In other news, FNZ & State Street are partnering, NICE Actimize is introducing a new surveillance service, and Horizon Software is expanding its efforts in Vietnam.
Instinet & Credit Suisse Use the Paxos Settlement Service
Instinet and Credit Suisse used the Paxos Trust Company’s blockchain technology to process listed US equity trades on the same day, T + 0 settlement, via the Paxos Settlement Service, the market infrastructure provider confirms.
“The trades have taken place [March 4, 2021] at 11:00 am ET and 3:00 pm ET and settled at 4:30 pm ET, demonstrating the platform’s ability to allow all-day-long trades to be settled on the same day, ”the Paxos announcement stated . “In the legacy system, settlement can only take place on the same day if the transactions are concluded before 11.00 a.m. CET, and is therefore rarely used.”
The Paxos Settlement Service is described as a “private, approved blockchain solution” that allows two parties to settle securities transactions bilaterally directly with one another. The platform is interoperable with the old clearing system and can facilitate processing in every time cycle, ”said the Paxos officials.
“It is also the first live application of blockchain technology to the US stock market, allowing the simultaneous exchange of cash and securities to conduct trades. Paxos Settlement Service has been processing transactions on a daily basis for more than a year and works in the standard T + 2 processing period. The same day settlement was done with live trades to demonstrate the future capabilities of the platform, ”officials add.
Paxos operates the platform under the auspices of the SEC’s No-Action Relief Protocol. Paxos officials say they will seek full clearinghouse registration with the SEC and they hope to be registered this year.
When the SEC grants clearing house registration for the Paxos Settlement Service, the provider offers the industry “more flexibility in their settlement cycles from T + 2 to T + 0, optimized according to their trading and asset management strategies. In addition, Paxos will carry out multilateral netting processes in real time to ensure efficient, fast and transparent net settlement of transactions, ”the authorities said.
“The settlement of US stocks is opaque and involves unnecessary delays, capital costs and costs. We are working hard to improve the process for the benefit of all market participants, “said Charles Cascarilla, CEO and co-founder of Paxos, in a prepared statement.
“We are excited to work with Paxos and Instinet to further develop this technology that will help free up capital, increase liquidity and reduce risk over time,” said Emmanuel Aidoo, Head of Digital Assets Markets at Credit Suisse , in a statement. “These advances will ultimately benefit the broader market as more companies join the platform.”
Paxos officials say they offer technology to market assets and provide custody, trading and settlement services for assets. The provider also offers crypto solutions for companies, crypto trading and settlement solutions for securities and goods. Paxos customers include PayPal, Credit Suisse, Société Générale, StoneX and Revolut.
FNZ & State Street Form ‘FNZ Trust Company’
The provider of asset management platforms FNZ and the custodian bank State Street are pooling their resources for the FNZ Trust Company.
The new company will be referred to as the “New Wealth Management Company,” which will incorporate State Street’s custody expertise and FNZ’s global wealth management platform.
FNZ acquired a majority stake in State Street’s Wealth Manager Services (WMS) business in the United States last year. The acquisition was completed on April 1, 2021 and the FNZ Trust Company now operates the WMS business. State Street retains a minority stake in the reformulated deal.
FNZ’s global wealth management platform offers “approximately 8,000 wealth management and financial advisory firms in Europe, the UK and the Asia-Pacific region. State Street will act as a sub-depot for all of the depot goods for customers who have moved to the new company, ”officials say.
Lee Jones, who served as Senior Vice President for WMS at State Street, will serve as Chief Executive for FNZ Trust Company. Around 100 employees moved with him from State Street to the new company, officials say.
NICE Actimize starts AI-based monitoring
NICE Actimize has launched a monitoring and eligibility solution that uses Artificial Intelligence (AI) and is offered as a single integrated cloud-native platform.
The new SURVEIL-X suitability for assets and insurance builds on the functions of the SURVEIL-X platform for holistic behavior monitoring from NICE Actimize. SURVEIL-X The suitability was created taking asset management, investment fund, pension and insurance companies into account.
The new system “combines communication monitoring, sales practices and suitability as well as the monitoring of best best interest (Reg BI),” according to the authorities.
The new offering is in response to increasing regulatory pressure on financial services companies to “monitor regulated employees; Review of their investment recommendations, transactions and accounts for suitability and unreasonable risks; and ensure regulatory disclosures are properly communicated, ”said NICE Actimize officials.
As evidence, the seller cites: FINRA rules 2111 and 3110; the Investment Industry Regulatory Organization of Canada (IIROC) Rule 1300; the client-centric reforms of the Ontario Securities Commission (OSC); the Monetary Authority of Singapore’s guidelines on private banking sales and advisory practices; as well as the eligibility requirements of the Securities and Futures Commission and the Hong Kong Monetary Authority.
Horizon Software focuses on the Vietnamese capital markets
According to official information, Horizon Software, a provider of electronic trading technologies, makes its solutions available to investment firms participating in the capital markets of Vietnam.
“This decision will lead to a more extensive electronicization of the Vietnamese markets, as capital increases sharply here during the pandemic. This is one of the many examples of how Horizon is gaining a foothold in Asia, ”said the sales representatives.
“During the pandemic, capital poured into the Vietnamese stock market – up 20 percent last year to $ 16.64 billion. With an estimated average transaction value of 304.8 million US dollars per session and an increase of 51.5 percent over the previous year, the market is set for greater electronicization, ”said the representatives from Horizon.
Horizon Software has been working with the Ho Chi Minh Exchanges (HOSE) since 2017 and “has supported the revitalization of the Vietnamese markets through market-making and the issue of covered warrants,” according to the authorities. “Horizon currently has five leading security houses in Vietnam that are currently using Horizon software.”
The provider is “also striving to expand its OMS [order management system] across the region, ”officials say. The OMS provides a cross-asset platform for cash and derivatives, algorithms for trading strategies and “automated, low-latency technologies that have been adopted from main trading”.
A securities trading firm in Vietnam, BSC, reports that it has been using Horizon trading technology for two years, according to Horizon, to “improve the efficiency of our trading workflows.”
“Localized solutions have always been the main driver that enables us to maintain our position as a leader in the Vietnamese market,” said Emmanuel Faure, head of APAC sales at Horizon, in a prepared statement.