This Week: Cboe, Euroclear; Société Générale, Bloomberg/Sustainalytics

Cboe to acquire digital asset platform ErisX

The Chicago Board Options Exchange group (Cboe) has entered a definitive agreement to acquire Eris Digital Holdings, a US-based digital asset spot market, a regulated futures exchange, and a regulated clearinghouse.

Founded in 2018, ErisX’s spot and futures exchanges leverage real-time market surveillance, and its clearing system is designed to address settlement risk and collateral management. 

As part of its push into digital assets, Cboe plans to rename ErisX as Cboe Digital and will form a Digital Advisory Committee tasked with advising the exchange on the ongoing development of the ErisX spot and derivatives markets.

Members of the committee will also acquire minority ownership interests in the business, they include DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial, and Webull.

Using digital asset data from ErisX and Cboe’s existing index calculation capabilities, the exchange group intends to develop and distribute digital asset indices for potential use in exchange-traded product creation and other derivative product opportunities.

Silver Lake acquires Ice’s 9.85% stake in Euroclear

Silver Lake, a California-based private equity firm, has acquired the Intercontinental Exchange’s (Ice) 9.85% stake in Euroclear Holdings for a sum of €709 million ($825 million).

The Silver Lake acquisition of Ice’s share in Euroclear is still subject to customary closing conditions and regulatory approval.

If all conditions are met, the private equity firm will request that is has a representative join the board of Euroclear Holdings SA/NV.

The transaction could close as soon as the first half of 2022.

Euronext and Borsa Italiana launch MIB ESG Index

Euronext, the pan-European exchange group, and its recently acquired, Borsa Italiana, has launched its new MIB ESG Index, an Italian environmental, social, and governance index designed to identify major listed Italian issuers that demonstrate environmental, social and governance (ESG) best practices.

The MIB ESG Index combines measurements of economic performance with ESG considerations, in line with the United Nations Global Compact principles. The composition of the index is based on the ESG assessments performed by Vigeo Eiris, a subsidiary of Moody’s ESG Solutions, who engage with issuers on their ESG performance.

The Index’s methodology reflects a ranking of the top 40 Italian listed companies based on the UN ESG criteria. The selection is made up of the 60 most liquid Italian companies and excludes firms involved in activities that are not compatible with ESG investing. The composition is revised quarterly.

Société Générale goes live with Opensee’s big data platform

Société Générale, the Paris-based investment bank, has gone live with French fintech, Opensee’s, big data platform that provides self-service analytics.

The bank uses the solution for day-to-day regulatory reporting and business needs in two areas: management of the interest rate risk of the Banking Book (IRRBB) and management of market risk-related capital requirements linked to the Fundamental Review of the Trading Book.

The sell-side firm will also use the platform for liquidity and risk-weighted asset calculations.

Société Générale began working with Opensee as part of its Global Markets Incubator (GMI) program, where the group shared access to its data and infrastructure to help tackle big data challenges and create self-service analytics.

Bloomberg to offer Sustainalytics’ ESG research and ratings on its terminal

Bloomberg has announced that Sustainalytics’s environmental, social, and governance (ESG) research and ratings are now available on its Bloomberg Terminal.

Sustainalytics’ ESG ratings can be used for security selection, portfolio management, ESG integration; engagement and voting activities. Clients can use the ESG Risk Ratings to measure company-level ESG risk and exposure and compare firms across different industries.

Investors can supplement their research by combining the ESG Risk Ratings with Bloomberg’s equity, fixed income, and portfolio analysis tools.

Sustainalytics’ Controversies Research reports and data, which cover 18,000 companies, are also available via the Bloomberg Terminal.

StoneX launches outsource trading platform

StoneX, a New York-based prime brokerage firm, has launched its Emerging Manager Platform for outsourced trading. The platform offers a suite of execution services including multi-asset, global connectivity, high-touch connectivity, high-touch expertise, and middle and back-office support.

It provides asset managers with access to a buy-side trader and connects them with a network of more than 150 global brokers, banks, and resource providers. Using the Emerging Manager Platform, StoneX will execute as the customers authorized trader with their chosen counterparties to achieve best execution.

Clients will have access to counterparty attribution from the sell side and avail of real-time market data insights, performance analytics, and prime brokerage resources.