Media Coverage

July 2014

Bill Gates Is Just Plain Wrong On Climate 'Miracle', Forbes, July 11, 2014.
Bill Gates probably isn’t the first person that comes to mind when you think about energy. The billionaire co-founder of Microsoft MSFT -0.25% is better associated with computers and philanthropy than he is with oil and gas. But Gates is actually an active investor and thought leader in the energy community and has been for many years now, especially in the area of energy technology.

Swap execution facilities: A catalyst for OTC change?, FOW, July 4, 2014.
SEF trading and the "electronification" of the OTC marketplace are still in their infancy. From the SEF trade volumes published to date, it seems likely that established interdealer brokers and firms with significant pre-SEF volumes appear poised to "win" the first phase of mandatory SEF execution. Newly established SEFs have struggled and will be forced to specialise, differentiate and innovate with value-added offerings. There is a significant likelihood that many former dealers will increasingly depend on a more fee-based revenue model, which could include charges for execution, connectivity, clearing and collateral management services. One key trend to observe over the coming months, alongside SEF aggregation and new business models for banks, is the convergence of OTC and exchange-traded derivative (ETDs).

Market Needs Collateral Efficiency, Too Much Demand Could Add Risk, Global Custodian, July 1, 2014.
While regulation increases collateral needs, particularly as the derivatives market moves toward central clearing, market participants are cobbling together fragmented systems, manual processes, and siloed approaches to ensure compliance, creating significant inefficiencies, says Sapient Global Markets in a recent whitepaper. A preceding Sapient survey found that only 45% of market participants felt strongly that their institutions have efficient processes for collateral management, particularly in the area of communication and dispute management. As collateral needs rise, which will likely increase the number of disputes, increased straight-through-processing rates through automation will be key, says Sapient.

June 2014

White paper identifies six key areas for improvement to transform collateral processes, Hedgeweek, June 30, 2014.
Sapient Global Markets has published a white paper which examines collateral management trends and their effect on firms’ systems and processes. The paper, “Bringing Efficiency to Collateral Management”, discusses how and where firms must deliver greater efficiency in order to remain competitive and protect revenues. It reveals that while regulations continue to drive firms’ investments in new technology and infrastructure, a number of other trends are influencing firms’ desire to increase efficiency including shortfalls, cross asset netting, collateral optimisation and transformation. “Market participants have patched together fragmented systems, manual processes, and siloed approaches to ensure compliance with various regulatory requirements,” says Thomas Schiebe, senior associate at Sapient Global Markets. “Unfortunately, such disjointed efforts have made managing and processing collateral inefficient and costly, which impacts profitability.  

Sapient Global Markets White Paper Examines How to Drive Greater Efficiencies Across Collateral Management Operations, Bobsguide, June 27, 2014.
This is a general piece of pickup from the press release, which quotes Thomas Schiebe.

IBOR: Navigating the Options for a Dream Position Engine, FinOps Report, June 27, 2014.
Yet as the buy-side community sets aside its competitive nature in favor of promoting standard practice, two tough questions rise. Does every fund manager need IBOR? And for those who need it, how is it be implemented?. “IBOR may not be a necessary for all fund managers,” said Mark Israel, vice president for global financial consultancy Sapient Global Markets in Boston.” As a rule of thumb, the greater the number of front-office trading platforms and back-office systems handling multiple asset classes, the greater the need for IBOR.” There is just too much data held in disparate systems which cannot be quickly updated and synchronized, often leading to missed investment opportunities. 

Collateral management efficiency eyed, Structured Credit Investor, June 27, 2014.
Sapient Global Markets has published a white paper on bringing efficiency to collateral management. The paper identifies six key areas for improvement to transform collateral processes. Sapient surveyed global market participants earlier in the year (SCI 29 May). It has now identified inventory management, risk management, data management, reporting and analysis, dispute management and communication standards as key areas for improvement. While regulations continue to drive firms' investments in new technology and infrastructure, a number of other trends are influencing firms' desire to increase efficiency, including shortfalls, cross asset netting, collateral optimisation and transformation. As the costs of central clearing, collateral reporting and margining continue to rise, firms will need to bring efficiency to several areas of their collateral management process in order to remain competitive and protect revenues, Sapient says.
 
Research highlights need for efficiency, Securities Lending Times, June 27, 2014.
While regulations continue to drive firms’ investments in new technology and infrastructure, a number of other trends are influencing firms’ desire to increase efficiency, according to a new whitepaper from Sapient Global Markets. These trends include shortfalls, cross asset netting, collateral optimisation and transformation. Thomas Schiebe, senior associate at Sapient Global Markets, commented: “Market participants have patched together fragmented systems, manual processes and siloed approaches to ensure compliance with various regulatory requirements.”
 
There are six ways to improve collateral mobilisation says Sapient, FTSE Global Markets, June 26, 2014.
As the costs of central clearing, collateral reporting and margining continue to rise, firms need to bring efficiency to their collateral management process  to remain competitive and protect revenues. A white paper from Sapient identifies and discusses six key areas for improvement, including inventory management, risk management, data management, reporting and analysis, dispute management, and communication standards.

Will traders opt for flexibility or regulation?, FOA Handbook, June 24, 2014.
Authorities in Europe and the United States have been pushing for an increase in the on exchange trading of products usually traded over the counter (OTC). The US was first out of the blocks with swap execution facilities (SEFs), but the European equivalent, organised trading facilities (OTFs), are now starting to take shape, though details remain scarce. However, while many market participants believe that electronic trading will be more transparent than its OTC counterpart, that does not mean that adapting the world of swaps to electronic platforms will be without challenges. The move to formal trading of OTC contracts is another nail in the coffin of the personal, relationship-orientated banking model, adds Paul Gibson, business consultant at Sapient Global Markets. This model has been on the wane since trading moved from the pre-SEF electronic markets and legacy phone markets to the SEF markets. “Given that RFQs [requests for quotation] have to go out to a minimum of three participants, traders can no longer choose who they trade with,” says Gibson.  

Mind the gap, FOA Handbook, June 24, 2014.
Several different rules have been introduced around the world that have implications for the collateral that traders must post on their positions and for clearing, with Dodd-Frank in the United States and CRD4 in Europe among the most important. Rule changes have forced institutional traders to look at how they manage their cash and collateral positions and find efficiencies. “Many organisations have got used to thinking about things in terms of silos, and this has definitely been the case in terms of how they post collateral,” says Ben Larah, manager, Sapient Global Markets. “Now you see more of them using optimisation software to identify pockets of cash that are not being used efficiently.” 

More Technology Integration Needed for Swaps Trading, Say Industry Participants, Global Custodian, June 20, 2014.
With mandated trading on swap execution facilities (SEFs) already underway and with more instruments likely to be added soon, swap market participants have seen a need for more integrated technology to navigate this environment. Part of the problem with the current SEF-based trading environment is that the overall market liquidity is too fragmented, with 24 SEFs registered with the Commodity Futures Trading Commission (CFTC). In terms of systems used to facilitate trades, what participants “really want is something to look across SEFs and be able to determine where the best value for their dollar is,” says Jim Myers, Sapient Global Markets' senior manager, business consulting, trading and risk management. While many in the industry think that SEFs will inevitably consolidate, the multitude of facilities could still cause liquidity problems absent solutions that can ease workflows. 

