Media Coverage

December 2014

Battery storage to transform power market models, Energy Risk, December 16, 2014.
The development of economical battery storage could rewrite the rules of electricity trading and create a need for newer and more sophisticated models, say market participants. 

Time running out to clean the collateral pipes, Financial News, December 11, 2014.
When the 2009 G20 summit in the city produced the outlines of a post-crisis settlement – shoring up bank balance sheets and reducing the risk of over-the-counter derivatives trades by pushing most of them through clearing houses – many feared there would not be enough collateral to get the job done. Inevitably there have been delays in bringing the regulations into force, and in the resulting breathing space it became clear that there were enough high-quality assets to act as ballast for the reconstructed financial markets if – and it was a big if – the back offices of the world’s financial institutions could move the collateral about more quickly than they had ever done. Next year the breathing space ends with a vengeance as regulatory deadlines requiring extra collateral fall within months of each other. 

As Clearing Issues Grow Costly, the Buyside Is Pushing Back, Traders Magazine, December 11, 2014.
Large buyside institutions and trading desks that utilize OTC derivatives, most notably interest rate swaps, are waking up to an uncomfortable new reality in the post-Dodd-Frank world - the coming cost of mandatory clearing of OTC derivative products. As a result, conversations over clearing costs are migrating to the forefront of the ongoing debate over OTC derivative clearing, even changing how the buyside looks at these instruments. More importantly, the buyside also is searching for ways to alleviate these costs, and may have hit upon one - pressure the smaller banks and brokerages they do business with to offer clearing services, thereby increasing competition in the marketplace and lowering costs overall. 

Gas hits $2.67 a gallon and America celebrates by buying gas-thirsty SUVs and trucks, The Guardian, December 10, 2014
Oil is down to $2.67 a gallon, so Americans are buying a lot more SUVs and pickup trucks. Are US drivers giving up on renewable energy while gas prices are low? 

Have Europe’s managers prepared for Annex IV reporting?, Global Custodian, Winter 2014.
The first wave of Annex IV reporting under AIFMD has come into force for some European firms; however, many have largely underestimated the sheer cost and workload required to comply. 

Time is short to get final building blocks in place, Financial News, December 8, 2014.
Next year may be when the chickens of Pittsburgh come home to roost. When the 2009 G20 summit in the city produced the outlines of a post-crisis settlement – shoring up bank balance sheets and reducing the risk of over-the-counter derivatives trades by pushing most of them through clearing houses – many feared there would not be enough collateral to get the job done. 

Energy evolution set to reshape risk management, Energy Risk, December 5, 2014.
During the next 20 years, the energy industry is expected to undergo transformational technological change, shaking up traditional patterns of correlation between different energy markets and creating demand for new types of instruments and more sophisticated risk models. 

ESMA Does EMIR Housekeeping, Inside Reference Data, December 2, 2014.
Market participants operating in the European Union have had to report over-the-counter derivatives trades since February, and valuations and collateral data since August. With reporting under the European Market Infrastructure Regulation (EMIR) now established, the European Securities and Markets Authority (ESMA) is soliciting input from firms and other stakeholders about its reporting and technical standards.  

November 2014

Industry Questions Reg SCI's Effectiveness After SEC Vote, Traders Magazine, November 20, 2014.
After 18 months of consultation with the cash-equities market participants, the U.S. Securities and Exchange Commission voted to approve Regulation Systems Compliance and Integrity (Reg SCI) on November 20. But the jury is still out among industry members as to whether it will accomplish its goals. Under the new regulation, self-regulatory organizations (SROs), certain alternative trading system (ATS) operators, market data plan processors and certain exempt clearing agencies will be required to have comprehensive policies and procedures in place for their technological systems. 

Other Voices: The key to transforming the fund manager/prime broker relationship, Opalesque, November 20, 2014.
In response to the financial crisis, financial markets across the world are transforming themselves. One of the most significant changes happening today is in the Prime Broker/Fund Manager relationship —a world in which Prime Brokers (PBs) provide a variety of services to Fund Managers. The Fund Manager’s alpha generation bottom-line and the Prime Broker’s services-based business model were both impacted by the turmoil in the financial markets, prompting a restructuring of the industry and a transformation of the industry’s operating model. 

