BANKING NEWS FLASH November 29, 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 13 Strategy .............................................................................................................................. 19
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Sales & Marketing Nationwide first in the UK to Launch V.me by Visa digital wallet November 29, 2013 | BBR http://payments.banking-business-review.com/news/nationwide-first-in-the-uk-to-launch-vmeby-visa-digital-wallet-291113 From 26 November 2013, Nationwide Building Society, in partnership with Visa Europe, is announcing the launch of V.me by Visa, a digital wallet that will offer the Society's over six and a half million credit and debit card customers an innovative new way to make shopping online faster, easier and more secure. Nationwide is the first financial services provider to launch this digital wallet in the UK, which aims to provide customers with a seamless online shopping experience. V.me by Visa allows customers to upload multiple cards into a digital wallet. These are safely stored enabling customers to make future purchases without the need to repeatedly enter their card details. As card details are not being passed on to each individual merchant, V.me by Visa is not only faster and easier, but also provides a more secure way of making payments. Graham Beale, Nationwide's Chief Executive, said: "I'm excited that Nationwide is once again at the forefront of technological innovation by offering the V.me by Visa digital wallet, which will provide our members with a safe, secure and enhanced online shopping experience. "In 1997, Nationwide were first to offer the UK consumer internet banking and we are always looking to invest in ways to improve the customer experience by pioneering new technology. In 2008 Nationwide took the decision to invest ÂŁ1bn in the future of the organisation by implementing a large scale systems modernisation programme." Steve Perry, Chief Commercial Officer for Visa Europe, added: "We're delighted that Nationwide has launched the UK's first V.me by Visa wallet to its members. The wallet can already be used at over 1,400 online merchants, including household names like Curry's and Clarks. By Christmas there will be more than 4,000 places where you can use V.me by Visa in the UK, and more across Europe." More recently the Society has rolled out a number of digital innovations focused on enhancing customer experience, such as developing one of the highest ranked mobile banking apps and investing in future branch technology with the Cisco Remote Expert. This enables customers to "meet" with a mortgage consultant through a high definition video link. V.me by Visa is the latest phase of Nationwide's commitment to creating new ways of delivering great customer service and competitive products through digital and technological advances.
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Over 1,400 online merchants already accept V.me by Visa, including Clark's, Curry's and PC World. Plans are in place to grow the number of merchants to more than 4,000 later this year.
CIBC implements mobile cheque deposit November 28, 2013 | Finextra http://www.finextra.com/news/announcement.aspx?pressreleaseid=52960 CIBC, the first bank in Canadato launch a Mobile Banking App, today extended its suite of mobile banking innovations with eDeposit, a new feature that lets personal and small business clients deposit cheques to their CIBC account simply by taking a photo of the cheque with their mobile device. "The convenience of depositing cheques simply by taking a picture with your phone means you can make a deposit where, how and when you would like, which will save CIBC's 11 million clients time and provide faster access to those funds," said David Williamson SeniorExecutive Vice President and Group Head, Retail and Business Banking, CIBC. "Whether you are a small business owner with a handful of customer cheques at the end of day or an employee getting your weekly paycheque, you can literally make a deposit within seconds." This innovation makes CIBC the first of the major banks in Canadato offer Canadians deposit taking where, how and when they would like - in more than 1100 branches, over 3500 ABMs or from the comfort of their homes using their mobile devices. The CIBC eDeposit process is simple, quick and easy. Just open the CIBC Mobile Banking App and select the eDeposit feature. Endorse the back of the cheque. Take a picture of the front and back of the cheque. Select the account to receive the deposit and enter the amount of the cheque. Tap submit, wait for confirmation, and then mark the paper cheque as paid. Retain the cheque for 5 days, and then destroy it. Adding a mobile cheque deposit feature was the top request identified by CIBC clients, who deposit millions of cheques each year. As with all of CIBC Mobile Banking Apps, the CIBC eDeposit feature is safe and secure. None of the financial information is stored on your device and all wireless transmissions are securely encrypted.
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CIBC clients who already have the CIBC Mobile Banking App will see the new eDeposit feature after they update the App to the newest version. New users can download the CIBC Mobile Banking App with the new eDeposit feature today from the Apple App Store and Google Play Store. The CIBC Mobile Banking App works with iPhone, iPod touch, iPad and all 4.x Android smartphones and tablets.