Oilmin asks OMCs to prepare for any supply disruption from Iraq, Business Today, June 20, 2014.
Aditya Gandhi, Director, Sapient Global Markets (India), said that Iraq is India's second-biggest supplier of crude and any disruption in supply will have an impact on Indian refiners and markets across the board. Discussions have already started with Saudi Arabia and Kuwait to try and secure alternate supplies, he said.Overall, oil cartel OPEC's spare capacity is about 2 million barrels of oil per day, which is not enough to tie over significant shortfalls in supply. "If the conflict in Iraq continues and supplies from South Iraq are disrupted, it looks like supplies from North Iraq through Turkey will increase and make their way to the global market. In fact, they already have two tankers on water that the Kurdistan Regional Government is offering at $56 per barrel. However, India will probably not engage with the Kurds and risk alienating the Iraq government," Gandhi said. 

What Do Iraq, The Ukraine And The Polar Vortex Have In Common? Forbes, June 19, 2014.
Living almost two decades on a trading floor taught me one thing: You live on volatility.This past winter, energy traders were probably the only people cheering on the chilly Polar Vortex as they banked big profits from the unusually large price swings in natural gas. In fact, commodity trading was specifically cited as a bright spot in the most recent Morgan Stanley earnings call. “We did have a particular strength in commodities given the volatility in the market with the weather,” CFO Ruth Porat told The Wall Street Journal. “Commodities tend to perform better in extreme weather. But we also saw a pickup in client activity.”

Data Platforms Aid Marketing Efforts, Money Management Executive, June 16, 2014.
Another asset manager solution that entered the market early this year was "Client Connect" from Sapient Global Markets. The program, which is powered by Kurtosys, allows asset management firms the ability to automate the distribution of marketing material including fund fact sheets and online fund information. Jarlath Forde, vice president of solutions at Sapient, says he expects both institutional and retail asset managers to continue taking hold of a data-driven concept for marketing and distribution in the years to come. "This is now turning into a data-driven business," says Forde. "The ball is rolling down the hill and it's rolling fast." 

Collateral Crunch Unlikely, Survey Finds, Waters Technology, June 6, 2014.
The 2014 Collateral Survey, conducted by Sapient across buy- and sell-side respondents, covered several areas of technological, procedural and operational issues across collateral management today. Respondents indicated that while they expect both the cost and the demand for collateral to rise in the future, the crunch predicted among eligible assets will not manifest as severely as portrayed. "For the past couple of years you've been reading about everyone in the marketplace talking about a collateral crunch being perceived, where there won't be enough collateral to go around, but that didn't come out at all, actually," says Gordon McDermid, a director at Sapient while stressing that the survey was conducted before EU standards on margin requirements for non-cleared derivatives were released. 

Brent Oil Gains for First Time in Five Days on Products, Bloomberg Businessweek, June 5, 2014.
“I’m neutral to bullish about the market in the near term,” said Chip Register, managing director of Sapient Global Markets, a consultant in Boston. “There’s a risk premium built into the market,” Register said. “The Ukraine crisis will probably ease in July and August. There won’t be any big announcement but a number of small moves that will calm things.” 

Buyside looks to outsource collateral management, MarketsMedia, June 4, 2014.
The Sapient Global Markets 2014 Collateral Survey found that 43% of buyside firms are currently using an external collateral manager, as outsourcing can help firms to become compliant with new regulations and reduce cost. The report also said that 70% of buyside firms are considering outsourcing as a collateral management strategy. Gordon McDermid, a director of business consulting who leads the clearing and collateral practice at Sapient, told Markets Media: “The trend towards outsourcing reflects the industrialisation of services. Unless firms are of sufficient scale it is more efficient to outsource and take advantage of shared services.” 

Collateral Management: Shifting from Cost to Profit-Center, FinOps Report, June 3, 2014.
Once considered a dreary administrative task, collateral management is moving to high visibility for fund management shops, forced by new regulations to rethink their the use of the assets that back numerous transactions. Now a target for cost control with the ultimate goal of wringing revenue out of it, collateral management is coming out of the back room. “Knowing just how much collateral to use for which transactions will go a long way to reducing expense,” explains Neil Wright, derivatives director at Sapient Global Markets in Boston. 

Collateral management moves to centre stage, Banking Technology, June 2, 2014.
Collateral management as it is currently understood will no longer exist within a few years as increased regulatory demands, rising levels of automation and the growth of industry tools to optimise collateral transform the industry, according to a report by Sapient Global Markets. Historically, collateral hasn’t lent itself to automation, perhaps partly due to the way it was perceived as a cost centre,” said Gordon McDermid, director of collateral management at Sapient. “It takes a certain amount of focus on this issue to force a change, and now that collateral is moving centre-stage it is starting to happen.” 

Putin In A Box With Ukraine, Forbes, June 2, 2014.
Russian President Vladimir Putin has come to an important intersection in his dangerous game of chess with Ukraine and the West. While he has successfully scored some minor victories, the crisis has also demonstrated the boundaries of Russian influence beyond such regional machinations. It has quickly become obvious that the three percent of global GDP Russia represents can and will be constrained by the US and EU’s combined fifty percent. 

May 2014

How to regulate HFT's secrets- PDF - Print, International Financial Law Review, May 29, 2014.
The clandestine nature of high-frequency trading makes it nearly impossible to police. Thankfully, a new and fairer market is emerging. Graeme Burnett is a hugely intelligent software engineer. Formerly of Morgan Stanley, he creates high frequency trading (HFT) technology used by some of the world's largest banks. (Last year he co-wrote a trading algorithm that allowed orders to consistently travel from tick to trade at 978 nanoseconds - at the time one of the fastest in the world.) But in the past month Burnett has found his profession rampantly criticised. Michael Lewis's popular book Flash Boys, a damning account of the practices involved in HFT, has accused the industry of rigging the market by using speed to cheat investors and gain an unfair advantage. Part of HFT's problem is everyone else's inability to define it. "If a regulator came out with a list of criteria as to what constitutes the practice - a set of 50 things, for example - it could be regulated," says Paul Gibson from Sapient Global Markets in London. "The problem is that no one has the tools to understand the intricacies in the market. Once HFT is defined it would likely be easy to shift away from it." "If the buy-side, hedge funds and asset managers change behaviours and decide not to route to certain exchanges, ATSs or brokers, the move in volume and corresponding revenue will necessitate market change," says Jim Myers from Sapient Global Markets. "And in the absence of behaviour changing you need regulation, but it is very hard to craft that regulation," adds Myers.

Collateral management trends surveyed, Structured Credit Investor, May 29, 2014.
Sapient Global Markets has released the results of a new survey examining trends, issues and requirements for efficient collateral management across global market participants. The research - conducted throughout March - reveals three significant trends: evolution towards the front office; efficiency gains required to deliver increased automation; and the systems and processes needed to support these substantial structural changes. The survey highlights that cost efficiency is one of the main drivers of change in collateral management, requiring more effective client communication, responses to margin calls, dispute management and settlement of non-cash collateral. However, most survey participants do not consider their dispute management processes to be efficient enough and regard their counterparties' processes as an area for improvement. 

Regulations drive collateral management to front office, The Trade, May 29, 2014.
Collateral management is increasingly moving to the front office as it becomes more central to the investment process, according to research by consultancy Sapient Global Markets. Sapient’s survey of institutional investors, CCPs and custodians found that while most still position collateral functions in the back office, regulatory change is driving the importance of collateral management, with 25% of respondents saying they plan to move this function to the middle or front office. Requirements to centrally clear OTC derivatives transactions in regulations such as the Dodd-Frank Act in the US and European market infrastructure regulation, are behind this change, but the need to save money plays its part with some respondents hoping to turn collateral into a revenue generator.

Sapient Global Markets Survey Reveals Industry Desire to Evolve Collateral Management to a Front Office, Revenue Generating Function, TabbFORUM, May 28, 2014.
This is a general piece of pickup from the press release, which quotes Robert Binder. 

