Our free roundup includes news about Goldman Sachs and an ETF hub, EDI and BondCliQ, and Poland’s CSDR approval.
Cobalt Offers Automation & Centralization
A major player in FX markets, Standard Chartered will be working with Cobalt, a foreign exchange (FX) post-trade infrastructure provider, officials say.
“As a global FX participant, we realize the need for market standardization. Within emerging markets, harmonizing and centralizing post-trade will mean greater efficiency,” say Gareth James, macro trading chief operating officer (COO) at Standard Chartered, in a statement.
The automation of the Cobalt solution will help the bank realize cost savings and credit management efficiencies with its counterparties, James says.
Goldman Sachs Joins ICE’s ETF Hub
Goldman Sachs is now an authorized participant on the ICE ETF Hub platform, which is an industry-wide, primary market platform for exchange traded funds (ETFs), developed by the Intercontinental Exchange (ICE).
The hub enables authorized participants to access create/redeem orders, and was created to offer “a more standardized and simplified process for ETF creation and redemption,” ICE officials say.
“It currently offers support for both US-listed domestic equity and fixed income ETFs, and plans to launch support for the assembly of custom baskets and US-listed international equity ETFs later in 2020,” according to ICE.
The ICE ETF Hub helps Goldman Sachs “to improve operational efficiencies in the primary markets for ETFs through standardization and modernization of processes. We look forward to the benefits of the creation and redemption processes for both equity and fixed income ETFs,” says Amy Hong, global head of market structure strategy at Goldman Sachs, in a prepared statement.
ICE is the parent company of the New York Stock Exchange (NYSE) and operates other exchanges and clearinghouses while providing data and listings services, officials say.
EDI Partners with BondCliQ
Reference data service provider Exchange Data International (EDI) and BondCliQ, a consolidated quote system for the U.S. corporate bond market, have signed a partnership to allow EDI to distribute real-time and historical corporate bond data.
“Through this collaboration, EDI can now distribute institutional corporate bond quote (pre-trade) information and enriched transaction data (TRACE) that is competitive to the established providers,” officials say.
“By coordinating directly with 35 dealers, BondCliQ has produced the first centralized data feed. The partnership with EDI makes this valuable data set more accessible to their comprehensive network of clients,” says Chris White, CEO of BondCliQ.
The BondCliQ’s data service is available through a FIX application programming interface (API), or intraday via a secure file transfer protocol (FTP) process, officials say. The data can be used by corporate bond market participants for trading, analytics and valuations.
“Through our partnership with BondCliQ we will be able to cover real-time and historical US corporate bond markets. These data sets are either not available or accessible through more expensive offerings,” says Jonathan Bloch, CEO of EDI, in a prepared statement.
Polish CSD Gets CSDR Authorization
The central securities depository for Poland Krajowy Depozyt Papierów Wartościowych (KDPW) has been authorized by the Polish Financial Supervision Authority as meeting the European Union’s legal requirements for the Central Securities Depositories Regulation (CSDR), an effort to harmonize the supervision of CSDs across the E.U.
The CSDR is also pushing to improve the discipline among the securities settlement systems that CSDs operate.
“Under the single passport system, the authorization confirms that KDPW is ready to provide services under E.U. standards across the E.U. including recording and safe-keeping of financial instruments as well as settlement of transactions,” KDPW officials say.
The approval “is essential for entities active on the Polish capital market, including banks, brokers and trading venues for whom KDPW is a key service provider in securities registration and settlement,” said Maciej Trybuchowski, CEO of KDPW. “To meet the CSDR requirements, KDPW has developed and implemented a range of system modifications in its key areas including IT systems, operating links with other CSDs, and corporate affairs.”