In other FinTech news, the DTCC enhances its GTR for Singapore, LCH expands into Mexico, the SEC wants feedback, and Itiviti has a new partner.
Teranet’s CM Solutions Will Acquire the Shares of CMS
London-based financial software vendor Finastra, formed in 2017 by the combination of Misys and D+H, reports that it has entered into a definitive agreement to sell its Canadian-based Collateral Management Corp. (CMS) business to Teranet.
Teranet’s affiliated entity CM Solutions Inc. will acquire the issued and outstanding shares of D+H’s CMS, a division of Finastra Holdings Inc., officials say. The transaction is expected to close during July 2018, subject to the customary approvals and closing conditions. CMS will join Teranet as a new complementary line of business, according to a statement.
CMS is a provider of lien registration and recovery services and insolvency management solutions for Canadian lenders, per Finastra.
Finastra’s advisors for the transaction were BMO Capital Markets and Stikeman Elliott LLP. The financial details of the deal were not disclosed.
Founded in 1991, Teranet operates the electronic registration system for the Province of Ontario, and the property registry for the Province of Manitoba.
DTCC to Expand Global Trade Repository Service in Singapore
Post-trade systems and services provide DTCC will be enhancing its Global Trade Repository service (GTR) to support the next chapter of the derivatives trade reporting requirements of the Monetary Authority of Singapore (MAS), which are scheduled to take effect Oct. 1, 2018.
“Under the new regulations, firms will be required to report their equities and commodities transactions to MAS, in addition to the credit, interest rate and FX asset classes which already fall under the regime,” according to the DTCC. “All firms that are in scope for the next phase of MAS’ derivatives trade reporting regulatory requirements will need to start submitting their derivative contracts directly to a licensed trade repository.”
The DTCC’s GTR supports regulatory reporting across Asia-Pacific for five major OTC derivatives asset classes, “including credit, interest rates, equities, FX and commodities,” officials say. “In addition to supporting the MAS requirements in Singapore through DTCC Data Repository (Singapore) Pte. Ltd., GTR also supports reporting regimes through licensed trade repositories for the Australian Securities & Investments Commission (ASIC), as an agent to the Hong Kong Monetary Authority (HKMA), for the European Securities and Markets Authority (ESMA), for the Financial Services Agency of Japan (JFSA), for Canadian regulators in each of the thirteen Canadian provinces and territories and for the U.S. Commodity Futures Trading Commission (CFTC).”
Mexico’s Central Bank to Let LCH Clear OTC Interest Rate Derivatives
LCH Ltd. has received approval from the Mexican central bank Banco de México to clear over-the-counter (OTC) interest rate derivatives in Mexico, according to LCH’s statement.
LCH, majority owned by London Stock Exchange Group (LSEG), consists of a group of multi-asset clearinghouses that provide risk management capabilities across a range of asset classes, according to the statement.
LCH operates clearinghouses in the United Kingdom, France and the United States, with additional offices in the Asia Pacific region. Its clearing services include OTC and listed rates; credit default swaps (CDS) and foreign exchange (FX); fixed income; commodities; cash equities and equity derivatives, per the statement.
LCH will continue to offer clearing to participants for Mexican Peso-denominated interest rate derivatives as one of the 21 currencies offered by its SwapClear.
LCH clears for members and their clients based in 55 countries, according to the group’s statement.
SEC Wants Industry Feedback on Strategic Plan Draft
The Securities and Exchange Commission (SEC) is seeking comment on its recently published draft strategic plan.
The plan, the commission says, focuses on investors, innovation, and performance as the top strategic goals through fiscal year 2022.
The plan highlights the SEC’s commitment to serving the long-term interests of Main Street investors; becoming more innovative, responsive, and resilient to market developments and trends; and employing staff expertise, data and analytics to increase performance, the commission says.
The draft plan was prepared in accordance with the Government Performance and Results Modernization Act of 2010, which requires federal agencies to outline their missions, planned initiatives and strategic goals over a four-year period.
To comment on the 2018-2022 draft strategic plan, send an email to PerformancePlanning@sec.gov.
Itiviti Partners with Jump to Jolt Workflows
Jump, a French investment management software vendor, is partnering with Itiviti, a provider of multi-asset trading technology, to provide front-to-back-office clients with an integrated straight-through processing (STP) order management and portfolio management solution, officials say.
Itiviti and Ullink completed a merger in March 2018 and the combined company now has global offices in 18 major financial center locations. The company also includes NYFIX, a major FIX-based trading community.
“The joint solution offers automated consolidation of multi-platform and multi-asset class execution within one single solution,” officials say. The agreement will leverage Itiviti’s “NYFIX trading and post-trade broker network, the combined solution helps the buy side community tackle many of their challenges, including simplification of order routing over FIX, automation and transparency, which are the key priorities of investment firms when addressing cost optimizations and new regulations, such as MiFID II.”
“Our alliance with Itiviti offers a fully integrated solution with decision support and acceleration of order workflow thanks to direct electronic access to their brokers for order execution,” says Alexandra Fougeras, head of sales for Jump in a prepared statement.
The NYFIX system of partners ecosystem to offers “access to capital markets through brokers worldwide, together with additional innovative solutions in the post-trade space, including order execution analytics, real-time order matching and reconciliation,” says Philippe Carré, global head of business development at Itiviti, in a statement. Itiviti is owned by Nordic Capital Fund VII.