Guided by the vision to evolve trading for the augmented age, Itiviti is a true business partner that can change the way customers connect and trade, enabling firms to stay one step ahead and move quickly to seize opportunities in global markets and capture tomorrow.
DX.Exchange, which shot to fame after launching tokenized stock and ETF trading earlier this year, has moved a step forward with its plan to include more security token on its platform. Effective today, any eligible security token can submit an application and get listed on the platform.
As per the Estonian startup, all tokenized securities must be compatible with ESMA’s guidelines and the MiFID II rules. With this structure, the exchange is targeting mainstream interest by crypto enthusiasts across the world. The exchange started offering tokenized security big-stocks like Amazon, Alphabet on a blockchain-based contract.
As per the exchange, the tokenized securities or the virtual stocks can be split and offered in fractional tokens, allowing users to build diverse portfolios with lower costs and in smaller values. This allows users to buy high-priced stocks like Amazon or Alphabet at a fraction of cost, thus providing more access.
The official statement by DX.Exchange reads: “Now, blockchain and crypto entrepreneurs are looking at raising funds via Security Token Offerings (STOs). STOs are swiftly replacing ICOs. The noticeable shift is largely driven by softening demand from retail investors for ICOs, due to lack of investor confidence.”
All US STOs, the digital asset will be tokenized with the help of Ethereum blockchain and will be backed by real-world stocks that will be held by DX.Exchange’s partner MPS MarketPlace Securities Ltd.
In order to make the project successful, the DX Group has restructured into a new entity called DXtech Exchange and will launch the first security token offering on the platform, dubbed IGWT. The IGWT token will be offered in an exclusive private security token and will regularly distribute 10 per cent of the whole group company profits.
Neo has announced the launch of its foreign exchange (FX) management solution for European corporates regulated by the Spanish market authorities since November 2018.
The multi-asset solution offers access to FX spot, deliverable & non-deliverable forwards, swaps and options so that corporates are able to hedge any type of FX risk in more than 90 currencies at lower rates than what banks or brokers offer.
FX trade execution can be made via its proprietary trading platform or other other fintech or banking partners via API. The service offers a personalised FX risk mapping and a bespoke FX hedging program.
Laurent Descout, CEO and co-founder, commented: “Launching the Neo FX Hub is a major achievement for the group. Foreign exchange management is too often described as complicated, expensive and not transparent. With our FX Hub, we have built from scratch a trading floor and coupled it with a treasury management platform. This is all available without having to install anything. We have taken the first step towards re-engineering a full corporate banking platform.”
Neo FX Hub offers transparent access to FX markets, coupled with prime pricing and automated execution. Featuring reduced hedging costs, the service provides API access in order to connect easily with client’s TMS/ERP system, and offers full post execution management.
The FX Hub is able to migrate any type of corporate FX risk and automates any FX hedging process in less than 24 hours at the treasury team level with no IT involvement.
From high growth start-ups to multinationals, Neo advises clients in reducing transaction costs and boosting efficiency so that corporates define, implement, and monitor sound hedging policies. Neo is one of the first B2B Fintech to have reached this level of regulatory approval, which allows the digitalization of a large scope of hedging solutions for corporates.
Neo Group was founded in 2017 in Barcelona and obtained a regulatory license in 2018 to convert into a MiFID II regulated firm to deal with FX derivatives. The firm has 100% digital access to hedging instruments normally sold by banks (such as FX forwards, swaps and options).
Operating in the UK under the European passport, Neo may seek FCA regulation depending on the final outcome of Brexit. In 2018, Neo has closed its first funding round with UK investors and has development labs in London and Cambridge.
Dash360 provides order-to-execution level transparency, detailing and visualizing exchange fees, venue controls, routing analysis and performance reporting. The new tools provide a cockpit of real-time portfolio-level analytics, which include realized and un-realized performance tracking, duration and cash management visualizations, industry/market cap/liquidity analytics, venue and routing analysis, corporate action and earnings calendars, and detailed TCA reporting and analysis capabilities.
Jennifer Hubbs, Co-Head of Portfolio Trading Solutions Group at Dash, said: “Our team has worked for many years with investment professionals on their portfolio execution challenges, and invariably the struggles come back to shortcomings around transparency, performance and control. As the rise of PT as a workflow continues, this new solution simplifies and visualizes in real-time the huge amount of data these traders are parsing to help them focus only on outliers and other special situations, which ultimately enables them to add operational alpha to the execution process. We have had a phenomenal response from early adopters of this product thus far and are extremely excited for the broader institutional trading community to now use it.”