Goldman Sachs Asset Management unveils first closed-end fund November 27, 2013 |BBR http://mutualfunds.banking-business-review.com/news/goldman-sachs-asset-managementunveils-first-closed-end-fund-271113 For investors seeking to participate in America's current energy expansion, Goldman Sachs Asset Management, L.P. ("GSAM") is pleased to announce the public listing of the Goldman Sachs MLP Income Opportunities Fund (the "Fund"), now trading on the New York Stock Exchange under the ticker symbol "GMZ." This is the first closed-end fund ever launched by GSAM. As a result of advances in drilling, extraction and refining, the US is on a path toward energy independence, primed to surpass Saudi Arabia as the world's largest oil producer by 20201. "Expanding our mutual fund platform into closed end funds is an important strategic initiative for GSAM, and we are pleased to have such a successful initial launch," said James McNamara, President of the Goldman Sachs Funds in GSAM. GSAM currently manages more than $208 billion in US mutual funds. The Fund aims to invest primarily in Master Limited Partnerships ("MLPs") -- a tax-advantaged structure created for use by energy firms to support growing hydrocarbon extraction and increasing energy demand. Focused specifically on midstream infrastructure, these essential companies include pipeline operators, processors, and fractionation and storage facilities. The Fund seeks a high level of total return with an emphasis on current distributions to shareholders. "We have strong conviction that compelling opportunities in MLP investing lie with midstream companies collecting toll-like revenues, which, we believe, are less exposed to underlying commodity prices," said Kyri Loupis, Managing Director and lead portfolio manager for the Fund. "Our index-agnostic approach and closed-end structure allows us to execute on our best investment ideas, including those offered by smaller cap MLPs poised for higher levels of growth." The Fund is managed by GSAM's Energy & Infrastructure Team, among the industry's largest and longest-tenured MLP investment groups. As of September 30, 2013, the team managed approximately $6.4 billion in MLPs and other energy sector investments.
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"MLPs have historically delivered attractive distributions to investors, as well as low interest rate sensitivity2. These attributes can be beneficial to investors in either a low or rising rate environment," said Loupis. "Through the launch of this closed-end fund, we're able to provide investors another avenue to access MLP exposure" The Fund raised $826.3 million in its common share offering, excluding any exercise of the underwriters' option to purchase additional shares. If the underwriters exercise their overallotment option in full, the Fund will raise $950.1 million. Underwriters may exercise their overallotment option up to 45 days after the initial public offering. Morgan Stanley, Citigroup and BofA Merrill Lynch were lead underwriters in connection with the offering.
NBK launches the first-of-its-kind, unrivaled Privilege Banking services November 22, 2013 |BBR http://retailbanking.banking-business-review.com/news/nbk-launches-the-first-of-its-kindunrivaled-privilege-banking-services-221113 National Bank of Kuwait (NBK) launches the first-of-its kind, unrivaled Privilege Banking Services that are especially designed to provide personalized, preferential banking services for its Privilege customers. NBK Privilege Banking services are designed to meet all banking and financial needs of high-income customers. The new services offer a variety of features, exclusive benefits, priority service and special privileges through dedicated relationship managers. "At NBK, we want to ensure that our customers always receive an unsurpassed level of service", said Mazin Saad Al Nahedh, NBK General Manager, Consumer Banking Group. "The new NBK Privilege Banking Services reflect NBK's commitment to continuously develop its services and to maintain its leading position as the bank of choice for customers." "NBK is renowned for its unique and unrivaled banking solutions. NBK Privilege Banking customers enjoy preferential services with a range of financial products designed exclusively to meet their personal banking needs and guarantee a high degree of satisfaction," added al Nahedh. Privilege Banking customers will enjoy being prioritized on all their banking requests. Privilege Banking services offer a wide range of products including the NBK Visa Signature Credit Card that aims at offering absolute convenience including complimentary access to over 35 of the most prominent airport lounges, local and global concierge services, free travel insurance coverage up to USD 500,000, free valet parking, luxury lifestyle offers and instant discounts locally and globally that cover travel, dining, shopping and entertainment.
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Recently, NBK launched a dedicated Premium Banking Branch in Al Hamra Tower. NBK Premium Service Lounges are also located in 25 local NBK Branches. NBK`s premium services banking lounge is designed to provide personalized banking services to its customers. It is equipped with the latest communication gadgets coupled with luxurious and comfortable seating area to carry out all the banking activities for premium banking customers. Dedicated Premium Banking Teller services are also available at this premium lounge.
PCU’s Popular $1,000 Debit Card Giveaway is Back for 2013 November 18, 2013 |BBR http://cards.banking-business-review.com/news/pcus-popular-1000-debit-card-giveaway-is-backfor-2013-181113 Postal Credit Union (PCU)’s popular $1,000 Debit Card Giveaway is back for another holiday season. To qualify, members simply register for the promotion online at http://www.postalcu.org. Then, each time they use their PCU Cash & Check (Debit) Card for purchases, they earn a chance to win one of PCU's weekly $1,000 random drawings. Members can earn 100 BONUS entries when they make 25 or more purchases a week using their PCU Cash & Check Card. With the introduction of Instant Issue Debit Cards earlier this year, those without a PCU Checking account and debit card can visit any PCU branch to get qualified, open the account and get the card in their hand the same day. The $1,000 Debit Card Giveaway runs from November 25 - December 22, 2013. No purchase is necessary and there is no cost to participate. For official rules, please visit the PCU web site at http://www.postalcu.org. "Our $1,000 Debit Card Giveaway is a fun way to reward members for using their PCU Cash & Check Card, especially during the busy holiday season when convenience and access to funds are so important," said Brian Sherrick, President/CEO of Postal Credit Union. "While our Debit Card offers year-round convenience, it's good to shine the spotlight on it this time of the year as a reminder of how easy it is to carry and use."
