GIG: Flows News and Views

Managing Editor’s Introduction Managing Director’s Introduction

New and improved Markets resurgent in 2023

While 2021 was the year the world struggled with the ongoing Covid pandemic, 2022 will be remembered as the year we started dealing with the aftermath of the crisis.

Supply chains problems linked to the pandemic were exacerbated by Russia’s invasion of Ukraine in the early part of the year, leading to supply side pressures and, ultimately, inflation.

As 2022 comes to an end, I look back at what the team has achieved in the past few months with a sense of pride.

Luke Jeffs Managing Editor

Central banks around the world were forced into action and they spent most of last year trying to tackle rampant inflation.

As we enter a new year, this pressure is easing slightly but further interest rate hikes in the early part of the year are a given.

The effect on the markets covered by Global Investor has been stark. Derivatives markets saw another record year in 2022 for volumes while futures commission merchants will be looking forward to the higher margins they can earn from lending.

The repo markets look set for a resurgence in 2023 while the clearing of repo could come back on to the agenda amid concerns about counterparty default. The likelihood of a global recession will attract short-sellers. The FTX collapse in November 2022 will dampen the demand for digital assets and slowdown the innovation around this market.

Amélie Labbé Managing Director

We have managed to dramatically the print circulation of our portfolio of reports and guides, focusing on building the online presence and reach of Global Investor / ISF. Improved marketing, new formats such as video interviews and roundtables, and more interactive magazine software have supported our effort to boost our digital engagement.

The decision made 18 months ago to shift to digital has been vindicated: not only did it makes sense from an environmental perspective, it also reflects the way people now consume content.

We fully intend to continue on this path in 2023, bringing you more interactive content and engagement.

I am proud of what the team has built. We have a brilliant team of journalists, content managers, salespeople and marketing experts who come up with new ideas every day and keep their finger on the industry’s pulse.

Here’s to 2023 and what we can achieve together.

What we cover

Global Investor Group offers a wealth and depth of news, analysis and data across the derivatives, asset management, securities finance, custody and fund services markets.

The Global Investor Group was created in 2017 and brings together three leading brands – FOW, ISF and Global Investor - to provide unparalleled reach across the buy-and sell-sides. As of October 2021, our market-leading content is available exclusively online.

Our mantra is to be the closest to each market we cover, through everything from exclusive news stories to thought leadership articles, reports and market-leading events.

ARRACO ceases trading amid commodity market turmoil

ARRACO Global Markets, the commodity trading firm started by a former TP ICAP energy broker, has ceased trading due to regulatory burdens and declining volumes in the wider market.

ARRACO, founded in 2015 with £100,000 before growing to 150 staff across seven offices, has stopped trading due to a combination of factors, according to chief executive Tom Roberts.

CME plans to add Micro E-Mini expiries in

February

CME Group plans to boost its equity options product suite by launching four new weekly options expiry dates based on the exchange group’s popular Micro E-mini equity futures contracts.

The Chicago-based exchange said on Tuesday it will launch on February 13 Monday, Tuesday, Wednesday and Thursday weekly E-mini Nasdaq 100 and S&P 500 options, subject to regulatory approval.

ICE estimates $47bn of extra margin from European gas price cap

Intercontinental Exchange (ICE) has estimated the proposed European gas price cap would increase margin requirements on energy firms by $47bn (£38bn).

The report on the European gas market reforms, written by consultancy Oxera and commissioned by ICE, warned of the possible effects of the European gas price cap as currently drafted.

Chinese stock exchange drafts securities lending rules

A new Chinese stock exchange has proposed rules to allow margin trading and securities lending for the first time, in what could be an early sign of changing attitudes to securities finance in the world’s second largest economy.

The Beijing Stock Exchange, which launched in November to support fast-growing companies including tech firms, published on Friday draft rules for margin trading and securities lending.

Europe cancels UnaVista’s

securities finance reporting license

The European securities regulator has cancelled UnaVista’s securities finance reporting approval a year after the trade repository arm of the London Stock Exchange Group said it was closing the business.

ESMA said in a statement: “SFTR provides that ESMA shall withdraw the registration of a TR where the TR expressly renounces its registration.”

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ED&F Man Capital Markets chief Pettit thanks ‘team of warriors’

Gary Pettit, the chief executive at ED&F Man Capital Markets appointed to guide the firm through its acquisition by Marex, has signed off as he departs the firm on Thursday.

Pettit is a former global head of financial futures and options at MF Global, a firm he was with for 12 years from 1999. He later held the same role at ICAP before joining ED&F Man in 2015. Most recently, his role as UK chief executive was expanded in August to include EMEA and Asia Pacific responsibilities after then chief executive Chris Smith left the firm when it agreed to sell itself to London-based Marex.

