In other FinTech news, NRI upgrades I-STAR for Japanese bonds, QB Partners with Rebar Systems and PIMCO builds ties to Beacon Platform Inc.
Crypto Facilities to Provide Calculations for New Services
CME Group, the derivatives marketplace, and Crypto Facilities Ltd, a cryptocurrency trading platform, report the launch of the CME CF Ether-Dollar Reference Rate, which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and CME CF Ether-Dollar Real Time Index, which will allow users access to a real-time Ether cryptocurrency price in U.S. dollars.
Both the Ether Reference Rate and Ether Real Time Index will be calculated by Crypto Facilities and will be based on transactions and order book activity from two cryptocurrency exchanges — Kraken and Bitstamp.
The existing Bitcoin Oversight Committee, consisting of CME Group, Crypto Facilities and industry experts, will take on the additional responsibilities for overseeing these new reference rates, per CME. The oversight committee will regularly review the methodology, practices and standards to protect the integrity of the reference rates.
NRI Upgrades I-STAR for T+1 Settlement of Japanese Bonds
The Nomura Research Institute, Ltd., a consulting services and system solutions provider also known as NRI, reports the upgrade of its I-STAR suite to support the T+1 settlement of general collateral repurchase transactions (repo) promoted by the Japan Securities Clearing Corp. (JSCC). “T+1” refers to settlement that is completed one day after the transaction.
In fact, the I-STAR Suite was recently updated to I-STAR/CORE for real-time processing, which prepared the suite to be “ready for T+1 settlement of Japanese government bonds,” NRI officials say.
“I-STAR/LC, a functionality of I-STAR/CORE can now calculate and submit allocable balances stating the issues available for allocation and their balance by each netting account or fund (positive list) to JSCC in real-time,” NRI officials say. “Real-time submissions enable I-STAR users to improve the efficiency of operations as well as to increase organizational transparency.”
I-STAR has been updated to provide enriched real-time processing, reliability and expandability, NRI says. NRI’s I-STAR, an application service provider (ASP) solution enables users to respond to regulatory changes in the industry, while also reducing the cost of upgrading the system each time, per NRI.
QB Partners with Rebar Systems for Futures Algorithms
Quantitative Brokers, a provider of algorithms and data-driven analytics to clients in the futures and U.S. cash treasury markets, reports the initiation of a partnership with Rebar Systems, a fintech company specializing in multi-asset order and execution management systems (OMSes). The agreement will enable QB’s execution algorithms to be offered on ROME, Rebar’s order management and execution product.
ROME, formally launched in April 2018, integrates Bolt, Strobe, and Closer, QB’s fixed income and futures algorithms, to offer hedge funds and asset managers streamlined trading workflows and a greater ability to achieve and measure best execution, the partners say in a statement.
In addition to the algorithms, which are designed to optimize execution by dynamically responding to market conditions, QB offers extensive transaction cost analysis for clients, officials say.
PIMCO Creates Closer Ties to Beacon Platform
Money manager PIMCO is partnering with fintech vendor Beacon Platform Inc., to provide quantitative research and analytics to PIMCO portfolio managers globally, officials say.
In addition, PIMCO has announced that it has acquired a minority stake in Beacon and will license the flagship system from the vendor, which specializes in “cloud-based, end-to-end development and production platforms,” officials say.
Beacon’s platform offers proprietary analytical models and tools in an environment connected to market and enterprise data. “PIMCO will integrate the platform with its valuation models, risk analytics and technology,” officials add. The platform will be deployed globally to deliver proprietary models developed internally by PIMCO’s quantitative analysts and technologists and will support the firm’s 240 portfolio managers around the world.
“Our portfolio managers around the world will have broad access to Beacon’s platform for faster and more efficient use of PIMCO’s proprietary risk analytics and quantitative research, helping them implement investment strategies to deliver attractive returns for our clients,” says Emmanuel Roman, PIMCO’s CEO, in a prepared statement.
“PIMCO’s partnership with Beacon is part of the firm’s broader strategic efforts to further integrate technology and quantitative research into our investment process,” according to a company statement. “PIMCO recently announced it will open an office in Austin, Texas later this year, in part to recruit talented technologists to advance the firm’s underlying investment-related infrastructure.”
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