FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Peru: Lima Stock Exchange (Bolsa de Valores de Lima) selects the SunGard Global Network for Market Data Distribution Bolsa de Valores de Lima selects the SunGard global network for Market Data Distribution

Bolsa de Valores de Lima S.A. (BVL), the Peruvian stock exchange, has selected the SunGard Global Network (SGN) as a distribution channel for its data.

Peru is expected to be Latin America’s fastest growing economy in 2012, according to its Economy and Finance Minister. U.S. Department of State figures show that its economic growth averaged 7.0% a year for the 7 years up to 2010, due in large part to market-oriented economic reforms and privatization, as well as high international prices for the country’s largest commodity exports.

SGN will help BVL reach a broad international audience by delivering its real-time market data and multi-asset class historical data and analytics to asset managers and brokers worldwide. Those firms will also be able to route orders to the exchange via SGN, contributing to activity on BVL.

Francis Stenning, chief executive officer of the Bolsa de Valores de Lima, said, “Joining the SunGard Global Network will help Bolsa de Valores de Lima increase our visibility internationally and create new trading opportunities for our members.”

Philippe Carré, global head of connectivity of SunGard’s capital markets business, said, “We are seeing increased demand for direct connectivity to Latin America as the debt crisis drives international investors to seek alternatives to western Europe and US markets. The SunGard Global Network makes it easy to route orders and access real-time, high quality data, helping our customers operate more efficiently and make more informed trading decisions.”

Source: BobsGuide,17.04.2012

Filed under: Exchanges, Latin America, Market Data, Peru, , , , , , ,

Argentina: Rosario Futures Exchange (ROFEX) added to SunGard Market Data Distribution Platform

Rosario Futures Exchange (ROFEX), an Argentina-based derivatives exchange, is now available through SunGard Global Network for Securities (SGN) for global connectivity, order routing and market data. SGN will help futures and options traders around the world easily access ROFEX, facilitating electronic order routing access to their exchange. SGN will also help increase efficiencies and reduce errors for traders that trade through ROFEX by helping them trade electronically, for greater automation across the trade lifecycle.

Growth in the derivatives markets in Latin America is attracting new liquidity through improved access and collaboration between exchanges. As traders expand their derivatives trading reach to international markets they increasingly require robust trading tools and access to an extensive global network. SunGard’s Valdi and SGN offer comprehensive derivative trading solutions as well as one of the largest networks in the world. Valdi provides futures and options traders with global trading software, powerful market data, risk management solutions and low latency execution services. SGN provides trade automation and connectivity to over 120 electronic markets and more than 530 brokers worldwide, helping shorten time to market for trading new products and in new geographies.

Mr. Diego Fernandez, chief executive officer of Rosario Futures Exchange, said “SunGard is helping us expand our global reach by providing us with electronic access to new markets and participants, facilitating the growth of our business and helping make global trading easier and efficient for our clients.”

Raj Mahajan, president of SunGard’s global trading business, said, “We are pleased to provide Latin American customers with a customizable solution for multi-asset, global trading, through Valdi and SGN. It is our goal to provide customers with a simplified gateway to access all exchanges in Latin America; we already provide access to equities and derivatives exchanges in Brazil, Mexico, Chile, Colombia, Peru and now Argentina.”

Source: Bobsguide, 10.10.2011

Filed under: Argentina, Brazil, Chile, Colombia, Data Management, Data Vendor, Exchanges, Latin America, Market Data, Mexico, News, Peru, Trading Technology, , , , , , , , , , , , , ,

10 Trading Trends in Latin America : SunGard

Raj Mahajan, president of SunGard’s global trading business, said: “The economy in Latin America continues to grow at an exceptional pace. Led by Brazil, which has achieved an annual average growth of 3.7% over the last ten years, (nearly twice that of the US), the boom includes Mexico, Chile, Columbia and Peru. SunGard is helping Latin American trading firms capitalize on the change and growth in that region, by providing low latency execution to help them compete in the global race for liquidity with greater transparency, efficiency and access to network connectivity.”

