CITI and US Minority Broker Dealer Events 2013


http://www.citigroup.com/citi/citizen/people/diversity/goingon.htm

On April 17th, Equity Capital Markets (ECM) and Citi Supplier Diversity partnered to host the fourth Annual Minority-and Women-Owned Broker Dealer’ s Breakfast.

Note 1st the recognized Networks:

Recognized networks included:

• African Heritage

• Asian Pacific Heritage

• disABILITY (focused on people with disabilities and the caregivers of people with disabilities)

• Generations

• Hispanic Heritage

• Identity (employees from different nationalities)

• Military Veterans

• Parents

• Pride (focused on the lesbian, gay, bisexual and transgender community)

• Roots (multicultural)

• Women

There were 16 firms were in attendance, welcomed by Citi’ s new Director of Supplier Diversity, Illonka Javette Hines; Deputy Director, Deloris Day Johnson; and ECM’ s Beatrice Faughnan, Vice President. Rick Bartlett, Managing Director of Equity Capital Markets, and Phil Drury, Managing Director of Citi Syndication, also participated in giving an overview of the equities market.
 
ECM and Citi Supplier Diversity, a part of Citi Procurement Services, have collaborated in creating programs that allow different businesses in Citi to work together and to give minority- and women-owned companies an opportunity to do business with Citi. Programs such as the breakfast allow equities professionals to network, share ideas, discuss trends in equities, and receive industry insight from Citi.
 
Bartlett and Drury provided an overview on the current state of the industry, market trends, and where the broker dealers can best capitalize on financial opportunities. Bartlett emphasized that, a “more inclusive environment is important to the franchise;” a goal the program is committed to achieving.
 
Marie Mosely, Director of Global Operations for Procurement, closed the breakfast by emphasizing the importance of diversity in and outside of Citi: “Purchasing power is something we must manage responsibly. Procurement is a lever to provide superior service to our customers. Our supply base should mirror our market and who we serve.” ECM and Supplier Diversity are well on their way to creating value for our shareholders and mutual beneficial relationships with our partners.

 

Note that their Diverse Supplier Program rules are at the link below.

 

http://www.citigroup.com/citi/corporate/supplier_diversity/data/subcontracting.pdf

Charles River partners with 360T


Charles River partners with 360T

First Published 5th June 2013

Charles River IMS to integrate 360T electronic quotes & execution into FX trading solution

http://www.automatedtrader.net/news/at/142825/charles-river-partners-with-360t

Tom Driscoll, global managing director, Charles River

Tom Driscoll, global managing director, Charles River

“Adding sophisticated electronic quote and trading workflows for FX reduces the number of execution tools our clients need.”

Boston/Frankfurt am Main – Charles River has introduced electronic quotes and execution for foreign exchange in the Charles River Investment Management Solution.

Offered in partnership with 360 Treasury Systems, a provider of web-based trading technologies for OTC financial instruments, the solution is now in beta and scheduled for general availability in Version 9.2. Clients will be able to receive real-time quotes and execute trades from Charles River IMS directly to more than 100 FX dealers and regional banks connected to 360T’s liquidity hub.

“Adding sophisticated electronic quote and trading workflows for FX reduces the number of execution tools our clients need, ensures accuracy for audit and compliance purposes, and meets regulatory demands for transparency,” said Tom Driscoll, global managing director, Charles River. “We will continue to offer clients additional trading solutions from FX providers, like 360T, that enhance liquidity, increase speed, and improve efficiency.”

“Regulations and workflow are re-shaping the multibank FX execution marketplace, fueling client demand for transparency and their need to lower costs and risk,” said Carlo Kölzer, Founder and CEO, 360T. “Integrating 360T’s award-winning, multibank pricing and technology in Charles River IMS, from order initiation to execution and confirmation, will help asset managers address new trading requirements, and create execution reports and TCA for OTC derivatives, including swaps, spot and NDF forward instruments.”