David Karat, Chief Creative Officer and product lead at Dash, said: “Recent regulatory changes such as MiFiD II have done a fantastic job of engendering more transparency globally in an industry that has traditionally been fairly opaque. While this is a wonderful development, this creates a tremendous amount of new data at a time when buy side is continually being asked to do more with less. It is therefore critical that they have the analytics, reporting and visualization tools that allow them to cut through the noise by presenting clear, concise and actionable intelligence. Dash360 is a great platform that allows us to not only express our analytics, but continually and seamlessly innovate to ensure we remain at the forefront of the institutional technology and execution space.”
The new portfolio trading analytics follows the addition of a new Closing Auction analytic, detailing historic, predicted and actual market/auction volumes, as well as visualizations of the expected execution schedule and cash flow launched in Q4 2018.
2018 was a very active year for Dash Financial Technologies when it comes to executive moves. The firm hired James Doherty as Managing Director, Head of Equity Product. Doherty is a former talent at Credit Suisse, having co-headed the Advanced Execution Services (AES) electronic trading platform and US Equities Trading.
12 Months into the MiFID II Era, New Transparency Rules and Dark Pool Limits Are Changing How Markets Operate and Traders Do Business
“One year into the MiFID II era, it is now possible to make informed predictions about how European markets will evolve long term under the new framework,” says Richard Johnson, Vice President of Greenwich Associates Market Structure and Technology, and author of The MiFID II Trading Transformation.
Some of the biggest changes in European markets have been triggered by MiFID II rules on transparency and best execution. Because complying with new pre- and post-trade reporting requirements when executing OTC is quite onerous, market participants have a strong incentive to shift trading toward electronic venues that naturally facilitate time-stamping and reporting. Electronic trading in interest-rate swaps has jumped from 20% in 2017 to 36% in 2018, with smaller but still significant gains in government bonds and investment grade credit.
MiFID II transparency rules are also increasing usage of trading analytics. Transaction cost analysis (TCA), which helps traders measure performance against execution benchmarks, is now used by 95% of European equity traders.
Also driving significant change, and some important unintended consequences, have been dark pool limits established by MiFID II. Concerned about the potential detrimental effect of high levels of equity dark pool trading on price and liquidity discovery, regulators introduced caps limiting the amount of non-displayed trading that could occur under the reference price waiver (i.e., dark pool trades that leverage price discovery from lit markets). The dark pool caps were officially introduced in March 2018, and have had the desired effect—significantly reducing the amount of dark trading via the reference price waiver from a peak of 5% at the end of 2017 to about 1% today.
Because the reference price waiver dark pools caps were known well in advance, the industry had time to develop new solutions and enhance existing ones. Specifically, large-in-scale waivers have been effective in gaining desired dark pool liquidity. In equities, there have been calls for regulators to recalibrate the double-volume caps on dark pool trading, which are considered too restrictive. Indeed, these caps have likely led to the growth in periodic
auctions and systematic internalisers (SIs), which buy-side traders say have been beneficial in helping them source liquidity. Published data indicates that SIs have captured a significant portion of the market, with estimates as high as 34%.
“SIs represent a potential loophole to the dark volume caps, which was not fully anticipated by the regulators and run counter to the objectives of reducing fragmentation and promoting lit markets,” says Richard Johnson.
Despite any bumps in the road, the changes brought on by MiFID II are creating new opportunities. “Competitive dynamics will continue to drive market structure, as we are already seeing in the emergence of new venues in equity trading and the growth of e-trading in fixed income,” Richard Johnson concludes.
The business process management (BPM), enterprise integration, and enterprise content management solutions provider has designed TRACE to help financial institutions fulfill global regulatory obligations for derivative trade reporting.
The integration with CME Group‘s trade repositories allows customers in Europe, United States, Canada, and Australia, to benefit from automated G20 trade submission and post-submission reconciliation for customers with global trade reporting requirements.
Randall Duran, Chairman of Catena Technologies, commented:
“We see a major opportunity to help financial firms in North America and Europe fulfill their global regulatory trade reporting obligations and address upcoming reporting changes. Many of these firms have issues with delegated reporting and third-party trade reporting services that have limited capabilities. Working together with CME Group, Catena is able provide a solution that improves customers’ operational workflows and provides an end-to-end solution that addresses the full range of regulatory compliance needs.”
Jonathan Thursby, Head of Global Repository Services at CME Group, said:
“CME Group is pleased to work with Catena in extending their success with customers in APAC and providing comprehensive trade reporting solutions to customers globally. Working together with leaders like Catena to improve the accuracy of trade reporting and reduce operational costs will bring clear benefits to our customers. As a global leader and operator of trade repository licenses, spanning Australia, Canada, European Union and the United States, CME Group can offer a common experience and broad expertise to optimize trade reporting.”
