When back-testing & evaluation new trading strategies its always imperative that

Nasdaq addressed clients needs in a unique capital markets environment, including periods of elevated trading volumes, rising benchmark index valuations, and a very strong period for new listings and capital formation. We have also seen solid growth in analytics and market data. Nasdaq said this was due to higher licensing revenues from higher average assets under management in ETPs linked to Nasdaq indexes and higher licensing revenues from futures trading linked to the Nasdaq Index. Friedman said the Market Technology business signed 29 new customers last year, with 25 choosing the cloud-based software as a service SaaS delivery model, but the segment was affected by the ongoing Covid pandemic.

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She continued that engagement had increased towards the end of last year but sales have not yet recovered to pre-Covid levels. This month the firm launched an enhanced Nasdaq Risk Platform, a real-time single point of access risk platform for sell-side and clearing broker communities. Valerie Bannert-Thurner, head of buy-side and sell-side business solutions, Market Technology at Nasdaq, told Markets Media that risk management technology solutions have been a big part of the business for a long time, through providing real-time risk and exposure calculations and alerting in equities and equity derivatives, particularly for prime brokers globally.

We brought together the teams and expertise to create a next generation cloud-native multi-asset risk platform. Nasdaq completed the acquisition of Cinnober, the Swedish financial technology provider to brokers, exchanges and clearinghouses worldwide, in January Carl Slesser, head of execution and risk management solutions, Market Technology at Nasdaq, continued that the firm provided a system for pre- and at-trade risk management. The speed and agility of the enhanced platform will empower clients to launch new businesses and focus on their core activities.

In future the new platform will extend into other asset classes such as cleared fixed income products and interest rate derivatives. Nasdaq technology supports real-time margin replication for 35 CCPs and the firm is also continuing to expand to new venues and clearing houses. Sucden Financial, the global multi-asset execution, clearing and liquidity provider, has gone live on the Nasdaq Risk Platform.

In addition, existing risk management customers are starting to migrate onto our new platform with go lives scheduled for Q1 and Q2 this year.

Nasdaq is continuing to invest in this area, by providing more risk methodologies, deeper risk metrics and expanding into fixed income and foreign exchange coverage as more volume moves onto exchanges. The member did not have enough collateral to pay for trading losses and Nasdaq Clearing withdrew money from the default fund, which consists of contributions from all clearing members. The regulator said Nasdaq has taken measures to rectify these deficiencies, and therefore FI issued a warning and fine.

Michael Ptasznik, chief financial officer of Nasdaq, said on the call that Nasdaq had launched an independent investigation immediately after the default and rectified its operations, which was recognised by the regulator. He is stepping down from his role and will be replaced next month by Ann Dennison, controller and chief accounting officer. Four key questions for asset managers and fund administrators. The replacement of LIBOR with new reference rates in is not a simple substitution — valuations must be calculated in a new way and will require an update of key systems.

LIBOR is a forward-looking rate produced daily by the Intercontinental Exchange ICE , reflecting the average interest rate at which large global banks can borrow from each other. However, the lack of actual transaction data underlying LIBOR and other IBORs is believed to incentivize panel banks to report figures aligned with their own business interests.

The result is wide-ranging consequences on operations, risk calculations and the way institutions will conduct business in the future. The new observed rates cannot simply replace LIBOR in a floating rate contract, because RFRs are based on observed overnight rates that are compounded over the period. In addition, different market conventions will be adopted to deal with lookback and lockout periods. Therefore, to accurately reflect the value of the holdings once LIBOR is replaced by RFRs, asset managers and fund administrators will need to make sure their systems are capable of supporting the new methodology.

Otherwise, investors buying and selling into a fund could be short-changed, leading to censure from regulators and clients alike. As begins, asset managers and fund administrators need to take action now, and start asking the right questions of their teams and their technology providers. Firms must assess the scale of their exposure.

Mapping out all the affected instruments is an essential first step. Regulators including the Financial Conduct Authority in the UK have emphasized the importance of early preparation for the transition. Because the shift to the new reference rates will happen on an instrument-by-instrument basis, asset managers and fund administrators also need an overview of when instruments mature. If they have instruments tied to the LIBOR rate that mature after , when will they migrate to the new rates in order to meet the current deadline for the end of ?