The ten trends SunGard has identified as shaping Latin American trading are:

1. Mexico, Chile, Columbia and Peru are quickly gaining recognition as key markets in Latin America, as their combined trading volumes edge closer to Brazilian levels.

2. Brazil’s markets are going completely electronic, increasing firms’ ability to more efficiently and more quickly access liquidity. As a result volumes have skyrocketed; a 400% increase in activity in the last decade.

3. Demand for international order flow is high as volumes are rising in emerging markets: Brazil is ranked the fourth largest emerging market according to a recent article.

4. The sell-side in Latin America is consolidating; large international players are buying local brokers to quickly increase their presence and credibility.

5. FIX connectivity is increasing: As firms receive and execute more order flow internationally, the adoption of FIX has taken hold in Latin America, helping to efficiently connect buy- and sell-side firms.

6. Trading volumes are increasing across the region and firms need real-time data and analytical tools for greater transparency into market movements. It is predicted that Brazil will see a 4.9% increase in equity market performance in 2011, according to a recent report. From 2006-2010, fund flows into Brazil have totaled $10 billion.

7. As more international investors want exposure to LatAm markets, the networks into and out of these markets becomes more important. Local firms and international players are investing in telecommunications infrastructure to ensure bandwidth and reliability for their trading networks.

8. With major exchanges allowing third party software firms direct access to exchanges, traders have more network connectivity options and can now take advantage of independent software vendors to provide their technology platforms.

9. As LatAm trading volumes skyrocket, the demand for financial information within the region is growing. In terms of financial market data and news, Latin America is second only to the Asian nations in allocating more budget for this resource.

10. LatAm trading firms are investing in low latency execution and stable customizable trading solutions, leaving legacy technologies behind for greater operating efficiency.

Danielle Tierney, junior analyst at Aite, said, “Networks are the key to sustaining growth in Latin America. Approximately 25 percent of the volume traded in Latin America is international, driving the search for new sources of liquidity and establishing connections to powerful global networks.”

Sourc: SunGard, 12.09.2011

Filed under: Argentina, Brazil, Chile, Colombia, Data Vendor, Exchanges, FIX Connectivity, Latin America, Market Data, Mexico, Peru, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

Trading China: Highlights from SunGard City Day Beijing

China, the world’s second largest and fastest growing economy, is in the midst of unprecedented change. That is particularly true for capital markets as regulations, business models and trading technologies evolve at a high pace.

Industry leaders and technology experts gathered at SunGard’s Beijing City Day in June to discuss some of the key trends in electronic trading, and we bring you below the best of these discussions – enjoy the read!

Opportunities and Challenges of QFII   Participating in China Stock Index Futures The opening of China’s stock markets to foreign investors offers unprecedented trading opportunities. But Qualified Foreign Institutional Investors (QFII) have to consider many aspects before investing in China’s Stock Index Futures: high systematic risk, defective policy, language and technology hurdles. Nanhua Futures’s Zhang Yiwei explores the challenges and opportunities.

Using complex event processing for algorithmic trading Complex Event Processing (CEP) has been labeled as the next revolution in trading technology and is already a prominent fixture in many investment banks, hedge funds, broker/dealers and exchanges. But how justified is its revolutionary status? And what exactly are the benefits that CEP provides? SunGard’s Benjamin Becar explains it all.

Market Data and China:  Meeting the Needs of the Growing Investor Community Providing investors with low latency market data that is cost-effective, requires minimal infrastructure and provides real-time financial information from liquidity points in the global marketplace are top priorities for market data managers in China. SunGard’s Peter Raftell shares lessons learnt from US and Europe.

Source: SunGard, 12.07.2011

Filed under: Asia, China, Events, Market Data, News, , , , , , , , , , ,

Tapping Alpha in Chile, Columbia and Peru 

When it comes to South America, who is the next Brazil? SunGard has spent the last 11-plus years dealing in Brazil and has established a gateway to Chile with plans to do the same in Peru and Columbia. SST sits down with Laurence Latimer, senior vice president and managing director of trading and client connectivity in the Americas for SunGard to discuss the possibilities in South America.

