In other FinTech news, LCH is harmonizing with SWIFT and the Fed will release stress test results later this month.
TRADEcho to Hit Early Next Year
The London Stock Exchange Group (LSEG) and Boat Services Ltd. will be offering TRADEcho, a combination of the two vendors’ existing and complimentary trade reporting services, officials say.
TRADEcho is slated to be available by the first quarter of 2017 and will offer a single trade reporting venue and will complement LSEG’s T+1 MiFID and EMIR transaction reporting services, offered through UnaVista, LSEG officials said.
In addition, the vendors are touting TRADEcho as “a single, multi-asset, pan-European reporting solution to help customers meet all of their new MiFID II trade reporting obligations, well ahead of MiFID II’s 2018 implementation,” officials say.
The TRADEcho features are:
- Trade Reporting: TRADEcho supports the new requirements of investment firms and trading venues for real-time, over-the-counter (OTC) trade reporting;
- SI Quoting: TRADEcho will publish quotes via London Stock Exchange market data feeds, market data vendors and the service’s portal as well as offer white labelled portals to SIs, who will be able to manage client access to the portal
- On exchange, off book: TRADEcho will provide London Stock Exchange member firms post-trade reporting services for on-exchange trades, to help customers manage investment mandates, counterparty risk through default rules and buy-in rules
- Cleared model: TRADEcho will provide a trade validation and risk management tool to allow trade reports to be flagged for onward routing to a central counterparty clearinghouse (CCP). This will facilitate settlement and netting with order book trades;
- And a multi-service web portal: TRADEcho will operate via a new web-based portal supporting the above services as well as providing reference data
LCH to Use SWIFT’s ISO 20022 Harmonization Charter
As the first CCP to sign the Charter, LCH leads the way for efficient market adoption of ISO 20022 for collateral management
SWIFT officials say that clearinghouse LCH has signed up to the so-called ISO 20022 Harmonization Charter, “an industry-driven framework that facilitates the rollout of the ISO 20022 messaging standard and provides the technology platform to promote harmonization.”
LCH is one of 17 financial market infrastructure providers that have endorsed the charter, “with other participating organizations including payments associations, central banks and exchange groups.”
LCH, which is majority-owned by London Stock Exchange Group, uses ISO 20022 over SWIFT to send and receive collateral messages, including margin call notifications, with its members, officials say. LCH will use SWIFT’s MyStandards platform to share and publish information about its ISO 20022 usage and market practices to enable “greater clarity and consistency across the community,” according to SWIFT.
“Standardization and providing our members and their clients with an efficient process is an important element of our collateral management service,” says Gerard Smith, director, Collateral Services, LCH, in a prepared statement.
Fed to Release Stress Test Results on June 23
The Federal Reserve Board will be announcing the results from the latest supervisory stress tests conducted as part of the Dodd-Frank Act on Thursday, June 23, while the related results from the Comprehensive Capital Analysis and Review (CCAR), will be released on Wednesday, June 29.
Fed officials say results for both exercises will be released at 4:30 p.m. EDT.
“The Dodd-Frank Act stress tests are forward-looking exercises conducted by both Federal Reserve staff and by large bank holding companies supervised by the Federal Reserve,” according to the Fed. “The exercises help assess whether institutions have sufficient capital to absorb losses and continue operating during stressful economic and financial conditions over a period of nine quarters.”
The results of the tests conducted by Federal Reserve supervisors will include data such as “projected post-stress capital ratios, revenue, expense, and loss estimates under hypothetical adverse and severely adverse scenarios previously published by the Federal Reserve,” officials add.
The standardized capital actions used for the Dodd-Frank Act stress tests assume no changes in recent levels of dividend payments and no common stock repurchases for each participating bank holding company and allow the results to be compared across the firms, officials says. The same institutions will separately release their company-run Dodd-Frank Act stress test results on or before July 8.
CCAR is “an annual exercise by the Federal Reserve to help assess whether large bank holding companies have forward-looking capital planning processes that account for their unique risks and are supported by the companies’ risk-measurement and -management practices,” according to the Fed.
Need a Reprint?