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Finance Investment Analysts’ Upgrades for November, 28th (AAL, BRG, CALL, CNE, CPRT, DHX, ELP, KRA, LZB, MYR) November 29, 2013 |American Banking News http://www.americanbankingnews.com/2013/11/28/investment-analysts-upgrades-fornovember-28th-aal-brg-call-cne-cprt-dhx-elp-kra-lzb-myr/ Investment Analysts’ upgrades for Thursday, November 28th: Anglo American (LON:AAL) was upgraded by analysts at Liberum Capital to a hold rating. Liberum Capital currently has GBX 1,150 ($18.67) target price on the stock. Breville Group Ltd (ASX:BRG) was upgraded by analysts at Credit Suisse from an underperform rating to a neutral rating. magicJack VocalTec (NASDAQ:CALL) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. The firm currently has $12.00 target price on the stock. Cairn Energy (LON:CNE) was upgraded by analysts at JPMorgan Chase & Co. to an overweight rating. The firm currently has GBX 365 ($5.92) target price on the stock, up from their previous target price of GBX 340 ($5.52). Copart (NASDAQ:CPRT) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. The firm currently has $35.40 target price on the stock. DHX Media (TSE:DHX) was upgraded by analysts at Cormark from a market perform rating to a buy rating. Companhia Paranaense De Energia (NYSE:ELP) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. They currently have $14.00 target price on the stock. Zacks’ analyst wrote, “COPEL’s third quarter 2013 result was weak as earnings per ADR at $0.44 plummeted 14.5% year over year despite a 10.5% increase in revenues. Electricity sales to final customers and distributors were strong. Operating costs and expenses increased 15.7%. We believe higher operating expenses, political interference and unpredictable weather conditions are major causes of concern. Restricted by the near-term concerns, we upgrade COPEL from Underperform to just Neutral recommendation. The upgrade is backed by our belief in COPEL’s long-term growth prospects. Resumption of economic growth and industrial development in Brazil have spurred demand for electricity in the country. To leverage benefits, COPEL has plans to invest $1.9 billion in 2013 aimed at improving its internal generation capacity and distribution network. Rewarding shareholders through dividend payments and efforts to reduce costs are also looked upon favorably.”
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Kraton Performance Polymers (NYSE:KRA) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. The firm currently has $24.30 target price on the stock. La-Z-Boy (NYSE:LZB) was upgraded by analysts at Zacks from a neutral rating to an outperform rating. They currently have $31.60 target price on the stock. Myer Holdings Ltd (ASX:MYR) was upgraded by analysts at JPMorgan Chase & Co. to a neutral rating. NCI Building Systems (NYSE:NCS) was upgraded by analysts at Zacks from an underperform rating to a neutral rating. The firm currently has $18.00 target price on the stock. Zacks’ analyst wrote, “We are upgrading our recommendation on NCI Building from Underperform to Neutral, with a target price of $18.00. This is based on expected benefits from strong backlog, cost-cutting initiatives and a positive mix shift. Additionally, the Metl-Span acquisition will drive long-term growth. However, volatile steel prices and incremental operating cost remain concerns. Furthermore, the Dodge Momentum Index slipped 0.9% in Oct suggesting that developers remain cautious about the tepid performance of the economy and its impact on market fundamentals. “ Old Mutual (LON:OML) was upgraded by analysts at Sanford C. Bernstein to an outperform rating. They currently have GBX 230 ($3.73) price target on the stock. Planar Systems (NASDAQ:PLNR) was upgraded by analysts at Zacks from a neutral rating to an outperform rating. They currently have $2.60 price target on the stock. RPC Group (LON:RPC) was upgraded by analysts at Panmure Gordon to a buy rating. They currently have GBX 584 ($9.48) target price on the stock, up from their previous target price of GBX 564 ($9.15).
RBS plans to divest £1.1bn investment business November 27, 2013 |BBR http://assetmanagement.banking-business-review.com/news/rbs-plans-to-divest-11bninvestment-business-271113 Royal Bank of Scotland (RBS) is reportedly negotiating with potential buyers to divest its £1.1bn private equity fund business, as part of its strategy to concentrate on core business segment. It is believed that the transaction will be completed through a management buy-out deal, as the 82% government owned lender is talking with SOF's management team headed by Lindsey McMurray, the Herald Scotland reported. RBS, which owns a 13.5% direct stake in the SOF, said to be 'a discrete third-party fund', has made several new investments in recent years including in 2009 Arrow Global, the specialist debt recovery firm.
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Under the management of McMurray, who joined RBS in 2002 from Cabot Square Capital, SOF has been shrinking its portfolio through a series of asset sales and flotation. The British government owned bank, which recently agreed to divest its retail investor products and equity derivatives business (IP & ED) to French bank BNP Paribas, is divesting its non-core operations to boost the capital ahead of global banking capital regulation. Recently, the bank said that it is planning to launch a partial IPO of its US business, namely RBS Citizens Financial Group, during the second half of 2014, with an aim to fully divest it by 2016.
