This Week: Vanguard, OneMarketData, SS&C, Xignite, Esma, SimCorp, Nasdaq

Vanguard Completes First Phase of Blockchain Pilot

Vanguard, in partnership with technology provider Symbiont, has completed the first phase of a blockchain pilot designed to digitize the issuance of asset-backed securities (ABS). 

In collaboration with a large US ABS issuer, along with BNY Mellon, Citi, and State Street, Vanguard modeled the full lifecycle of an ABS settlement on distributed ledger technology network by replicating end-to-end transaction flows. 

Warren Pennington, principal and head of Vanguard’s investment management fintech strategies group, said that by digitizing and streamlining the ABS issuance process, Vanguard would be able to increase the speed and transparency of transactions while reducing costs and minimizing exposure to risk. 

The pilot provides the technical and operational foundation critical to supporting an asset issuance on a distributed ledger network. 

OneMarketData Launches European Composite Trade and Quote Database

OneMarketData, a tick data management and analytics provider, has launched its European Composite Trade and Quote (ECTQ) database, to support transaction cost analysis and regulatory solutions. 

The ECTQ service eliminates the need for firms to construct their own tick database from raw data files, allowing them to save time, resources, and expenses. 

It aggregates 33 market sources, including exchanges, multilateral trading facilities, and dark pools, covering over 18,000 entities. Subscribers can access the service through the OneTick and OneTickCloud platforms on either a per ISIN or all ISIN universe. They will have access to historical data from May 1, 2018, with current days’ composite data available prior to T+1. 

SS&C Advent Sued for Illegal and Anti-Competitive Actions

Arcesium LLC, a provider of outsourced middle- and back-office technology solutions to asset managers, has filed a suit at a New York federal court against SS&C Advent—Advent Software, Inc. and its parent company SS&C Technologies Holdings—for violation of antitrust laws. 

In an agreement in 2015, Arcesium integrated SS&C Advent’s Geneva software, which is used by asset managers for trade accounting, into its solutions. Arcesium said since then, SS&C Advent made the renewal of the 2015 agreement one-sided and self-serving. 

It said SS&C Advent also falsely accused Arcesium of breaching the agreement, with the pretext of cutting off access to and support for Geneva, for Arcesium’s existing customers. SS&C Advent also allegedly refused new Arcesium customers to integrate Geneva into their broader technology architecture simply because they also use Arcesium. 

Arcesium is asking the Court to issue an injunction requiring SS&C Advent to abide by its contractual obligations, to provide access to and support for Geneva, and to provide the software keys necessary to enable Arcesium’s continued support of its customers. 

It is also seeking an injunction barring SS&C Advent from interfering with Arcesium’s relationships with its current customers and bringing on new customers. Additionally, Arcesium asks the Court to award money damages in an amount to be determined by a jury after trial.

In response, SS&C Advent and SS&C Technologies called Arcesium’s allegations “meritless”. SS&C said it was entirely within its rights to choose not to renew the 2015 agreement, and in turn, added that it was Arcesium instead that breached the post-termination provisions of the agreement by improperly marketing SS&C software technology when it no longer had a license. 

Xignite Enhances Two Financial Data Cloud APIs

San Mateo-based web services data provider Xignite has enhanced two of its financial data cloud APIs—XigniteGlobalNews and XigniteEarningsCalendar—with functionality built for greater speed and specificity. 

Now, these APIs allow fintech companies such as Betterment, Personal Capital, Robinhood, StockCharts, Wealthfront, Wealthsimple, and SoFi, to provide their users with the ability to follow worldwide business news and track upcoming earnings announcements. 

Firms using XigniteGlobalNews, which offers news headlines and summaries of financial news, can now embed functionality to allow their users to query headlines by keyword. 

Meanwhile, for XigniteEarningsCalendar—which provides forward-looking earnings, dividend data, and events calendar data—firms can embed functionality to allow users to retrieve multiple earnings calendar items for multiple securities with a single query. 

ESMA Extends Consultation Deadline for EMIR REFIT

The European Securities and Markets Authority (Esma) has decided to extend the response data for the consultation on technical standards on reporting, data quality, data access and registration of trade repositories under the European Markets Infrastructure Regulation Refit to July 3, instead of June 19, 2020. 

The EU’s securities markets regulator said its decision to extend the consultation deadline was taken in recognition of market participants’ current focus on crisis work due to the effects of the ongoing Covid-19 pandemic. 

It also took into account the high number and technical complexity of issues of the feedback requested. 

SimCorp Merges European Market Units

SimCorp, an investment management solution provider, has merged its Central Europe, Southern Europe, and UK/Northern Europe/Middle East (UNM) market units, into one integrated EMEA unit. 

The merger aims to enhance customer operational efficiency without the restraint of market unit borders. While local market proficiency remains a focus, the new setup allows SimCorp to strengthen the overall client experience, through a more streamlined engagement process. 

The new EMEA market unit will be headed by Hans Otto Engkilde, the current managing director of SimCorp UNM. He will focus on growing SimCorp’s front office, data management, alternative investments, and client communication offerings. 

Meanwhile, Ralf Schmücker, managing director of SimCorp Central Europe since 2012, will take on the new position of senior vice president and head of EMEA customer experience and value advisory.

mBank Taps Wolters Kluwer for Risk Management

mBank, Poland’s fourth-largest banking group based on assets has selected Wolters Kluwer’s OneSumX for Risk Management as its risk software. 

The mobile digital bank, which operates across Poland, the Czech Republic, and Slovakia, will use the solution for asset and liability management (ALM) as well as market risk and funds transfer pricing. 

Its OneSumX Market Risk module provides an integrated view of profit and loss, and risks on balance sheet. It is based on a centralized data structure, and offers all modern risk analytics and techniques, from basic sensitivity and gap analysis, through more advanced Value at Risk techniques and simulation of credit and market risk, based on Monte Carlo modeling.

The ALM module is based on Wolters Kluwer’s integrated platform, which enables balance sheet modeling, stress testing, dynamic planning, and forecasting. 

Nasdaq Adds ‘Basic Canada’ to Cloud Data Services

Nasdaq has made its Nasdaq Basic Canada feed of Canadian equities quote and trade data available via its Nasdaq Cloud Data Services, which already provides cloud access to other key US and global Nasdaq datasets, to meet client demand for a cheaper and more easily accessible option for sourcing Canadian market data.

The service is aimed at human traders, rather than automated trading algorithms, as well as firms providing data to retail traders, which are actively moving services to cloud delivery, and financial technology vendors, many of which already use the cloud for other functions.

Nasdaq is offering a free trial of the service during the third quarter of this year to help accelerate takeup and to offset any implementation and integration costs.

“Whenever a firm switches to a new data product, it has to focus on the client experience, so a lot of work is spent integrating it to make sure systems are communicating and displaying data correctly, so that the transition from their previous provider to Nasdaq Basic Canada is seamless,” says Oliver Albers, SVP and head of data for Nasdaq Global Information Services.

Nasdaq says that using Basic Canada to source data for equities listed on the TSX, TSX Venture and Canadian Securities Exchange can save 60% over sourcing that data directly from the exchanges. Beyond those savings, though cloud generally delivers cheaper connectivity than traditional leased lines, officials decline to offer an estimate of how much firms could save, saying that each client’s circumstances and requirements are different.

“It’s about being able to easily scale in a cost-effective way… and also about time to market. There is a competitive advantage to being up and running in days as opposed to months,” Albers says.