 

Report highlights cost to the buy side in new era of swap trading


Report highlights cost to the buy side in new era of swap trading

http://www.automatedtrader.net/headlines/142827/report-highlights-cost-to-the-buy-side-in-new-era-of-swap-trading

First Published 5th June 2013

A study by Sapient Global Markets illustrated the cost of the central clearing mandate under Dodd-Frank.

Days before a wide array of entities are set to begin mandatory clearing for swaps, a study by Sapient Global Markets highlighted the cost of how the requirement can eat away at investment performance and pointed to standardised, centrally cleared contracts as the cheapest way to hedge.

“The drop in return ranges from between ~0.20% to ~0.62% for cleared hedges, up to almost 1.00% for traditional uncleared bilateral over-the-counter (OTC) trades,” Sapient said in a news release on its report.

From June 10, investment funds, non-swap dealer financial institutions, insurers and securitisation vehicles will be required to centrally clear certain swap trades. This followed the March 11 start of mandated clearing for certain interest rate swap and credit default swap trades for swap dealers, major swap participants and active funds.

The study compared the overall portfolio performance of a typical fixed-income fund using four different hedging instruments over a fixed historical period: uncleared swaps subject to pre-2008 margin requirements; uncleared swaps subject to the Basel Committee on Banking Supervision (BCBS) and International Organization of Securities Commissions (IOSCO) guidelines for margining (effective after 2015); swaps cleared through LCH.Clearnet SwapClear; and Eris Standard swap-futures (cleared through CME).

“Because of the significant impact on performance these results demonstrate, as well as the June 10th timeline set by regulators, it is apparent that portfolio managers must examine their own hedging strategy based on expected cost of clearing with a renewed urgency,” said Ben Larah, manager, Sapient Global Markets.

“Once the post-Dodd-Frank and BCBS/IOSCO recommended treatment for uncleared derivatives takes effect, using standardised and centrally cleared instruments will be the cheapest available option,” Larah said.

The results of the study show that cumulative portfolio returns are highest when hedging is performed using uncleared swaps in a pre-2008 environment, and lowest when hedging is performed using uncleared swaps in a BCBS/IOSCO recommended environment. Sapient said these results showed the significance of the impact of Dodd-Frank/BCBS legislation on clearing costs; once the BCBS/IOSCO recommendations take effect the use of customized, uncleared swaps will jump from being the cheapest way to the most expensive way to hedge.

Sapient Global Markets said it conducted this study with support from LCH Clearnet and Eris Exchange. LCH.Clearnet SwapClear provided access to the LCH.Clearnet SMART Tool and Eris Exchange provided the initial margin percentages for the Eris Standard contracts.

Who are VOLTA……? The New London Data Centre….


 

 

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Industry leading resilience

Benefitting from two separate 33kV supplies of 9.6MW, from two independent grid substations, Volta Great Sutton Street provides a level of resilience that no other central London data centre can match.

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Industry leading resilience

Benefitting from two separate 33kV supplies of 9.6MW, from two independent grid substations, Volta Great Sutton Street provides a level of resilience that no other central London data centre can match.

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All inclusive solutions

Volta Great Sutton Street site offers a number of tailored solutions. Single or multiple racks of 4KW upwards provide an ideal choice for anyone wishing to outsource their IT equipment to a safe, secure facility.
For an added level of security, private cages from 50KW upwards offer an environment that is designed specifically to house your racks. Built to your exact specification, cages can be operational within a short timescale.

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All inclusive solutions

Volta Great Sutton Street site offers a number of tailored solutions. Single or multiple racks of 4KW upwards provide an ideal choice for anyone wishing to outsource their IT equipment to a safe, secure facility.
For an added level of security, private cages from 50KW upwards offer an environment that is designed specifically to house your racks. Built to your exact specification, cages can be operational within a short timescale.

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Proximity hosting

Ultra-low latency access to key trading venues. Volta Great Sutton Street has some of the world’s leading carriers to ensure ultra-fast, resilient connectivity. As a customer you have the freedom to select your own carrier, or choose from a selection including Abovenet, BT, Cable & Wireless, Colt, EU Networks, Verizon and Geo UK.