FHFA Keeps $625,500 Loan Limit in High Cost Areas November 26, 2013 |National Mortgage News http://www.nationalmortgagenews.com/dailybriefing/fhfa-keeps-625000-loan-limit-in-high-costareas-1040055-1.html The Federal Housing Finance Agency has backed away from lowering the loan limits on Fannie Mae and Freddie Mae loans in 2014. FHFA acting director Edward DeMarco was expected to lower the $625,500 limit in high cost areas to $600,000 and the $417,000 loan limit in most areas of the country to $400,000. However, strong congressional opposition to such a loan limit reduction and the likelihood Rep. Mel Watt, D-N.C., will be the new GSE regulator soon prompted DeMarco to drop such a move. In announcing the decision Tuesday morning, FHFA also acknowledged that only Congress can change the maximum conforming loan limits. The Senate is expected to vote next week to confirm Rep. Watt to be the new FHFA director.
US slaps record $13bn penalty on JPMorgan for erroneous RMBS practices November 20, 2013 |BBR http://retailbanking.banking-business-review.com/news/us-slaps-record-13bn-penalty-onjpmorgan-for-erroneous-rmbs-practices-201113 JPMorgan has reached a $13bn settlement in principle negotiated by the President’s RMBS Working Group of the Financial Fraud Enforcement Task Force, to settle various charges that the bank deceived investors over securities containing toxic mortgages. The agencies that participated in the settlement include the Department of Justice (DoJ), several State Attorneys General (State AGs), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA).
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The settlement will resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by JPMorgan, Bear Stearns and Washington Mutual prior to 1 January 2009. As per the settlement, JPMorgan Chase will reimburse a total of $9bn in cash and provide $4bn in borrower relief. The cash part comprises a $2bn civil monetary penalty and $7bn in compensatory payments, including a previously announced $4bn payment to resolve FHFA's litigation claims. As part of the settlement, the bank has acknowledged that it made serious misrepresentations to the public, including the investing public, about numerous RMBS transactions.. JPMorgan Chase has promised to complete delivery of the committed relief in the form of principal reduction, forbearance and other direct benefits from various relief programs, to borrowers before the end of 2017. Commenting on the settlement, Attorney General Eric Holder said, "Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown." "JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm's behavior. "No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability." The settlement comprises a statement of facts, in which JPMorgan acknowledges that it regularly represented to RMBS investors that the mortgage loans in various securities complied with underwriting guidelines. However, the regulator found on many occasion that JPMorgan employees willingly sold the faulty RMBS, and they were fully aware that the loans did not comply with those guidelines and were not appropriate for securitization. JPMorgan chairman and CEO Jamie Dimon said, "We are pleased to have concluded this extensive agreement with the President's RMBS Working Group and to have resolved the civil claims of the Department of Justice and others. "Today's settlement covers a very significant portion of legacy mortgage-backed securities-related issues for JPMorgan Chase, as well as Bear Stearns and Washington Mutual." The settlement concludes and terminates all pending civil enforcement investigations, including those by the DoJ and the State AGs from California, Delaware, Illinois, Massachusetts and New York, relating to RMBS activities by JPMorgan Chase, Bear Stearns and Washington Mutual.
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JPMorgan reaches $4.5bn mortgage claims settlement with 21 institutional investors November 18, 2013 |BBR http://retailbanking.banking-business-review.com/news/jpmorgan-reaches-45bn-mortgageclaims-settlement-with-21-institutional-investors-181113 JPMorgan Chase & Co has inked a $4.5bn tentative settlement with 21 major institutional investors, represented by Gibbs & Bruns, to resolve the accusations that the bank sold them faulty mortgagebacked securities that busted later. Under the terms of the deal, the $4.5bn settlement amount will be handed over to trustees that managed 330 residential mortgage-backed securities (RMBS), covering investments sold between 2005 and 2008 by JPMorgan, as well as by Bear Stearns. The transaction, which is pending court and the trustees' approval, does not encompass claims related to RMBS sold by Washington Mutual, which was purchased by JPMorgan during the financial crisis of 2008. The US bank said in a statement, "The offer, which the trustees may seek court approval for, would resolve all representation and warranty claims as well as servicing claims on all trusts issued by J.P. Morgan, Chase and Bear Stearns between 2005 and 2008." The multibillion-dollar settlement is separate from $13bn settlement that JPMorgan inked with the US Department of Justice (DoJ), to settle charges for willfully selling faulty residential mortgage backed securities (RMBS) to government-backed finance companies Freddie Mac and Fannie Mae. Both Fannie Mae and Freddie Mac went bust during the financial crisis of 2008, due to the high exposure of faulty RMBS and were subsequently injected with nearly $187.5bn by the US government. In order to recover the damaged caused by faulty mortgage practices by the banks, the FHFA filed a total of 18 lawsuits against financial companies demanding $200bn in 2011. Citigroup and General Electric have already settled the matter with the FHFA, while BofA and HSBC are on the verge of settling the matter.
