S&P Capital IQ launches new Portfolio Risk solution delivering Real-Time Risk Analysis for Multi-Asset Class Portfolios

S&P Capital IQ launches new Portfolio Risk solution delivering Real-Time Risk Analysis for Multi-Asset Class Portfolios


Solution incorporates leading risk and scenario analytics with essential market data and fundamentals to produce a one-of-a-kind offering

S&P Capital IQ today announced the launch of its Portfolio Risk solution, an advanced risk and scenario analytics tool that provides traders, portfolio and risk managers with the ability to make decisions about the pricing, hedging and capital management of multi-asset class portfolios in real-time.

Available on the S&P Capital IQ desktop, the product brings together leading risk and portfolio analytics acquired through last year’s purchase of R(2) Financial Technologies and S&P Capital IQ’s extensive market and reference data. The Portfolio Risk solution offers a fully integrated data and analytics platform, eliminating the need to invest in separate data to run risk systems. In addition, it gives users the ability to use interactive portfolio dashboards to aggregate data or drill down to the most detailed level of fundamental financials and research, enhancing understanding of impacts of potential changes on P&L at an actionable level. These views are comprehensive, yet easy to change and organized to suit individual needs.

The Portfolio Risk solution covers a diverse range of asset classes from cash, fixed income and equities to exotic derivatives. By offering best-in-class instrument pricing, portfolio analytics, scenario analysis and stress-testing capabilities via shareable dashboards, it facilitates communication and collaboration around risk and investment strategies while also providing full transparency into underlying methodologies and on-the-fly calculations. These features ensure that risk metrics can be calculated quickly and that new scenarios or market strategies can be tested and acted upon swiftly.

“In just over a year since our acquisition of R(2) Financial Technologies, we have successfully brought together rich data, sophisticated analytics, and relevant market commentary, news and analysis,” said Lou Eccleston, President, S&P Capital IQ. “The result is that our clients can quickly generate a transparent, fully customized risk picture enabling them to react quickly to changes in the market and to new investment ideas.”

“We are just beginning to leverage the depth of S&P Capital IQ’s data resources to deliver what we call ‘risk intelligence,’ including the power to gather new insights into how portfolios behave under varying scenarios,” said Dan Rosen, Managing Director, S&P Capital IQ. “We have assembled one of the most experienced teams of risk and financial engineering experts in the world and dedicated them to delivering interactive, real-time risk analysis as a central part of the investment decision making process.”

What the ICE/NYSE Merger Means for the Industry courtesy of the TABB Group

With each passing day, the acquisition of NYSE Euronext by ICE seems more likely to receive final approval. Here are 5 ways the deal will impact the capital markets.

February 15, 2013, marked the end of the Hart-Scott-Rodino Act waiting period in the acquisition of NYSE Euronext by IntercontinentalExchange(ICE). With each passing day, the acquisition seems more likely to receive final approval. As we await the next phase of regulatory approval from the SEC, we wanted to share a few thoughts on how we believe the acquisition will impact current clearing, reporting and trading operations, as well as how the two exchanges can benefit from the merger.

1. Need for Physical Trading Floor

The future format of the NYSE trading floor seems to be on the minds of everyone. There are analyst speculations that ICE’s CEO, Jeffrey Sprecher, will close the trading floor, as was done to the New York Board of Trade in 2012 four years after it was acquired by ICE. However, according to interviews, Sprecher has expressed intentions to keep the physical trading floor intact.

[Related: “It May Be ‘Bye-Bye to the Big Board,’ But the NY Times Should Get Its Story Right”]

Both companies have robust electronic trading, and Sprecher has acknowledged the value of NYSE’s legacy in voice brokering. As technology continues to dominate the exchange space, there has been recognition of the value of voice brokering (by which the NYSE is defined). The market has ironically become too complex to rely only on computer-to-computer trading, showing the physical trading floor still provides an intrinsic value in keeping an orderly marketplace.

2. Impact on Clearing

US-based firms that are major players in the derivative space will benefit by having a local trading and clearing venue, through reductions in clearing costs and operational risks. Typically, coordinating multiple back-office processes and reconciliations between the US and UK calls for duplicate efforts, resulting in back-to-back bookings to flatten balance sheets and delays in handling breaks; having the ability to manage these operational processes will make for a more efficient process.

Title VII of the Dodd Frank Act, which requires central clearing for certain derivatives contracts, has limited NYSE’s presence in the US-based interest rate swaps clearing business. Currently, the NYSE has a small presence in the US-based interest rate swap clearing business, due to a lack of access to a central clearinghouse, now mandated by the Dodd-Frank Act. Through the acquisition, NYSE will be able to benefit from ICE’s presence in European fixed income derivative trading and clearing.