Although the press mostly discusses Brazil, Latimer says there is a real opportunity for traders to find alpha outside of São Paulo—specifically in Chile, Columbia and Peru.

How do countries like Chile, Columbia and Peru compare to Brazil? Laurence Latimer, SunGard: If you look at the gross domestic product (GDP) in Latin America, clearly Brazil is the 800-pound gorilla. Depending on the year, Brazil represents close to 40 percent of Latin America’s GDP, followed by Mexico, which represent around 28 to 30 percent. Chile, Columbia and Peru together make up about 15 percent of GDP in Latin America. There is a reason why Brazil is top of everyone’s mind: It is simply because of its sheer size. But with markets like Columbia, Chile and Peru, people fail to recognize that these economies have been investment-grade for years now. The exchanges there, and in particular in Chile, are making significant investments and are moving toward a purely electronic marketplace or, at a minimum, have electronic markets alongside open-outcry markets that are competitive from a latency perspective.

How does the regulatory environment in those nations compare to Brazil?   Latimer: You are seeing a much better legal and regulatory environment. Fifteen years ago, if you watched the documentary “The Two Escobars,” for example, Columbia was not a fun place to be, from a business perspective, and Peru sits on the border. The rule of law was still developing, but that has greatly improved in recent years. Their regulatory frameworks are now moving toward international standards, where there is much freer in-and-out flow of capital, and firms can repatriate profits without being overly taxed, so they have made themselves very welcoming places for the types of business investment that is required to sustain growth. Why is this region enticing for traders? Latimer: While traders are still looking for more liquidity, for someone looking for alpha, these are the places where you find spreads and commissions that you just don’t find in other places, and enough depth to play in those markets.

From a technology perspective, how far behind Brazil’s largest exchange, BM&FBovespa, are these exchanges? Latimer: Santiago is making huge investments in technology. They had seconds of latency just eight months ago on their trading systems, and the amount of throughput they could handle was low. They have grown their capacity, and the internal latency of their matching engine is down from seconds to milliseconds. Similar investments are being made in Columbia and Peru. We are also seeing them work together to create scale across their exchanges so that they can compete with larger exchanges. For instance, one proposal on the table is to create a pan-Northern Latin America exchange, where if I trade in Peru, I can see the bid–offer spreads in Columbia and Chile, and trade against as if I was trading locally. If you can put together the liquidity you have in Columbia, Chile and Peru from their equity exchanges, it becomes a much more enticing play and it makes it easier for international firms to come in and want to be there. BM&FBovespa is hyper-aggressive in making sure that its fundamental infrastructure—the trading tools it uses to match and route order information and market data—is state-of-the-art. You are starting to see that kind of aggressiveness in Columbia, Chile and Peru; they are starting a little further back and they have a smaller market with which to work, but there is an increasing appetite and commitment to have world-class systems.

 Do you think a major North American exchange will make an investment in these South American exchanges, the way the Chicago Mercantile Exchange (CME) did with BM&FBovespa? Latimer: I don’t have a crystal ball. But if I were running an exchange, and given that there is certainly the trend of consolidation globally, once you get past the top 10 to 20 markets, what is next? Once you go past São Paulo, then the Santiagos, Limas and Bogotás start looking really good, especially as a regional play.

Source:Waterstechnology, 28.09.2010 by Anthony Malakian

Filed under: BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Exchanges, Latin America, Mexico, News, Peru, , , , , , , , , , , , ,

SunGard introduces ASP connectivity to BM&FBOVESPA

SunGard has launched new ASP-based market connectivity services that offer customers cost-effective access to trade on BM&FBOVESPA, the Securities, Commodities and Futures Exchange created in 2008 through the integration of the Brazilian Mercantile & Futures Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa).

SunGard’s ASP-based market connectivity services already offer similar access to more than 80 exchanges and other market centers worldwide.