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Proximity hosting

Ultra-low latency access to key trading venues. Volta Great Sutton Street has some of the world’s leading carriers to ensure ultra-fast, resilient connectivity. As a customer you have the freedom to select your own carrier, or choose from a selection including Abovenet, BT, Cable & Wireless, Colt, EU Networks, Verizon and Geo UK.

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24 hour security and more

Volta Great Sutton is a low-profile, dedicated, stand-alone data centre offering a high level of security. This includes 24 hour surveillance and bomb blast protection measures, with the option of private cages for those who wish to house their data in an ultra secured environment.

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24 hour security and more

Volta Great Sutton is a low-profile, dedicated, stand-alone data centre offering a high level of security. This includes 24 hour surveillance and bomb blast protection measures, with the option of private cages for those who wish to house their data in an ultra secured environment.

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A newly designed facility

Previously operating as a data centre for twenty-five years, the 73,000 sq ft Volta Great Sutton Street site will be completely redesigned and refitted, featuring hot and cold aisle containment with in-aisle cooling systems. This will make Volta one of the most energy efficient data centres in London.

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A newly designed facility

Previously operating as a data centre for twenty-five years, the 91,000 sq ft Volta Great Sutton Street site will be completely redesigned and refitted, featuring hot aisle containment with in-aisle cooling systems. This will make Volta one of the most energy efficient data centres in London.

Julian King, Commercial Director of VOLTA talks to ATMonitor


Julian King, Commercial Director of VOLTA talks to ATMonitor

http://atmonitor.co.uk/news/newsview.aspx?title=volta-s-julian-king-talks-to-atmonitor-at-tradetech-europe-2013

Client off-boarding – ignore at your own peril. CounterpartyLink announces new service for managing client record maintenance


Client off-boarding – ignore at your own peril. CounterpartyLink announces new service for managing client record maintenance

http://www.atmonitor.co.uk/news/newsview.aspx?title=client-off-boarding-ignore-at-your-own-peril-counterpartylink-announces-new-service-for-managing-client-record-maintenance

Published on   Jun 05, 2013

logo
London: CounterpartyLink (CPL), a leading provider of global, evidence-based legal entity intelligence, has launched a new and unique addition to its ownership/entity service, for “off-boarding” redundant client data. Numerous discussions with clients and prospects in the risk management and regulatory compliance community in banks, asset managers and other global financial institutions, have highlighted “Client Off-Boarding” as an important and innovative route to efficiency and much-needed cleansing of customer accounts. Client Off-Boarding is the opposite of on-boarding in that it’s the proactive management and removal of redundant, obsolete or incorrect information on clients and assets.

 
As with legal entity identifiers (LEIs), building out and maintaining hierarchical relationships are key to compliance and risk management, and can account for significant work, which takes up valuable resources.  If an entity is no longer required, the potentially extensive network of related group structures may also no longer be required. This wasteful and costly use of resource and database capacity has been highlighted as one of the fastest-growing compliance challenges facing the industry. CPL enables its customers to remove hundreds of unnecessary client and counterparty records from their processes, saving them tens of thousands of pounds per year.

 
James Redfern, managing director of CounterpartyLink, said: “The focus on a legal entity-centric workflow is now a dominant force in compliance globally. This requires understanding hierarchical ownership and beneficial ownership details to very high degrees of accuracy. We continuously monitor legal entity data, in near real-time. Client Off-Boarding is an important element for maintaining legal entity information and has a significant impact on reducing reputational risk, freeing-up staff resourcing and cutting costs.” He continues: “Client Off-Boarding also makes marketing more efficient as it is clear which customers can be approached, rather than spending time on outdated contacts.”

 
Customer on-boarding is a familiar, but onerous task faced by financial institutions having to verify clients, counterparties, issuers and other bodies as legitimate legal entities in order to meet KYC and AML requirements. Risk and compliance managers are acutely aware of the reputational risks and the penalties for non-compliance. The number of customer accounts that need to be maintained can grow exponentially through client on-boarding. However, the larger the database becomes, the more complex, time-consuming, expensive, but also vital is its maintenance. CounterpartyLink’s Client Off-Boarding helps to automate this process. Some of the key functions of Client Off-Boarding are:

 
–       Verifying the existence of all entities in the client’s customer list, and by exception the non-existence of others.