Sapient Global Markets Survey Reveals Industry Desire to Evolve Collateral Management to a Front Office, Revenue Generating Function, Global Transaction Banking, May 28, 2014.
This is a general piece of pickup from the press release, which quotes Robert Binder. 

Sapient Global Markets Survey Reveals Industry Desire to Evolve Collateral Management to a Front Office, Revenue Generating Function, Bobsguide, May 28, 2014.
This is a general piece of pickup from the press release, which quotes Robert Binder. 

Front office the way forward, Securities Lending Times, May 28, 2014.
Evolution towards the front office has been identified as one of the main trends for efficient collateral management across global market participants in a survey by Sapient Global Markets. The research, conducted throughout March to ascertain how firms are managing and processing collateral, also named the efficiency gains required to deliver increased automation and the support systems needed as being important. 

Collateral management shifts to the front office, FTSE Global Markets, May 28, 2014.
This is an article written off of the press release, which quotes Robert Binder. 

Swaps Reporting Hindered By Data Quality, Markets Media, May 28, 2014.
Five years after the G20 summit in Pittsburgh, the call for over-the-counter (OTC) market transparency has resulted in the creation of swaps data that some say is unreliable and of little value in its current form due to issues surrounding data quality. “The CFTC has found a lot of inconsistencies in the data being reported, and it has been already one year since that reporting has started,” said Kimon Mikroulis, associate at Sapient Global Markets. “They have been unable to do meaningful, valuable analysis on the data. The way that the data is constructed and reported for market participants is so fragmented that they cannot use it for the intended purposes.” Efforts are underway globally by regulators to increase the quality of the data that is currently being collected in multiple jurisdictions, both in the United States for Dodd-Frank reporting by the CFTC in cooperation with Department of the Treasury Office of Financial Research, and in the European Union through the February 12 start of the reporting via ESMA. On January 21, 2014, the CFTC created an interdivisional working group (IDWG) to review the quality of swaps data reporting. Major areas of concern were the lack of data field standardization and inconsistency of reporting among market participants. At the same time, the low quality of swaps data has come under the scrutiny of the Financial Stability Board (FSB). The FSB is trying to articulate the characteristics of a high-quality data management system. “While there is a lot of benefit to standardization and attempts to try to clean up the data, there’s a lot of very small quick wins that could be achieved that will help push a lot of this data quality forward quicker,” said Cian O’Braonain, co-lead of Sapient Global Markets’ regulatory reporting practice.

How to regulate HFT's secrets, International Financial Law Review, May 29, 2014.
The clandestine nature of high-frequency trading makes it nearly impossible to police. Thankfully, a new and fairer market is emerging. Graeme Burnett is a hugely intelligent software engineer. Formerly of Morgan Stanley, he creates high frequency trading (HFT) technology used by some of the world's largest banks. (Last year he co-wrote a trading algorithm that allowed orders to consistently travel from tick to trade at 978 nanoseconds - at the time one of the fastest in the world.) But in the past month Burnett has found his profession rampantly criticised. Michael Lewis's popular book Flash Boys, a damning account of the practices involved in HFT, has accused the industry of rigging the market by using speed to cheat investors and gain an unfair advantage. Part of HFT's problem is everyone else's inability to define it. "If a regulator came out with a list of criteria as to what constitutes the practice - a set of 50 things, for example - it could be regulated," says Paul Gibson from Sapient Global Markets in London. "The problem is that no one has the tools to understand the intricacies in the market. Once HFT is defined it would likely be easy to shift away from it." "If the buy-side, hedge funds and asset managers change behaviours and decide not to route to certain exchanges, ATSs or brokers, the move in volume and corresponding revenue will necessitate market change," says Jim Myers from Sapient Global Markets. "And in the absence of behaviour changing you need regulation, but it is very hard to craft that regulation," adds Myers.

DERIVATIVES: Data woes move front and center, IFR, May 27, 2014.
Discrepancies in how the four main US swap trade repositories collect and store data is threatening to derail regulatory efforts to build a comprehensive view of the over-the-counter derivatives market – a key tenet of the 2009 G20 agreement on financial reforms. CFTC Commissioner Scott O’Malia will outline a plan for reconciling the various forms of data being reported across the market at a Technology Advisory Committee meeting on June 3, but brokering a compromise is likely to be an uphill struggle. For starters, rival trade repositories hold different views with regard to how data should appear. The continuing uncertainty is not just a problem for regulators looking to maintain oversight of the market, but also participating firms that need to reconcile reports against their own books. “The different formats and reconciliation of swaps data is going to be a major problem for the industry,” said Cian O Braonain, a consultant at Sapient Global Markets. 

CFTC eases Dodd-Frank burden on energy companies, Risk.net, May 23, 2014.
In the wake of industry criticism, the US Commodity Futures Trading Commission is taking steps to relax position limits and accommodate the concerns of public utilities in its implementation of the Dodd-Frank Act. Industry sources welcomed the CFTC's moves, describing them as common-sense steps that would fix certain aspects of the agency's Dodd-Frank regulations that have raised the hackles of end-users."This is great news," says Arun Karur, Houston-based commodities practice lead at consulting firm Sapient Global Markets. "They are recognising the practicalities of how the market functions."Energy firms have been especially vocal in their criticism of the position limits rule, which the CFTC re-proposed last November after a previous version was vacated by a federal judge. The rule would impose speculative position limits on futures, options and over-the-counter derivatives linked to 28 energy, metals and agricultural commodities.

BST Europe Panelists: IMA Publishes IBOR Standards, but Every IBOR is Unique, Waters Technology, May 22, 2014.
Just as the UK's Investment Management Association (IMA) releases the first circular on the requirements and definition of the Investment Book of Record (IBOR), panelists at the Buy-Side Technology European Summit in London on Tuesday reflected on what are the key capabilities of an IBOR, and the extra bits and pieces firms can add to derive real benefits for their businesses. Panelists at the summit said there is more to an effective IBOR  than meets the eye, and that firms should focus on the implementation steps and business arrangements first, to make sure the end product fits the purpose. Duncan Cooper, director of business consulting at Sapient, offered a different viewpoint, arguing that any IBOR is only as good as the information you are feeding into it. "You must spend a lot of time and effort ensuring the quality of the data that enters your IBOR, so that everything you get out of it is accurate and trustworthy."

IBOR: A single source of truth for buy-side firms, FTSE Global Markets, May 22, 2014.
There are many differing views of what constitutes an Investment Book of Records (IBOR), but the industry seems to be moving towards a definition: it is a continuous list of time stamped trade and transactional events that affect the position of any account. These transactions can then be aggregated up to give a view of the position of the fund(s) at any point in time; past, present (in real time) or future (based on information available at that time) writes Duncan Cooper, director, Sapient Global Markets. He explains that investment managers can spend too much time and effort to get an accurate view on where they are in the market and why an investment in IBOR may be well worth the implementation and design cost.

Interview with Chip Register,MngDir of Sapient GM on energy, Putin, Ukrayna, Bloomberg TV, May 16, 2014.
Melike Ayan interviews Chip Register, Managing Director of Sapient Global Markets. Chip discusses the current state of Russia and Ukraine, the impact on energy and energy prices in the market. 

A Preview Of Innovations That Could Upend The Energy Sector, Forbes, May 15, 2014.
If you want to wager that you’ll know what the energy economy will look like in a decade or two, I’ll bet you’re wrong. Here are two reasons why. First, everyone (and I mean everyone) missed the Shale Revolution. Just as it was picking up steam, then-President George W. Bush was bemoaning our “addiction to foreign oil” in his 2006 State of the Union address. The prestigious Energy Information Agency (EIA) only used the term “shale” four times in their Annual Energy Report a year earlier and made no mention of it having a material impact on the global production mix.Fast forward to today and the United States sits of the cusp of being the largest energy producer in the world and will likely surpass Russia and Saudi Arabia in annual oil production next year. And our best thinking suggests that the US will be completely “energy independent” in about two decades. 

