Swan Global Investments rolls out SOS Shield range; Barclays partners with Nasdaq on single-dealer platform push; UK firm launches Bitcoin VIX index…
Colorado-based Swan Global Investments, a US specialist asset management firm in hedged equity solutions, has launched its Structured Outcome Strategies - SOS Shield, a series of separately managed accounts (SMAs) targeted at investors seeking to address the uncertainty and volatility associated with equity investing.
The introduction of our SOS Shield series directly addresses the need to mitigate losses and reduce volatility - Randy Swan
In the current low yield environment, options-based risk strategies address the need for growth and risk management – especially as investors continue to face unprecedented uncertainty brought on by the Covid-19 pandemic while turning to equities to increase returns in their portfolios, according to Randy Swan (pictured), founder and lead portfolio manager.
‘The introduction of our SOS Shield series directly addresses the need to mitigate losses and reduce volatility so investors can remain on course to achieving their goals despite the unpredictable nature of the markets,” he said.
The new portfolio provides a structured range of investment outcomes over a specified time period by combining three components: equity exposure, downside shield and an upside cap.
The SOS Shield offers a blend of S&P 500 price exposure and downside shield combinations, and is available in three variations: conservative, moderate and FLEX. Each variation uses different options-strategies offering a tailored approach to the investor’s objectives and risk tolerance. The SOS Shield series is available at Envestnet and other major custodians and platforms.
Six and SBI launch JV Venture to drive institutional digital asset liquidity
Six Digital Exchange (SDX) and SBI Digital Asset Holdings have agreed to work towards a joint venture to drive institutional digital asset liquidity through a Singapore-based digital issuance platform, exchange and CSD venue that is set to go live by 2022 subject to regulatory approvals from the Monetary Authority of Singapore (Mas).
The joint venture comes in response to growing demand for public and private institutional digital assets, including regulated digital asset securities and cryptocurrency assets. The venture will market directly to regulated institutional clients, using technologies from both companies to provide institutional grade services including issuing, listing, trading, CSD infrastructure and custody of digital assets and cryptocurrencies
The Swiss exchange plans to offer equity - both listed shares and private placements - as well as debt instruments, fund structures and structured products on crypto assets as well as on non-bankable assets like real estate and art.
The contemplated venture is set to formalize Singapore operations in 2021, and is expected to launch into market with active offerings by 2022 with international connectivity to respective Swiss, Japanese businesses and other partnerships to follow.
New Bitcoin volatility index launches
UK-based CryptoCompare has launched the Bitcoin Volatility Index (BVIX), the first benchmark index to quantify bitcoin implied volatility developed in partnership with the University of Sussex Business School.
The index measures the implied volatility of bitcoin - the view on volatility over the next 30 days held by sophisticated bitcoin option traders - which is the standard gauge of market sentiment. The firm is seeking to replicate other VIX indices used for settlement prices of volatility futures contracts in traditional markets in a move to pave the way for the creation of a diverse set of leveraged, direct and inverse volatility ETFs, ETPs and structured products.
BVIX is derived from the volatility implied from market prices of bitcoin options. The index provides a new tool for institutional investors to price bitcoin volatility risk, and hedge and trade on bitcoin volatility.
‘We have created the Bitcoin Volatility Index (BVIX) so that investors can use a reliable and transparent barometer to monitor and eventually hedge against bitcoin volatility,’ said Quynh Tran-Thanh, head of indices and investable instruments at CryptoCompare.
Swiss provider releases Bitcoin Zero ETP
Valour, a Swiss-based creator of investment products that provide exposure to new technologies, has announced the launch of Bitcoin Zero, a Bitcoin (BTC) exchange-traded product (ETP) with zero management fees.
Bitcoin Zero is available for trading on the Stockholm-based Nordic Growth Market (NGM) stock exchange. The new ETP seeks to make investment in the world's best-known digital asset easier, more secure and more cost-effective than other options available in the market.
The launch marks a significant step towards the mainstream adoption of digital assets, enabling investors to diversify their portfolios and gain exposure to Bitcoin, whose value has almost tripled this year, said Johan Wattenström, Valour founder and director.
Trading Bitcoin Zero is as simple and secure as buying shares. It can be done through any broker or financial institution with access to the NGM.
Barclays adds equities book to single-dealer platform
Barclays has launched BARX Book for Equities, a new single-dealer platform developed in partnership with Nasdaq to provide institutional clients access to the bank’s principal liquidity for US-listed single names and exchange-traded funds (ETFs).
The latest addition to Barclays’ BARX - the firm’s multi-asset electronic trading platform, will be hosted by Nasdaq market technology infrastructure Nasdaq Execution Platform, including managing system operations, as well as portions of risk controls, venue surveillance, trade reporting and clearing facilitation.
Investors will be able to access Barclays’ BARX Book through a number of new order types and the new BARX Book algo strategy, and will be able to choose if they prefer to interact with BARX Book liquidity on an anonymous or disclosed basis.
The bank also plans to support ‘conditional orders’ on the BARX Book in addition to a ‘closing cross’.