3. Impact on Market Participants

Reductions in clearing costs can translate into cost savings for market participants. Just last year, ICE had to increase its trading and clearing fee due to “regulatory burdens,” and with the merger of NYSE Euronext, ICE will also have to compete with other exchanges on transaction costs. Even if fees increase after the merger, market participants would still fare better than if the two companies operated independently. This newly merged exchange will be able to offer a larger array of products and services, so that market participants can look to fewer companies for trading execution and clearing services, thereby decreasing expenses associated with initial client on-boarding.

4. Impact on Reporting

NYSE’s core data products make U.S. market data free and available, using consolidated tapes, giving transparency to last-sales price and quotes. It also sells its non-core data products to analytics traders, researchers and academics. ICE will be able to leverage NYSE’s experience in data reporting, as it looks to setup its own swap data repository (SDR), in order to meet CFTC mandates for real time swap reporting.

[Related: “Commissioner O’Malia Talks Derivatives Reform: Assessing and Improving the Change”]

ICE has already set up a registered SDR — and the ICE Trade Vault, which will offer both recordkeeping and reporting services for credit default swaps. However, as reporting requirements go live for additional asset classes, it will be necessary to offer data recordkeeping and reporting services to these as well. This is where NYSE’s existing core data products can benefit ICE.

5. Benefits in Merging of Exchanges

Although ICE and NYSE’s product offerings differ vastly, the functions of trading, clearing and settlement demands often overlap, and both are registered with the CFTC as designated contract markets. Efficiencies can be gained when these two exchanges tackle the requirements in swaps reporting and recordkeeping, external business conduct rules and documentation standards in this era of heightened standards for SIFI. As regulatory mandates increase the operating costs for exchanges, it is becoming prudent to explore additional mergers.

Faster AND Smarter: Supercharging Capital Markets With Real-Time Data and Visualization Technologies from TABB GROUP

By performing deeper analyses on data captured in-stream, and then injecting the results back into the business in real time, firms can better manage market risk, liquidity and counterparty credit risk during the trading day.
The payoffs from rapidly analyzing big data are well-known in trading. However, a number of instructive events over the past few years show the failure of global financial services firms in evaluating their data in time to avoid negative consequences. Fines from regulatory compliance lapses, collusion and violations of international laws totaled more than $10.7 billion in 2012, according to CNNMoney.com. And that total does not include write-downs from trading losses ($6 billion at one firm in 2012) and from other financial impacts, including reduced market capitalization from sanctions violations (almost $13 billion at another firm in 2012).

The good news is that these regulatory challenges are accelerating much-needed improvements in firms’ information management practices. “The data guys are getting their say at the corner office and getting the budget to drive many of these regulatory initiatives,” says Larry Tabb, founder and CEO of TABB Group, a financial markets research and advisory firm.

The technologies implemented for compliance have the added advantage of driving business improvements. If done right, the investment can achieve additional benefits. Under pressure for greater transparency and risk awareness, firms stand to gain a lot from the data management revolution.

Optimization is no longer a quarterly or monthly reporting cycle; it is an almost immediate response to market, capital and risk factor changes as they happen. “Increasingly, we hear that clients are trying to obtain an array of risk metrics more in real time, released multiple times during the day, not just as an end-of-day or over the weekend,” says Tabb.

Capital markets firms already have a great deal of sophistication in dealing with data, but the velocity and variety – not just the volume – present challenges, such as:

Aggregating risk exposures for large, complex portfolios for interactive analysis, exploration and the capability to drill through flexible hierarchies created on the fly to the instrument level for determining the causes of increasing value at risk (VaR), counterparty exposure concentrations and liquidity issues.
Dynamically and interactively stress-testing at the firm-wide level to anticipate the impact of extreme events on portfolio values.
Performing continuous surveillance to identify and prevent rogue trading, internal and external fraud, regulatory violations such as money laundering, and market crashes.
Analyzing unstructured data, such as millions of tweets that could yield clues to validate existing trading strategies and launch new ones.
What’s the solution to finding “the devil [that] is in the detail we can’t see,” as Miranda Mizen of TABB put it in an October 2012 presentation? The answer is to apply analytics that offer the velocity and volume needed to deliver real-time visibility and impact from big data. Two example technologies are event-stream processing (ESP) and in-memory data visualization.

While capital markets firms use ESP to support trading processes, pairing ESP with other high-performance, in-memory analytical techniques can deliver high value in areas such as risk and liquidity management, rogue trading, fraud, and compliance. By performing deeper analyses on data captured in-stream to reveal unseen patterns, sentiments and relationships, and then injecting the results back into the business in real time, firms can act faster, with greater foresight. This helps them dynamically revalue portfolios and manage limits during the trading day, identify suspicious patterns to reduce trading and fraud losses, and also capture new business from institutional clients.