Sapient Global Markets and OpenLink extend strategic alliance to enhance joint project delivery, TabbForum, May 14, 2014.
Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), and leading global provider of business technology and consulting services for the capital and commodity markets, and OpenLink, a leading provider of software for the commodity and energy industries, today announced an extension to their alliance, enhancing the development and delivery of OpenLink solutions. OpenLink will provide enhanced access to product roadmaps and product training, while Sapient Global Markets will create a Center of Excellence focused on global service delivery for OpenLink’s energy and commodities solutions. Chip Register, managing director of Sapient Global Markets, said: “We have established a highly successful relationship with OpenLink that is delivering significant, transformational projects to firms. With this new agreement we have the opportunity to extend that experience and expertise, supporting energy and commodity firms during a period of substantial and ongoing change.” 

Sapient Global Markets and OpenLink extend strategic alliance to enhance joint project delivery, Bobsguide, May 14, 2014.
Sapient Global MarketsSapient Global Markets, a division of Sapient (NASDAQ: SAPE), and leading global provider of business technology and consulting services for the capital and commodity markets, and OpenLink, a leading provider of software for the commodity and energy industries, today announced an extension to their alliance, enhancing the development and delivery of OpenLink solutions. OpenLink will provide enhanced access to product roadmaps and product training, while Sapient Global Markets will create a Center of Excellence focused on global service delivery for OpenLink's energy and commodities solutions. Chip Register, managing director of Sapient Global Markets, said: "We have established a highly successful relationship with OpenLink that is delivering significant, transformational projects to firms. With this new agreement we have the opportunity to extend that experience and expertise, supporting energy and commodity firms during a period of substantial and ongoing change."  

Sapient Global Markets and OpenLink form alliance, Finextra, May 14, 2014.
Sapient Global MarketsSapient Global Markets, a division of Sapient (NASDAQ: SAPE), and leading global provider of business technology and consulting services for the capital and commodity markets, and OpenLink, a leading provider of software for the commodity and energy industries, today announced an extension to their alliance, enhancing the development and delivery of OpenLink solutions. OpenLink will provide enhanced access to product roadmaps and product training, while Sapient Global Markets will create a Center of Excellence focused on global service delivery for OpenLink's energy and commodities solutions. Chip Register, managing director of Sapient Global Markets, said: "We have established a highly successful relationship with OpenLink that is delivering significant, transformational projects to firms. With this new agreement we have the opportunity to extend that experience and expertise, supporting energy and commodity firms during a period of substantial and ongoing change."  

SAPIENT GLOBAL MARKETS AND OPENLINK EXTEND STRATEGIC ALLIANCE TO ENHANCE JOINT PROJECT DELIVERY, The Wall Street Transcript, May 14, 2014.
Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), and leading global provider of business technology and consulting services for the capital and commodity markets, and OpenLink, a leading provider of software for the commodity and energy industries, today announced an extension to their alliance, enhancing the development and delivery of OpenLink solutions. OpenLink will provide enhanced access to product roadmaps and product training, while Sapient Global Markets will create a Center of Excellence focused on global service delivery for OpenLink's energy and commodities solutions. Chip Register, managing director of Sapient Global Markets, said: "We have established a highly successful relationship with OpenLink that is delivering significant, transformational projects to firms. With this new agreement we have the opportunity to extend that experience and expertise, supporting energy and commodity firms during a period of substantial and ongoing change."

Hedge Funds Daunted by FATCA, MarketsMedia, May 13, 2014.
The impact of the Foreign Account Tax Compliance Act (FATCA) is being felt far and wide, and hedge funds face a multiplicity of challenges including registration requirements, gathering investor data, reviewing and assessing such data, and providing the relevant FATCA tax filings. “FATCA is the first truly effective extra-jurisdictional piece of legislation that, assuming it works, will have seismic effects on how the world operates,” said Dermot Mockler, group head of regulatory affairs, compliance & anti-money laundering at TMF Custom House Global Fund Services. FATCA has generated a number of compliance challenges that require full stakeholder engagement from business, operations, technology, finance and compliance groups. “For the business, the KYC challenge is exacerbated with yet another client record that has to be completed and kept up to date,” said Chris Collins, global director, regulatory response at Sapient Global Markets. 

James Rundle: A Different View of Data, Waters Technology, May 2, 2014.
The US Commodity Future Trading Commission’s (CFTC’s) inability to even perform basic analysis on the data from transaction reports, as admitted during Commissioner Scott O’Malia’s keynote address at the Swift Standards Forum in London last month, is alarming. It’s not good news for the market as a whole, which needs robust oversight to engender confidence, and it’s not good for individual market participants either, who struggled to put systems in place for reporting, only to find that the information they submit is essentially useless. Sapient Global Marketing’s Cian Ó Braonáin argued, for concentration risk measurement, the most useful tool is clearly identifying products and the notional value on them, which should give regulators an indication of who is trading what and where. Once significant positions are identified, that too can lead to a visit to establish areas such as being over-exposed to a certain product or entity, or over-leveraged across markets.

‘Great Merchant Class’ Buying US Energy Assets Might Re-Emerge, Oil & Gas Investor, May 2, 2104.
A variety of commodity merchants, from Vitol Group, the largest independent oil trader, to a company backed by billionaire Paul Tudor Jones, are amassing physical energy assets in the U.S. at an unprecedented rate as shale output revives stagnant fuels markets. The Federal Reserve has said it is considering new limits on the trading and warehousing of physical commodities. Legislators are exploring ways to restrict ownership and trading of commodities. New global capital requirements have also made it more expensive for banks to hold commodities. “They’re going to leave a big hole in the marketplace,” Chip Register, managing director of Sapient Global Markets, a consultant in Boston, said March 21 by telephone. “There’s a lot of arbitrage opportunity and money to be made there.”

Shale Revolution Lures Trading Houses to U.S. Energy Assets, World Oil, May 2, 2014.
Merchants from Vitol Group, the largest independent oil trader, to a company backed by billionaire Paul Tudor Jones are amassing physical energy assets in the U.S. at an unprecedented rate as shale output revives stagnant fuels markets. “They’re going to leave a big hole in the marketplace,” Chip Register, managing director of Sapient Global Markets, a consultant in Boston, said March 21 by telephone. “There’s a lot of arbitrage opportunity and money to be made there.” 

Shale Revolution Lures Trading Houses to U.S. Energy Assets, Financial Post, May 1, 2014.
Merchants from Vitol Group, the largest independent oil trader, to a company backed by billionaire Paul Tudor Jones are amassing physical energy assets in the U.S. at an unprecedented rate as shale output revives stagnant fuels markets. “They’re going to leave a big hole in the marketplace,” Chip Register, managing director of Sapient Global Markets, a consultant in Boston, said March 21 by telephone. “There’s a lot of arbitrage opportunity and money to be made there.”

Shale Revolution Lures Trading Houses to U.S. Energy Assets, BloombergBusinessweek, May 1, 2014.
Merchants from Vitol Group, the largest independent oil trader, to a company backed by billionaire Paul Tudor Jones are amassing physical energy assets in the U.S. at an unprecedented rate as shale output revives stagnant fuels markets. “They’re going to leave a big hole in the marketplace,” Chip Register, managing director of Sapient Global Markets, a consultant in Boston, said March 21 by telephone. “There’s a lot of arbitrage opportunity and money to be made there.” 