Aaron Hallmark, Chief Executive Officer of Catena Technologies, added:
“Many firms have implemented tactical solutions for G20 and MiFID II reporting that rely on manual processing, are costly to maintain, and are difficult to manage and monitor. TRACE’s automated reconciliation, in-line data quality controls, and dashboard monitoring capabilities, together with CME Groups’ strong technology and operations, can help customers overcome these challenges.”
TRACE manages the end-to-end reporting and reconciliation workflow by automatically capturing, calculating, enriching, transforming, and submitting the required information to trade repositories. The system also reconciles trade repository data with a firm’s in-house and external data sources.
Catena’s system lowers operational costs through extensive pre-submission data validations and up-front error reporting which minimize costly re-submissions. Its centralised reporting mechanics mean operational economies of scale, and users can query consolidated data on demand, from Excel or from online and mobile devices.
Euronext, one of the leading exchanges in the Eurozone, has acquired 78% of the capital of SaaS provider Commcise from its founders for £27 million to address the needs of the buy-side and sell-side communities with ways of simplifying their business and efficiently managing research procurement and commissioning across the globe.
The Software as a Service (SaaS) provider of research evaluation and commission management solutions for financial services firms combines research funding, consumption and accounting into a single platform.
Amrish Ganatra, Chief Executive Officer of Commcise, commented:
“Euronext’s acquisition of a majority stake in Commcise underlines the leading position we have already achieved in our market. The senior management team of Commcise is very excited by the next stage of growth and the opportunities we can realise as part of Euronext. We are fully aligned with Euronext’s strategy of delivering value to customers across the buy-side, sell-side and corporate communities. Euronext already has an impressive eco-system which Commcise will complement to the benefit of the customers of the combined group and a growing set of new business partners.”
The acquisition of Commcise will allow Euronext to offer its customers with CommciseBUY, which provides asset managers with a cloud-hosted platform to manage their research funding and associated cost allocation (irrespective of whether its paid through trading, direct charge to clients or P&L), automated trade reconciliation, resource consumption tracking, contract management, research accounting, as well as flexible reporting tools to improve transparency in line with MiFID II regulation.
In addition to CommciseBUY, Euronext has also obtained the company’s cloud-hosted platform for broker-dealers and research providers covering commission management and service pricing, named CommciseSELL, and its service pricing and client profitability tool designed to meet the specific needs of independent research providers, named CommciseRP
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
“The acquisition of Commcise demonstrates our commitment to increasing our value proposition for all our customers. Capitalising on its track record of delivering new value-added services to issuers, Euronext is addressing the needs of the buy-side and sell-side communities with ways of simplifying their business and efficiently managing research procurement and commissioning across the globe. The acquisition is consistent with our disciplined approach to M&A and our Agility for Growth strategic plan, with the goal of serving Euronext’s client base through a broader range of services.”
LiquidShare’s Tests Blockchain-Powered Post-Trade Settlement Infrastructure on Euronext’s Markets
Euronext has also recently announced the pilot phase of LiquidShare’s European post-trade settlement infrastructure for shares in small and medium sized enterprises (SMEs) using blockchain. The platform which is now live on Euronext’s markets connects to asset managers’, broker-dealers’ and custodians’ information systems, enabling them to more easily invest in and process listed and non-listed European SMEs.
Thibaud de Maintenant, CEO of LiquidShare, said:
“The delivery of LiquidShare Platform is the result of the efforts of the Pilot Participants and is the first milestone to become the first industrial blockchain in production, processing hundreds of transactions per day in a regulated environment ”
LiquidShare was created by BNP Paribas, CACEIS, Caisse des Dépôts, Euroclear, Euronext, S2iEM and Société Générale with the support of Paris EUROPLACE.
High-volume smart data and analytics provider big xyt has announced further client driven enhancements to its Liquidity Cockpit in the form of a dedicated dashboard for analyzing SI volumes.
“Since MiFID II we have been working hard with clients and analysts to deliver a range of different dashboards to our Liquidity Cockpit helping to answer essential questions.” Adding, “With our analysis of SI volumes, we have exceeded the expectations of the trading community by offering new views on the liquidity landscape in Europe.”
Mark Montgomery, Director of Strategy & Business Development at big xyt, added:
“We are excited by the capabilities of the new dashboards as previously hidden trends are emerging over the year since MiFID II was introduced. In particular, Systematic Internaliser volumes above and below Large In Scale look very different to the overall SI volume during 2018.”
