This Week: Pimco/Man Group, Microsoft & Others, Cboe, Trumid/Goldman Sachs, Fenergo, & More

Pimco, Man Group, IHS Markit, State Street, Microsoft and McKinsey Join Forces on New Asset Management Operating Platform

Pimco, Man Group, IHS Markit, State Street, Microsoft, and McKinsey & Company announced their intention to form a new technology-led company, HUB, to build a cloud-based operating platform aimed at transforming asset managers’ operations technology.

HUB’s greenfield platform will be built by asset managers to transform the industry’s operating model by providing flexible and modular solutions across middle- and back-office functions, while reducing cost and mitigating risks. The platform will accelerate the move to a digital operating model that enables asset managers to deliver innovative solutions to clients.

Microsoft will serve as the company’s technology platform provider, chosen to empower HUB to develop its asset management operating platform on the Microsoft Azure cloud, the companies said in a joint statement.

HUB’s “data-first approach” will be meant to break down silos and friction between systems and data. The solution will utilize the latest cloud-based data technology and security to transform middle and back office operating processes, reducing costs associated with supporting numerous legacy systems and improving efficiencies by connecting to third parties.

Financial terms were not disclosed.

Cboe Completes Bids Trading Acquisition

Cboe Global Markets has completed its acquisition of Bids Trading, a registered broker-dealer and the operator of the Bids Alternative Trading System (ATS), the largest block-trading ATS by volume in the US.

Through ownership of Bids Trading, Cboe gains a competitive foothold in the off-exchange segment of the US equities market, which now accounts for more than 40% of overall US equities trading volume. The deal also provides Cboe with the opportunity to expand its global footprint and diversify its product and service offerings in markets beyond US equities and options.

Cboe will maintain the Bids ATS as an independently managed and operated trading venue, separate from and not integrated with the Cboe US securities exchanges. Bids Trading CEO Tim Mahoney will remain in his current role and lead Bids Trading as an independent business within Cboe Global Markets, reporting into an independent committee of the board.

Terms of the deal were not disclosed, however the company noted that the purchase price is not material from a financial perspective. Bids Trading generated approximately $41 million in net revenue over the last 12 months ending September 30, 2020.

Options Technology to Purchase Fixnetix

Capital markets IT infrastructure provider Options Technology, which is backed by Abry Partners, has entered into a definitive agreement to purchase Fixnetix from DXC Technology. The transaction is expected to close during the first half of this calendar year.

Fixnetix provides outsourced front-office trading services to investment banks, hedge funds, proprietary trading firms, and exchanges worldwide and is part of DXC’s global banking and capital markets business.

Financial terms of the agreement were not disclosed.

Trumid and Goldman Sachs Announce Strategic Relationship

Goldman Sachs will join fixed-income electronic trading platform Trumid’s Attributed Trading Network and utilize the technology company’s protocols to provide connectivity and liquidity directly to Goldman’s institutional clients. Goldman will join Trumid’s Trading Advisory Committee to provide long-term input into product development and market structure evolution.

Trumid is involved in bilateral dealer-to-client liquidity distribution and trading through its Attributed Trading protocol, which was launched in 2019. Through development cycles and client collaboration, the Attributed Trading ecosystem has expanded to include tools for trade execution and hedging, data aggregation, pre-trade transparency, and workflow solutions for dealer salespeople. The disclosed Attributed Trading protocol complements Trumid’s anonymous protocol and together drove 374% year-over-year volume growth on the platform in 2020. In October, Trumid announced the addition of Emerging Market bond trading on its Market Center platform.

North Reef Capital Management Taps SS&C to Power Operations

SS&C Technologies announced that North Reef Capital Management, a long/short equity fund adviser founded last year, has selected SS&C’s front-to-back office solution to run its operations. More than 80 emerging funds leverage the SS&C Eze platform and SS&C’s fund administration services.

SS&C’s front-to-back solution for emerging hedge funds includes a cloud-native, execution, order, and portfolio management and accounting platform powered by Eze Eclipse. A compliance and analytics engine is built into the offering, enabling start-up funds to take care of their regulatory and risk management needs. SS&C also provides administration and investor services as part of the solution.

Fenergo Automates Client Onboarding Systems for Mizuho Americas

Dublin-based Fenergo, a provider of client lifecycle management (CLM), client onboarding, and KYC and AML solutions, announced that Mizuho Americas has deployed its software to automate know-your-customer (KYC) and anti-money laundering (AML) regulatory processes, digitalize workflows, and accelerate client onboarding onto a single platform.

Fenergo’s CLM solution allows Mizuho Americas, a subsidiary of Japan-based Mizuho Financial Group, to replace manual processes and coordinate its CLM effort with a digital solution that removes silos between business lines and connects internal stakeholders and clients with third-party data, AML screening, and client relationship management (CRM) providers on a single platform while creating a centralized repository for data and documentation.

Mizuho Financial Group is also planning to implement Fenergo’s CLM solution across its Global Securities division. This will allow Mizuho to service clients across business divisions and financial products seamlessly.

Capital Index Opts for SteelEye to Replace NEX Abide

SteelEye, the compliance technology and data analytics firm, has been selected to provide Mifir and Emir reporting services to Capital Index, a broker offering CFDs, Spread Betting, and FX trading.

Following the news last year that CME Group would shutter several of its regulatory reporting services by the end of 2020, a large number of client firms were forced to find a replacement solution for Emir and Mifir reporting. As part of this process, Capital Index reviewed a range of different vendor solutions, ultimately selecting SteelEye.

By implementing SteelEye, Capital Index has been able to improve its reporting processes, many of which the company says they did not realize were inefficient or could be improved.