SunGard’s ASP-based market connectivity services allow BM&FBOVESPA exchange members to outsource the complex activities involved in procuring and managing the hardware, software and telecommunication links required for market access. Customers can benefit from 24/7 access to the Brazilian equities and derivatives marketplace. In addition, SunGard’s local presence in São Paulo can provide both local and international customers with service and support in both English and Portuguese.

The new ASP-based market connectivity services strengthen SunGard’s trading solution offering for customers in Brazil and will help them trade on both cash and derivatives markets from the same screen. Local brokers can use SunGard’s workstations and consolidated pre-trade risk management solution to trade simultaneously on BM&F and BOVESPA segments (equities and derivatives). They can also trade internationally via SunGard’s GL Net, a market data and order routing low latency network.

Cícero Augusto Vieira, chief operating officer of BM&FBOVESPA, said, “BM&FBOVESPA has been developing its direct market access (DMA) business since 2008: DMA order routing brought 156,262 trades in July, in comparison to 112,621 trades in June. We welcome initiatives that can help our members reach our markets more easily and cheaply. With its ASP-based market connectivity services, SunGard can help us gain new local and international trading customers.”

Yassine Brahim, president of SunGard’s global trading business, commented, “The Brazilian market is attracting more and more DMA orders. SunGard has been working with BM&FBOVESPA and its predecessors since the 1990’s to help provide DMA connectivity for both the equities and derivatives segments of BM&FBOVESPA. We’re demonstratingtrating that, through our ASP-based market connectivity services, SunGard can now respond to local and international demand for trading on the exchange while helping control the costs of market connectivity.”

Source: Finextra, 23.09.2009

Filed under: BM&FBOVESPA, Brazil, Data Management, Exchanges, Latin America, Market Data, News, Trading Technology, , , , , , , ,

Counterparty Credit Risk Study Links Credit and Market Risk

Credit and market risk are linked, and should be managed consistently, preferably in one system, according to a study of counterparty credit risk released jointly by SunGard Data Systems and the Professional Risk Managers International Association.

The report, based on a global survey of 436 risk professionals, was the topic of a June 23 presentation at SunGard’s New York City Day, a collection of events held prior to the opening of the Securities Industry and Financial Markets Association’s Technology Management Conference and Exhibit at the New York Hilton.

In a workshop on “What Happens Next in Counterparty Credit Risk,” Nawal Roy, head of the New York chapter of Professional Risk Managers International Association (PRIMA) and managing partner at Shobhit Capital Group, said that the survey of risk professionals from sell-side firms, buy-side firms, consulting firms and government asked a series of questions about the characteristics of a credit risk monitoring system.  In their responses, 67 percent of those surveyed said it is very important to have a combined market and credit risk system, while 61 percent said that issuer exposures should be monitored “under a hybrid framework.”

“Credit and market risk are linked, and should be managed consistently, preferably in one system,” said Marcus Cree, director for the Americas of SunGard’s Adaptiv business unit. However, he added, combining them is complicated, and “how this works in practice is an open question.”

Another finding from the survey, he said, is that in counterparty credit risk management, “perceived limitations are getting in the way of desired risk policy.” Systems should reflect exposure accurately, Cree said, and need to account for the whole portfolio effect and include risk mitigation such as netting. “Accuracy is important,” Cree said. “Simple proxy measures are not up to the job.

At the same time, he said, the survey showed that there is no “one size fits all” approach to counterparty credit risk management: “Fragmented limit structures are a reality, even if unified global limits are an aspiration.”

SunGard’s offering in the space, SunGard Adaptiv Credit Risk, is an enterprise scale transaction processing and portfolio management engine that allows users to perform credit inquiries in real time, around the globe. The system departs from the traditional “up front license cost plus annual maintenance” model that is commonly associated with risk systems, and is instead priced on a per-transaction basis.