Shale Revolution Lures Trading Houses to U.S. Energy Assets, Bloomberg, May 1, 2014.
Merchants from Vitol Group, the largest independent oil trader, to a company backed by billionaire Paul Tudor Jones are amassing physical energy assets in the U.S. at an unprecedented rate as shale output revives stagnant fuels markets. “They’re going to leave a big hole in the marketplace,” Chip Register, managing director of Sapient Global Markets, a consultant in Boston, said March 21 by telephone. “There’s a lot of arbitrage opportunity and money to be made there.” 

April 2014

European Derivatives Reporting Continues to Cause Headaches, Waters Technology, April 30, 2014.
Since February 12, parties to derivative trades in Europe have been obliged to report transactions to designated repositories. But with an unsteady launch, complaints about tough regulatory deadlines, and varying quality in the data reported, buy-side and sell-side firms continue to experience issues with compliance, while in the US, regulators admit they cannot even analyze the information they receive. “I think that SEFs and OTFs will provide a huge amount of the content required to standardize UTIs, and as deals are executed on these platforms, both parties will get a platform-generated identifier rather than having to go through the agreement process of who will have to create it,” says Cian Ó Braonáin, head of the regulatory reporting practice at Sapient Global Markets.

Some Banks Haven't Given Up On Trading Commodities and That's a Good Thing, Forbes, April 29, 2014.
As expected, the recent by some of the largest energy trading banks has created a temporary dearth of capability, and sometimes liquidity, in the international commodity markets. Born a child of the Financial Crisis and the BP BP +2.55% Deepwater Horizon oil spill, and later ensconced into law through Dodd-Frank, the Volker Rule and other international regulations, the anti-bank sentiment amongst policymakers has driven many of the largest players into various stages of transition toward smaller footprints.

ISDA AGM: What does the future hold for the OTC markets?, FOW, April 23, 2014.
Regulation and how the derivatives industry is coming to terms with this new market order was the central theme of the recent ISDA AGM in Munich, says Jim Bennett, Sapient Global Markets. This was reflected in the various panel discussions and the chatter on the conference floor and through the exhibition hall. From the opening address and throughout the following two days, the event focused on the benefits derivatives can bring to end-users and the regulatory barriers that might prevent their continued use. This included the requirement to execute some trades on swap execution facilities (SEFs), as well as clearing and reporting requirements.

ADX, ICBCFS, FINRA and more...The Trade, April 23, 2014.
The Investment Book of Records (IBOR) could help investors with a heavy flow of instruments to reduce the time and effort of updating and keeping information up-to-date, according to a Sapient white paper. IBOR, as defined in the paper, is a “continuous list of time stamped trade and transactional events that affect the position of any account. “These transactions can then be aggregated up to give a view of the position of the funds at any point in time based on information available at that time.”

ISDA AGM: What does the future hold for the OTC markets?, FOW, April 23, 2014.
Regulation and how the derivatives industry is coming to terms with this new market order was the central theme of the recent ISDA AGM in Munich, says Jim Bennett, Sapient Global Markets. This was reflected in the various panel discussions and the chatter on the conference floor and through the exhibition hall. From the opening address and throughout the following two days, the event focused on the benefits derivatives can bring to end-users and the regulatory barriers that might prevent their continued use. This included the requirement to execute some trades on swap execution facilities (SEFs), as well as clearing and reporting requirements.

Data analytics, the user experience and the traditional pillars of finance, FierceFianceIT, April 22, 2014.
A paper released earlier this month makes some interesting predictions about the future of financial services. The same technology eroding some of the traditional ways financial firms provide services and profit from risk might also be a key differentiator in a reconfigured market. "Advances in technology are democratizing what was once proprietary to the industry," writes Chip Register, managing director of Sapient Global Markets in a paper titled "Both Calamity and Catalyst." In particular, what he calls the "three big foundational pillars" upon which firms have built a fee structure--access to markets, portfolio construction and research--are crumbling due to commoditization. 

Latest technology Lowers expense ratios, Money Management Executive, April 21, 2014.
As with most everything in life, technology is playing an important role in allowing fund companies to lower their expense ratios. A key components of a fund’s expense ratio is administrative costs for recordkeeping, mailings and compliance with expenses for these required functions being lowered thanks to asset managers embracing digital offerings both internally and with third parties. “The streamlining of operations is probably the largest factor in fund companies being able to reduce their expenses,” says Mark Israel, vice president of business consulting at Sapient Global Markets, a consulting firm that works with asset managers to reduce technology expenses both internally or through hiring third party administrators."

How the EU and US Can Use Natural Gas to Keep Russia in Check, Forbes, April 7, 2014.
If the West truly wants to curtail Russian aggression in the Ukraine, Eastern Europe or elsewhere around the globe, it first needs to craft a strong and well-coordinated energy plan. I believe that, in addition to foreign policy debacles like the “reset button” and the Syrian “red line,” the absence of such a plan contributed greatly to Russian President Vladimir Putin’s decision to invade Crimea. But while Europe is dependent on Russian energy today, that doesn’t always have to be the case. What the past month has drawn into stark relief is Putin’s vulnerability, not his strength. In a world of falling energy prices and rapidly developing alternative resources, from fracking to solar, the Russian economy is already set up for a tough fight. Provoking the West will only accelerate the process. 

Survey Roundup: Executives on Analytics, Internal Audit, Wall Street Journal, April 4, 2014
A look at some recent surveys and reports dealing with risk and compliance issues. A paper by Sapient Global Markets focuses on how the 2008 financial crisis has prompted scrutiny of business models, policies and processes and how this will affect the future of the financial services industry. The report says in many ways we are equally as blind today to the long-term consequences of our efforts to re-order as regulators and industry captains were at the time of the stock market crash in 1929.

Shale energy transport is quicker through railroads: Sapient, Commodity Online, April 1, 2014.
With the shale energy boom, interesting logistical challenges have emerged and railroad has gained an upper hand as it is quicker and cheaper to develop compared to pipelines, according to Rashed Haq, Vice President at Sapient Global Markets. He told Commodity Online in an interview that major shale production areas in USA have very little or no pipeline infrastructure but huge demand for moving their product and rail is at the forefront of that. Rashed Haq points out that rail also offers more 'optionality' where connections can be made in different ways to different locations or goods can be placed in siding for a few days. Pipeline companies on the other hand are looking to spend billions to build new routes and connect the new supply centers to centers of demand. However, the pipeline cost is so high and time consuming and current cost of gas is low making it not economical. 

March 2014

National resource giants plot varied paths to global goal, Reuters, March 31, 2014.
In the boldest international move in its 50-plus-year history, the world's top sugar producer will form a 50-50 joint venture with global trading powerhouse Cargill. It was a blockbuster deal for the global sugar market, but perhaps even more importantly it opened up a new path for other state-owned or nationally powerful commodity producers, those with domestic strongholds and international ambitions. Chip Register of Sapient Global Markets comments on the grab for market share in the commodity industry. 

Sapient and Kurtosys Team on Fund Marketing for Asset Managers, Waters Technology, March 26,2014.
Sapient Global Markets has launched Client Connect, an asset manager solution for fund marketing and client service automation. "Current approaches cannot satisfy client demand for immediate access to information, bespoke services and more tailored investment needs," says Randall Orbon, SVP at Sapient Global Markets. "With Client Connect, we can provide richer, more personalized, timely data and reporting that enhances the client relationship and enables firms to concentrate on their core objective of generating alpha."