The configurable view for analyzing key metrics for market share and market quality provided by the interactive dashboards makes big xyt’s Liquidity Cockpit a top provider of big data and analytics software, as users benefit from improved filtering and drill-downs as well as direct access to underlying data and analysis through CSV, and various APIs.
Zurich-based stock exchange SIX Swiss Exchange has partnered with big xyt in September 2017 to gain access to high-quality tick data through xyt hub.
Doherty is a former talent at Credit Suisse, having co-headed the Advanced Execution Services (AES) electronic trading platform and US Equities Trading. The appointment shows the firm’s commitment to performance and innovation in the equity vertical.
Dash Financial Technologies, an industry leader in order routing transparency, visualization, and customization solutions, has announced the appointment of James Doherty as Managing Director, Head of Equity Product.
The leading capital markets technology and execution provider will leverage his nearly twenty-year tenure at Credit Suisse, where he was Head of US Equities Trading Product and co-head of Advanced Execution Services (AES). Doherty co-founded the AES electronic trading platform and managed the day-to-day product development of its algorithmic equities trading business.
His time at Credit Suisse also includes roles in the firm’s Equities Proprietary Trading, Fixed Income, and IT divisions. Most recently Mr. Doherty was Managing Partner of a machine learning-driven investment firm he co-founded.
Peter Maragos, Chief Executive Officer at Dash Financial Technologies, commented: “The buy side is working every day to implement new technologies that help optimize workflow, improve execution performance and derive new analytics to drive alpha, and that fits the Dash model perfectly. With MIFID II as the catalyst for the general un-bundling of services, we have seen a huge upsurge in entities looking for new and innovative cash equities solutions being offered by firms outside their existing providers. This demand has resulted in us providing a host of interesting solutions to improve workflow, execution performance, and analytics at a variety of institutions. We are delighted to welcome James to the team, as he is the right person to help us push innovation and continue the advancement of our award-winning suite of products and services.”
James Doherty, Managing Director, Head of Equity Product at Dash Financial, said: “I’ve been fortunate enough to work at the intersection of technology and the capital markets for more than twenty years. During that time, the buy-side clients I’ve encountered have always known their businesses best, and today the technology finally exists to allow them to craft the precise solutions they need to meet their unique requirements. Dash has been one of the genuine innovators in this field since launching eight years ago, and I couldn’t be more excited to join the team and help the firm continue to grow.”
In August 2018, Stino Milito rejoined the company as Co-Chief Operating Officer, reporting directly to CEO Peter Maragos. In June, the firm appointed former Goldman Sachs Robert Boylan as Managing Director of Business Development.
FlexTrade Systems has integrated the Bernstein Cube into the FlexTRADER EMS in order to provide traders with a comprehensive portfolio construction, risk analysis, and pre-trade system right from the blotter.
The multi-asset execution and order management systems company, FlexTrade, announced the Bernstein Cube is an “ideal addition” to its EMS because of its multi-day pre-trade model for single stock and portfolio level trades which incorporate overnight risk and forecast impact based on the selected execution strategy.
By staying aware of all market opening times, trading holidays and major liquidity events, Bernstein Cube allows optimal trade schedules and the calculation of forecast cash flows. Cube leverages Bloomberg terminal market data to create unique, customized risk models with the latest pricing data. In addition, trades can be calculated to transition from the portfolio to an optimal basket or fully replicating benchmark.
Andy Mahoney, Head of Sales at FlexTrade UK, commented:
“The Bernstein Cube is an ideal addition to the advanced trading functionality of our FlexTRADER EMS. By simply selecting ‘Cube’ from a list of pre-trade options, traders will be provided with a granular breakdown of the risks and exposures for a portfolio – and single stock – against cash or a specific benchmark.”
Bernstein Cube is also available via FlexTrade’s newest execution management system, FlexNOW. The Windows-based application will become an integral part of the trading desk workflow of FlexTrade customers, according to Toby Bayliss, Head of European Electronic Trading at Bernstein.
“The Cube tool set empowers traders to make better informed decisions when planning their trading strategy, managing cash flows and hedging risk.”
“Whether Cube is used as a stand-alone, pre-trade tool, or simply in conjunction with other integrations embedded within the FlexTRADER EMS, the Bernstein Cube integration is a powerful tool to assist traders in providing Best Execution under MiFID II.”, added Mahoney.
FlexTrade Systems had recently announced the integration of SmartStream RDU with the FlexTRADER EMS to allow mutual clients the ability to embed SmartStream RDU’s Systematic Internaliser (SI) Registry information directly into the send order ticket, providing the much-needed clarity on counterparty SI status and is also prior to key 2018 MiFID II milestone dates.