Day: 2 August 2017

Deutsche Börse in OTC Trade Reporting Move

The Regulatory Reporting Hub of Deutsche Börse Group has launched a partnership with Risk Focus and its software subsidiary, RegTek.Solutions, to help with its OTC trade reporting.

Risk Focus will provide key system components for OTC trade reporting solution, including interpretation of instrument details of OTC derivatives submitted in FpML or XML format, as well as a rules engine for applying the regulatory validations, eligibility checks and deferrals.

“In the dynamic environment with frequent updates of regulatory details, the approach using a rules engine has already proven to be very useful. OTC trade reporting is one of the backbones of Mifid II, which is going to be effective as of January 2018.

CBOE to Use Gemini’s Data for Bitcoin Derivatives, Indices

CBOE Holdings has agreed a deal with Gemini Trust Company, which will see the exchange group receive an exclusive global license to use Gemini’s bitcoin market data for bitcoin derivatives and indices.

Gemini is a digital asset exchange and custodian that allows customers to buy, sell and store digital assets such as bitcoin and ether. Gemini is a New York trust company that is subject to fiduciary obligations, capital reserve requirements and banking compliance standards of the New York State Department of Financial Services (DFS).

In the FICC of it – The Problem With CTAs Right Now….

CTAs have, generally, not been doing well in 2017, judging by the major indices that track their performance. Profit & Loss deputy editor, Galen Stops, relays a conversation that he had with a portfolio manager at one alternative investment firm (with AUM of over $10bn) to illustrate why some investors are very negative about the outlook for investing in these firms right now, even beyond the immediate problem of low returns.

For a more in-depth look at some of the challenges facing CTAs and the trends that are shaping this segment of the market, see Profit & Loss’ previously published piece: CTA Performance: Decline or Dip?