In other news, Trayport & IncubEx look to carbon offsets, Trading Technologies is acquired, and RIMES taps Barclays.
CFTC Also Permits Security-Based Swaps Margining
The Commodity Futures Trading Commission (CFTC) has approved a request by Banque Centrale de Compensation, doing business as LCH SA, to provide portfolio margining of swaps and security-based swaps in a cleared swaps customer account, officials say.
“The order establishes terms and conditions under which LCH SA and its clearing members that are dually registered as futures commission merchants and broker-dealers may (1) hold credit default swaps (CDS) and security-based CDS in a cleared swaps customer account subject to Section 4d(f) of the CEA; and (2) portfolio margin such CDS and security-based CDS held in the cleared swaps customer account,” according to the official statement from the regulator.
The LCH SA is “a CFTC-registered derivatives clearing organization (DCO), under Section 4d(f) of the Commodity Exchange Act (CEA),” according to the CFTC.
LCH consists of a group of multi-asset clearinghouses that operate around the world. The company has clearinghouses incorporated in the U.K., France, the United States and the Asia Pacific region, officials say. The clearing services offered cover over-the-counter and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives. LCH covers the non-cleared derivatives market via LCH SwapAgent. LCH is majority owned by London Stock Exchange Group (LSEG).
Two Vendors Plan Market For Trading Carbon Offsets
Trayport Ltd., a wholly owned subsidiary of TMX Group, and IncubEx, Inc., a privately held company that designs and develops new financial products in global environmental, climate risk, and related commodity markets, report that they plan to launch a global voluntary carbon marketplace.
The voluntary climate marketplace will be operated by IncubEx, the vendors say in a statement.
It will offer “market access to trade voluntary carbon offsets to the growing base of stakeholders looking to achieve net-zero commitments around the world,” according to the companies.
The voluntary carbon offsets will be tradable on Trayport’s Joule, an electronic trading platform for energy markets, while “IncubEx will work to build the [digitized] marketplace through its extensive experience in establishing and growing environmental markets globally,” per the statement.
The marketplace is scheduled to launch in the first quarter of 2022, the companies say, and “will initially support the trading of offsets from: Gold Standard, Verified Carbon Standard (Verra), Climate Action Reserve and American Carbon Registry, which are voluntary offset standards and recognized by the International Carbon Reduction and Offset Alliance.” — L.Ch
7RIDGE to Acquire Trading Technologies
Chicago-based Trading Technologies International, Inc., which describes itself as a provider of professional trading software, infrastructure and data solutions, reports that it will be acquired by 7RIDGE, a specialized growth equity firm invested in transformative technologies.
7RIDGE, a privately held company, expects to “fuel Trading Technologies’ organic growth and enable the firm to make targeted strategic acquisitions in the future,” according to a prepared statement from the companies.
Cboe Global Markets, Inc. and Singapore Exchange are two of the fund’s limited partners. The deal is expected to close before the end of the year and is subject to regulatory approvals.
Terms of the transaction were not disclosed.
Shortly after the acquisition closes, Tim Geannopulos, chairman of the board and CEO of Trading Technologies, is expected to step down from his current posts, officials say. Keith Todd, a 20-plus year veteran of financial markets technology, will then be appointed CEO of TT, per the statement.
TT was advised on the transaction by Broadhaven Capital Partners and Sullivan & Cromwell LLP. — L.Ch
RIMES Taps Barclays for Head of Benchmark Data Services
RIMES Technologies, based in New York City, reports the appointment of Justin Brickwood as head of benchmark data services.
He will be “accountable for product innovation and transformation,” according to the firm’s statement.
Brickwood will join the company’s executive committee and will report to Brad Hunt, CEO of RIMES.
Prior to joining, he was the head of corporate and investment bank innovation at Barclays. Before that, he spent 23 years at Goldman Sachs.
Brickwood will be based in London. — L.Ch
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