Source: Securitiesindustry.com, 24.06.2009 by Carol E. Curtis

Filed under: Banking, Data Management, News, Risk Management, Services, , , , ,

Carbon Trading Market Creating Opportunities

Continued growth in the global carbon trading market and the anticipated adoption of a U.S. climate control bill is creating plenty of new opportunities for investment banks, nascent exchanges, technology vendors and asset servicing agents in the trading and post-trade arenas.

The carbon emissions market, which grew 75 percent to reach $116 billion in 2008 from the prior year, could expand to $2 trillion by 2020 should more markets adopt a version of Europe’s “cap and trade” model for reducing greenhouse gas emissions, according to research firm Celent.

Based on the 1997 Kyoto Protocol, an international treaty, the European Emissions Trading Scheme allows for members of the European Union to create tradable European Emissions Allowances (EUAs) and Certified Emission Reduction Credits (CERs)–otherwise known as offsets. Other countries such as Australia, New Zealand, Canada and Japan are also pursuing their own versions of carbon cap and trade models as is the United States.

“The potential for carbon trading is great, as is the opportunity cost of ignoring the market,” said Stephen Bruel, research director for TowerGroup. Even more lucrative than trading will be advisory services to help energy firms comply with divergent regulations to reduce carbon emissions, he believes. Harmonization between regulatory regimes to create a unified global market, while ideal, is a long way off.

“It is costly for global firms to comply with the patchwork emission schemes and investment banks can help carbon emitter clients navigate this minefield with offset strategies,” said Bruel, citing BNP Paribas, Goldman Sachs and Credit Suisse as examples of firms with specialized carbon risk desks. Hedge funds, he predicted, will also want to capitalize on the arbitrage opportunities between regulatory regimes and will use algorithms to take advantage of the correlations between the price of coal or weather patterns and the price of carbon.

Although much of the trading activity and innovation in the carbon emissions market remains in Europe, where the European Climate Exchange and Bluenext are the largest exchanges, the potential passage of U.S. legislation later this year or in 2010 could easily make the U.S. the largest regulated carbon market.

Under the proposed American Clean Energy and Security Act, the ceiling on greenhouse gas emissions would be divided into billions of permits, each conferring the right to emit one metric ton of carbon dioxide. Fewer permits would be issued to utilities, manufacturers and refiners each year until emissions are 83 percent by 2050 over 2005 levels.

It is unclear what effect the legislation, if passed, would have on several voluntary regional and state projects which have already cropped up, creating emission offset contracts traded over-the-counter, largely through interdealer brokers and web-based mechanisms.

“Trading volumes will continue to expand in the over-the-counter market but U.S. legislation will likely favor exchange-traded contracts and several more exchanges could emerge,” said Jubin Pejman, vice president in the Americas for Trayport, an electronic trading software firm purchased by interdealer broker GFI last year. Exchange-traded contracts are typically standardized and cleared through a centralized facility, which reduces counterparty risk–a key mantra of the new Obama administration for the over-the-counter market.

Three fledgling U.S. emissions exchanges–the Chicago Climate Exchange, its sister company Chicago Climate Futures Exchange and rival Green Exchange, stand to benefit the most from any federal mandate. The CCX, launched in 2003 as a voluntary market with binding targets, offers participants a way to buy and sell “carbon financial instruments” (CFIs) that represent a certain level of emissions reductions; the CCX overtook the over-the-counter market for the first time last year.

The rival Green Exchange created in December 2007, by a consortium of trading firms and the New York Mercantile Exchange (Nymex), is awaiting approval from the Commodity Futures Trading Commission as a designated contract market. Its contracts are already listed for trading and clearing on Nymex.

Pejman said that Trayport’s GlobalVision Broker Trading System, a screen-based network, is scaleable enough for broker dealers to expand their message traffic on bid and offers in the over-the-counter market for carbon emission allowances and credits in the U.S.The firm’s GlobalVision Trading Gateway, which enables traders to trade on multiple liquidity pools through a single user interface, will also link to the Green Exchange, should the market win CFTC approval.