Making a difference with better risk management and continuous surveillance

For risk management, firms can combine ESP and high-performance risk analytics for on-demand, intraday valuations of large portfolios of complex financial instruments for market, counterparty credit and liquidity risks. In-memory analytics provides interactive analyses of consolidated risk exposure and stress testing for instant response and visualization at many levels, including business group, portfolio, desk, instruments and time horizons.

While traders can manage their own positions and portfolios on a near-real-time basis, it is the aggregation of the firm’s position that gives the greatest transparency. The two solutions together can address firms’ needs for continuous limits monitoring, real-time risk aggregation and dynamic portfolio valuations. Risk aggregation can be especially problematic for global firms that have thousands of portfolios with millions of instruments that are closing the books on a “follow the sun” basis. The bottom line? Better management of market risk, liquidity and counterparty credit risk during the trading day rather than waiting for the overnight reports.

For continuous surveillance, ESP can be combined with fraud management solutions to detect and prevent rogue trading activities and abuse of banking regulations, including money laundering. Together, these solutions can provide the continuous compliance processes that senior executives and management boards now require. ESP acts as the prevention engine, listening to all trading activity in real time while also analyzing data from watch lists, business rules, scores, and suspicious trading patterns. The prevention engine continually feeds the detection engine with relevant trades and trade patterns in real time. This creates an aggregated database of data that acts as a reference point for future simulations and continually improves the accuracy of the system.

The detection engine applies a number of sophisticated high-performance analysis techniques to the database and provides detection alerts to appropriate staff for further investigation, or sends the alert back into ESP to stop the trading (or other) processes from continuing. These same techniques can also be utilized to detect and prevent other forms of operational risks, such as external fraud and cybercrime.

While data visualization products are also used in capital markets firms today, it is the coupling of the visualization engine with an in-memory analytical engine that supercharges the level of insight from big data sources. Large data sets (perhaps billions of rows) can be opened in seconds and explored easily and visually by business analysts using analytical and charting capabilities such as box plots, correlations, binning and distributions, word clouds and network diagrams (for unstructured data), along with on-the-fly forecasting, auto-charting, “what does it mean?” pop-ups, and drag-and-drop capabilities. Identifying correlated patterns in institutional customer transactions can help with many initiatives, such as more targeted sales pitches for additional business, scanning through millions of trades to quickly identify data issues causing abnormally high exposures, or back-testing trading strategies and market signals.

The bottom line? With ESP and in-memory data visualization combined with other high-performance analytics, capital markets firms and global banks can make better decisions, faster to capture more revenue, better manage risks and protect themselves from internal and external fraud.

David Wallace is the Global Financial Services Marketing Manager at SAS. He can be reached at David.M.Wallace@sas.com.

List of Tech and Media Focused Corporate Innovation Labs

List of Tech and Media Focused Corporate Innovation Labs

Posted on December 19th, 2012 in: Industry Index, Innovation
For many years, forward moving companies have been investing in innovation centers that are being used for companies to tap into new technologies, media,and devices. I’m seeing a growing trend of companies outside of the tech space that are investing in these types of labs, and wanted to start a list that I will maintain for a period of time. To keep things managable, here’s what I’m seeking:

List Requirements
The companies that will make this list must be within the following parameters. Feel free to leave comments of others.

Corporations with over 1000 employees.
Ideally, a lab with a dedicated physical location, resources and staff.
A focus on technology and or media.
Name, URL, and location if available.
List of Corporate Innovation Labs
Leave a comment below, and credit the contributor, see parameters listed above:

Agency and Services

Deloitte HIVE, Rosslyn, VA (via JR Reagan)
IPG Media Lab, NY (via Ken Burberry and G. Kofi Annan)
TCS Innovation Labs, at least 15 locations (via @KirstenParagona)
Ford Innovation Center, Silicon Valley
McLaren Technology Centre, Woking, Surrey, (via Simon Whatley)
Consumer Goods
Kraft Collaboration Kitchen
P&G Social Media Labs by program lead Deborah Schultz
DuPont Innovation Centers Worldwide
Financial Services

AllState Innovation Services, pic, IL (via Eric Gottloeb)
Capital One Labs, SF, Arlington (via Matthew Smith)
Citi Innovation Labs, Dublin, Singapore, & Lodz,
Fidelity Center for Applied Technology, Boston
MasterCard Labs, NY (link via Peter Kim) and Dublin, (Marcy Cohen)
Wells Fargo Labs
Office of Personnel Management’s ‘Innovation Lab’, DC (via Kara DeFrias)
Health, Pharma, Science
Aetna Innovation Labs
Humana Innovation Center, Louisville (via Mike Snavely)
BBC R&D Labs, UK (via Simon Whatley)
Dow Jones R&D Lab, (via Shawn Venkat)
NYT Research and Development lab, (via Shawn Venkat)

