In other FinTech announcements, Bloomberg launches a Canadian FX benchmark service and Synechron is working with Bankdata on a four-year project for 11 banks.
New LiquidityBook Clients Went Live in December
LiquidityBook, a software-as-a-service (SaaS) fintech vendor, reports that three San Francisco-based hedge funds — Pier 88 Investment Partners, Zeo Capital Advisors and Solstein Capital — have signed on as new clients for the SaaS-based LBX Buyside POEMS (portfolio, order and execution management system).
By late last year, the hedge funds installed the LBX Buyside platform, which offers order, execution and portfolio management capabilities such as real-time net asset value (NAV) support, full historical P&L, risk management and reporting features. The system includes the integrated LBX Connect FIX routing network for electronic trading connectivity to 250 routing destinations across the globe.
Jackie Fertitta, COO and CCO, Pier 88
“The deployment process for an OEMS can be arduous and time-consuming,” says Jackie Fertitta, Pier 88’s chief operating officer (COO) and chief compliance officer (CCO) in a prepared statement. The multi-strategy hedge fund deployed the POEMS platform during the third quarter of 2016 to help manage trading across its four funds. “Remarkably, they were also able to help us integrate our fourth fund on the platform in only two days,” Fertitta adds.
At Zeo Capital Advisors, which manages a long-only, fixed income mutual fund, the deployment will help with trade allocations, a major
Venk Reddy, CIO, Zeo Capital Advisors
pain point, says Venk Reddy, portfolio manager and chief investment officer for the firm. The LiquidityBook platform to manage trading and operational processes is a key part of the firm’s infrastructure that was not internally developed, Reddy says. “Our conversations with LiquidityBook have been collaborative with a mutual recognition of evolving together,” Reddy says.
Solstein Capital is using “the full LBX Buy-Side POEMS to handle not only their existing hedge fund but also their new long-only strategy launched in Q4 2016,” LiquidityBook officials say.
Bloomberg Launches Canadian FX Benchmark Rates Service
Bloomberg has just launched Canadian foreign exchange benchmark rates ahead of the Bank of Canada, which will adjust the timing, frequency and calculation of the daily average rate for currencies against the Canadian dollar, officials say.
“Bloomberg customers can see the Canadian BFIX live-streaming, real-time on the Bloomberg Professional service (Terminal) at {BFIX<GO>},” according to Bloomberg. “These rates and others can be seen at www.bloomberg.com/markets/currencies/fx-fixings.”
On March 1, the Bank of Canada will implement its changes for the daily average rate for currencies against the Canadian dollar, and these changes are intended to reinforce the distinction between FX rate fixings used as benchmarks for transactional purposes and Bank of Canada exchange rates that are provided as a public good — for statistical, analytical and informational purposes only, according to Bloomberg.
Bloomberg’s Canada BFIX benchmarks can be used for portfolio benchmarking, derivatives valuation, index construction, and trade execution. “BFIX covers spot, forward and non-deliverable forward (NDF) rates,” according to Bloomberg. “They are based on a Time Weighted Average Price (TWAP) methodology that captures streaming bid/ask data — indicative executable and executed — from multiple FX pricing providers.”
The Bloomberg Canada BFIX follows closely the launch of the European BFIX counterpart, introduced before the European Central Bank withdrew from providing FX reference rates as a transactional benchmark in July 2016, officials say.
The BFIX family of benchmarks was confirmed to be aligned with the International Organization of Securities Commissions’ (IOSCO) Principles for Financial Benchmarks, according to an assessment by an internationally recognized accounting firm, announced in May 2016, Bloomberg officials add.
Synechron Works with Bankdata on Murex Project for 11 Banks
Synechron, a financial services consultancy and technology services provider, is working with new partner Bankdata, a Danish IT services vendor to provide Murex solutions for 11 local banks, officials say.
Synechron has been contracted to be the system integrator for the implementation of Murex 3.1 in front-to-back office, accounting and risk across all asset classes for the “KaMP” capital markets program, officials say.
The unique program is the first Murex implementation as a utility and has been divided into several phases, Synechron officials say.
“The first phase began in November 2015 with front-office FX Options,” Synechron officials say. The project is expected to last four years and will involve approximately 100 experts from Bankdata, Murex and Synechron in 2017 and 2018. Managing the bank segregation issue in a single Murex instance will be one of the major challenges, officials add.
“Synechron is a certified Murex partner, which gives us access to considerable expertise and knowledge on Murex methodologies and best practices. These skills are not available in Denmark,” says Jesper Glogauer, vice president of capital markets at Bankdata, in a statement.
The first 15 Synechron Murex consultants have started the project for Bankdata at its head office in Fredericia, Denmark. They are integrating the scope and design of Phase II for “front-to-back office derivatives and accounting for the program. They will participate in the program management, planning, architecture, integration and support team set-up,” Synechron officials say.
Bankdata may also use the services of Murex teams at Synechron’s European Delivery Center based in Serbia. Synechron will help in the training of Bankdata staff and the transfer of skills and knowledge in relation to the KaMP Program and Murex in particular, Synechron officials say.
Synechron adds that it was selected after a competitive process among four providers during the summer of 2016.
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