In other FinTech News, the SEC reopens, TNS buys R2G, thinkFolio has a new client, and AcadiaSoft hires from ISDA.
New Link Targets FX Deliverables
Traiana, an infrastructure services vendor for trading and risk management, is providing direct central clearing connectivity to the Hong Kong Exchanges (HKEXs) and Clearing’s OTC Clearing Hong Kong (OTC Clear), officials say.
The news means that market participants can now access the OTC Clear service for USD/CNH and USD/HKD FX forward and swaps via Traiana’s Clearing Hub (CCP Connect), which provides affirmation, matching and trade processing capabilities, officials say.
In addition, HKEXs OTC Clear Deliverable FX service can be used to “mitigate settlement risk that arises when payments and receipts of different currencies occur at different intervals during a standard bilateral settlement process,” officials say. The service can also offset settlement exposure with its clearing house cross currency swaps service.
Member banks can now clear deliverable FX trades, no matter where they were executed, using one of Traiana’s many connectivity and workflow options, officials say. Existing Traiana clients and electronic trading venues can enable the HKEX clearing workflow as an add-on to their existing Traiana FX post-trade processing services.
The arrangement with Traiana “It enhances our ability to connect with the growing number of market participants interested in HKEX’s broad range of services including RMB-related services,” says Jacky Mak, head of OTC and FIC business development in HKEX’s Clearing Division, in a prepared statement.
SEC Resumes Operations after Shutdown
The SEC resumed normal staffing levels and returned to normal operations after the federal government ended its month-long shutdown, according to a statement from SEC Chairman Jay Clayton, dated Jan. 26, 2019.
“Over the past 30 days, with a limited staff, we followed our Operations Plan Under a Lapse in Appropriations and Government Shutdown,” Clayton says. “This plan focused on monitoring the functioning of our markets and, as necessary to prevent imminent threats to property, taking action. I commend our staff for their dedication to this task. They performed admirably and, as always, with a keen focus on the interests of our Main Street investors.”
The resumption meant that approximately 4,500 SEC employees have returned to their posts in the Washington, D.C. home office and 11 regional offices of the regulator. “The leaders of our divisions and offices, in consultation with various members of our staff, are continuing to assess how to most effectively transition to normal operations,” Clayton says.
Certain SEC divisions and offices, including the divisions of corporation finance, trading and markets, investment management and our office of compliance inspections and examinations, will be publishing statements in the coming days regarding their transition plans, according to Clayton. The statements on the updates will be available via the SEC’s website.
“In closing, a personal note: I have noted in the past that our people are our greatest asset. They bring experience, expertise and commitment to work every day for the benefit of our economy, our markets and, most importantly, our investors. The past 30 days have underscored just how true that is. It is my privilege to welcome back the full team,” Clayton says.
Transaction Network Services Acquires R2G
Transaction Network Services (TNS) reports the acquisition of Chicago-based R2G Services, a market data, connectivity and hosting specialist, founded in 2010.
The acquisition is meant to make TNS into a “full-service managed infrastructure provider that can meet the demanding needs of financial market participants through a single supplier relationship,” TNS officials say in a statement.
“In the last year, we have strengthened our managed hosting services and augmenting these with R2G’s network and solutions means we can now offer customers a broader choice of exchange co-location facilities and a greater variety of market data services,” TNS CEO Mike Keegan says in the statement.
R2G’s co-location service is currently available at the NY4, NASDAQ and NYSE data centers in New York, as well as the CME Aurora and 350 E. Cermak data centers in Chicago, per TNS.
7orca Asset Management Live on thinkFolio
IHS Markit, an information, analytics and solutions specialist vendor, reports that 7orca Asset Management AG is now live on thinkFolio, its order management and portfolio modeling service.
Formed in 2017, 7orca is a German asset manager that has been using thinkFolio for more than a year to support its currency overlay and short volatility investment strategies for institutional clients, IHS Markit says in a statement.
“Since establishing 7orca, we have focused on providing our clients with a quantitative investment process to actively hedge currency risks,” Jasper Duex, chief information officer at 7orca Asset Management, says in the statement. “We have configured thinkFolio to support this FX overlay strategy while also allowing for other workflows to support strategies such as short volatility.”
AcadiaSoft Hires from ISDA for Director of Strategic Initiatives
AcadiaSoft Inc. reports the appointment of John Pucciarelli as director of strategic initiatives. Pucciarelli joins AcadiaSoft from the International Swaps and Derivatives Association (ISDA), where he was director of market infrastructure and technology.
In his new post, Pucciarelli will be responsible for maximizing the firm’s outreach to initial margin regulation-compliant phase 5 firms, AcadiaSoft says.
While at ISDA, Pucciarelli led margin and collateral initiatives for its membership and was also in charge of overseeing the implementation of the initial phases of the non-cleared margin rules from an operations and business perspective, according to an AcadiaSoft statement.
From 2013 to 2017, he co-chaired and was the policy lead for the ISDA collateral steering committee.
Prior to joining ISDA, Pucciarelli spent six years at AQR Capital Management. where he oversaw the firm’s middle office operational functions with a focus on treasury and collateral management as well as equity and fixed income trading operations.