Initiative Combines CloudMargin Technology with Margin Tonic Regulatory Consultancy Services to Help Firms Address UMR Compliance

CloudMargin, creator of the world’s first and only collateral and margin management solution native to the cloud, and Margin Tonic, an industry-leading service provider specialising in the collateral and post-trade domains, announced today that the two firms have partnered to launch a global Average Aggregated Notional Amount (AANA) calculation service for the latter phases of the Uncleared Margin Rules (UMR), combining CloudMargin’s award-winning technology with Margin Tonic’s expertise-led regulatory consultancy services.

The joint subscription service automates the AANA calculation for clients on the CloudMargin platform, leveraging Margin Tonic’s expertise in the multi-jurisdictional Uncleared Margin Rules and helping clients to fine-tune fit-for-purpose trading and compliance strategies.

Firms brought into scope for Phase 5 of UMR – based on their AANA calculations for March, April and May of 2021 – were required to begin exchanging Initial Margin (IM) from 1 September for trading of non-cleared over-the-counter (OTC) derivatives. A much larger group of mainly buy-side firms, estimated at almost 800 firms by the International Swaps and Derivatives Association (ISDA), is expected to fall into scope for Phase 6, which takes effect on 1 September 2022. This follows AANA calculations conducted in March through May of the same year for most jurisdictions.

Importantly, even for those firms under the threshold ($8 billion in the U.S. or €8 billion in the European Union) and not in scope for Phase 6, there is a regulatory need to perform ongoing year-on-year AANA calculations to assess if firms will come into scope any year after September 2022.

AANA calculation rules can be complex, with product scope and calculation methods varying by jurisdiction. Firms also often encounter AANA challenges such as consolidation of data from multiple trade sources, lack of AANA regulatory guidance and unclear treatment of funds, including multi-manager funds.

In addition, trading volumes and products will also change over time, meaning that AANA calculations should be performed regularly and on an ongoing basis. A proactive monitoring approach ensures firms will have full readiness in place, with no late surprises on their AANA results and rushed compliance solutions.

Over recent years, both CloudMargin and Margin Tonic have been central to helping a wide range of firms navigate UMR successfully, including a large number of Phase 5 firms. The joint AANA service further strengthens the two companies’ ongoing collaboration on multiple fronts, including an Initial Margin ‘Health Check’ service and other initiatives.

Simon Millington, of CloudMargin said: “Calculating AANA is the first step toward determining if an institution is in scope for UMR. Many firms don’t realize that they’ll need to maintain these AANA calculations on an ongoing basis, whether or not they fall into scope for Phase 6. This service offers clients a heightened level of confidence and comfort that they have industry-leading expertise analysing the various nuances of regulatory jurisdictions and complex factors, combined with a robust technology solution providing accurate AANA calculations they can track over time with automated reporting. They can also choose to work with us to automate and optimise their entire collateral workflow as desired, if and when they exceed the threshold. We’re delighted to extend our partnership with Margin Tonic with this important initiative.”

Chris Watts, Co-Founder of Margin Tonic, said: “We have performed and advised on AANA calculations across multiple UMR phases, for a variety of different firms and set-ups. Having early and ongoing clarity on AANA status ensures that firms can prepare for compliance with confidence, for the heavy front-to-back changes. Too often, we have seen firms perform AANA calculations too late, or not regularly enough, causing a rush to compliance with unfit solutions and high compliance risk, with the potential to impact their ability to trade. By introducing the joint AANA service with our partners at CloudMargin, we provide an AANA one-stop-shop, combining our industry-leading advice with their best-in-class technology. In turn, we will remove AANA burden for our clients, allowing them to focus on key decisions, either for compliance readiness or for trading adjustments to remain out of scope entirely.”

More information about the new AANA service can be found here.

CloudMargin recently announced that in order to facilitate clients’ preparedness for UMR in Phases 5 and 6, it is now connected to nearly 60 custodians globally for cash, securities and third-party SWIFT settlement, in addition to its long-established SWIFT connectivity to the four major triparty agents.

CryptoXpress today announced the upcoming launch of its Binance Smart Chain BEP-20 $XPRESS Utility Token on the TrustPad, VentUp and ProStarter IDO launchpads followed by listings on the Gate.io CEX and PancakeSwap DEX.  The IDO launches of the $XPRESS token are scheduled to occur on the November 12th, followed by an IEO launch on the Gate.io CEX on November 15th.  On the following day, November 16th, the token will be listed on the Gate.io CEX and the PancakeSwap DEX for public trading for the first time.

"We are thrilled to announce the upcoming launch of the $XPRESS token, as the culmination of the dedicated hard work of the CryptoXpress team and its partners", said Sherwin Torres, Co-founder and Chief Product Officer of CryptoXpress.  "The $XPRESS token will be the fuel that accelerates the adoption of the CryptoXpress platform and usher in a brighter future for the FinTech sector."

