Knight Capital Group, Inc. (NASDAQ:NITE) today introduced NetDelta(TM), an electronic settlement platform for the credit derivatives market. NetDelta addresses market infrastructure inefficiencies and underlying risks inherent in OTC derivatives by providing buy- and sell-side firms with comprehensive, real-time solutions for entering, maintaining and exiting new positions. NetDelta will also be able to reduce counterparty risk for existing positions in the near future.
"NetDelta was designed to address unnecessary counterparty risk, balance sheet inefficiencies, settlement lags, valuation issues and a lack of liquidity," said Lucio Biase, Managing Director, NetDelta, LLC. "NetDelta provides the automation and infrastructure the $54.6 trillion credit derivatives market needs."
The NetDelta solution benefits traders, prime brokerages, risk managers, controllers and settlement groups. It is applicable to new trades and will soon be applicable to existing positions in a firm's portfolio as well. The NetDelta offering also addresses many of the key principles recently set forth by the Operations Management Group (OMG) and President's Working Group (PWG) - both of which aim to instill a clear, functional and well-designed infrastructure that can meet the needs of the OTC derivatives markets.
"We are excited to bring NetDelta to the OTC derivatives markets in these challenging times," said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "We believe NetDelta is an ideal solution for the entire lifecycle of credit derivative trades. Importantly, the NetDelta solution supports the credit derivative market makers who are so vital to the health of the market."
The platform's modular technology allows for simple integration into existing trading platforms, settlement services and reporting engines. In addressing market infrastructure and legacy issues, the NetDelta solution renders unwinds and novations obsolete for positions cleared on NetDelta. NetDelta also allows for greater transparency of the value of each position without disclosing pivotal market making data. At present, NetDelta is internally beta testing the platform and in the process of onboarding clients.
Showing posts with label OTC derivatives. Show all posts
Showing posts with label OTC derivatives. Show all posts
Tuesday, 14 October 2008
Monday, 15 September 2008
Omgeo Acquires Allustra
Omgeo, has acquired Allustra, a London-based provider of collateral management solutions. Allustra offers a suite of products that provide customers the ability to consolidate trade positions across asset classes, including OTC derivatives, and to manage the collateral process that mitigates the associated counterparty risk. Mark James, managing director of Allustra, joins Omgeo's executive committee as managing director.
In addition, Omgeo acquired a derivatives portfolio reconciliation platform designed by Global Electronic Market's (GEM), after piloting the technology with one of the largest brokers/dealers and one of the most sophisticated hedge funds in the world. By joining GEM's derivatives reconciliation capabilities with Allustra's collateral management solution, Omgeo sets a new standard for the market as the only organization to provide clients such a combined derivatives product line.
"We are truly excited to extend our expertise in operations beyond matching and allocations," said Marianne Brown, president and CEO of Omgeo. "By acquiring Allustra, Omgeo can provide its community access to the leading collateral management solution available today. Combining this with GEM's unique derivatives reconciliation technology means we are poised to truly change the way the industry manages counterparty risk."
Over the past five years, investment managers have dramatically increased the use of derivatives within their portfolio management strategies and, as a result, augmented the use of collateral to manage risk. Today, more than 2 trillion USD of cash and securities are being used to mitigate that risk. While trade strategies have become more sophisticated, the infrastructure to manage operational risk in the back office has not kept pace. Omgeo has successfully set the standard of efficiency for post-trade matching and allocations; with its combined derivatives reconciliation and collateral management offering, Omgeo is extending its operational expertise to automate post-settlement life cycle events.
"There is an urgent need for a standard, automated process for investment managers to reconcile derivative positions and confirm the movement of collateral," said John Devine, COO of Threadneedle Asset Management and a member of Omgeo's Board of Managers. "The market sees Omgeo as the logical provider of a solution that combines both derivatives reconciliation and collateral management, as they truly understand the operational pain-points of the financial community."
Omgeo's derivatives solution will automate processes that are predominantly manual, including reconciliation and dispute management (derivatives positions, mark-to-market values, payments amount and margin amounts), margin calculations, collateral inventory management and the collateralization process with counterparties. This combined approach will allow Omgeo's clients to realize operational efficiency, reduce operational risk and more effectively manage their counterparty credit risks. The Omgeo derivatives offering will be available for all Omgeo clients, including hedge funds, investment managers, prime brokers, broker/dealers and custodians.
"We are thrilled to join the Omgeo community," said Mark James, managing director of Allustra. "Over the past seven years, we have strived for excellence in the collateral management space. By aligning with Omgeo, the market leader for providing operational stability in the post-trade world, and by continuing to partner closely with our clients we will keep developing the ground-breaking solutions required by the market."
"Given that our research in the market indicated a growing need for a centralized solution for reconciling portfolios of derivatives, we decided to combine our market-proven reconciliation technology with the Omgeo infrastructure to address this critical need. We have invested five years of research and development on addressing the unique problems of reconciling portfolios of derivatives and are excited about delivering that capability to the Omgeo community," said Brian Lynn, CTO and founder of GEM.
Omgeo will continue to expand its derivatives suite of services. Next year, Omgeo Central Trade Manager(SM) will offer functionality for exchange-traded derivatives. Other enhancements will also be made over the next several months.