OSTC eyes future beyond prop trading

Building a financial career as a proprietary trader is no longer restricted the world’s major financial centres, or to people from narrow socio-economic and educational backgrounds who live within commuting distance of a physical exchange. This is the vision of OSTC, a derivatives trading and education firm based in Greater London, which is on a mission to identify traders who have strong potential but little or no experience, and transform them into profitable, high-volume market participants.

ARRACO ceases trading amid commodity market turmoil

ARRACO Global Markets, the commodity trading firm started by a former TP ICAP energy broker, has ceased trading due to regulatory burdens and declining volumes in the wider market.

ARRACO, founded in 2015 with £100,000 before growing to 150 staff across seven offices, has stopped trading due to a combination of factors, according to chief executive Tom Roberts.

Part Two: Cboe president Howson outlines European, Asian plan

A project close to Howson’s heart is Cboe Europe Derivatives (CEDX) which launched in September last year when he was still head of Cboe Europe, the position he held before being bumped up to group president.

CEDX, Cboe’s first European derivatives venture, is an ambitious bid to break into the ultracompetitive European equity futures and options sector by replicating the US options market structure, a template Cboe thinks should resonate with quant-based hedge funds.

Citi hires former Goldman MD as global head of prime sales

Citigroup has appointed Tom Lynch, formerly of Goldman Sachs, as global head of prime sales, as the bank continues to grow its prime services offering.

Based in New York, Lynch is responsible for expanding Citigroup’s prime services offering across prime finance, futures, foreign exchange and fixed income, the bank said.

Prior to joining Citi, Lynch was chief operating officer at private investment firm Hound Partners for two years.

Editorial profiles

Luke has been a financial journalist for 25 years. Most recently, he has been the managing editor of Global Investor Group, formed by the merger of Futures and Options World (FOW) and Global Investor in 2018.

Before becoming managing editor of Global Investor Group, Luke was the editor of FOW, having joined Euromoney in late 2013.

Before Euromoney, Luke was the market structure correspondent at Thomson Reuters in London, covering exchanges, trading and regulation.

Before Reuters, Luke was the Trading Technology Editor at Financial News, which was acquired by Dow Jones before Dow Jones was itself acquired by News International.

Before Financial News, Luke worked for many years at Global Business Information, a London-based publishing house, where he was latterly the deputy editor of Straight-Through processing magazine.

Radi started his career more than 15 years ago as a graduate trainee at Global Capital covering structured credit before moving to Risk as a senior staff writer.

From there he became capital markets reporter at Financial News, part of Dow Jones, and then a risk reporter in Bloomberg’s Brief newsletter. He also worked as a senior fixed income analyst at Tabb Group, a market structure research firm, and as the head of capital markets research at Boston Consulting Group. Radi holds an MA (Hons) from Edinburgh and a post-graduate diploma in Data Science (distinction) from City, University of London.

Radi Khasawneh Derivatives editor

Luke Jeffs Managing editor

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Global Investor latest magazine editions

Winter 2022/23 Magazine

This latest issue sees our cover interviewee Sharon Shi, the new chief executive of GH Financials, discuss the broker’s plans for the future.

We also hear the latest from Al Dhabi Capital, RBC Investor & Treasury Services, Northern Trust Asset Management, Societe Generale Securities Services and Deutsche Boerse-owned derivatives market Eurex.

This Winter edition also includes a write-up of our latest MENA Awards. Congratulations to all the winners!

To learn more, download a copy here

Autumn 2022 Magazine

The issue features the results of our annual ISF survey (pages 29 to 58), which celebrates the best-in-class in the equity lending, fixed income lending and tech and data vendor spaces. The cover story (pages 10-14) features an interview with GLMX CEO Glenn Havlicek, who shares the company’s approach to product development with Global Investor.

To learn more, download a copy here

Summer 2022 Magazine

Our cover story (pages 12-17) features DTCC’s Chris Childs who shares how the company is leveraging technology to meet the reporting data challenge.

CBOE Global Markets’ David Howson reflects on the company’s expansion plans, while Antony Toscano, from MUFG Securities Lending Solutions describes how it aims to become a data driven business.

To learn more, download a copy here

Spring 2022 Magazine

Carlo Trabattoni, chief executive of Generali Asset & Wealth Management, features on the cover of this edition.

The Spring 2022 issue also includes an interview with the head of The Hong Kong Exchanges and Clearing, Nicolas Aguzin, and thought leadership from TMX, BNY Mellon and RBC Investor & Treasury Services. To learn more, download a copy here

Winter 2021/22 Magazine

The cover features Carmignac UK head Maxime Carmignac (pages 10 to 15), who discusses the French asset manager’s performance in 2021 and details the quiet transformation that has taken place at the boutique firm in recent years. To learn more, download a copy here

Beneficial

The purpose of this annual survey is to provide an overview of the world’s beneficial owners and, in conjunction with roundtable discussions, identify current trends, market drivers, and constraints.

