Our roundup includes news about ESG & ICE Data Services, SimCorp & GAM, and ISDA’s white paper on smart contracts.
DASH ATS Offered via SENSOR Suite
Execution services provider DASH Financial Technologies has launched an SEC-registered Alternative Trading System (ATS) as a new solution within its agency listed-options routing suite, dubbed SENSOR, officials say.
The DASH ATS is intended to help resolve the “liquidity sourcing challenges inherent in today’s US listed options market,” according to vendor officials. “Through DASH ATS’ automated Request for Quote (RFQ) process, a diverse network of market makers and liquidity providers can respond to client orders with their quotes.”
The vendor’s RFQ response process has been crafted to facilitate and improve the SEC’s national best bid and offer (NBBO) requirement “either in price and/or size,” according to DASH officials. “The ATS will automatically pair the interest before routing to an exchange for execution.”
The ATS will support single-leg and complex options transactions, and DASH offers real-time analytics and data visualizations via the DASH360 web portal, officials add.
ICE Data Services Debuts ESG Risks Data
Intercontinental Exchange, Inc., better known as ICE, an operator of global exchanges and clearing houses and a provider of data and listings services, reports that it plans to launch a new data service that is designed to help investors better assess the environmental, social and governance (ESG) risks and opportunities in corporations.
“Increasingly, investors across the world are including ESG risk into their investment decisions, reflecting a view that companies that maintain good metrics in this area may generate stronger returns, deliver lower risk, and adhere to sound management principles,” ICE says in a statement, which notes that a September 2019 report by BofA Global Research predicted that “there could be over $20 trillion in asset growth in ESG funds over the next two decades, equivalent to the size of the S&P 500 today.”
ICE Data Services says that it intends to provide customers “actionable data” by including ESG terms and conditions data to its existing reference data offering for U.S. and international listed corporations.
Clients of ICE Data Services will be able “to subscribe to receive primary ESG data points, such as greenhouse gas (GHG) emissions reported, board diversity metrics, and nearly 500 other key metrics of ESG-related data. The dataset will be flexible, growing as ESG disclosure evolves,” officials say.
ICE, the parent company of the New York Stock Exchange, adds that BofA Global Research will “serve as ICE’s development partner for this new service and will leverage the offering to enhance its global equity and credit analysis, including ESG-related metrics, incorporated into the fundamental research reports it provides to its clients.”
ICE’s target date for provision of the new ESG data is “the second half of 2020.”
GAM Investments Partners with SimCorp
GAM Investments reports that it has signed a new long-term license agreement with vendor SimCorp that will consolidate the GAM external front-and-middle office systems onto one platform.
The GAM-SimCorp agreement was signed in the last quarter of 2019, according to the companies.
SimCorp’s Dimension will become GAM’s “core front office platform and Investment Book of Record (IBOR), supporting portfolio and order management, risk, compliance and performance management. GAM will also use SimCorp Gain for enterprise data management, while SimCorp Coric will serve as its new client communications and reporting solution,” officials say.
The transfer of current front-office systems to SimCorp is intended to improve the client reporting experience from GAM, the firm says. GAM has worked with SimCorp since 2004, with 105 billion in Swiss francs of its assets under SimCorp management.
GAM, based in Zurich, characterizes itself as an “independent, pure-play asset manager,” employing approximately 850 people in 14 countries.
ISDA Issues White Paper on Smart Contracts
The International Swaps and Derivatives Association, Inc. (ISDA), the law firm Clifford Chance, the R3 blockchain technology company, and the Singapore Academy of Law have published a white paper that “provides analysis on the legal issues relating to the use of smart derivatives contracts on distributed ledger technology.”
Distributed ledger technology (DLT) and smart contracts “have the potential to significantly increase efficiency and automation in the derivatives market,” according to the white paper, which notes, however, that the “perceived lack of legal certainty when trading derivatives on a DLT platform could hamper broad-scale adoption.”
The white paper points out that, because of the “inherent uncertainty about where data, assets and even counterparties are located in a DLT environment, a key question is how to determine which law applies to these relationships and assets, and what should happen when there are conflicts of governing law.”
ISDA tallies more than 900 member institutions from 71 countries, including “corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks,” as well as “exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers.”
To view the white paper, go to http://bit.ly/2TBBLvJ.