Invisible men lined up as heirs at commodity traders, Reuters, March 26, 2014.
Abrupt leadership changes at commodity traders Trafigura and Gunvor over the past week have put a sharp light on an industry-wide challenge: shifting oversight from a legion of legendary, aging leaders to a new generation."I have never in over two decades seen much in the way of succession planning. Frankly, trading floors and their management run more like animal farm than General Motors. There is an implicit hierarchy, and that matters," said Chip Register, a long time commodity executive, currently at Sapient Global Markets.

Sapient Global Markets and Kurtosys launch Sapient Client Connect solution, Automated Trader, March 26, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Analysis: Reg AB II transparency debate, IFLR, March 26, 2014.
The reopened comment period for Regulation AB II (Reg AB II) closes on Friday. But issuers and investors continue to clash over the level of disclosures in asset-backed securities (ABS) offerings and its potential ramifications. The wait for the new regulation had been extended in February following the Securities and Exchange Commission (SEC) postponement of a vote and request for further comments addressing privacy concerns. Issuers argue individual level disclosure could expose the personal information of loan takers and harm competitive advantage. Opponents say greater transparency will help create better pricing and a more even playing field. "Standardising would make it much easier for investors," said Kevin Samborn from the Sapient Global Markets, a marketing and consulting company "It's a myth that that the cost is high and that flooding the market with information will slow things down." Reg AB II will revise the disclosure, reporting and offering procedure for ABS. Issuers of certain asset classes will be required to give enhanced disclosures of the loans that make up the underlying pool. They have argued this could expose the personal information of loan takers to unnecessary risk. "As datasets age there's a likelihood that they will be more widely dispersed through secondary distribution," said Dave Colling, also of the Sapient Group. "Collections of such data could eventually be malevolently re-aggregated, perhaps identifying borrower characteristics and behavior," he said.

Sapient Global Markets unveils Client Connect, Finextra, March 25, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Sapient Global Markets unveils Client Connect, Global Transaction Banking, March 25, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Sapient : Global Markets : Launches Sapient Client Connect Solution with Investment in Fund Reporting Expert Kurtosys, 4-traders, March 25, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Sapient Global Markets Launches Sapient Client Connect Solution with investment in fund reporting expert Kurtosys | 25 Mar 2014 (Sapient Global Markets), TabbFORUM, March 25, 2014.
This is a general piece of pickup that links to the press release, which quotes Randall Orbon.

Kurtosys Powers New Sapient Client Connect Solution, Kurtosys Blog, March 25, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Sapient Global Markets Launches Sapient Client Connect Solution with investment in fund reporting expert Kurtosys, Bobsguide, March 25, 2014.
This is a general piece of pickup from the press release, which quotes Randall Orbon.

Sanctions create complications for Morgan Stanley-Rosneft deal, Financial Times, March 21, 2014.
Last week the tanker Hafnia Phoenix dropped off a cargo of petrol in Rhode Island. The shipper was not an international oil company but Morgan Stanley, according to customs data service Panjiva. As the US investment bank now prepares to sell its global oil trading business to Rosneft, the state-owned Russian oil company, the Ukraine crisis has suddenly created fresh complications. Washington’s move to sanction Russia following its disputed annexation of Crimea this week has cast uncertainty over the fate of Morgan Stanley’s fuel supply contracts for Rhode Island and other US states. Rosneft, a state-owned group with significant international reach, is likely to become a target should sanctions escalate from individuals to Russian companies. “If they keep slapping each other higher and higher up the sanctions scale, then at some point it may be that this deal can’t happen,” said Chip Register of Sapient Global Markets, a consultant to commodity traders.

Delivering transparency, Structured Finance Information, March 20, 2014.
While the financial services industry has to date focused on accountability and credit ratings elements under Dodd Frank, it is critical that the SEC continues to push initiatives to restore investor confidence, explains Sapient Global Markets vice president – business development, David K. Donovan News that the US SEC postponed a vote in early February regarding the adoption of rules revising the disclosure, reporting and offering process for ABS is disappointing, given the regulator’s previously-stated determination to enhance transparency across ABS and MBS instruments. Transformation of this opaque asset class has been high on its agenda since Chairman Mary Shapiro noted the SEC’s top three priorities for reform at the American Securitization Forum back in 2011.

Playing the Energy Card in Crimea, Forbes, March 18, 2014.
In the wake of this weekend’s referendum in Crimea, we now find ourselves at a pivotal juncture in the Crimean Gambit. The United States and the European Union say they will impose limited sanctions on Russia if they annex the Crimea as expected – but how serious will they be? It is unlikely that limited sanctions, such as the visa restrictions and asset freezes announced last week will send the proper “cease and desist” message to Russian President Vladimir Putin. At the same time, it is unclear what Russia would do if faced with harsh sanctions. Putin is promising a “boomerang” effect, where the West would surely regret its decision.

US banks worry over fuzzy Fatca requirements, Risk, March 17, 2014.
Time is running out for foreign companies to register under the US Fatca anti-tax-evasion law, but they are still frustrated by a lack of clarity on the law’s requirements, in particular the rules governing know-your-customer procedures. Under Fatca, a new series of enhanced W-8 forms has been produced to identify non-US clients. These have been causing concern for some time. Many institutions have been working on building self-service portals where clients can enter their own information. But without the final W-8BEN-E form telling institutions specifically what information they need to be asking for, these portals can't be completed. "We are trying to prepare for this but it's a bit like the blind leading the blind," says Karen Rossouw, London-based manager and business consultant at Sapient Global Markets. "You want to streamline the processes and the self-service portal means that your client is almost responsible for your data integrity – and so your KYC integrity, so we have to get these portals exactly right."

Transparency Now Arriving for U.S. Energy Markets - The Energy Data Hub, IDC, March 16, 2014.
IDC. It has been a long time in coming, but utilities will now be able to get more transparency into their exposure in the market through the Energy Data Hub. What this means for the energy companies that contribute is that they will have access to both physical and financial trading data. As a strategic partner of EDH, Sapient Global Markets helps launch new benchmarking services that deliver valuable insight into global energy transactions in order to support risk management and trade strategy.

Common SEF rulebook idea mooted, The Trade, March 14, 2014.
Market participants gathered at FIA annual conference in Boca Raton, Florida, to discuss challenges and opportunities in the derivatives markets. A range of issues continue to concern the buy-side in using SEFs, the new OTC derivatives platforms. “There are some industry bodies looking to assist buy-side and other market participants by making a uniform rulebook across a number of platforms,” said Jim Myers, Senior Manager at Sapient Global Markets. “As SEFs use their rulebooks as a means to differentiate their platform’s offering compared to rivals, understanding 21 separate rulebooks has been a challenge.”

A Bright Future For Swapping Futures, Traders Magazine, March 12, 2014.
The first 2014 milestone in the swaps market comes in mid-February as certain OTC swaps move to mandatory electronic trading on swaps execution facilities. Sapient Global Markets manager Ben Larah expects many market participants will stick with swaps because they can be customized to provide a static hedge. "When there is a mismatch in maturity and duration between the liability and the hedging instrument, constant rebalancing might be required to hedge the liability," he said.

HuffPostLIVE #WorldBrief with @CaroMT, HuffPostLIVE, March 10, 2014.
Chip Register discusses the impact of the crisis in Ukraine on the global energy economy. Appears at 26:35.

Bridging the Business-IT Divide, Markets Media, March 6, 2014.
Achieving consensus between business and IT has become paramount for capital markets firms due to a changed regulatory environment, which requires nimbleness and agility.“Regulatory mandates have pushed a lot of IT spend,” said Josh Sutton, an executive at Sapient Global Markets. “You’re also seeing new business models emerge where functions that used to be performed by each bank individually are moving into more of an industrialized utility solution and consortiums are popping up that didn’t exist one or two years ago simply because there weren’t the fiscal drivers to necessitate that.”

