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FXCM’s institutional arm FXCM Pro has entered a liquidity bridging partnership with Tools for Brokers (TFB), an international provider of technology for retail brokers, prop trading companies and hedge funds. Brokers are also provided with data analysis and improved riskmanagement through one user interface. “We
Michael Peters At a recent roundtable, Deutsche Börse Group derivatives exchange, Eurex, shared its plan to harmonise onto one riskmanagement infrastructure over the next two years. Almost a decade ago, back in 2014, Eurex clearing was a leading innovator when it came to real-time riskmanagement.
LCH – part of the post-trade division of London Stock Exchange Group – has announced that Barclays and Barclays Ireland are now live as clearing brokers at CDSClear. Two years later, the European Securities and Markets Authority reauthorised the CCP to clear the products under the European Market Infrastructure Regulation. “We
Instead, a combination of rising interest rates, inflation, soaring energy prices and geopolitical tensions have hit hedge funds, and subsequently the riskmanagement practices of prime brokers. Elsewhere, other local regulatory changes and benchmark replacements continue to impact prime brokers.
Accountants, lawyers, and brokers are pivotal in helping buyers and sellers make informed decisions that safeguard their economic interests. Budgeting and Forecasting: They assist in creating post-acquisition budgets and forecasts , which are crucial for financial planning and riskmanagement.
The Securities and Exchange Commission (SEC) has adopted major rule changes for the $26 trillion US Treasury market requiring more trades to be centrally cleared. Today’s adopting release addresses clearing of treasury securities in two important ways,” said Gary Gensler, SEC chair.
The newly expanded clearing rules from the US Securities and Exchange Commission (SEC) will see daily Treasury clearing activity on DTCC increase by more than $4 trillion when they take effect, an industry survey has predicted. The amendments will go into effect in two phases.
FIA Tech also stated that TDN can provide resiliency services by securely replicating and storing all trading activity and messages from SGX as with all connected exchanges. Earlier this year, FIA Tech enhanced TDN to support the operational resiliency demands of clearing firms utilising the platform.
Buying into a business as a partner offers ownership and profit potential but also comes with risks. Success requires thorough due diligence, understanding partnership structures, and securing favorable terms. Consider factors like expected return on investment (ROI), risk tolerance, and the industry’s growth potential.
The new rule changes published by the SEC have been primarily driven by the need to enhance market stability and reduce systematic risk. They will bolster the security of the US Treasury market by mandating central clearing for eligible securities, such as repos and reverse repos, inter dealer broker transactions and other cash transactions.
The Securities and Exchange Commission (SEC) is in the process of introducing noteworthy rule changes to the clearing of fixed income securities, a development which is set to reshape the landscape for fixed income trading. The SEC’s new rule changes are primarily aimed at improving market stability and minimising systemic risks.
How are client demands of prime brokers shifting? That edge often comes from a fund’s partners like prime brokers, who can facilitate lending and trading strategy implementation, and offer tools for pulling real insights from the troves of data that are a byproduct of proper market engagement.
These alternative sources of capital can offer innovative structures tailored to specific deal requirements, helping companies secure funding even when traditional lenders are conservative. By aligning incentives and sharing risks, earn-out agreements can facilitate deal completion in turbulent times.
Dominic Rieb-Smith, managing director, international head, prime services sales, JP Morgan, refers to the past year as “a standout”. Data from Convergence tracking the top 25 prime brokers showed their market share grew from 83.3% in April 2023, to 92% in 2024.
Subject to regulatory approvals, the service will come through its Amsterdam-based clearing house and introduce matching, CCP clearing, settlement and post-trade lifecycle management for SFT transactions in European cash equities and ETFs, and settlement will take place in 19 European Central Securities Depositories (CSDs).
The four separate rulemakings put forward by the US Securities and Exchange Commission (SEC) in December last year represent the most significant attempt to revamp market structure for US equities in recent memory. The development of the current rules was informed by technological capabilities that today seem hopelessly archaic.
These platforms cut out traditional financial intermediaries, providing a streamlined and efficient way for companies to secure funds. As with crowdfunding, however, careful consideration of regulatory compliance and riskmanagement is crucial to ensure a smooth and secure financing process.
For example, financing deals may require personal guarantees or the pledging of assets as collateral, which can put your finances and assets at risk. In business acquisitions, speed, seriousness, negotiating power, and riskmanagement are critical factors that can make or break a deal.
Financial institutions with good credit ratings offer swap facilities to clients and charge fees from brokers. Risk is diversified through dispersal of swap transactions among many clients. LIBOR stands for London interbank offered rate and is one of the most used reference rates in the case of floating securities. every month.
Due diligence is a risk-management process that potential buyers undertake to investigate a company’s financial, legal, and operational aspects. Be Transparent: Share all relevant information about your company and be honest about potential risks or challenges. What is Due Diligence?
A well-thought-out IT integration strategy is crucial for minimizing downtime, streamlining operations, and ensuring data security. Inadequate RiskManagement: Inherent risks come with any merger, and overlooking potential risks can be detrimental.
Businesses are seeking IT solutions that enable flexible work environments, enhance productivity, and ensure robust security. Regulatory Compliance and RiskManagement MSPs must navigate regulatory requirements and potential risks associated with M&A transactions.
Papanichola began his career at interdealer broker, GFI, however quickly realised the environment wasn’t the one for him. It’s about riskmanagement philosophy and methodology,” explains Papanichola. Interesting, lucrative, fun but highly unconventional,” he says. We use a variety of high and low touch.
This is the process of reviewing and evaluating a company's operations, processes, and systems in order to assess its efficiency, effectiveness, and risk profile. Concept 10: Secure professional advisors for acquisitions. This will help you to make an informed decision about the acquisition and develop a plan for future growth.
Cisco’s September 2023 purchase of the $29 billion enterprise value Splunk, a provider of machine-to-machine IT systems, cybersecurity, and application performance management software, was one of the largest SaaS deals of the past year, and boasted an EV/TTM revenue ratio of 7.5x.
In a wider sense, Basel III impacted financial market by promoting greater stability, resilience, and riskmanagement within the banking sector. On 30 June 2023, Livor was replaced by the Secured Overnight Financing Rate (SOFR).
Manufacturing’s steady demand, often less affected by rapid economic shifts, makes it an appealing option for securing capital investments. Many business brokers view manufacturing businesses as valuable assets for investors. Recognizing these trends helps investors choose a manufacturing business positioned for future growth.
To access end-user cross margining, clients will need to leverage the same dually registered Futures Commission Merchant (FCM) and broker or dealer as registered with the SEC at both CCPs. Doing so will enable even greater efficiency, cost reduction, improved liquidity and increased riskmanagement in the US Treasury markets.
We are also confident that our pioneering central clearing service for European securities financing transactions (SFTs) in equities and ETFs will resonate with market participants. To adapt, market participants will need to streamline processes using technologies like blockchain and real-time data analytics.
We expect more of the neo-brokers that have fostered retail participation in the US to make their way to Europe in 2025. It wouldnt be surprising to see some consolidation in the market given the degree of fragmentation amongst venues and brokers. Watch this space!
ETFs can be traded on various venues, directly with brokers, or OTC via the MTFs mentioned earlier. This trading and liquidity flexibility is again a key catalyst for further investor ETF adoption, as many traders and investors continue to look for differentiating approaches to portfolio construction, execution and riskmanagement.
James Baugh, managing director, head of European market structure, TD Securities Market consolidation versus liquidity fragmentation will be a point of discussion into next year. Investors have learnt that they need to expect the unexpected, which is why liquidity riskmanagement practices are now so important.
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