REMIT: Bringing Physical Commodity Trading into the Regulatory Spotlight, Oil & Gas Monitor, November 19, 2014.
As far back as the 1986 Financial Services Act, regulators in the UK have had the authority to oversee activities related to commodity derivatives, but until recently, their presence was negligible. Despite the advent of the Financial Services and Markets Act in 2000 and a move from self to statutory legislation, the regulatory focus on commodities remained limited. The weight of rule-making was restricted to just two small handbooks—one for energy market participants (EMPs) and one for oil market participants (OMPs). With the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), however, that is about to change. In this article, David Wardley and Owen LaFave discuss REMIT, its anticipated impact and what companies need to do to ready their organizations for compliance. 

BMO Consolidates Trading Data With An Investment Book of Record (IBOR), Forbes, November 18, 2014.
Indeed a recent SimCorp survey found that although 83 percent of buy-side respondents think intraday calculations are important, only 23 percent can perform them. Duncan Cooper, director of business consulting at Sapient Global Markets, said that’s cause for concern. ““The inability to understand the impact of market events on the position of held securities has far reaching effects such as: errors in NAV calculations, inability to optimise collateral, erroneous cash positions, investor exposures in the event of a market readjustment – all of which inevitably impacts investor confidence.” 

Multiple Prime Utility: the key to transforming the fund manager/prime broker relationship, FTFNews, November 18, 2014.
Since the financial crisis, Fund Managers have increasingly moved away from using a single custodian and diversified their risk by splitting the basket under multiple Prime Brokers (PBs). This has provided them with an opportunity to utilize different partners for the different services that they offered, diversifying their asset portfolio mix and market reach. 

SEFS: A SLOW START SO FAR, DerivSource, November 18, 2014.
Although expectations ran high, swap execution facilities (SEFs) have not taken the derivatives trading world by storm. In fact, instead of a brave new era, the landscape looks similar with voice trading remaining a firm fixture and incumbents dominating the electronic front. If the past is any guide to the future, though, then alterations will be gradual.  

Optimism and opportunity: Key themes at FIA EXPO 2014, Futures Magazine, November 17, 2014.
Jim Myers of Sapient Global Markets recaps some of the key themes observed at FIA EXPO 2014 in Chicago. 

Job tests for graduates grow in Indian market, Times Higher Education, November 17, 2014.
Angst over the perceived “skills gap” and a dearth of trained workers is growing. Meanwhile, many complain that typical college transcripts say little about what someone knows and can do in the workplace. One way for employers to find better job applicants might be to require all potential hires to take a test. This “GRE-for-job” assessment could measure both soft and hard skills. Employers might even require all job-seekers to get a minimum cutoff score. 

Esma Looks to Improve Trade Reporting, Markets Media, November 14, 2014.
The European Securities and Markets Authority, the financial regulator for the European Union, is consulting on how to improve data from trade reporting which will be critical in setting policy under new trading regulations. Under MiFID, regulations covering trading in the European Union which into force in 2007, certain trades had to be reported through an approved reporting mechanism. From 12 February this year new reporting requirements came into effect under Emir, the European Market Infrastructure Regulation covering derivatives, central counterparties and and trade repositories. Since February both sides of trades have been required to be reported to an authorised trade repository and the product range was expanded from MiFID to include over-the-counter and exchange traded derivatives and commodities, credit, interest rate and equities. 

Standardized Tests for the Job Market, Inside Higher Ed, November 14, 2014.
Angst over the perceived “skills gap” and a dearth of trained workers is growing. Meanwhile, many complain that typical college transcripts say little about what someone knows and can do in the workplace. One way for employers to find better job applicants might be to require all potential hires to take a test. This “GRE-for-job” assessment could measure both soft and hard skills. Employers might even require all job-seekers to get a minimum cutoff score. 

Both Calamity and Catalyst: Reflections on This Centennial Moment in Financial Services, The Journal of Trading, Fall 2014.
We have reached a Centennial Moment in the global financial services industry. It has been almost a century since the Stock Market Crash and subsequent Great Depression compelled profound changes to the system that underpins not just investment and commerce, but our very way of life. The Financial Crisis of 2008 has yet again prompted scrutiny of business models, policies, and processes. While these two transformational moments certainly share some causality, 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 in the last century. Adding to the confusion, the evolution—and intersection—of financial and digital technologies will continue to be disruptive. Firms are being forced to simultaneously industrialize their operations and offer clients a new experience, while shedding risk as a driver of revenues and moving toward more fee-based models. By definition, this dilemma will temporarily pressure cost ratios as expenses rise ahead of profits. The winners in next-generation financial services will be those whose investments in user connectivity and experience—including mobility—arm them for the battle to come, not the one just past. 

