In other FinTech news, NEX Optimisation debuts a regulatory reporting service and the Australian Securities Exchange (ASX) is expanding its use of GoldenSource’s technology.
Linedata Extends Morningstar Agreement
Investment management systems vendor Linedata is expanding its fixed income and credit derivatives coverage for its fund services clients via an extension of its partnership with Morningstar, officials say.
“The partnership will provide expanded analytics to meet the requirements of alternative funds and [separately managed accounts] and enhances Linedata Admin Edge’s financial reporting capabilities, adding diversity to Linedata’s auditable client reporting,” according to Linedata. “This will initially take the form of an integration between the Linedata Admin Edge fund administration platform and Morningstar’s BondPro library of fixed income and derivative analytics and accounting calculations.”
The Linedata Admin Edge system has “a significant client base” that works in fixed income and alternatives markets. BondPro will give them access to more instrument coverage and “greater agility in dealing with their associated calculations,” officials say.
The diversity of global fixed income products requires accounting systems to be flexible, officials say. The growth of alternative mutual funds and the increase in popularity of direct lending in private equity type structures require accounting systems to meet this challenge, according to Linedata.
“As the global fixed income market becomes more complex and as more managers move to gain international exposure, dealing with these complexities can become quite a burden,” says Todd Roitfarb, head of fixed income products at Morningstar.
NEX Optimisation Launches European Regulatory Reporting Service
NEX Optimisation has launched NEX Regulatory Reporting, an effort that incorporates the services and offerings of Abide Financial, a NEX Group business.
The NEX Regulatory Reporting offering will be a suite of “best-in-breed” services under a single umbrella to offer clients a versatile reporting solution, officials say. The reporting service includes an updated user interface for full transparency into the transaction lifecycle process and to offer insights into underlying reporting timeliness and data quality.
The managed service solution will perform the “necessary data enrichments and transformations that are needed for each reporting regime, as well as performing deep data validation and reconciliation to demonstrate full compliance,” officials say.
The reporting service begins with the analysis of each client’s reporting environment as Abide’s team “tailor a complete solution to meet the client’s needs according to jurisdiction, classification and traded instruments,” officials say. “The platform provides regulatory change notifications ahead of time as well as hands-on help from reporting experts to manage that change.”
Clients can then connect to multiple NEX Optimization services such as regulatory reporting and Markets in Financial Instruments Directive (MiFID) services, officials say. Clients can also use a comprehensive data connector and ingestion service for multiple data types.
Abide operates many approved regulatory end points and is an Approved Reporting Mechanism (ARM) under MiFID I, officials say. It has applied to be an ARM and an Approved Publication Arrangement (APA) under MiFID II.
Abide is also a Registered Reporting Mechanism (RRM) for the Regulation of Wholesale Energy Market Integrity and Transparency (REMIT), and aggregates reports for European Market Infrastructure Regulation (EMIR) as well as Asian derivatives reporting to the Australian Securities and Investments Commission (ASIC) and the Monetary Authority of Singapore (MAS). Abide has also filed its application to become a trade repository for EMIR reporting.
Officials add that Abide is a reporting partner to more than 120 clients including banks, asset managers, hedge funds, brokers and trading firms and venues.
ASX to Manage Futures & Options Contracts via GoldenSource
The Australian Securities Exchange (ASX) will be using the enterprise data management (EDM) systems from GoldenSource to automate the creation and rollovers of approximately 20,000 futures and options contracts annually, ASX and vendor officials say.
“The contracts will be created and published on intra-day, weekly, monthly and quarterly cycles depending on the asset class,” according to GoldenSource officials. “All ASX’s new equities and futures listings are now automatically published to multiple operational and test systems, removing manual maintenance by four operations teams.”
The new IT implementation is part of ASX’s Futures Contract Maintenance Automation (FCMA) project to make it easier to manage complex derivatives contracts. “During a recent production run, more than 3,300 records were automatically listed over three separate environments. Previously this would have involved manual triple keying into different systems, so this is a significant efficiency gain,” officials say. ASX, a GoldenSource customer since mid-2012, has to reduce maintenance costs and risk while speeding up new product development via this enhancement.
“It’s a great achievement that the go-live has gone so smoothly, considering that the upgrade was implemented simultaneously with a major increase in functionality,” says Neill Vanlint, managing director, of EMEA and Asia at GoldenSource, in a prepared statement. “With no signs of slowdown in the creation of new derivatives contracts, increasing automation is key to solving the maintenance overhead issues facing the majority of exchanges today.”
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