Day: 17 October 2017

Reidy Handed New Role at HotspotFX

Paul Reidy has been appointed as COO of HotspotFX. Prior to this, he had been working for the platform as head of FX technology.

 A spokesperson for HotspotFX confirms the change in position.

Based in New York, Reidy has been with HotspotFX since it was owned by Knight Capital Group (KCG), a company that he joined as a managing director in 2005. In 2015, the platform was acquired by Bats Global Markets, which in turn was acquired by CBOE earlier this year.

Prior to joining KCG, Reidy worked in fixed income electronic trading at Bloomberg for four years as a software developer for Bondbook ECN and as a sales engineer at Kabira Technologies. Reidy also spent four years working for Merrill Lynch as a vice president, working as a software developer for the firm’s repo trading system.

BBVA, Bancomer Pilot FX Blockchain Application

BBVA and BBVA Bancomer are piloting an FX matching application developed by Calypso Technology and R3.

The application, which runs on R3’s Corda platform and is facilitated by Calypso’s cloud services, has already been used by the two Spanish banks to match a live FX trade.

BBVA and Bancomer entered into the pilot as part of their larger initiative to apply distributed ledger technology to their FX businesses to reduce total cost ownership, simplify operations and enhance overall efficiency. 

BBVA is very excited about this initiative for two reasons. Firstly, it gives us the opportunity to assess the impact of a disruptive technology such as DLT, t

Digital Asset Closes $40m Funding Round, Announces Senior Hire

Digital Asset announced that it has raised over $40 million of Series B financing from existing and new investors, led by Jefferson River Capital. 

The latest round brings the total funding raised by Digital Asset to over $110 million as the company expands its global presence. Additionally, the firm has expanded its executive team with Clyde Rodriguez, former co-CTO of Two Sigma Investments, joining as chief information officer and CTO of engineering.

“Distributed Ledger Technology has the potential to bring greater transparency, security and efficiency to financial services and beyond. We are in the early stages of an important technological transformation that requires strong engineering discipline to deliver credible and practical solutions,” Rodriguez says. “I am excited to join a world-class team that has the necessary skill and focus required to accelerate these important innovations, while helping our customers embrace the benefits of DLT.” 

SGX Expands US Presence

Singapore Exchange (SGX) has expanded its US presence, opening SGX America in Chicago.

 SGX says it presence in the US will enable it to better serve a growing client base in the region and meet the rising international investor appetite to access and risk manage Asian exposure.

Loh Boon Chye, CEO of SGX, says, “This is an important milestone in SGX’s international expansion strategy and reinforces our status as Asia’s most connected exchange. SGX’s knowledge of the Asian markets, and the diversity of our Asia-linked futures and options will resonate with investors in North America, who are increasingly looking East for growth opportunities across asset classes. A physical presence in the US will also better enable us to develop connectivity with the world’s largest equities and fixed income market.”

Bernanke: Geopolitics is the Biggest Risk to the Financial System

Geopolitics represents the single biggest threat to financial markets, warned Ben Bernanke, former chairman of the US Federal Reserve, at an event in Toronto yesterday.

Speaking at the Swell event hosted by Ripple, Bernanke noted that the financial crisis of 2007-2008 was so severe because different elements of the financial system has become so interlinked that stressful conditions in one area soon spread to other parts of the system. However, he argued that the financial markets are systemically safer now and that the biggest threats to these markets come from external sources. 

NEX Optimisation Partners with Baton

NEX Optimisation, NEX Group’s post-trade services unit, has announced that Baton Systems, a high-speed payments infrastructure provider, has joined NEX Infinity as the first third party to provide its services through the platform.
The two businesses say they have been working in partnership alongside an existing but un-named large, multinational bank client of Nex to deliver a new post-trade solution for FX spot transactions delivered through the Infinity platform. The solution combines Nex Optimisation’s existing matching and confirmation services with Baton’s settlement and payments services.

BAML Launches Multicurrency Netting Tool

Bank of America Merrill Lynch (BAML) has announced that it has expanded its payments capabilities with the launch of a new multicurrency netting solution.
The bank says the new solution centralises inter-company payments, enabling large companies that operate across multiple borders to reduce both the number of payments and the total value of payments made between companies that regularly invoice one another.
Large corporations typically make hundreds of inter-company payments worth millions of dollars every month, the bank further adds.

ISDA Seeks to Establish Digitalisation Framework

The International Swaps and Derivatives Association (ISDA) has published a conceptual version of its ISDA Common Domain Model (CDM), which sets out the required elements to achieve a single digital representation of trade events and actions – something it says is “an important precursor to realise the full potential of new technologies, such as distributed ledger and smart contracts”.
When fully developed, ISDA says the CDM will provide an industry standard blueprint for how derivatives are traded and managed across the lifecycle.

Sonia Reforms in April 2018 – BoE

The Bank of England has formally announced that its reforms to the Sonia interest rate benchmark will take effect on Monday 23 April 2018.
The reforms, which were announced earlier this year and see Sonia replace Libor as the interest rate benchmark for UK markets, will result in the Bank of England taking on the end-to-end administration, including the calculation and publication of Sonia, broadening the coverage to included overnight unsecured transactions, and the use of a VWAP methodology to calculate the rate.