Latest: Cirdan’s direct indexing platform enters beta phase

Starting from scratch or on the basis of existing indices, investors will be able to design benchmarks in just a few clicks by adapting them to their needs in terms of risks, potential performance, geographical exposure, investment themes and value criteria.

Registered users will be able to build their own indices and monitor their performance over time, operating in simulation mode.

Direct indexing is an area in which we strongly believe, and which represents one of the most interesting frontiers in the world of investments -  Antonio De Negri, Cirdan Capital

The new platform has a focus on ESG and will provide users, in addition to all the information necessary to invest consciously, with a dashboard dedicated to sustainability to identify stocks most exposed to ESG factors.

‘We are thrilled to have completed our dedicated direct indexing platform and to be the first to make it available to the Italian market,’ said Antonio De Negri (pictured), founder and CEO of Cirdan Capital. ‘Direct indexing is an area in which we strongly believe, and which represents one of the most interesting frontiers in the world of investments.’

According to De Negri, while not widespread in Europe, direct indexing already represents an important reality in the US with assets under management growing from US$100 to US$350 billion over the last five years. It is expected that by 2026, they will reach US$825 billion with an annualised growth rate (CAGR) of 12.3% 2 , higher than the growth forecast for ETFs and mutual funds.

SA boutique launches alternative investments platform

South African investments specialist boutique Jaltech has launched an alternative investments platform aimed at providing market access to the country’s financial advisors and retail investors.

The platform provides access to a diverse range of investment options including Section 12B solar investments, structured products, cryptocurrency baskets, and private debt funds.

The platform also provides investors detailed information about each investment opportunity, including performance history, risk profile, and other relevant details. Investors and financial advisors (on behalf of their clients) can invest in these products.

There are two structured products available in the platform - the Jaltech Developed Markets Autocall, a five-year US dollar-denominated structure linked to the S&P 500, Swiss Market Index and Nikkei 225, which offers a 15% coupon per annum and 100% capital protection provided that none of the indices have dropped by more than 35% at the five-year maturity date; and the Jaltech S&P 500 Autocall, also a five-year Autocall structure denominated in US dollars and linked to the S&P 500 index which offers investors 100% capital protection provided the S&P 500 has not dropped by more than 40% at maturity and a coupon of 7% per annum if the underlying is flat or positive on any annual observation date.

‘The platform has been designed with financial advisors and investors in mind. It offers a user-friendly interface that makes it easy for investors - as well as financial advisors managing investors - to navigate and choose suitable investments, that are right for them,’ stated the firm led by Derrick Hyde (above right) and Gaurav Nair.

Marex Solutions adds post-trade Saas module

Software as a service (Saas) for financial institutions MDX Technology (MDXT) has announced a ‘significant expansion’ of their existing relationship with Marex Solutions which is now the MDXT low-code workflow platform to automate post-trade processes for their US-based grains business.

Marex Solutions, a division of Marex, specialising in the manufacture and distribution of customised OTC derivatives and structured products, already uses the MDXT Connect functionality for the distribution of real-time data from internal trading systems.

The addition of the MDXT workflow module allows Marex to automate addendum creation, enriched with trade, customer and legal data. In addition, it connects multiple teams within Marex Solutions and externally with their trading partners. The grains business implementation is the first phase of a wider rollout across multiple asset classes.

Eugene Faller, head of enterprise solutions at Marex Solutions, said: ‘The commodities market is diverse and highly fragmented, so there is no "off the peg" solution that works well across a broad spectrum. However, with MDXT, we can now quickly and cost-effectively develop different solutions for more targeted or specialist business areas.’

‘Interoperability across the trading infrastructure – the ability to seamlessly integrate multiple applications and data – has long been the holy grail for financial markets firms,’ said Nigel Someck (right), CEO at MDXT. ‘Particularly in the front office, where traders across both the buy and sell side often have a number of applications open at any one time to perform a wide range of repetitive tasks.’

Mirae launches leveraged play linked to China electric vehicle and battery index

Mirae Asset Global Investments has listed the Mirae Asset Tiger Synth-China EV Leverage ETF, tracking the Solactive Daily Leverage 2x Long China Electric Vehicle and Battery Index.

The new leverage ETF complements the unleveraged Mirae Asset Tiger China Electric Vehicle Solactive ETF, and it’s targeted at investors seeking (2x) leverage on the daily performance of the Solactive China Electric Vehicle and Battery Index.

The Solactive China Electric Vehicle and Battery Index includes the 20 largest China or Hong Kong-headquartered companies listed on HKEX, Stock Connect, as well as NYSE and Nasdaq, active in one of the following industries: electrical products, motor vehicles, auto parts, and industrial machinery among others. Additionally, the index may include companies operating in certain chemicals and industrial sectors.

Ji-Yeon Kim (right), senior manager at Mirae Asset Global Investments, said: ‘As the automotive industry undergoes a paradigm shift from internal combustion engine vehicles to EVs, the Chinese EV industry is expected to benefit and is considered to have long-term growth potential.’

The new Mirae Asset Tiger Synth-China EV Leverage ETF has been listed on 9 May 2023 on the Korean Stock Exchange (KRX).

UPI testing for OTC trades now available

The Derivatives Service Bureau (DSB) has announced that its user acceptance test (UAT) environment is now live. This is ahead of the EU’s April 2024 deadline for firms to include Unique Product Identifiers (UPIs) in their reporting of over-the-counter (OTC) trades.

Simultaneously, the DSB’s self-service Client Onboarding Support Platform (COSP) – which allows firms to onboard the UPI service and manage their subscription to it online – was made available.

The DSB, the global numbering agency responsible for allocating UPI codes to OTC derivatives and managing the UPI reference library, was appointed as the sole provider of the service by the Financial Stability Board (FSB).

UPIs identify the specific product involved in an OTC trade using a standardised format. The aim of introducing them is to enable authorities to quickly and easily aggregate OTC trade data, allowing for a more efficient assessment of systemic risk.

As indicated by the FSB’s involvement, UPI is a G20 initiative, and the EU is just the first jurisdiction to require UPI reporting. The UK, US and Australia have each published their own mandates, with compliance deadlines to follow.

The G20’s decision to introduce a common identifier for OTC derivatives was triggered by the 2007–08 financial crisis.

With a 10-year delay between the agreement first being made in 2009 and the 2019 decision to hand the DSB the task of rolling out UPIs, firms now have access to the tools they need to understand the intricacies of implementing UPIs and integrating with the service.

The overarching aim of the UPI system is to create global transparency in the OTC derivatives markets so that regulators can more easily spot any abuse and monitor systemic risk levels.

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