Anti-Keystone Protesters Are Boosting Putin's Petrostate, Forbes, March 5, 2014.
The hordes of protesters–mainly college students from carbon-fueled busses–thronging the White House to protest the Keystone XL pipeline probably don’t consider themselves proponents of Russian President Vladimir Putin’s grandiose vision of reunifying the former Soviet Union. Yet they’re doing precisely that by escalating against the State Department’s slow but steady realization that the pipeline system from Canada can be built and operated responsibly without increasing global greenhouse emissions. By constricting oil supply, this restricts demand (their intended outcome), at least in the short run. But in the long run, the developing world will still have high demand for carbon-based fuels as the onward march of globalization moves more people to urban areas who can afford to purchase cars. Those protestors chained to the fence can’t stop what Chip Register, managing director of Sapient GlobalMarkets, pointed out. “Canada is no longer waiting on the US to get its act together. Last month, Canada’s National Energy Board approved plans to construct what can only be interpreted as an alternative pipeline to the Keystone, the Gateway Pipeline. This new pipeline is slated to carry crude west from Alberta to the Pacific Ocean where it would then be exported to Asia via supertanker.”

Down But Not Out: Banks' Energy Traders Find Life Raft In Long-Term, Complex Deals, Forbes, March 4, 2014.
While it looks like the big U.S. banks are being pushed out of the energy trading business, the truth is, they aren’t going far. Instead of exiting the market, the banks are simply shifting their exposure to the back end of the commodity curve – the five to fifteen year deals instead of the one month to 2 year timeframes popular over the last decade or so. Chip Register, managing director of Sapient Global Markets, explains why banks are shifting their exposure.

February 2014

Off-the-shelf ETRM software taking off, survey reveals, Energy Risk, February 25, 2014.
Off-the-shelf energy trading and risk management (ETRM) systems are more popular than ever before, according to Energy Risk’s annual software survey. However, companies say they still require significant customization and rarely meet all their ETRM needs. ETRM functions are now being carried out on ready-made software packages, according to this year's results. Almost three-quarters of respondents say they use off-the-shelf systems to carry out mark-to-market valuation, while more than 60% of respondents use them for position management and value-at-risk. Meanwhile, more than half of survey respondents use ready-made packages for complex pricing and credit value adjustment calculations. "The make-up of the items being done off-the-shelf has probably changed," says Arun Karur, vice-president at Boston-based technology firm Sapient Global Markets.

Is US securitisation going back to 2005?, IFLR, February 24, 2014.
The ABS market’s return in the US features a healthy does of caution. But growing confidence and the appearance of new structures begs the question: have we been here before? In looking at the role of mortgage-backed securities (MBS), and the return of ABS, Dave Colling comments that the mood in the market is grudgingly optimistic, and people are seeing the capacity for issuance to come on stronger, but with the caveat that regulation is adding cost to securitise and adding a risk of return.

Sapient Global Markets Details the Challenges and Opportunities of Trading on Swap Execution Facilities, Reuters, February 20, 2014.
As the US swaps market began the transition from telephone trading to electronic trading on swap execution facilities (SEFs) this week, a number of issues hung in the balance, including which of the SEFs that have registered with the US Commodity Futures Trading Commission (CFTC) will be successful, how vendors can support firms trading on SEFs, and how pricing can be compared across SEFs. Sapient Global Markets is working with buy-side firms that must trade on SEFs and with firms setting up as SEF platforms. Paul Gibson and Jim Myers comment on the challenges and opportunities of trading on SEFs.

Sapient Global Markets Details the Challenges and Opportunities of Trading on Swap Execution Facilities, Reference Data Review, February 20, 2014.
As the US swaps market began the transition from telephone trading to electronic trading on swap execution facilities (SEFs) this week, a number of issues hung in the balance, including which of the SEFs that have registered with the US Commodity Futures Trading Commission (CFTC) will be successful, how vendors can support firms trading on SEFs, and how pricing can be compared across SEFs. Sapient Global Markets is working with buy-side firms that must trade on SEFs and with firms setting up as SEF platforms. Paul Gibson and Jim Myers comment on the challenges and opportunities of trading on SEFs.

Mandatory swaps trading just the start of market changes, Wall Street Letter, February 19, 2014.
The swaps industry has just come through the first few days of a transition that will see more of the over-the-counter contracts traded on electronic platforms. But industry consultants at Sapient Global Markets say the transition, courtesy of weekend made-available-to-trade deadlines, are not the end of market structure changes for this space but rather just the beginning. The most recent piece of the CFTCs changes related to its Dodd-Frank Act mandate is the effectiveness of the made-available-to-trade (MAT) rule, which established a cutoff date for bilateral trading of specific swaps contracts and forces them in stages onto swaps execution facilities. The MAT deadlines finalize the main part of the process, but the market structure may be far from final, explained Jim Myers, senior manager at Sapient. The executives also noted the MAT implementation also offers an opportunity to newer SEFs that may not have the incumbent volume to run on momentum. “If they can offer something the established players are not offering that would be a good start,” Gibson said.

European Database Catching On, Asset Backed Alert, February 14, 2014.
The operator of a database covering asset-backed bond deals in Europe is expanding the scope of the product. European DataWarehouse’s central repository so far encompass loan-by-loan information on the collateral pools for 700 securitizations of residential and commercial mortgages, small and mid-size enterprise loans, equipment leases and auto loans — and soon will cover auto-lease deals as well. Next up will be credit-card transactions, whose inclusion is set for April. Dave Colling, a senior manager at Sapient in London, comments on the product’s potential to become a powerful performance indicator for bondholders.

A Bright Future for Swaps Futures, Traders Magazine, February 13, 2014.
While no one expects swaps futures to take over the OTC swaps market, Sapient Global Markets manager Ben Larah expects many market participants will stick with swaps because they can be customized to provide a static hedge. “When there is a mismatch in maturity and duration between the liability and the hedging instrument, constant rebalancing might be required to hedge the liability,” he said.

European Exxchanges gear up for swaps futures, FOW, February, 13, 2014.
New swap futures products and platforms are set to hit Europe this year, sparking a new wave of competition between incumbent exchanges and new players, writes Jonathan Watkins.With over-the-counter execution becoming more expensive as a result of regulatory clearing mandates, investors are turning to swap futures as a cheap alternative in the US. Similar reforms are now set to kick-in throughout Europe, and platforms are positioning themselves to capitalise on similar demand throughout the continent. The CME established the blueprint for swap futures in December 2012 based on a patent owned by and licensed from Goldman Sachs. CME and Goldman own the intellectual property rights on their particular framework of swap future, forcing other platforms to develop their own products to avoid IP issues.“The delays in competing swap future products could be due to people examining a way to launch their own future without coming into any potential IP issues,” added Larah, manager, Sapient Global Markets.

Wall Street's grandfathers of commodities to survive Fed revamp better than others, Reuters, February 12, 2014.
Thanks to a longstanding legal exemption that Fed officials say limits their regulatory capacity, Morgan Stanley and Goldman Sachs may yet emerge from the regulatory upheaval that is upending banks' commodities trading better-off than their peers, who face potentially tougher new rules. Industry insider Chip Register, managing director of Sapient Global Markets, comments on the banks’ recent exodus from the commodity markets.

Analysis – Wall St’s grandfathers of commodities to survive Fed revamp better than others, EuroNews, February 12, 2014.
Thanks to a longstanding legal exemption that Fed officials say limits their regulatory capacity, Morgan Stanley and Goldman Sachs may yet emerge from the regulatory upheaval that is upending banks' commodities trading better-off than their peers, who face potentially tougher new rules. Industry insider Chip Register, managing director of Sapient Global Markets, comments on the banks’ recent exodus from the commodity markets.

