Our free FinTech update also covers the collaborative efforts of BNY Mellon & GTreasury, and Orchestrade & GLMX; and LCH SwapAgent’s non-LIBOR move.
Manfred Knof to Replace Martin Zielke at Commerzbank
Frankfurt-based Commerzbank has named its next CEO as Manfred Knof who comes from Deutsche Bank where he’s been head of a competing private banking business for Germany.
Manfred Knof
Knof, 55, will oversee the bank’s managing directors, starting January 1 of next year. He will succeed Martin Zielke, the chairman of the Commerzbank board of managing directors as per the unanimous actions of the supervisory board of Commerzbank, which notes that the decision is subject to the approval of supervisory authorities.
“I am pleased that we have been able to win Manfred Knof for the role of Commerzbank’s CEO,” says Hans-Jörg Vetter, chairman of the supervisory board of Commerzbank, in a prepared statement. Vetter says Knof “is an experienced and highly effective top manager who has proven himself in a wide range of tasks in the financial services industry. He brings the necessary expertise and human leadership skills for the tasks that lie ahead of the bank.”
Martin Zielke
Zielke, who steps down on Dec. 31 of this year, announced his resignation in July in response to major shareholder pressure that he and then-chairman of the bank’s supervisory board Stefan Schmittmann step down in light of the ongoing, poor financial performance of the bank. Zielke has laid the groundwork for the tasks the Knof will take on, Vetter says. During his tenure as CEO, Zielke “focused Commerzbank’s business model and pushed ahead with the digitalization of the bank. In doing so, he has set important strategic impulses, which will be decisive for Commerzbank’s future success.”
Knof joined Deutsche Bank in August 2019 as head of the Private Bank Germany group and a member of the Group Management Committee. He has also served as board chairman of DB Privat- und Firmenkundenbank AG, which came about as the result of the merger of Deutsche Bank Privat- und Geschäftskunden AG and Deutsche Postbank AG in 2017.
To streamline efforts and cut costs, Deutsche Bank merged with DB Privat- und Firmenkundenbank AG in May of this year, officials say. After the merger, Knof became head of Deutsche Bank’s Private Bank Germany. Before his time at Deutsche Bank, Knof served as CEO of Allianz Deutschland AG and led a digitalization of insurer’s business.
BNY Mellon & GTreasury Integrate Key Offerings
BNY Mellon and treasury management services provider GTreasury have combined efforts to provide BNY Mellon LiquidityDirect clients direct access to GT’s cash management and payment capabilities, officials say.
LiquidityDirect is a digital portal for investing in money market funds
“Under the new collaboration, BNY Mellon clients will have the opportunity to achieve greater visibility into their cash balances and more efficient utilization of these assets,” according to a statement from BNY Mellon. The GTreasury treasury and risk management platform will let clients “identify where balances are located across bank accounts, regions and time zones and then deploy the assets to productive ends.”
For instance, the integration effort allows BNY Mellon clients to move cash into funds available via LiquidityDirect while they are working in the GTreasury environment, officials say.
“Furthermore, treasurers already familiar with the GTreasury ecosystem will not be required to make any changes to their existing infrastructure to take advantage of this new functionality, and the new investment capabilities will be provided to eligible clients at no additional cost,” according to BNY Mellon.
Orchestrade & GLMX Focus on Repo Trading Ops
Vendors GLMX Technologies and Orchestrade Financial Systems are partnering to provide greater integration between their platforms that will facilitate more trading and operational efficiency for firms participating in global repo markets, officials say.
Their collaboration has resulted in real-time views of risk, access to pricing, faster onboarding, high throughput and more collateral mobility across securities financing transactions, officials say.
“With traders still adjusting to remote working parameters, Orchestrade’s streamlined cloud deployment capabilities combined with GLMX’s comprehensive data capture tools allow customers to instantly react to repo market activity and analyze risk, regardless of their location,” according to a statement from the vendors.
“As GLMX extends its connectivity, we are driving forward the automation of repo markets,” says Andy Wiblin, chief product officer and head of GLMX Europe, in a prepared statement.
LCH SwapAgent Services Non-LIBOR Transaction
LCH SwapAgent, a service for the non-cleared derivatives market, reports that it has registered its first, non-LIBOR, SONIA/SOFR cross-currency basis swap between Bank of America and Lloyds Bank Corporate Markets, both LCH SwapAgent members.
The British Pound Sterling / US Dollar basis swap was executed without the usage of the incumbent benchmark reference rate, the London Inter-bank Offered Rate (LIBOR), which is being phased out because of scandals involving its manipulation by major players. Global financial markets have begun a transition away from LIBOR and to the Secured Overnight Financing Rate (SOFR) and the Sterling Overnight Index Average (SONIA).
“As a major participant in the sterling rates market, it is important for us to see liquidity develop in the new risk-free benchmark rates,” says Richard Pattison, head of CCY and CSA, Lloyds Bank Corporate Markets, in a prepared statement. “We are happy to contribute to that developing liquidity and welcome the efficiencies SwapAgent brings to the uncleared OTC [over the counter] derivatives market.”
The SwapAgent service from LCH, which is owned by the London Stock Exchange Group, offers processing, margining, and settlement capabilities to the non-cleared derivatives space. The SwapAgent effort has 18 members using the service, officials say.
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