Calculating the Clearing Threshold: Challenges for Non-Financial Counterparties in the European Union, TabbFORUM, November 12, 2014.
While EMIR mandates clearing and reporting requirements on OTC derivatives for financial counterparties, it exempts non-financial counterparties (NFCs) from parts of reporting and clearing requirements until their positions in proprietary trades remain within a pre-defined clearing threshold. In order to avoid the infrastructure and process costs for the increased EMIR reporting and risk management responsibilities, every NFC has to closely monitor its vulnerability to breach that mandated clearing threshold. 

Statkraft upgrades energy trading and risk platform to better manage renewable energy markets, FierceFinanceIT, November 11, 2014.
As Europe's largest producer of renewable power, Statkraft operates in a market that has undergone major shifts in recent years. With European regulations encouraging the use of renewable energy before energy from conventional power utilities, energy producers and traders are increasingly using sophisticated calculations to not only predict energy demand, but also to predict supply of renewable energy, whose production levels can vary based on weather conditions. Serving as a virtual power plant, combining and organizing all these different sources to fulfill the demand of the market, Statkraft decided to upgrade its energy trading and risk management (ETRM) platform for maximum flexibility. The company wanted to increase the amount of data and risk measures available to manage their positions and to ensure scalability for future growth. 

Commodity Business Awards 2014 – Shortlisted Candidates, Commodities Now, November 11, 2014.
Commodities Now announces the shortlisted candidates for the 2014 Commodity Business Awards, which reward excellence throughout the commodity industry supply chain in trading, risk management, structuring, finance, research, advisory, logistics, legal, and specialist technology.

An Oil Price ‘Cold War’ With Saudi Arabia?, PeakOil, November 10, 2014.
Last week, Saudi Arabia slashed its crude oil prices for the second month in a row – and unlike the last discount, this was exclusively for the U.S. market. Saudi oil minister Ali Al-Naimi, the country’s top energy official, attends a meeting Sept. 11 in Kuwait. Some experts declared it the start of a “cold war” with Saudi Arabia, as described by two University of Texas professors in an op-ed in the Dallas Morning News. Other analysts, however, contend that the Saudis are merely trying to defend against other exporters to the U.S. 

As Saudis Target Shale Industry, U.S. Considers a Response, Forbes, November 7, 2014.
If it wasn’t clear before, it should be now. The Saudis have put a bull’s-eye on the U.S. shale industry. This week the Kingdom cut the selling price for its crude for the second straight month in a row. But unlike the last time, the Saudis only cut their price for oil bound for the U.S. market and nowhere else. Indeed, they actually increased the selling price of its oil to Asia and Europe, much to the relief of fellow OPEC members. There is now growing concern among investors that such low prices may force many U.S. shale producers to close up shop. Indeed, Deutsche Bank claims that 40% of U.S. shale oil production scheduled for 2015 would be uneconomic below $80 a barrel, a damning statistic. 

Buy-side Pressures, Derivatives Report, November 2014.
Recent change in the OTC derivatives markets has focused on minimizing systemic risk to the financial system. Firms subject to mandatory clearing requirements are being impacted by increased costs with an adverse effect on profitability. Some key areas of impact include market liquidity, trading execution costs, dealer funding costs, technology expenditures as well as the financial instrument types utilized for investment and hedging decisions.

FIA: Jim Bennett, FIA, November 5, 2014.
Jim Bennett speaks with Joanne Morrison of Futures Industry Association (FIA) to discuss clearing and other regulatory topics. 

As Clearing Issues Grow Costly, the Buyside is Pushing Back, Traders Magazine, November 4, 2014.
Large buyside institutions and trading desks that utilize over-the-counter derivatives, most notably interest rate swaps, are waking up to an uncomfortable new reality in the post-Dodd Frank world—the coming cost of mandatory clearing of OTC derivative products. As a result, conversations over clearing costs are migrating to the forefront of the ongoing debate over OTC derivative clearing, even changing how the buyside looks at these instruments. More importantly, the buyside also is searching for ways to alleviate these costs, and may have hit upon one: pressure the smaller banks and brokerages they do business with to offer clearing services, thereby increasing competition in the marketplace and lowering costs overall.

