exchange market (“FX Market”),” according to the CLS statement. “The Institution confirms that it acts as a Market Participant as defined by the Code, and is committed to conducting its FX Market activities (“Activities”) in a manner consistent with the principles of the Code. To this end, the Institution has taken steps, based on the size and complexity of its Activities, and the nature of its engagement in the FX market, to align its Activities with the principles of the Code.”
In addition, the CLS has set up a public register for FX Global Code Statements of Commitment. “The register, available on the CLS website, is exclusive to settlement members and will include signed copies of their Statements of Commitment,” CLS officials say.
“The FX Global Code is a common set of principles for good practice in the foreign exchange market,” says David Puth, CEO of CLS, in a statement. “As one of the largest risk mitigation providers in the FX market, serving over 60 banks and 23,000 third-party entities globally, CLS is committed to implementing the principles of the code and leading by example on ethical behavior and best practice.”
CLS officials say that Puth “played a significant role in the creation of the Code as Chairman of the Market Participants Group.” Since the launch of the code, Puth has been appointed vice chairman of the Global Foreign Exchange Committee (GFXC), set up to “promote a robust, liquid, open and appropriately transparent FX market.”
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