Our free FinTech roundup also covers a hiring spree at QB, Digital Vega & Spark Systems Partner, and Arca fills two top roles
BNY Mellon to Apply Google Cloud Technologies
The Bank of New York Mellon (BNY Mellon) will be using Google Cloud technologies to help U.S. Treasury market participants “better predict billions of dollars in daily settlement failures,” officials say.
The combined effort is also intended to “generate significant capital and liquidity savings, and unlock operational efficiencies,” officials say.
BNY Mellon will apply Google Cloud’s data analytics, artificial intelligence (AI) and machine learning (ML) technologies “to develop new collateral management and liquidity solutions built on Google Cloud,” officials say.
The goal is to deliver “a first-of-its-kind” prediction model solution that would predict “40 percent of settlement failures in Fed-eligible securities with 90 percent accuracy,” says Brian Ruane, CEO of BNY Mellon Clearance and Collateral Management, in a statement. “A settlement failure occurs when a buyer and seller fail to exchange cash and securities by the close of business on the scheduled settlement date,” Ruane adds.
BNY Mellon, which offers clearance and settlement for this market, reports that “two percent of transactions fail to settle” in the U.S. Treasury market. With the solution to come, firms could use data analytics “to train models on millions of trades to consider every value and factor that could result in a failure,” officials say.
“BNY Mellon is building on its existing capabilities, using the latest cloud technologies to test and refine its approach to reduce treasury settlement failures,” says Rob Enslin, president of Google Cloud, in a statement.
In addition, the focus on the U.S. Treasury market, BNY Mellon officials are working on A.I.-based solutions for “securities lending, liquidity forecasting, dynamic controls for pricing, anomaly detection for transactions, and automated document processing,” officials say.
BNY Mellon “is also leveraging Google Cloud to support more development environments, making code delivery quicker while reducing infrastructure costs.”
Quantitative Brokers Plans to Hire 20 in 2021
Quantitative Brokers, an agency-only broker and provider of algorithms and analytics for futures and interest-rate markets, plans to hire 20 new full-time employees in 2021, officials say.
“Employees will be based around the globe with particular focus on data analytics and product engineering which will further enhance execution performance and analysis,” the firm says in a statement.
“Our buy and sales-side clients increasingly depend on QB’s global execution tools and dynamic engineering in this ever-evolving market structure,” Christian Hauff, QB CEO and co-founder, says in the statement.
The firm also “plans to increase coverage” in the Asia-Pacific region, he adds.
Digital Vega & Spark Systems Partner to Offer FX Platform
Digital Vega, a foreign exchange (FX) options e-trading platform and provider, and Spark Systems, a Singapore-based provider of FX trading platforms, report the advent of a partnership to “offer clients a technology platform for trading the full suite of FX products: options, spot, forwards, swaps and NDF’s,” according to a statement from the vendors.
“The partnership between Digital Vega and Spark Systems is in response to demand from a broad group of buy- and sell-side users who are looking to access the market using complementary FX trading technology solutions,” the statement adds.
Digital Vega is a multi-dealer platform (MDP) for FX options trading, with liquidity provided by all the major global FX banks, per the statement.
Spark Systems provides systems designed for efficient access to FX liquidity and reduced trading costs, according to the statement’s characterization.
Arca Hires CFO & New Head of Product
Arca, a Los Angeles-based asset management firm founded in 2018, reports two new appointments.
Vance Sanders, an industry veteran, has joined the company as chief financial officer and chief compliance officer, and Nikesh Dalal has joined as head of product for Arca’s innovation division, Arca Labs.
Sanders formerly served as chief financial officer, chief technology officer and chief operations officer of Equinox Financial Group, LLC, according to Arca’s statement.
Dalal was recently a program director at Yieldstreet, where he “spearheaded the assembly and launch of a registered closed-end fund and evaluated blockchain solutions,” according to the statement. “Previously he was a solutions architect focused on enterprise use-cases with blockchain software firm ConsenSys.”