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Technology CIBC unveils new mobile banking app feature eDeposit November 29, 2013 |BBR http://onlinebanking.banking-business-review.com/news/cibc-unveils-new-mobile-banking-appfeature-edeposit-291113 The Canadian Imperial Bank of Commerce (CIBC) has unveiled a new feature eDeposit, which enables personal and small business clients to deposit cheques by taking a photo of the cheque using mobile devices. After updating the CIBC mobile banking app to the newest version, CIBC clients will get to see the new eDeposit feature. The new application, which has been designed for mobile banking customers, saves customers' time while offering faster access to funds. The eDeposit app is safe and secure as it will not store any financial information and all wireless transmissions are securely encrypted. CIBC retail and business banking senior executive vice president and group head David Williamson said whether you are a small business owner or an individual, you can literally make a deposit within seconds using eDeposit. "The convenience of depositing cheques simply by taking a picture with your phone means you can make a deposit where, how and when you would like, which will save CIBC's 11 million clients time and provide faster access to those funds," Williamson added. In order to deposit the cheque, the customers will have to click a photo of both sides of the cheque, and then select the account to receive the deposit and enter the amount of the cheque, click on submit, wait for confirmation, and then mark the paper cheque as paid.
Aquis Exchange launches successfully November 27, 2013 |BBR http://ecnandexchanges.banking-business-review.com/news/aquis-exchange-launchessuccessfully-271113 Aquis Exchange, the pan-European equities trading exchange, successfully completed its first day of live operations, executing trades in all three of the markets available at launch.
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Aquis Exchange, which has introduced subscription pricing to European equities trading, saw several Members participate on launch day and trades were executed in a range of blue chip stocks from the UK, France and the Netherlands. Commenting on the occasion, Aquis Exchange CEO, Alasdair Haynes, said: "It has taken us 13 months from announcing the concept of Aquis Exchange to going live. We are very pleased to have built a highly performant platform, gained regulatory approval and now actually launched in this relatively short period of time. Crucially, we have attracted support from a wide range of market participants and have a very strong Member pipeline. The challenge for us now is to work on building up liquidity so we can bring the much needed competition and growth to the European equities space." Aquis Exchange was established in October 2012 and operates a pan-European equities trading exchange. It is authorised and regulated as a multilateral trading facility (MTF) by the UK's Financial Conduct Authority. Aquis Exchange is set to revolutionise the European trading landscape by its introduction of subscription pricing and innovative order types. Currently, over 90% of European equity trading in each individual country takes place on two exchanges. The aim of Aquis Exchange is to bring fresh competition into the marketplace in order to lower the trading costs maintained by the existing duopoly.
ADS Securities launches Middle East's first multi-asset trading platform November 25, 2013 |BBR http://custodyandclearing.banking-business-review.com/news/ads-securities-launches-middleeasts-first-multi-asset-trading-platform ADS Securities, the Middle East's leading forex brokerage and one of the fastest growing FX trading companies globally, has announced the official launch of its new trading platform. OREX Optim is the first proprietary multi-asset online trading platform to be commissioned and developed from the Middle East. It represents a multi-million dollar investment in technology which will be accessed by investors from around the world. OREX Optim Key Facts: Multi-million US$ investment - two years in development ADS Securities fully owned technology - blue chip development partners Designed as a multi-asset platform - not a reworking of old legacy systems Increased access to liquidity providers - more LPs available
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High Frequency trading with low latency order processing Fast pricing - latency of 7ms on market orders Low latency, low slippage and reduced rejection rates 65% improvement in spreads and prices Advanced monitoring through Corvil Increased FIX API functionality. Philippe Ghanem, Managing Director and Vice-Chairman of ADS Securities, commented: "For many years the development of trading technology has been led by the main financial markets, but this is changing. Abu Dhabi has established itself as an important financial hub linking the markets to the east with those in the west. To support this trading highway we have invested in proprietary new generation technology which will give traders a market leading platform." "Bringing a new platform online can only be achieved after many years of hard work, and it is the starting point for a lot of future work. We have developed a high frequency low latency multi-asset trading platform which offers real advantages to our clients. The development of OREX Optim is an indication of the scale of financial infrastructure investment which is now coming from new and emerging markets." ADS Securities has partnered with blue-chip technology providers and put in place a team of inhouse IT specialists, all from tier 1 banks, to develop the platform. In the late 1990's and early 2000's tier 1 banks invested billions of USDs in the development of technology which revolutionise online FX trading. In recent year's this investment has been reduced, at a time when technology is moving forward at a fast pace. The Middle East region is now benefiting from being able to invest in the latest technology without being tied to legacy systems. "The new platform started trading in May this year and we have completed six months of testing and a soft launch with key clients. The results have been extremely positive and we are now delighted that we will be able to offer this new resource to all our institutional clients. We will be bringing on new versions of the platform including OREX Prime for professional traders early in the New Year. Currency markets are extremely dynamic and we are seeing investors looking at many opportunities including moving into new currencies such as the renminbi." added Mr Ghanem. Andrew Rossiter, ADS Security CTO, who heads up the OREX Optim team, said: "Advances in technology, predominately driven by the order based (equity) markets are now being adopted by the quote (OTC) market which is changing the operational structure and functionality of FX platforms. Our new generation platform provides a low latency solution with better fill, tighter spreads and low rejection rates which is what clients are looking for. Today we are launching the FIX API versions of OREX Optim which will be of great interest to institutional traders from tier 2 banks through to asset managers and hedge funds."