Oil price swings come too late for banks who made desk cutbacks, Financial Times, November 4, 2014.
The recent big decline in oil prices has helped not just car owners but Wall Street commodities desks too. Years of static commodities markets have slashed revenues because banks’ trading partners – corporate clients and hedge funds – have had less impetus to protect against, or place bets on, price moves. The commodities revenue earned by the 10 biggest banks in the sector fell from $14.1bn in 2008 to $4.5bn last year, according to Coalition, a research group.

TECHNOLOGY: OMG! WHAT’S HAPPENED TO THE OMS!, Funds Europe, November 3, 2014.
Changes in technology, investment strategy and the regulatory environment have all conspired to alter managers’ IT infrastructure. Nicholas Pratt looks at how these changes have affected vendors of order management systems. Later this month the tenth Funds Europe awards ceremony takes place. Among the 22 prizes will be four dedicated to the best technology products and services available to investment managers. The changing entrants and the categories reflect the extent of change in technology, investment strategies and firms’ business objectives that have taken place in these ten years. These changes are evident in the developments in order management systems (OMS) which were once installed at the heart of a firm’s IT infrastructure bringing order to their front-office activity. As a result of cost pressure, firms are now looking to reduce the number of front-office systems that they employ, including OMSs.  

The Undead Enron Model Returns to the World above Ground, AllAboutAlpha, November 2, 2014.
Our readers are probably aware by now that Mercuria has closed on its purchase of JP Morgan’s energy trading business. The deal was done on the third of October. It appears that we’re coming full circle. Regulators and central bankers are now chasing the bank holding companies out of the market, and since somebody is going to do the crucial work of market mediation/greasing/hedging, those merchants who have stuck it out, like Mercuria, are the natural beneficiaries.

October 2014

Industry goes innovative with staff referral plans; offers attractive rewards, Economic Times, October 31, 2014.
From now on, it would also give away digital SLR cameras, along with smartphones. "It is a task to get engineering and computer science candidates with niche skills in the semiconductor space," said Chief Operating Officer Vijay Mohan. Last year, it offered trips to Mauritius, and now plans to roll out European holidays that will likely get more traction, Mohan said.  

The new London gold ‘fix’ – the battle has commenced, Mineweb, October 30, 2014.
With the new procedures for setting London benchmark prices for silver (Thomson Reuters/CME Group) and platinum and palladium (The LME) the battle for the big prize – setting the London benchmark gold price (the gold fixing as it has been designated for much of the past century) – commenced with a seminar on October 24th in London. This was conducted by the London Bullion Market Association (LBMA) and provided the five entities in the frame for setting the new benchmark the opportunity to present their cases. Their full presentations are available for viewing on the LBMA’s website. 

Single-Dealer Platforms Could Open Up, Markets Media, October 29, 2014.
The next evolution of single-dealer platforms could involve the largest banks offering rival services and products on their systems according to consultancy Sapient Global Markets. Sean O’Donnell, director of technology at Sapient Global Markets, wrote in “Crossings: The Sapient Journal of Trading & Risk Management” that the number of single dealer platforms has risen dramatically over the last five years leading to commoditization and difficulty in standing out in a crowded marketplace. One of the solutions could be for leading banks to allow services and products from other institutions to be traded on their SDP. 

Pursued By a Bear: Implications of Banks Leaving the Traded Energy Markets, TabbFORUM, October 29, 2014.
With investment banks winding down or selling off their energy trading divisions, there is a void developing in the traded market. What are the reasons for the banks’ exit, what will be the impact on market participants, and how might the market respond to these changes over time? 

Exchange-traded derivatives trading set to soar, The Trade, October 28, 2014.
Trading in futures and options has surged during the last two months and activity could continue upwards as the market begins turning to exchange-traded products in place of OTC derivatives. Volatility has returned to the markets during September and October following a relatively placid year of trading across the US and Europe. This injection of this volatility coupled with the increasing cost of trading OTC derivatives has led to a wave of trading across futures exchanges, particularly in the US where platforms have seen daily and monthly records. 