Home Depot Innovation Lab, Austin (via Rob Howard)
Lululemon Lab, Vancouver
Nordstrom Innovation Lab, Seattle
Staples Velocity Labs, Cambridge
Walmart Labs, Mountain View
Tech, Telecom
Avaya Labs (via Devin Davis)
AT&T Innovation Lab, Business Labs
Bell Labs (Alacatel Lucent), Murray Hills, NJ (via Stu Miniman)
Ciena Labs, Mobile Locations
Comcast Labs, multiple locations (via JT. Ramsey)
EMC Labs, multiple locations (via Stu Miniman)
HP Labs, Palo Alto
IBM Research Labs, 12 global locations (via Stu Miniman)
Intel Labs, Multiple Locations (via Stu Miniman)
Microsoft Research, Seattle
Oracle Labs, multiple locations (via Stu Miniman)
PARC, Xerox, Palo Alto
Telefonica, multiple locations (via Simon Whatley)
Qualcomm Lab Inc.(via Shawn Venkat)
Verizon Innovation Centers, multiple locations
Vodafone Xone, Silicon Valley (via Simon Whatley)
Vodafone Test & Innovation Centre near Frankfurt (via Simon Whatley)
I’ll continue to keep this list updated for a few weeks, and will make additions as they emerge in comments. Later, we will use this data for future research, you can access my prior reports on the research page on this blog (upper tab).

Filed under: Industry Index, Innovation


TMX Atrium has a wide range of customers including venues, buy side, brokers, clearers, ISVs, market data vendors.

TMX Atrium covers a wide range of the financial community.

Venue City Country
Alpha Trading Toronto Canada
BATS Europe London UK
BATS US Weehwken USA
BME Madrid Spain
BOX Secaucus USA
CBOE Secaucus. USA
CNSX Toronto Canada
Borse de Luxembourg Luxembourg Luxembourg
Burgundy. Stockholm Sweden
CHI-X Canada Toronto Canada
CHI-X Europe Slough UK
CME Chicago USA
Deutsche Boerse Frankfurt Germany
Direct Edge Secaucus USA
Equiduct London UK
FX All Weehwken USA
HotSpot Jersey City USA
International Sec Exchange New York USA
LMAX London UK
London Metal Exchange London UK
Match Now Toronto Canada
Montreal Exchange Toronto Canada
Moscow Exchange Moscow Russia
NASDAQ OMX (Nordic) Stockholm Sweden
Oslo Bors London UK
Nordic Growth Markets Stockholm Sweden
NYSE Euronext (Europe) Basildon UK
NYSE Euronext (US) Mahwah USA
Omega ATS Toronto Canada
Pure Trading Toronto Canada
Sigma-X London UK
TOM Stockholm Sweden
TRAD-X London UK
TSX Toronto Canada
Warsaw Stock Exchange Warsaw Poland

Capital Market Exchange named promising financial technology start-ups for Fixed Income

Capital Market Exchange named promising financial technology start-ups
Posted by: Bestexadmin March 2, 2013 in #innovation 1 Comment

Capital Market Exchange, an analytics platform for fixed income investors, announces it has been named one of the most promising financial technology start-ups in the Boston area by the Boston Business Journal.
Capital Market Exchange’s analytics aggregate and quantify market sentiment to better understand factors influencing bond prices. The company’s unique approach to identifying emerging credit risk from a carefully vetted, dynamic flow of unstructured data plus traditional credit metrics provides a previously unavailable perspective on factors currently driving price changes. Capital Market Exchange takes it analysis of market perspectives one step forward and provides its clients a proprietary Sentiment Adjusted Spread by company and enable them to combine their proprietary research with true market intelligence.This previously unavailable clarity provides investment teams a current assessment of risks facing their bond investments in a fragmented and opaque global market.
Sarah Biller, President of Capital Market Exchange said, “We are delighted to be featured in Boston Business Journal as one of the promising financial technology firms in the Fixed Income area. We started this company in the midst of a deep crisis to address shortcomings in bond investor’s toolkits. Being acknowledged by the business and technology community gives us the extra drive to keep moving forward in achieving our goal of clearing through the morass of data to provide actionable, insightful sentiment analysis for professional bond investors.”
The article covered eight other promising financial technology companies in the area that ranged from companies focusing on foreign currency exchange to personal finance and included companies like FXBuyside and Blueleaf.
For more information about Capital Market Exchange visit website: http://www.capital-market-exchange.com

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