Calculating valuations differently will be the biggest change for asset managers and fund administrators. Firms should not assume their systems are going to cope with this change. The bigger the size of assets involved, the more complex the change will likely be. Firms will need to have a solution in place by the end of , which means the timeframe for action is shrinking. Starting with assessing their exposure and then upgrading and testing systems, the transition will take time. Upgrades should be completed in early to allow testing to start by mid-year, ensuring firms are in a place of strength before the deadline.

Time is running shorter — firms must act now to ensure their systems are ready for the end of Sern Tham is a product director for Temenos Multifonds. As a highly-experienced strategist, Sern supports Temenos Multifonds clients with their changing technology needs as they continue to seek new ways of digitising, becoming more operationally efficient and reducing risk.

Sern is passionate about helping clients innovate as the asset management industry grows and become an ever-more challenging landscape. Nasdaq:VIRT , a leading provider of execution services, trade analytics and reporting, announced today that Virtu Analytics has launched its Open Intell and Open Python big data analytics utilities. In addition, Open Intell and Open Python help subscribers manage infrastructure costs related to technology and in-house data science staffing needs while mitigating the risks associated with limited scope and stale or immature data analysis processes.

Subscribers select their desired level of support to create their own custom data-driven intelligence ecosystem:. About Virtu Financial Virtu is a leading provider of financial services and products that leverages cutting-edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients.

Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Pete Cherecwich, president of Northern Trust Asset Servicing, said the Covid pandemic has accelerated digital transformation and the whole industry is moving at light speed.

Northern Trust Asset Servicing provides asset servicing, investment management, banking and related services to institutional clients worldwide. The whole industry is moving at light speed. One of the methods that asset management and asset owners clients are using to become more efficient and save costs is to focus on their investment process while outsourcing trading. Northern Trust provides outsourced trading through its Integrated Trading Solutions business which provides trading in equities, fixed income and foreign exchange together with a fully integrated middle and back office service to lower risk, manage regulatory compliance and increase operational efficiency.

Integrated Trading Solutions will assume responsibility for equity and fixed income trading and middle office trade settlement support. Meanwhile, we can serve our clients better by providing increased transparency into elements like execution, transaction costs, and detailed cost analysis.

Outsourced trading is part of Northern Trust Whole Office, a strategy that integrates the asset servicing platform with partners to give clients access to new technologies, services and solutions across the spectrum of strategy and trading, operational, data and digital and analytics solutions across the investment lifecycle. For example, last year Northern Trust entered into a strategic alliance with BlackRock to deliver enhanced operations, data, and servicing capabilities to mutual clients. Northern Trust is happy to integrate with other technology platforms like Aladdin but also builds proprietary technology such as Matrix, which the firm developed to digitise asset servicing.

He continued that next major release of Matrix will be rolled out from May 31 this year, having already gone live for some functions in the European transfer agency business where Matrix includes portals for shareholders to buy and sell funds. APIs enable automatic linkage to bank accounts as well as providing information to both the asset manager and custodian.

Northern Trust has also launched Digital Concierge, a portal which allows clients to contact the firm through a central point, with more automation, and that is secure and robust enough for approving transactions. Zodia is expected to begin operations in London this year. Our global head of Market Advocacy and Innovation Research, Justin Chapman, tells us how cryptocurrencies are changing the way our market operates.

Last year Northern Trust was the asset servicing provider to BondEvalue, the Singapore platform which completed the first trade of a fractionalized blockchain-based bond.

Introduction

Broadridge will develop the blockchain platform to provide data and analytics tools so private equity firms can manage, communicate and engage with investors efficiently. It enhances capital and cash flow management and automates the middle office functions. We are protecting our future. The year ahead will be a critical period for the long-needed modernization of the bond issuance process. Primary bond market technology has been undergoing significant changes behind the scenes, with a small number of platforms and service providers making their initial launches. The bulk of these initiatives have sought to solve problems with existing primary market workflows — processes which have remained largely unchanged for decades, but have been rife with operational inefficiencies and unnecessary burdens for both the buy-side and the syndicate banks.

Information and communication exchanges remain largely manual, creating redundant and low-gain tasks for all participants. These recent developments will undoubtedly bring much-desired efficiencies, cost savings and reductions in operational risk, as well as value for investors. Yet, as with any significant change to a deeply entrenched process, widespread adoption will likely take a while to be established, especially as these various projects all compete for a place in the market.

As an an industry, we must push for progress, while not losing sight of the bigger goal.