Progress Software Expands Cloud and On-Premise Data Connectivity Lineup

Progress Software Corporation (NASDAQ: PRGS) today announced new and expanded data sources for its DataDirect Cloud™ service and its DataDirect Connect® family of products.

via Pocket June 28, 2013 at 07:54PM

Lord Abbett Selects SimCorp Dimension

SimCorp announces that it has signed a license agreement with Lord Abbett, a privately held firm which has been managing equity and fixed-income products for over 80 years.

via Pocket June 28, 2013 at 07:53PM

CME finalising plans for swaptions clearing –

EMIR Segregation Models | FIA Magazine

LSOC: The Price of Safety

LSOC: The Price of Safety
There is general agreement across the industry that the expected costs of implementing the set of rules known as Legally Segregated Operationally Commingled, or LSOC, will be greater than the risks that it purports to protect against.
A primary objective of the Dodd-Frank Act is to reduce systemic risk and provide the industry with better transparency into investment activities. An ancillary goal is to ensure customer protection of assets and prevent massive losses for unknown reasons. In this regard, new rules to protect customer collateral deposited with a futures commission merchant (FCM) and to reduce risk associated with a customer default are logical. The set of rules is now known as Legally Segregated Operationally Commingled (LSOC).

The eventual impact of LSOC will be meaningful to active participants in the swaps markets. The LSOC rule mandates gross initial margin and customer position levels to be reported from FCMs to derivatives clearing organizations (DCOs). As a result, the operational and technology costs associated with adhering to the new rules will require additional work by the industry to comply and meet the new requirements. Yet the transparency created by LSOC will help to facilitate effective porting of positions to a solvent FCM in the event of a bankruptcy.

However, safety comes at a premium. And this premium will be much higher than originally anticipated. There is general agreement across the industry that the expected costs of LSOC will be greater than the risks that it purports to protect against. In other words, the “premium” associated with LSOC will exceed any potential payout in the case of a disruptive event. The obvious increases under LSOC will be associated with trading, operational, and technology costs. But due to the many unknowns, these costs are difficult to quantify on a granular level at this point. As a result, there is legitimate concern that from a purely economic standpoint, the cost of LSOC may exceed its benefit.

A lot of the debate LSOC has created is centered on the fact that it does not protect against MF Global and Peregrine type disasters. But is it realistic to create a rule that will make it impossible to prevent commingling and theft of customer funds? Preventing these events falls beyond LSOC rulemaking.

It is clear that LSOC is far from being a perfect model. However, it wasn’t designed to be such. The cost pressures it brings to the table have made many end users extremely unhappy; one can only hope this unhappiness doesn’t drive them out of the swaps market altogether. But at the end of day, whether FCMs or their customers like it or not, LSOC is here to stay, and they will have to find ways to adjust to the new rules.

Interoperability impractical – exchange chiefs

Introducing a choice of clearing house is “unfeasible” and the industry should do more to pressure regulators on the issue, according to the heads of several major derivatives exchanges.

via Pocket June 28, 2013 at 07:51PM


via Pocket June 28, 2013 at 07:50PM


via Pocket June 28, 2013 at 07:47PM

Global issuer hub unveiled by Clearstream

See on Scoop.itThe FIX Protocol and multi asset electronic trading.

Clearstream has launched a new Global Issuer Hub to facilitate issuance and administration for all types of debt instruments, warrants, equities and investment funds in 46 settlement and 96 denomination currencies in both central bank (EUR) and…

See on

MarketAxess Launches Credit Market Index Amid Bond Sell-Off

See on Scoop.itThe FIX Protocol and multi asset electronic trading.

MarketAxess launches new index intended to help investors measure liquidity and the cost of trading in the credit markets (RT @IndexUniverseEU: MarketAxess Launches Credit Market Index Amid Bond Sell-Off…

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