All Eyes on IBOR, Markets Media, October 27, 2014.
The Investment Book of Record can be considered the Holy Grail of investment operations, providing managers with a near real-time view of a firm’s positions. Without an IBOR system, the front office must either work off partial and out of date data, or produce IBOR figures manually, according to Todd Healy, vice president and head of investment operations at BMO Asset Management. For the back-office, the benefits of having an IBOR are related to having an independent view of positions. In addition to IBOR’s ability to minimize risk for the front and back-office, IBOR assists investment managers in complying with an onslaught of regulatory reforms. 

DTCC’s Institutional Tri-party Repo Clearing: Great Idea…Maybe, FinOps Report, October 24, 2014.
A recent proposal by the Depository Trust & Clearing Corp. to serve as the middleman for a large chunk of the institutional tri-party repo market through its subsidiary Fixed Income Clearing Corp. might sound like a great way to reduce counterparty risk and the potential for fire sale of collateral, but with so few details unveiled thus far fund managers are having a hard time embracing the idea. From what operations directors at several US fund management shops tell FinOps Report, DTCC is touting the merits of funds joining the FICC as “limited participants” as a no-brainer. Yet until the US Securities and Exchange Commission publishes the DTCC’s request for a rule change, fund managers have only the preliminary concepts the DTCC has floated through a recent press statement and what officials have told media outlets — too little to know how exactly the new membership category will operate or what it will cost. 

Sapient Global Markets named "Best Consultancy" and "Best Regulatory Compliance Solution for Operations", FTF News, Summer/Fall 2014.
Sapient Global Markets is honored to be named Best Consultancy for Operations as well as Best Regulatory Compliance Solution for Operations for its Compliance Management and Reporting System (CMRS) by FTF News for the 2014 Technology Innovation Awards. 

Time to Protect the US Shale Revolution?, Forbes, October 17, 2014.
The recent plunge in oil prices may be welcome news to drivers, but it is bad news for the nation’s burgeoning shale energy industry, which has grown significantly over the last few years thanks to advances in technology, as well as from a relatively strong and stable oil price. All of this volatility may pose a real danger to the Shale Revolution if it causes risk-adverse investors to abandon the oil patch and look for more stable returns elsewhere. Such a scenario would not only hurt the new shale economy, costing thousands of jobs and billions of dollars in GDP, but would also deliver a major blow to the nation’s new-found energy security. 

SEFs still looking for the buy-side to bite, The Trade, October 17, 2014.
New ways of attracting buy-side participation on swap execution facilities (SEFs) are emerging after a year of relatively slow progress for the US electronic trading platforms. SEFs launched in October last year in line with regulatory mandates for OTC swaps to be executed electronically on the venues and then centrally cleared. Following their introduction, 50% of interest rate swaps and 70% of credit default swaps are now traded on SEFs, though buy-side uptake of the new form of trading has been slow.  

Gas might be priced 15% lower on fall in crude rates, Business Standard, October 16, 2014.
With global crude oil prices hitting a four-year low, global gas buyers, led by those from Japan, are asking sellers to shift to gas-to-gas pricing, rather than linkage with crude oil prices. In India, the notified Rangarajan formula, which is yet to be implemented, has attempted such a linkage by considering the average price of the gas imported, as well as those in global markets. Most of this gas remains linked to crude oil prices.  

Implementing Volcker: data and reporting challenges, Wall Street Letter, October 2014.
After a lengthy development period, the Volcker rule (section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) finally hit the regulatory statute books on December 10, 2013. For most firms, the initial focus has been on restructuring legal entities, booking models and trading books which extended to the disposal of their proprietary trading (prop trading) businesses. Now, however, attention has turned to the challenges around data and compliance reporting. Although the final Volcker rules reduced the possible list of metrics reporting to just seven, daily data aggregation and consistency is posing problems for many firms whether above or below the $50bn threshold.  

Shifting market structure prompts energy trading firms to look at lifecycle management, FierceFinanceIT, October 15, 2014.
Tighter margins and the availability of an increasing amount of data is prompting energy trading firms to begin looking to better analyze data and optimize processes, but many firms in energy trading, are still wrestling with integrating disparate data silos, according to Sapient Global Markets. 

