This Week: Euronext, STG/Alveo, Ice, Mizuho/Bloomberg & more

Euronext Clearing to enter derivatives markets

Euronext has announced its intention to extend Euronext Clearing into derivatives markets in Q3 2024, marking a significant move into the post-trade space.

The pan-European bourse acquired the clearing house Euronext Clearing (formerly CC&G) in April 2021. It aimed to internalize clearing activities for its cash and derivatives flows, which it says will generate margin efficiencies relative to third-party providers. When the switch takes place, the firm will make Euronext Clearing its clearing house of choice for the cash equity, listed derivatives, and commodities markets.

Euronext has ambitions to manage the entire trading value chain of its markets by the end of 2024. As part of this process, and to help consolidate its European operations into a single location, it also migrated its core data center from Basildon in the UK to Bergamo, Italy, in early 2022. This article by Josephine Gallagher looks at the move from Basildon to Bergamo in more depth.

STG takes majority stake in Alveo

Symphony Technology Group (STG), a California-based private equity firm, has agreed to make a majority investment in cloud-based data management company Alveo.

Alveo provides market and reference datasets for trading, portfolio management, risk, and compliance workflows to customers in 18 countries.

Mizuho Bank chooses Bloomberg’s BQuant to enhance asset management

Japan’s Mizuho Bank has become the first bank to adopt Bloomberg’s BQuant Enterprise investment research platform globally. BQuant Enterprise uses insights from quantitative analytics and data science as well as tools and solutions in the cloud to streamline asset management.

Mizuho is also using Toms, Bloomberg’s fixed income trade order management system, and its Multi-Asset Risk System (Mars), an integrated risk management system.

The bank hopes to use the platform to implement new investment strategies and model validation processes in pursuit of operational efficiencies and cost optimizations.

Ice launches digital trade documents to digitize paper-based post-trade and shipping processes for the energy industry

Intercontinental Exchange (Ice), has launched a solution to digitize post-trade and shipping processes for physically delivered energy commodities such as oil, gas, and petrochemicals. The product, called Ice Digital Trade Documents (Ice DTD) has been trialed for shipments of refined products in the Asia-Pacific region.

Ice DTD allows stakeholders (like refinery or terminal operators) to generate shipping and trade documentation upon receipt of cargo. It also helps with the delivery process, including visualizing communication between vessels and terminals, overseeing loading and discharge instructions, and drawing up safety documentation.

The platform offers open APIs to enable operators to define, implement, and adjust their own workflows. It is intended to automate and replace the fragmented paper-based processes currently in place for documentation at the point of delivery.

Adaptive launches new Aeron products for trading tech development

Adaptive Financial Consulting will launch two new products to support Aeron, an open-source, low-latency messaging system used to build trading systems. The Aeron Open-Source Community, which will launch in Q1 2023, is intended to drive adoption by helping users and developers share knowledge, while Aeron Premium will give financial institutions access to additional features and SLAs. In the future, licensable modules that complement Aeron Premium with additional business feature sets will also be made available.

PwC taps Doorda for data analytics

PwC’s UK deals analytics team has turned to data solutions provider Doorda to augment its data analytics offering. PwC’s private equity, hedge fund, and corporate clients can avail themselves of Doorda’s open-source datasets, which it gathers from hundreds of publishers, including Royal Mail and Ordnance Survey.

Doorda also collects data using Freedom of Information Act (FOIA) requests and a service which identifies UK buildings and addresses.

DTCC whitepaper addresses data management challenges

The Depository Trust & Clearing Corporation has published a whitepaper focusing on data exchange and data management in the financial markets. The paper, entitled “Data Strategy & Management in Financial Markets”, calls for data strategies fit for today’s highly interconnected marketplace.

Among other themes, the paper looks at the rise of open-source data standards, cloud-enabled analytical capabilities, and the automation of routine data management tasks to reduce the need for specialized data analysts.

TFEX to bring in new trading system in 2023

Thailand Futures Exchange (TFEX) aims to implement its new trading system in the first quarter of 2023. It will also revise trading regulations and look into expanding its trading liquidity and practical education program. In 2022, the most active products on the exchange were stock futures and SET50 futures, which accounted for 42% and 40% of total trading volume respectively.