Our

At Global Investor Group, we normally attend and support events that are securities, finance, and derivatives focused. Our journalists often attend to cover panel discussions, network, and meet industry experts.

Events we attended and supported in 2022

The MENA Awards, hosted by Global Investor for 35 years, honour outstanding performance, innovation, and excellence in the areas of asset management, fund services, and brokerage in the Middle East and North Africa region. Industry experts have judged the winners from a list of nominated companies and submissions selected by the Global Investor Group Team. The awards include 41 categories, including 17 regional and 24 country-specific awards, recognising not only the top companies in the field but also their exceptional accomplishments. The awards ran from October 5th to November 21, 2022, where the participants were judged between the period of September 1, 2021 to August 31, 2022. The winners were announced on the Global Investor website on December 13, 2022.

Global Investor Group was invited to attend the Association for Financial Markets in Europe (AFME) operations, post-trade, technology, and innovation conference held in London on 27th and 28th September 2022. As well as two days of industry panel discussions on key topics such as ESG, regulatory challenges, settlement efficiency, technology advancements and digital operational resilience, the conference involved networking sessions which was a great way to meet old contacts as well as build new relationships.

In November we attended the International Securities Lending Association (ISLA) annual post-trade conference in London. It was an interesting mix of keynote presentations, industry updates, and panel discussions; all designed to explore the various business and regulatory drivers affecting the post trade environment and how they might shape the future.

Other events we attended and supported:

• ISLA 29th Annual Securities Finance & Collateral Management Conference

• IMN’s European Beneficial Owners’ Securities Finance & Collateral Management Conference

• SRP Europe Conference and Awards 2022

• FOW Trading London 2022

Click here to see all the winners

Whether you are looking for a comprehensive overview of buy- and sell-side activity, or are more focused on specific markets, Global Investor Group gives you access to a wealth of news, analysis and data across the Asset Management, Securities Finance, Custody, Fund Services and Derivatives markets.

Subscribing to Global Investor Group will give you full, unlimited access to exclusive:

• In-depth news, insight, analysis and opinion pieces across Asset Management, Securities Finance, Custody, Fund Services and Derivatives

• Our interactive database,

PRINT AND EDITORIAL OPPORTUNITIES

- 2023

Total Derivatives is the prime source of realtime news and analysis in the global fixed income derivatives markets. Total Derivatives produces market-leading coverage of the bond, swap and options markets, and also provides must-have information on inflation derivatives, structured notes and MTNs.

For instance, in 2022, Total Derivatives produced the dealer rankings that reviewed which banks are top for rates derivatives. Also, the top banks in the IRS, interest rate options, inflation, structured MTNs, and cross-currency basis. For a copy of the results of the dealer rankings, get in touch here

To learn more about Total Derivatives, click here to visit their website

ETD (previously Euromoney TRADEDATA) provides information from the world’s trading exchanges and market participants, validating and normalising complex derivatives data and delivering it to the listed derivatives industry as gold standard trade reference data. Our clients range from tier one global banks to market participants trading specific markets and asset classes. Fully customised around our clients’ needs and technology ecosystems, our data enables our clients to achieve seamless trading, clearing and settlement while reducing risk and reacting faster to changing markets.

To learn more about ETD, click here to visit their website.

SRP is the leading provider of intelligence for the global structured product market, allowing you to find any product from +30 million in our database and easily analyse the market. Our news service and global events cover the latest insights into the structured products market and recognises industry leading talent through our awards programmes.

SRP is a trusted source for structured product information by investment banks, hedge funds, product issuers and distributors, exchanges and asset managers.

The SRP Digital Assets Report is now available to download. The report dives into the world of Decentralised Finance (DeFi), cryptos and structured products. Download here.

To learn more about SRP, click here to visit their website.

Global Investor Group: We’re part of Delinian

We are Delinian. A portfolio of highly specialised global businesses focused on critical insights. We operate at the leading edge of a broad range of markets. Delivering a diverse array of singular expertise.

It’s the fine margins that make the difference in competitive markets. Our clients need to be singularly focused on what really matters to find where opportunity exists.

Our businesses are deeply respected in their industries. They are the go-to source for critical data and expert insights. Their actionable intelligence and critical data – built up over years and constantly sharpened – are deeply embedded in clients’ workflows, enabling them to make the right moves at the right time. And their specialist expertise, gained through years of industry experience, allows them to provide insights that cut through.

All this is built on the sturdiest of foundations. Forging deep connections and long-term relationships, we act as a trusted advisor and partner to our clients, anticipating what they need at every stage.