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ADS Securities is a leading multi-market institutional FX brokerage which offers exceptional execution and price, based on mix of bank, non-bank and unique regional liquidity. The firms Optim products give institutions access to multiple liquidity pools which can be aligned to their trading requirements. OREX Optim is being offered alongside the OREX Pro platform, OREX Direct and OREX Match solutions. It will be available in all major markets.
OpenGamma unveils margining platform November 22, 2013 |BBR http://www.banking-business-review.com/news/opengamma-unveils-margining-platform-221113 OpenGamma, creators of the first open-source analytics and risk management platform for the financial services industry, announced a new margining platform for clearing members to support the initial margin calculation requirements of central counterparties (CCPs) on OTC swap transactions. Governments and regulators are pushing for large structural changes to the OTC derivatives market, such as mandating the central clearing of transactions that have historically been settled bilaterally. This results in the new requirement for initial margin (IM) to be posted on all transactions. Combined with the need for both pre- and post-trade risk-measure-based credit limit checks, it is fueling the demand for much faster calculations of such risk measures. A common approach today is to rely on approximations or proxy measures instead of calculating these margins with a high degree of numerical precision - primarily due to technology constraints - but this is quickly becoming untenable. "The swaps market is transitioning from one in which overnight batch jobs were the norm to one that requires trades to be cleared in seconds and margin to be posted intraday," said Kevin McPartland, Head of Market Structure Research at Greenwich Associates. "In order to provide safe and cost-effective access to clients in that marketplace, it is critical that FCMs manage the flow of margin in a timely and accurate way." The OpenGamma Platform for Margining provides a lightweight, low-latency solution that enables clearing members, such as Futures Commission Merchants (FCMs), to run complex margin calculations and stress tests on client accounts and new orders in milliseconds. The platform combines the real-time risk engine of the OpenGamma Platform with a comprehensive in-memory data management platform to support new critical client requests, and replication of the IM and variation margin (VM) calculation methodologies of many of the key CCPs. Using the OpenGamma Platform, FCMs can run full margin re-calculation of client accounts as large as 10,000 swaps in less than a minute on one commodity CPU, and respond to SEF ping requests using full IM replication in as little as 3.6 milliseconds. In addition, users are able to analyze the margin and collateral impact of proposed trades and conduct 'what if' scenario analyses - capabilities that can also be offered as value-added tools to their end clients.
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Critically, the platform provides access to all supported CCPs' margin methodologies through a single API, so FCMs can integrate once and get access to full multi-CCP capabilities without the costly effort of supporting custom libraries and APIs for each clearing house and asset class. Thanks to the solution's light, thin and fast technology profile, it integrates effortlessly into existing technology stacks without the need for wholesale replacement of earlier technology investments. "The new IM/VM requirements have dramatically changed the way clearing members will need to approach risk management," said Mas Nakachi, CEO of OpenGamma. "The industry acknowledges that notional exposure and sensitivity-based limits are not appropriate in the longer term, and the move towards computationally intensive full IM-based checks is inevitable. This places increased demands on CCP connectivity and performance, and FCMs will need to implement effective solutions to remain compliant and competitive in the new market environment. The OpenGamma Platform for Margining infrastructure runs on site, which ensures that client account portfolio information is secure and complies with prevailing privacy policies, and that required low-latency demands are met." Added Kirk Wylie, Co-Founder and Executive Chairman of OpenGamma: "The OpenGamma Platform for Margining includes the flexibility of our original market risk platform, empowering clearing members to tackle regulatory changes with effective on-premise solutions. Regulators continue to push the industry to STP trades at ever-increasing speeds to meet the new OTC market structure requirements. That's why we've invested a lot of resources into building a solution that allows our clients to do full intraday re-margining of their portfolios, updating and checking against any associated IM-based limits, and responding to SEF pings in real time."
BEA launches i-Pay mobile payment service November 20, 2013 |BBR http://payments.banking-business-review.com/news/bea-launches-i-pay-mobile-paymentservice-201113 Service can be used with any smartphone and on any network Hong Kong, 19th November, 2013 – The Bank of East Asia (“BEA”) has unveiled its i-Pay mobile payment service for credit card customers at the “BEA i-Pay – I Pay My Way” media event. This service will be officially launched in the first quarter of 2014. i-Pay uses near field communication technology to provide a hassle-free contactless payment experience. After plugging the i-Pay device into their phone and opening the BEA App, customers will be able to make payments with a simple tap at a reader of any MasterCard PayPass merchant. Customers will be able to use iPay to settle a wide range of transactions including grocery, food & beverage, fashion, and beauty & personal care purchases.
