In other FinTech news, the CFTC aids KRX members with U.S. customers and the ECB taps SIA/Colt for T2S Networking.
Two Asset Managers Take KY3P Platform
Markit, a provider of financial information services and systems, reports that two asset managers — BlueBay Asset Management and Loomis, Sayles & Co. — and a software services company Luxoft are new customers for Markit’s Know Your Third Party (KY3P) platform.
The sales for the KY3P platform have been driven by the increasing need for firms to better manage the risk of third-party companies and by cybersecurity concerns, say Markit officials.
The KY3P system uses a centralized data hub for vendor due diligence and ongoing monitoring, Markit officials say.
Through the hub, “banks, buy-side firms and third parties can remove duplicative processes, manage due diligence information and effectively manage and respond to industry events such as cybersecurity threats,” vendor officials add.
“Conducting due diligence and third party risk management across all of our current third parties is extremely resource and time intensive,” said Will Manfield, head of operational risk at BlueBay Asset Management, in a prepared statement.
Also via a prepared statement, Eugene Dovgii, senior account director at Luxoft, said the platform offers “a unique streamlined onboarding process” that helps the company “reduce the due diligence burden, decrease presale efforts and accelerate turnaround time.”
For Don Ryan, chief compliance officer for Loomis, Sayles, the KY3P platform, allows the firm to “more efficiently gather and track vendor information through standardized questionnaires, control reports and significant event notifications.”
CFTC Eases Up on KRX Members with U.S. Customers
U.S. regulator, the CFTC issued an order to the Korea Exchange (KRX) that permits “certain KRX members to solicit and accept orders and … accept funds directly from U.S. customers for trading on KRX without having to register with the CFTC as futures commission merchants (FCMs),” officials say.
The order also allows designated KRX members to engage in marketing conduct in the U.S. “for a period not to exceed thirty days,” officials say. This exemption is similar to other such actions granted to other foreign exchanges or foreign regulators “pursuant to Regulation 30.10.”
The new order will be published in the Federal Register and the relief is effective as to qualifying foreign firms upon the filing of certain representations with the National Futures Association, according to the CFTC.
ECB to Use SIA/Colt Again to T2S Networking
The European Central Bank will be working again with networking infrastructure providers SIA and its partner Colt to facilitate connectivity for the Target2-Securities (T2S) centralized European platform for the settlement of domestic and cross-border securities transactions, say ECB officials.
ECB officials are expected to migrate to SIA and Colt’s value-added network infrastructure in June 2016. “The two companies will also provide the ECB with a message processing solution based on Intercope’s Box Messaging Hub, facilitating the integration of ECB’s application software to the Target2-Securities central platform,” officials say.
The SIA and Colt network infrastructure will help “all approved entities” to connect to the T2S platform, including CSDs, CCPs, Eurosystem central banks, and banks operating in Europe, officials say.
T2S is a project implemented by the ECB and the central banks of the euro area to create a single pan-European securities settlement engine “and contributes to creating a true single market in Europe,” officials say. The system was developed and operated by four central banks — Banca d’Italia, Deutsche Bundesbank, Banque de France and Banco de Espana.
“After the success of the first T2S migration phase, with a large proportion of the data traffic being carried by SIA and Colt, we are very pleased to be working on this project with the European Central Bank,” says John Loveland, vice president of Capital Markets at Colt. “Colt and SIA will provide the ECB with a fully managed, high-performance, highly scalable T2S connectivity and messaging solution, with guaranteed service levels – enabling them to focus on their core business instead of the underlying infrastructure.”
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