In addition, Omgeo acquired a derivatives portfolio reconciliation platform designed by Global Electronic Market's (GEM), after piloting the technology with one of the largest brokers/dealers and one of the most sophisticated hedge funds in the world. By joining GEM's derivatives reconciliation capabilities with Allustra's collateral management solution, Omgeo sets a new standard for the market as the only organization to provide clients such a combined derivatives product line.
"We are truly excited to extend our expertise in operations beyond matching and allocations," said Marianne Brown, president and CEO of Omgeo. "By acquiring Allustra, Omgeo can provide its community access to the leading collateral management solution available today. Combining this with GEM's unique derivatives reconciliation technology means we are poised to truly change the way the industry manages counterparty risk."
Over the past five years, investment managers have dramatically increased the use of derivatives within their portfolio management strategies and, as a result, augmented the use of collateral to manage risk. Today, more than 2 trillion USD of cash and securities are being used to mitigate that risk. While trade strategies have become more sophisticated, the infrastructure to manage operational risk in the back office has not kept pace. Omgeo has successfully set the standard of efficiency for post-trade matching and allocations; with its combined derivatives reconciliation and collateral management offering, Omgeo is extending its operational expertise to automate post-settlement life cycle events.
"There is an urgent need for a standard, automated process for investment managers to reconcile derivative positions and confirm the movement of collateral," said John Devine, COO of Threadneedle Asset Management and a member of Omgeo's Board of Managers. "The market sees Omgeo as the logical provider of a solution that combines both derivatives reconciliation and collateral management, as they truly understand the operational pain-points of the financial community."
Omgeo's derivatives solution will automate processes that are predominantly manual, including reconciliation and dispute management (derivatives positions, mark-to-market values, payments amount and margin amounts), margin calculations, collateral inventory management and the collateralization process with counterparties. This combined approach will allow Omgeo's clients to realize operational efficiency, reduce operational risk and more effectively manage their counterparty credit risks. The Omgeo derivatives offering will be available for all Omgeo clients, including hedge funds, investment managers, prime brokers, broker/dealers and custodians.
"We are thrilled to join the Omgeo community," said Mark James, managing director of Allustra. "Over the past seven years, we have strived for excellence in the collateral management space. By aligning with Omgeo, the market leader for providing operational stability in the post-trade world, and by continuing to partner closely with our clients we will keep developing the ground-breaking solutions required by the market."
"Given that our research in the market indicated a growing need for a centralized solution for reconciling portfolios of derivatives, we decided to combine our market-proven reconciliation technology with the Omgeo infrastructure to address this critical need. We have invested five years of research and development on addressing the unique problems of reconciling portfolios of derivatives and are excited about delivering that capability to the Omgeo community," said Brian Lynn, CTO and founder of GEM.
Omgeo will continue to expand its derivatives suite of services. Next year, Omgeo Central Trade Manager(SM) will offer functionality for exchange-traded derivatives. Other enhancements will also be made over the next several months.
GFI Says No Lehman Exposure
GFI Group Inc. (NASDAQ:GFIG) stated today that it believes that it has no material exposure to Lehman Brothers. GFI is an inter-dealer broker specializing in over-the-counter derivatives products and related securities.
Wednesday, 10 September 2008
GFI Terminates Tullet Prebon Discussions
GFI Group Inc. has terminated its discussions with Tullett Prebon plc regarding a possible business combination because the two companies failed to reach acceptable economic terms for a transaction.
GFI noted that it will continue to pursue its strategy of technology enabled brokerage and other services in OTC derivative and cash markets and to focus on delivering value to its shareholders.
GFI noted that it will continue to pursue its strategy of technology enabled brokerage and other services in OTC derivative and cash markets and to focus on delivering value to its shareholders.
Tuesday, 9 September 2008
ICE Announces Results Date
IntercontinentalExchange (NYSE: ICE) , an operator of regulated global derivatives exchanges and over-the-counter (OTC) markets, will announce third quarter 2008 financial results on Thursday, October 30, 2008. An earnings press release will be issued prior to the earnings conference call, which will begin at 8:30 a.m. ET.
A live audio webcast of the earnings call will be available on the company's website at www.theice.com under About ICE/Investors & Media. Participants may also listen via telephone by dialing (877) 795-3646 if calling from the United States, or (719) 325-4774 if dialing from outside of the United States. For participants on the telephone, please place your call ten minutes prior to the start of the call.
The webcast will be archived on the company's website for replay. A telephone replay of the earnings call will also be available at (888) 203-1112 for callers within the United States and at (719) 457-0820 for callers outside of the United States. The passcode for the replay is 5433981.
A live audio webcast of the earnings call will be available on the company's website at www.theice.com under About ICE/Investors & Media. Participants may also listen via telephone by dialing (877) 795-3646 if calling from the United States, or (719) 325-4774 if dialing from outside of the United States. For participants on the telephone, please place your call ten minutes prior to the start of the call.
The webcast will be archived on the company's website for replay. A telephone replay of the earnings call will also be available at (888) 203-1112 for callers within the United States and at (719) 457-0820 for callers outside of the United States. The passcode for the replay is 5433981.
Wednesday, 3 September 2008
GFI Group
GFI Group Inc. (http://www.gfigroup.com/) is a leading inter-dealer broker specializing in over-the-counter derivatives products and related securities. GFI Group Inc. provides brokerage services, market data, trading platform and analytics software products to institutional clients in markets for a range of credit, financial, equity and commodity instruments.
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