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i-Pay is compatible with all Android/iOS phones, and all mobile networks. "BEA is the first bank in Hong Kong to provide a mobile payment service that does not restrict customers to a particular type of smartphone or network. This feature enhances the customer experience, as people can enjoy greater convenience and flexibility when using the innovative payment method," says Mr. Vincent Hui, General Manager and Head of Personal Banking Division. To ensure security, the i-Pay service is PIN-protected. Customers will be able to keep track of their spending using their mobile, with details of the latest 10 transactions available via the BEA App. As part of the launch campaign for i-Pay, BEA has worked with local t-shirt brand teelocker to commission ten creative talents, including rising star J. Arie, to design packaging and unique gift items. A series of interactive games will be launched on BEA's Facebook pages, BEA JOY and BEA Fun, starting from 27th November, 2013, to promote this brand new service. The Bank's Facebook fans and selected cardholders will have the chance to enjoy the new service before the launch. The BEA App provides comprehensive mobile banking services. To download the BEA App for free, customers can simply go to the App Store or Google Play and search for "BEA".
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Strategy FNZ partners with Euroclear UK & Ireland to drive fund processing change November 29, 2013 |BBR http://custodyandclearing.banking-business-review.com/news/fnz-partners-with-euroclear-ukireland-to-drive-fund-processing-change-291113 FNZ, a leading provider of transaction and custody services for the global wealth platform sector, with ÂŁ45 billion in assets under administration, has signed a strategic partnership agreement with the UK's central securities depository, Euroclear UK & Ireland (EUI). Under the agreement, FNZ will integrate its fund settlement process with EUI to improve clearing counterparty protection for its customers and lower operating risk through improved end-to-end automation of the settlement process for managed funds. In the UK, FNZ powers the wealth platforms for a significant portion of the market including Standard Life, AXA, Zurich, Friends Life, Close Brothers, JPMorgan Asset Management and HSBC. Christopher James, Managing Director, Wealth Services at FNZ, said: "This agreement transitions the UK fund market, in which FNZ is the leading provider of fund transaction and custody services in the platform sector, to the delivery-versus-payment model that has existed for many years in the North American fund market and for equities in the UK market. Our decision to house unit settlement and cash reconciliation with Euroclear significantly enhances the security and automation of the end-toend process for our customers, which are the leading UK platform providers." Katrina Sartorius, Director and Head of Product Management for Euroclear UK & Ireland, said: "We are delighted to partner with FNZ, a leading provider of cutting edge transaction and custody services to the institutional funds and wealth platform sectors. We are committed to supporting their current and future growth by ensuring that FNZ and their clients benefit from the efficiencies and risk reductions that can only be achieved through scale, and end-to-end automation of cash and share settlement." FNZ joins twelve of the UK's largest fund managers, including M&G, Invesco, Schroders and Hendersons, in selecting Euroclear UK & Ireland as their investment fund service provider. By the end of the first quarter of 2014 over 50% of orders routed through EUI's order router will be available for settlement via the CSD's investment funds service. Fund orders from institutional firms and IFAs can be routed using technology providers, such as FNZ, to Euroclear UK & Ireland's order routing and settlement service, which interfaces electronically with transfer agents and the fund managers they service.
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Citibank Indonesia unveils three credit cards November 25, 2013 |BBR http://cards.banking-business-review.com/news/citibank-indonesia-unveils-three-credit-cards251113 Citibank Indonesia has rolled out an assortment of three credit cards, as part of its strategy to boost penetration in card business in the country. The assortment of new credit cards includes, Citi PremierMiles, Citi Rewards and Citi Cash Back, which have been designed to offer highest benefits to cardholders when they travel, dine or grocery shop, claims the bank. Citibank Indonesia consumer business managing director Lauren Sulistiawati was quoted by Jakarta Globe as saying, "This is a new page for Citibank." "We are coming back strong with new innovations," Lauren told the news site. Lauren believes that the new set of credit cards will strengthen Citibank credit customers to between 1.1 million and 1.2 million next year, while transactions would increase by 18% to 20%. "Although the central bank expects slower loan growth next year from 22 percent to 17 percent, our credit-card segment is typically unaffected because we target those that truly can afford the credit," Lauren added. The launch of the new cards comes six months after the central bank of Indonesia lifted the ban on Citibank Indonesia's credit-card business, reported the news portal.
Boku acquires India's direct carrier billing firm Qubecell November 22, 2013 |BBR http://bankingtechnology.banking-business-review.com/news/boku-acquires-indias-directcarrier-billing-firm-qubecell-221113 Boku, Inc., the global leader in carrier billing and cross-platform mobile payments, announced the acquisition of India's leader in direct carrier billing, Qubecell. The acquisition of Qubecell provides Boku with direct carrier billing connections with four of the largest carrier networks in India along with a number of key local merchant relationships. This enables Boku's carrier billing technology to reach more than 75% of the country's mobile subscribers, roughly 550 million users. The acquisition also makes Boku the largest provider of direct carrier billing in India, and greatly expands Boku's footprint in Asia and the Middle East.