Wall Street's grandfathers of commodities to survive Fed revamp better than others, MSN Money, February 12, 2014.
Thanks to a longstanding legal exemption that Fed officials say limits their regulatory capacity, Morgan Stanley and Goldman Sachs may yet emerge from the regulatory upheaval that is upending banks' commodities trading better-off than their peers, who face potentially tougher new rules. Industry insider Chip Register, managing director of Sapient Global Markets, comments on the banks’ recent exodus from the commodity markets.

Wall Street's grandfathers of commodities to survive Fed revamp better than others, Chicago Tribune, February 12, 2014.
Thanks to a longstanding legal exemption that Fed officials say limits their regulatory capacity, Morgan Stanley and Goldman Sachs may yet emerge from the regulatory upheaval that is upending banks' commodities trading better-off than their peers, who face potentially tougher new rules. Industry insider Chip Register, managing director of Sapient Global Markets, comments on the banks’ recent exodus from the commodity markets.

Maker-taker rises up SEC reform agenda, The Trade, February 11, 2014.
A new member of the Securities and Exchange Commission's (SEC) leadership has highlighted reform to maker-taker pricing models as a particular issue the regulator should consider in its holistic review of US equity market structure. Largely adopted by venues to gain market share, maker-taker pricing has the potential to create a conflict of interest between broker and client as the former may choose to direct a trade to a venue based in its economic interests rather than best price for the latter. Jim Myers, senior manager of business consulting at Sapient Global Markets, comments: “By meeting best execution requirements set forth by the national best bit and offer (NBBO), brokers are not acting out of step with the interests of their institutional investor clients by selecting an execution venue based on rebates.”

Could SEF Aggregation be the Next Big Thing in Swaps?, Wall Street & Technology, February 10, 2014.
As the final countdown for SEF trading winds down, buy-side firms are gearing up for the mandatory execution requirement for any class of swap that has been certified through the regulatory process. Some industry watchers say it’s still uncertain as to how the market structure will evolve in terms of the buy side connecting to the various SEFs or whether a different model will emerge. Paul Gibson and Jim Myers of Sapient Global Markets discuss the future of SEF trading and the potential for SEF aggregation.

Europe Takes First Steps Toward Electronic Derivatives Trading, Waters Technology, February 7, 2014.
With provisional agreement on the Mifid II text by European political authorities, electronic execution of derivatives is set to spread over the Atlantic Ocean in the near future. “Originally, in the high-level discussion for OTFs, they suggested that one RFQ might be fine. It’ll be interesting to see if they go very similar to SEFs, or if they try to potentially look toward some types of incentive for participants to move to European trading,” comments Paul Gibson of Sapient Global Markets.

January 2014

Outsourcing responsibility, PE Manager, January 30, 2014.
GPs are being advised to fight the temptation of outsourcing all of their FATCA reporting responsibilities. Speak to any private equity chief financial officer these days and it won’t be long until the Foreign Account Tax Compliance Act (FATCA) crops up. Market sources say keeping a close eye on proceedings will serve the GP well in the long run too. “The whole of the regulatory ethos is a move towards proper governance,” says Chris Collins, director at technology provider Sapient Global Markets. Unfortunately for fund managers, that will mean better understanding the rules in a bill as complicated as FATCA.

The new stranger danger: Lending money for profit, BBC, January 30, 2014.
The latest challenge to too-big-to-fail banking could come from individual investors, not regulators. A new breed of investing platform is trimming the fat from personal and small business loans, allowing individual investors to facilitate transactions that might have taken weeks (or never) to fund through traditional means.

Sapient Global Markets and Energy Data Hub Launch Benchmarking Service for Energy Market Participant, TabbForum, January 30, 2014.
What will be the impact as banks continue to pull back from the physical commodities market. While the banks aren’t likely to see a big hit to their bottom lines, there currently isn’t anyone in a position to fill their traditional role in the energy markets, observes Chip Register, EVP, managing director, Sapient Global Markets. The question now, he adds, is how, from a trading and valuation standpoint, we will transition from a bank-led industry to an industry driven by some other entity. Register and TABB Group’s Neeraj Batra discuss the real dangers of losing banks’ expertise in the space.

Sapient Global Markets and Energy Data Hub launch energy markets benchmarking service, HedgeWeek, January 30, 2014.
Sapient Global Markets and The Energy Data Hub (EDH) have launched an energy markets benchmarking service available to EDH platform users. This service delivers insight into global energy transactions in order to support risk management and trade strategy.

An 'Unsustainable' Position: Obama Dodges Keystone in SOTU Speech, Forbes, January 29, 2014
President Obama’s fifth State of the Union address is already being assessed as something of a non-event, well-delivered but lacking much new thinking. For those interested in energy policy, it was a complete disappointment. The President largely stayed away from any discussion of energy and environmental issues during his sixty-five minute speech. And in the three minutes he did mention energy, he seemed to contradict himself and his own positions.

Sapient and EDH partner for energy benchmarking service, Automated Trader, January 29, 2014.
Sapient Global Markets and The Energy Data Hub (EDH), an independent energy data processing entity, have launched an energy markets benchmarking service, available to EDH platform users. The service delivers insight into global energy transactions in order to support risk management and trade strategy. run Karur, vice president at Sapient Global Markets, said: "EDH is much more than a price reporting utility promoting transparency in the energy markets. It is also a market analysis platform providing a rich set of data and analytics capabilities that users can leverage to drive their transaction decisions in the market. We look forward to our continued work with our partners on the EDH project to drive innovation and deeper insight into the energy markets.

Sapient Global Markets and Energy Data Hub Launch Benchmarking Service for Energy Market Participants, Bobsguide, January 29, 2014
Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), and The Energy Data Hub (EDH), an independent energy data processing entity, today announced the launch of an energy markets benchmarking service, available to EDH platform users. This service delivers valuable insight into global energy transactions in order to support risk management and trade strategy.

Sapient Global Markets and Energy Data Hub Launch Benchmarking Service for Energy Market Participant, TabbForum, January 29, 2104.
Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), and The Energy Data Hub (EDH), an independent energy data processing entity, today announced the launch of an energy markets benchmarking service, available to EDH platform users.

Sapient Global Markets and EDH launch energy-markets benchmarking service, Finextra, January 29, 2014.
Sapient Global Markets, a division of Sapient (NASDAQ: SAPE), and The Energy Data Hub (EDH), an independent energy data processing entity, today announced the launch of an energy markets benchmarking service, available to EDH platform users.

CCS Update: The Evolution of the Emerging Standard for OTC Clearing, DerivSource, January 20, 2014.
DerivSource spoke to Jim Bennett and Phillip Matricardi from Sapient Global Markets for an update on the evolution of the Clearing Connectivity Standard (CCS) and to explore what lies ahead for this OTC clearing standard in the coming year. “The challenge right now is getting everyone on the same page and gaining momentum. From a maturity point of view we are still finalizing the governance for it,” said Bennett and Matricardi.

SCRUNCH TIME FOR SEFs, Markets Media, January 17, 2014
The first hurdle for swap execution facilities took place last year, when the Commodity Futures Trading Commission issued its rules for SEFs, and SEF registration became mandatory as of November 2, following a one-month delay. “As the February deadline for SEF execution approaches, many firms are asking the question, which SEFs should I connect to?” said Paul Gibson, business consultant at Sapient Global Markets, and Jim Myers, senior manager, business consulting TRM at Sapient Global Markets.

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