Software vendors with cross-asset capabilities are also finding fertile territory in adding functionality for carbon emission contracts. SunGard has enhanced its GL Clearvision middle office and GL Ubix back-office products–inherited through the 2008 acquisition of GL Trade–for trades executed on Bluenext, a Paris-headquartered exchange majority-owned by NYSE Euronext.

Mark Stugart, product manager of commodities for Calypso Technology, a trading and risk management softwar firm, said that his firm will upgrade its platform to incorporate trade capture, pricing and P&L calculations for EUAs and CERs on the ECX and BlueNext by year end.

Last month, Bank of New York Mellon launched a centralized custody and trade settlement platform called GEM to give customers a single view of their entire carbon portfolio–for regulated and voluntary markets–and perform all transactions including trading, cancellation and retirement of contracts in one place.

Original Article

Source:Securities Industry News, 22.06.2009 by Chris Kentouris

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Filed under: Asia, Australia, Energy & Environment, Exchanges, Korea, News, Trading Technology, , , , , , , , , , , , , , ,

Guotai Junan Securities Chinese broker opts for Sungard OMS

Guotai Junan Securities, a Chinese securities firm, has selected Sungard’s GL Stream order management system to help manage its order flow from onshore clients and target new overseas buy-side clients.

Sungard’s GL Stream will be able to facilitate trading, including direct market access, from Chinese and international investors who want to invest on the Securities Exchange of Hong Kong (SEHK) and help Guotai manage its own orders sent to the SEHK. The solution will also help Guotai receive FIX orders and create new trading strategies.

“With GL Stream, SunGard offers us a functionally-rich trading platform dedicated to trading in Hong Kong,” said Eric Lee, executive director of Guotai Junan Securities. “It helps us to monitor all our trading activity and allows us to provide advanced execution services to our clients.”

“China’s buy-side firms are investing more and more in Hong Kong and foreign markets. Hong Kong brokers therefore have an increased need for order management systems,” added Franck Peltier, managing director of SunGard’s global trading business in Asia.

Source: The Trade News, 11.05.2009

Filed under: Asia, China, Exchanges, FIX Connectivity, Hong Kong, News, Trading Technology, , , , , , , , , ,

Mexican banks choose SunGard for operational risk management

Following recent regulatory changes in the country, a group of Mexican banks have signed up for SunGard’s operational risk management technology.

Invex Servicios Corporativos, DE CV Invex Grupo Financiero, Banco Regional de Monterrey, Institución de Banca Múltiple, Banregio Grupo Financiero, Banco Monex, Institución de Banca Múltiple, Monex Grupo Financiero, Banco Autofin Mexico, Institución de Banca Múltiple and Banco ve por Mas, have all signed for the vendor’s Ambit Risk & Performance platform.

SunGard says Ambit will help the banks identify, quantify and manage operational risk as well as comply with Basel II regulatory requirements. The system will provide them with enterprise-wide loss event tracking and management reporting tools to improve operational efficiency and control risk exposure.

Ana Cecilia Reyes Esparza, president, OpRisk Committee, Mexican Banks Association, says: “We believe that by adopting better operational risk principles and practices, we can manage our economic capital more efficiently. SunGard’s Ambit Risk & Performance solution provides a platform to help us accomplish this.”

Source: SunGard, 08.05.2009

Filed under: Banking, Data Management, Mexico, News, Risk Management, , , , , , , , , , , , , , , , ,

Straight Through Processing STP is key to Profitability

Closer integration between the front, middle and back offices, and amongst inter market participants, is the next important step in technology innovation within the securities lending industry, says SunGard’s Jane Milner

Up until now, securities lending has often existed in isolation in relation to many other departments within financial institutions. However, institutions are increasingly realising the benefits of enterprise-wide efficiency and improved workflow gained by a consistent approach to technology and systems.

One clear premise that arises from this realisation is that the more integration there is between systems, the greater the benefits these systems can offer.

Source: SunGard, 23.01.2009

Filed under: Data Management, Library, News, Reference Data, Risk Management, Services, Standards, Trading Technology, , , , , , , ,

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