Pressure mounts on regulators to consider FX SEF phase-in, The Trade, October 14, 2014.
US regulators are being urged to employ a phase-in period for foreign exchange derivatives to be traded on swap execution facilities (SEFs) after they become subject to mandatory clearing. The US Commodities Futures Trading Commission (CFTC) met last week to discuss when FX non-deliverable forwards should be centrally cleared, a decision market participants have been awaiting for some time. Once that mandate is passed, the regulator will then aim to increase transparency by requiring all NDF FX trades to be executed electronically.  

Cross-Asset Universal Product Identifier: The Solution the Industry Is Looking For?, Wall Street & Technology, October 14, 2014.
A UPI will enable a holistic approach to identifying all trades and positions. While such an idea sounds great in theory, historical attempts at achieving global agreement have fallen short. 

Northern Trust in conversation with ISS Magazine, ISS Magazine, October 13, 2014.
Fiona Horsewill, head of EMEA Product, Northern Trust, in conversation with ISS discussing the extent to which technology vendors and custody service providers assist asset managers in overcoming the challenges of new regulations.  

Collateral Management Utilities Could Be Way of the Future, Global Custodian, October 10, 2014.
As the financial services industry looks to cut costs where it can, utilities models have emerged as a viable option, and these mutualized services could further emerge for collateral management, finds Celent. In its new report, Fortress to Federated Models in Collateral Management, Celent says that firms are likely to move away from in-house collateral management toward outsourced, cloud offerings and then longer-term toward utilities. These technology changes also come at a time when collateral is becoming increasingly important across entire organizations, with Sapient Global Markets finding in a recent survey that the activity is having greater front-office implications.

Single Dealer Platforms: Are Their Days Numbered?, Wall Street & Technology, October 10, 2014.
While single dealer platforms (SDPs) have improved the experience presented to an institution's trading clients, they are not entirely fulfilling the core requirements in terms of openness or degrees of specialty. The needs of the institution and its clients are still too much at odds and this discord will drive the next revolution in client trading and information services. Sean O'Donnell and Matt Hopgood discuss the next generation of these platforms and the implications to business and technology strategies. 

Firms Face Difficulty In Performing Intraday Calculations - Survey, Global Custodian, October 9, 2014.
A survey from tech firm SimCorp has found only a fifth of US capital market firms are able to perform intraday calculations, prompting concerns on how well they are able to change their positions in response to market driving-events. According to the poll, which interviewed over 60 executives from U.S.-based firms, only 23% are able to carry this out.  

Only 23% of Buy Side Can Perform Intraday Calculations, Wall Street & Technology, October 9, 2014.
According to a recent poll of more than over 60 capital market executives by SimCorp, a provider of investment management services, 83% of buy-side respondents place a high importance on the ability to perform intraday calculations, but only 23% said they are able to perform these calculations. Intraday calculations help firms better comprehend the impact of market events on their held securities during trading hours, rather than wait for an end of day report. The ability to perform intraday calculations impacts a variety of business decisions, including NAV calculations, the ability to post and optimise collateral, and perform more accurate risk analysis. 

Custodians Face Trade Reporting Headache Amid ESMA Deadline, Global Custodian, October 9, 2014.
Custodian banks active in the delegated reporting space are scrambling to fill the gaps of missing information as another deadline set for European trade repositories loom. The European Securities and Markets Authority (ESMA) has told Europe’s trade repositories (TRs) that from December 1, 2014, they must reject trade submissions where certain reportable fields have not been supplied, according to a notice from the Depository Trust & Clearing Corporation (DTCC).

Integrating Voyage Partners: Straight-through Processing in Tanker and Bulk Commodity Shipping, Breaking Energy, October 8, 2014.
While marine transport enables the lion’s share of global trading in bulk commodities today, the business-to-business (B2B) information integration across the value chain of a voyage has yet to evolve. As both the shipping industry and commodity merchants face tighter profitability, they need to look at a holistic approach to improve efficiency and data quality through information integration. In this article, Thomas Pappas, Jay Rajagopal and Rashed Haq discuss a way to harness emerging information services and technology platforms.  

Does it make sense for businesses to procure solar panels?, Breaking Energy, October 8, 2014.
While marine transport enables the lion’s share of global trading in bulk commodities today, the business-to-business (B2B) information integration across the value chain of a voyage has yet to evolve. As both the shipping industry and commodity merchants face tighter profitability, they need to look at a holistic approach to improve efficiency and data quality through information integration. In this article, Thomas Pappas, Jay Rajagopal and Rashed Haq discuss a way to harness emerging information services and technology platforms.

