CME Group

CME Launches Benchmark Tool for Hedge Funds

CME Group has launched a community benchmarking tool which leverages an alternative data set to help customers – hedge funds, asset managers and banks – make more informed investment decisions.

The tool, ENSO Data Insights, helps market participants evaluate how market dynamics are driving costs and demands to borrow stock, optimize counterparty management and seize alpha-generating opportunities. The tool is part of ENSO, a portfolio finance and treasury industry technology provider with over one trillion in Assets Under Administration (AUA). ENSO covers 33% of the global hedge fund equity long short market.

Data Insights will provide ENSO’s global client base with access to a diverse pool of global multi-asset class securities to help them compare best execution financing rates, trend analysis for long and short position sector changes, sector breakdown, top position movers, crowdedness scoring, and the most active stock borrow rate changes as it relates to the ENSO Rate.

Paul Busby, Global Head of ENSO, commented: “Until now, the market has had limited access to aggregated and anonymized long and short alternative data. ENSO Data Insights taps into our derived data to provide the market with a unique insight into how trending securities are being positioned by alternative fund managers. This allows for an enhanced analytical process, driving better informed investment and best execution financing decisions.”

ENSO is part of NEX Optimisation, which was NEX Group business prior to being acquired by CME Group in 2018. CME retired the NEX name and brand but continues to operate its individual Markets and Optimisation businesses as sub-brands including BrokerTec, EBS, Traiana and TriOptima. CME Group anticipates run-rate cost synergies of $200 million annually by the end of 2021.
The derivatives marketplace’s January 2019 operation metrics reached the average daily volume (ADV) of 17.8 million contracts, which is 6 percent lower on a year-on-year basis. The open interest in January 2019 reached 122 million contracts, down by 1 percent against January 2018, but 5 percent higher compared to December 2018 volumes