 
–       Verification of the entities being identified by the correct legal name, address, etc., thus identifying duplicates.

 
–       Establishing hierarchical and group relationships identifying, for example, separate accounts which are part of the same group.

 
–       Identifying all entities which have incorrect elements such as address, beneficial owners, etc.

 
An increasing number of firms are now, for the first time, seriously considering outsourcing some of the burden of collecting and maintaining legal entity data. Despite tightening budgets within compliance teams, financial institutions recognise the need to ensure that low, medium and high risk clients are verified to higher levels than ever before.

NASDAQ OMX partners with SuperDerivatives for settlement pricing


NASDAQ OMX partners with SuperDerivatives for settlement pricing

http://atmonitor.co.uk/news/newsview.aspx?title=nasdaq-omx-partners-with-superderivatives-for-settlement-pricing

Published on   Jun 06, 2013

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Nasdaq OMX NLX has partnered with SuperDerivatives to offer independent and transparent settlement pricing on its new London-based market for interest rate derivatives.

Daily settlement prices and some final settlement prices for NLX futures products are supported by SuperDerivatives.

SuperDerivatives will deliver unbiased and accurate settlement prices based both on actual traded prices and order books within the NLX market itself and in the very closely related OTC markets.

NLX offers a range of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro and sterling denominated listed derivative products.

Robert Emerson, Head of Interest Rate Derivatives at SuperDerivatives comments: “Traditionally, exchange-traded derivatives have been settled based solely on trades within that exchange. Given that liquidity in some areas of various products can sometimes be low, these settlement prices may be inconsistent and bear little relationship to the underlying markets. With the ever-increasing focus on transparency in today’s derivatives markets, as well as greater focus on collateral management, unpredictable settlement processes can be problematic.

“This partnership will create a truly innovative interest rate derivatives settlement process, drawing data from both the OTC markets and the listed interest rate derivatives traded on the NLX market, and should offer NLX market participants a high level of confidence around settlement and margin.”

“We are delighted to be partnering with SuperDerivatives”, said Charlotte Crosswell, CEO of NLX. “By using prices from both the NLX listed and OTC derivatives markets, we believe we offer our customers authentic and consistent settlement prices. This will be particularly relevant in the less liquid areas of our products, thus enhancing confidence in our markets.”

ConvergEx Group’s LiquidPoint Launches iRBM™ and iRBH™


ConvergEx Group’s LiquidPoint Launches iRBM™ and iRBH™

http://atmonitor.co.uk/news/newsview.aspx?title=convergex-group-s-liquidpoint-launches-irbm-and-irbh

 

Published on   Jun 05, 2013

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New Intraday, Real-Time Risk-Based Portfolio Margining and Risk-Based Haircut Tools

New York, June 5, 2013 – ConvergEx Group, a leading provider of global brokerage and trading-related services, today announced that LiquidPoint has launched iRBM™ to provide real-time TIMS based portfolio margin estimates and iRBH™ to provide real-time TIMS haircut estimates. The new tools offer more effective intraday capital management and help customers bolster their ability to meet minute-by-minute capital monitoring requirements.

iRBM and iRBH are powered by LDB and built on top of the low latency LiquidPoint BLAZE .net architecture. They allow customers to calculate intraday margin and haircut estimates based on current prices, intraday positions and real-time volatilities. This application service architecture ensures that existing LDB users have a seamless experience in running intraday valuations.

“Market movements, volatility swings and positions changes can alter risk profiles significantly,” said Anthony Saliba, chief executive officer of ConvergEx’s LiquidPoint. “By offering intraday calculations, we are empowering risk managers to identify those positions when it matters most – when it happens.”

ConvergEx’s LiquidPoint offers flexible, customizable and comprehensive solutions, specifically designed to meet the diverse needs of institutional options traders.

LDB develops software that assists financial accounting and regulatory reporting staff within the securities industry to calculate and optimize capital charges, including security haircuts and margins, both portfolio margin and FINRA Rule 4210 option margin requirements.

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