Exchange Technology in Focus, Markets Media, October 7, 2014.
While some market participants and observers believe automation and speed are over-emphasized in exchange trading, there is broad agreement that on balance, technology has massively increased efficiency, and there is no turning back. Regulatory pilot programs that aim to boost liquidity by widening ‘tick sizes’ in trading of certain small-capitalization stocks are in effect rolling back technology, but only at the margin, and it’s unclear whether such programs will stick.  

The business case for industrialisation of market utilities, DerivSource, October 2, 2014.
The retail derivatives industry faces the same challenges seen in many mature financial markets: slow growth, heightening competition, increasing regulatory requirements and demanding clients. In this article, Sapient Global Market's Stefan Naumann, Patric Mayer and Roger Waldhausen discuss how the automation of product platforms can help banks proactively maintain and expand their market share and highlight the different options to get there. 

Managing Compliance from a Single Platform, Inside Reference Data, October 1, 2014.
Northern Trust says it has improved post-trade OTC reporting for clients since deploying Sapient's Compliance Management Reporting System. The solution brings into a central source data that traditionally was maintained across several different operations. With differing requirements across jurisdictions and repositories; differing timing and frequency requirements; the introduction of new identifiers such as the USI; differing data element requirements, it is no wonder firms have found compliance onerous. Northern Trust have been able to work with one core, clean data set that can then be transmitted to the CMRS and transformed for specificity to whatever regime or repository their client is reporting to.

After warm-up, custodians ready for the long game of OTC reform, Global Custodian, Fall 2014.
With the initial rollout of the Dodd-Frank Act done and dusted, custodians are confident in preparing for the next phase of OTC derivatives reform. Over the next two years, the buy side, which never before dealt with regulation like those the U.S. Commodity Futures Trading Commission (CFTC) was issuing, educated itself, implemented the necessary changes to their operations and met their regulatory obligations.  

September 2014

Northern Trust Supports Client Reporting with Sapient Global Market’s CMRS Platform, Reference Data Review, September 26, 2014.
Northern Trust is up and running with a delegated client trade reporting service based on the software-as-a-service (SaaS) version of Sapient Global Markets’ Compliance Management Reporting Solution (CMRS). The solution supports Northern Trust in fulfilling its clients’ derivatives reporting requirements under EMIR and Dodd-Frank, and eases the burden of keeping up with regulatory change. 

Northern Trust Sets Up Delegated Reporting with Sapient, Waters Technology, September 26, 2014.
Northern Trust is now able to offer delegated reporting to its buy-side clients, after implementing the Compliance Management Reporting Service (CMRS) platform from Sapient Global Markets. With the new system, Northern Trust will be able to provide services that are compliant with both the Dodd-Frank Act and the European Market Infrastructure Regulation (EMIR), both of which govern derivatives reporting. 

Andy Hall: Long And Wrong In The Oil Market, Forbes, September 26, 2014.
Is Andy Hall on to something? The legendary oil trader is reportedly telling his investors that America’s shale energy boom will be coming to a swift end, sending oil prices skyward to $150 a barrel over the next five years. Such bold predictions helped Hall amass a small fortune; he was once awarded a $100 million bonus for his oil trading genius and bought a castle in Germany. So his words are being taken very seriously by the energy community, but that doesn’t mean everyone agrees. 

Compliance solution by Northern Trust and Sapient, Asset Servicing Times, September 25, 2014.
Northern Trust and Sapient Global Markets have launched a new solution in compliance management. Compliance Management Reporting Solution (CMRS) will be available to Northern Trust clients and will deliver delegated reporting requirements for the Dodd-Frank Act and the European Market Infrastructure Regulation for all derivatives, including over the counter/exchange traded, cleared/bilateral and foreign exchange. 

RELATED ITEMS

  • CONTACT US

    If you're a member of the media and want to find out more about us, please contact:

    Geoff Whitehouse
    Phone: +44 (0) 207 456 6550
    gwhitehouse@sapient.com

    For Investor Relations, please contact:

    Dean Ridlon
    Investor Relation Director
    Phone: +1 617-963-1598
    dridlon@sapient.com

  • Glossary of Financial Terms

EVENTS
All Events