Misys and Horizon also have FinTech news.
SEC Amends the Investment Advisers Act
The SEC is asking for more data from investment advisers via revamped reporting and disclosure requirements implemented through amendments to the Investment Advisers Act, and the investment adviser registration and reporting form, officials say.
The amendments are intended to improve the quality of information that investment advisers provide to investors and the SEC, officials say.
The revamped rules also constitute an effort to bolster “the SEC’s monitoring and regulation of the asset management industry,” says SEC Chair Mary Jo White, in a prepared statement. “Requiring investment advisers to report this additional information will provide investors and the Commission with a better understanding of the risk profile of each adviser and the industry as a whole,” White says.
In particular, the amendments will require investment advisers to provide “additional information regarding their separately managed account business, including aggregate data related to the use of borrowings and derivatives, and information about other aspects of their advisory business, including branch office operations and the use of social media,” SEC officials say.
At the same time, the new amendments are supposed to streamline registration and reporting for “groups of private fund adviser entities operating a single advisory business,” SEC officials add.
The amendments to the “Investment Advisers Act Rule 204-2” will require advisers to maintain “additional records related to the calculation and distribution of performance information,” SEC officials say. “These records will be useful to the Commission’s examinations staff in evaluating adviser performance claim, and could reduce the incidence of misleading or fraudulent advertising and communications by advisers.”
The amendments are slated to be published soon via the SEC’s website and in the Federal Register, officials say. The amendments will take effect two months after publication in the Federal Register, and “advisers will need to begin complying with the amendments on Oct. 1, 2017,” according to the SEC.
Misys Adds FRTB Compliance to FusionCapital Risk
Systems and software vendor Misys has just announced its product support for Basel’s Fundamental Review of the Trading Book (FRTB), a regulation that overhauls the market risk capital charge calculation, vendor officials say.
FRTB represents “significant ramifications which must be addressed to ensure banks comply with new rules,” according to Misys officials who add that Misys FusionCapital Risk — FRTB “will address the standardized approach (SA) requirements out of the box.” The software will offer service applications “as required for the internal model approach (IMA).”
In fact, Misys is readying FusionCapital Risk – FRTB by including:
- A stress-test framework with “full data control by desk and on an aggregated level;”
- Front-to-risk coherence via “a shared and coherent pricing engine with ultra-fast analytics and aggregation;”
- P&L and risk valuation;
- Parallelized data aggregation for fast processing of all data inputs and “massive volumes of simulated results;”
- And an in- memory calculator for incremental real time re-calculations.
The FRTB solution will exploit Misys FusionCapital’s shared pricing, valuation and UI components to help with “the valuation of collateral, introducing global limits or overall better capital planning to optimize treasury,” officials say.
“With more intraday calculations on the cards under FRTB IMA, technology has a key role to play in smoothing the process of data collection and analysis as well as handling the major leap in calculation volume and complexity and the computational demands that result,” says Boris Lipiainen, global head of product management at Misys, who adds that the deadline for FRTB compliance is January 2020.
KGI Securities Branch to Deploy Horizon Automated Trading
The Thailand branch of KGI Securities [KGI Securities (Thailand) Public Co. Ltd.] will be using a trading platform from Horizon Software, an electronic trading and investment management vendor.
The deal is in addition to the current implementation of Horizon Delta One, “on which the proprietary trading team have relied since 2013,” say Horizon officials. KGI Securities, a wholly-owned subsidiary of China Development Financial (CDF), is headquartered in Taipei City, Taiwan.
“Our strategic partnership with Horizon and mutual trust have grown steadily since we began working together,” says Jariya Posayajinda, managing director, proprietary trading department KGI Securities in Thailand, which will be using the Automated Trading system from Horizon for high-frequency trading.
“KGI’s prop trading team have been using Horizon’s Delta One for the last three years. I am very pleased that they have now chosen to add our Automated Trading solution for their customized trading strategies,” says Ekaluck Chaiyaporn, ASEAN sales director at Horizon, in a prepared statement. The firm will be using an algorithmic trading framework that includes technical indicators and scripting for complex event processing (CEP) tools.
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