UBS completes repo trading via Blockchain and other news
In other news, regulator OCC has a FinTech office, Northern Trust updates a risk offering, and Saifr & Pinpoint collaborate.
Banks use Broadridge DLR platform
UBS and an unnamed Asian bank have “executed the first cross-border intraday repo transaction on Broadridge’s blockchain-enabled Distributed Ledger Repo (DLR) platform,” according to operations, systems and services provider Broadridge Financial Solutions.
The intraday trade “marks the launch of the next phase in the rollout of Broadridge’s DLR platform … this is a major step forward in providing a more efficient means of intraday liquidity management,” according to Broadridge.
“The intraday repo is a valuable tool for managing our liquidity use and provides flexibility in our funding capabilities with reduced operational risk,” Beatriz Martin, group treasurer for UBS Group, said in a prepared statement. “This achievement builds on the foundation we have established as an early adopter of the distributed ledger platform,” adds Martin.
“The global expansion of the platform across both sell-side and buy-side firms enables a network effect of increased benefits and more transaction types. Broadridge is a leader in bringing the benefits of distributed ledger capabilities to transform the global repo market, capturing $1 trillion in monthly volume,” according to Broadridge.
“This platform provides a tool through which market participants can agree, execute and settle repo transactions, and provides flexible settlement cycles based on counterparty needs. The DLT Repo platform significantly increases settlement speed and security mobility, thereby enabling intraday. The platform also reduces operational costs and risk for all repo activity, including overnight and forward repos, officials say.
US regulator OCC creates FinTech Office
The Office of the Comptroller of the Currency (OCC) has launched the Office of Financial Technology and appointed Prashant Bhardwaj to head the office as deputy comptroller and chief financial technology officer, effective April 10, 2023, officials say.
“In October 2022, the OCC announced that it would expand its Office of Innovation and establish an Office of Financial Technology in early 2023 to strengthen the agency’s expertise and ability to adapt to the rapid pace of technological change in the banking industry,” according to the OCC.
Bhardwaj will oversee “the analysis, evaluation and discussion of relevant financial technology trends, emerging and potential risks, and the potential implications for OCC oversight,” according to the OCC.
“The office will strengthen the OCC’s expertise on matters regarding digital assets, fintech partnerships and other changing technologies and business models within and affecting OCC-supervised banks,” OCC officials added.
Northern Trust updates market risk solution
Northern Trust reports that it has “enhanced its suite of forward-looking (forward-looking) risk analysis services through the release of its new Market Risk Monitor solution,” officials say.
The Market Risk Monitor service offers institutional investor clients such as pension funds “a comprehensive library of key risk indicators including stress tests, sensitivity shocks and value-at-risk measures, all accessible via RADAR, Northern Trust’s digital dashboard for investment analysis,” according to Northern Trust.
The indicators are for fund clients who need to monitor “the risk targets and limits of their external fund managers,” and to report “on their compliance with regulations and accounting standards,” officials say.
Northern Trust developed the Market Risk Monitor via a collaboration with Confluence Technologies and its RiskAPI [application programming interface] Offering. RiskAPI was then combined with a data management and processing layer, officials say.
“By integrating risk analytics into RADAR under a single ‘pane of glass’, we provide them with a simplified way to exercise oversight using our analytical capabilities and global advisory expertise,” said Jeffrey Greaney, product manager for accounting, analytics and derivatives at Northern Trust, in a prepared statement.
“Our cloud-based RiskAPI solution aligns with Northern Trust’s strategy of providing best-in-class analytics components,” said Damian Handzy, CEO, Confluence Analytics, in a statement.
The analytical solutions provided by Northern Trust “include investment compliance monitoring, performance measurement, risk, ESG and private market analytics – helping clients worldwide gain greater insight into their investments for more informed decision-making,” officials added.
Saifr and Pinpoint integrate their AI products
Saifa regulatory technology provider backed by Fidelity Labs, has launched a strategic relationship with Pinpoint Global Communications which will allow Pinpoint clients to use Saifr’s artificial intelligence (AI) modules in their workflows, officials say.
The collaboration is intended to help clients “create compliant marketing communications more effectively,” officials say.
“Saifr’s AI models will scrutinize content and flag potential regulatory risks before sending the material to compliance teams. Using AI, clients can review written documents, audio and videos to ensure compliance,” officials said.
“We worked closely with the Pinpoint team to integrate our AI modules into their robust workflow API, creating a more efficient compliance review process,” Vall Herard, co-founder and CEO of Saifr, said in a statement.
The integration with Saifr helps Pinpoint “access the AI tools they need to create compatible content more efficiently,” Bob Sullivan, president and CEO of Pinpoint, said in a statement. “This gives Pinpoint a competitive advantage.”
Pinpoint provides on-demand, online training and compliance solutions for financial services and health insurance companies.
Saifr uses AI for content creation, approval and archiving processes “to do e.g
hem easier, faster, cheaper and more accurate,” according to Saifr.
Fidelity Labs is the in-house software incubator and digital studio of Fidelity Investments, and was founded in 2005. “The Fidelity Labs organization has a portfolio of new businesses and is constantly prototyping concepts for Fidelity’s next new ventures,” officials say.