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"India is a tremendously important market for direct carrier billing. What Qubecell has built and the market leadership position they've acquired in such a short period of time is extremely impressive." Said Jon Prideaux, Chief Business Officer for Boku. "This acquisition is truly the joining of a market leader with a global leader to benefit customers and merchants throughout the region. Our plan is to leverage the resources built by Qubecell to create a regional hub for our company's global operation that will provide support for our merchant and carrier customers across Asia, the Middle East, and Australia while helping to continue our expansion into the emerging markets." The acquisition provides Boku merchant partners with direct access to the large and growing market of online consumers in India. The agreement includes the purchase of all shares in Qubecell. All of Qubecell's employees will be joining the existing Boku organization with the Founder & CEO of Qubecell, Ranjan R. Reddy, joining as part of the leadership team in Asia. "Boku is a company we've long admired at Qubecell and there is no greater compliment that can be given to our team than to be asked to join the global leader in carrier billing." Said Ranjan R. Reddy, CEO of Qubecell "We have poured everything into building India's first pure-play carrier billing provider and look forward to continuing our commitment to expanding mobile payments in India and the surrounding regions under the banner of Boku."
Visa and i2c form alliance to bring better prepaid solutions to global markets November 20, 2013 |BBR http://cards.banking-business-review.com/news/visa-and-i2c-form-alliance-to-bring-betterprepaid-solutions-to-global-markets-201113 Visa has announced a strategic alliance with global prepaid processor i2c, Inc., affirming its commitment to the growing prepaid market in Asia-Pacific, Central Europe, Middle East & Africa (APCEMEA). As part of the alliance, Visa and i2c will support the demand for prepaid cards in the region with a focus on a wide-range of product offerings, such as Government Disbursement, and Virtual prepaid. The global growth in the prepaid market is forecasted to rise by 44 percent in the next five years, between 2013 and 2018. "Demand for prepaid cards is increasing across APCEMEA, which includes some of the world's fastest growing regions. To make sure Visa can quickly respond to issuer and partner's needs, we are delighted to announce a strategic alliance with i2c that will improve prepaid processing options to cardholders throughout the region," said Stacey Pinkerd, Head of Products - Asia-Pacific, at Visa. "Alliance partners such as i2c will play a significant role in the expansion of the prepaid category by providing prepaid issuers and partners with leading technology solutions that support functionality required by both consumers and corporates across the entire region," Pinkerd added.
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i2c's best-in-class, flexible prepaid processing platform will allow Visa prepaid issuers and partners to develop and manage the full suite of prepaid products throughout the region. i2c, a global prepaid processor that supports programs in the Americas, Europe, Middle East, Asia, and Africa, is committed to expanding in the APCEMEA region to provide Visa issuers and partners with robust, end-to-end prepaid processing solutions. Amir Wain, Chief Executive Officer, at i2c comments, "i2c's One World, One Platform strategy is to help issuers of prepaid and emerging financial products get to market quickly anywhere in the world using just one processing platform globally. Our alliance with Visa, one of the most respected and trusted brands in financial services, is an important development in the execution of this strategy. We are excited to get to work in partnership with Visa to help financial institutions and companies in the APCEMEA region launch differentiated, profitable prepaid programs." With the i2c alliance, Visa will be better able to expand its reach into new prepaid markets and provide issuers and partners with the newest payment technology and best-in-class options in all markets across APCEMEA. i2c is a provider of traditional, mobile and emerging payment processing solutions to blue chip clients worldwide, and already works with some of Visa's prepaid issuers and partners in more than 10 markets.
Aberdeen agrees to acquire Lloyds’ fund management division SWIP November 18, 2013 |BBR http://assetmanagement.banking-business-review.com/news/aberdeen-agrees-to-acquire-lloydsfund-management-division-swip-181113 Scotland-based money manager Aberdeen Asset Management has signed a definitive agreement to acquire nearly 10% stake in Lloyds Banking Group’s fund management division Scottish Widows Investment Partnership (SWIP), in a £550m share transaction. The takeover of SWIP will boost Aberdeen's assets under management double, while the same will further bolster its presence in the country. Commenting on the transaction, Aberdeen Asset Management chief executive Martin Gilbert said the transaction is significant for the long-term prospects of Aberdeen in a number of ways. "It strengthens our investment capabilities and adds new distribution channels; the acquisition of SWIP adds scale to our business across a range of asset classes; and it also introduces a strategic relationship with Lloyds Banking Group," Gilbert added. Lloyds acquired SWIP at a purchase price of £7.3bn in 2000, with an aim to increase the sale of life insurance and savings products. In 2009, the bank planned to offload the entire Scottish Widows including asset management and insurance division, but later deferred from selling, following Horta-Osorio's appointment as chief executive in March 2011. Most recently, it was reported that Australian banking group Macquarie and France-based fund manager Natixis, were among the six companies, which were also looking to acquire SWIP.
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