The $XPRESS utility token underpins the entire CryptoXpress platform, where investors will be able to avail of discounts and features by using the $XPRESS token when performing transactions within the CX mobile iOS and Android applications.  CryptoXpress will provide investors further incentives to invest in its $XPRESS tokens through liquidity pool farming and staking rewards which will be announced in the upcoming weeks. The $XPRESS token vesting schedules have been designed through the advice of industry-leading organisations and advisors to ensure investor ROI, price stability, and token liquidity are maintained based on industry best practices. 

CryptoXpress has announced partnerships with Binance, Polygon and industry-leading investors and partners, with many large partnerships yet to be announced in the weeks leading up to and after the token launch. 

For further information about CryptoXpress and the $XPRESS token launch, visit the company website at www.cryptoxpress.com

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown

‘’Bitcoin is bouncing higher again, close to all-time highs fuelled by expectations that the era of cheap money looks set to hang around for longer, while inflation is expected to keep ticking up. It jumped by more than 7% over the last 24 hours, heading above $66,300.

The recent surge in the crypto asset partly seems to have been caused by investors piling in, seeing it as a hedge against inflation. Some appear to have been enticed by the argument that the huge monetary stimulus programmes unleashed by central bank is fuelling inflation which will see the value of money decrease over time, whereas Bitcoin has a fixed limit on the number of coins which can be created.

It’s a highly risky strategy given just how volatile the crypto currency is, amid other pressures on its valuation like clampdowns by authorities and even comments on social media. As Bitcoin increases in value, mining of the crypto asset also ramps up, which is still hugely energy intensive, despite some moves to power more proof of work using renewables, and it’s likely to attract more adverse headlines especially given the focus on soaring emissions during COP26.

The US central bank, the Federal Reserve has also started gently reining in its bond purchase programme, and could well tighten more sharply in the months to come, potentially triggering a mini sell off, similar to how the financial markets would react if the drug of cheap money is withdrawn too quickly.

The perturbations at work in the crypto stratosphere, given the gyrations of coins and tokens over recent months, means investing in Bitcoin is not for the faint hearted or for those with no money to lose.

What is particularly worrying is that many investors get caught up the fear of missing out on rapid price gains and have borrowed money to invest in highly risky strategies. The UK financial watchdog has highlighted that 14% of UK investors in crypto assets have got into debt to buy in. This fresh rise in the coin, risks taking more vulnerable consumers for a rollercoaster ride.’’

• Rob is a highly experienced banking technology expert and a leading advocate for consumer-centric innovation harnessing the power of the Consumer Data Right (CDR).

• TrueLayer’s team continues to expand in Australia and New Zealand across product, engineering, operations, commercial and marketing functions.

Sydney, Australia. TrueLayer, the global open banking pioneer, today announces the appointment of Rob Hale as Head of Banking in Australia.

An expert in banking technology and strategy, with extensive experience in Australia and overseas, Rob is a leading advocate, innovator and collaborator in the open finance movement in Australia, harnessing the power of the CDR.

He joins TrueLayer from Regional Australia Bank (RAB) where he was Chief Digital Officer and prior to that Chief Information Officer. Under Rob’s guidance, Regional Australia Bank was the first Australian bank to achieve the status of both Data Holder and unrestricted Accredited Data Recipient under the CDR.

“It’s been great to be involved at the genesis of CDR and help a bank to seize the opportunity in open banking. That is why I'm particularly excited to be joining TrueLayer as we look to the next horizon of the CDR - action initiation and payments,” Rob said.

“TrueLayer is bringing its global open banking expertise into Australia to help international and local clients access CDR data in the right way. I’ll be devoting my time to supporting banks, fintech firms and others to harness the power of open data to deliver new services for Australian consumers and businesses,” he continued. 

TrueLayer’s CEO of Australia & New Zealand, Brenton Charnley, has warmly welcomed Rob to the team, saying: “We’ve built a solid foundation in Australia and launched our global Open Banking Platform to deliver amazing open banking-powered customer experiences. We’re delighted that someone of Rob’s calibre has chosen to join us as Head of Banking. He is a leading advocate for the CDR and the critical role it is playing in transforming Australian financial services. His knowledge of what it takes for banks to deliver open banking will be invaluable. There is so much opportunity to open up the whole of finance, working with banks and non-banks to deliver innovation in banking, lending and payments.”

In September, TrueLayer was approved by the Australian Competition and Consumer Commission (ACCC) as an unrestricted Accredited Data Recipient under the CDR and launched its global Open Banking Platform in Australia. The TrueLayer Open Banking Platform is backed by proven, market-leading data and payments APIs that currently process more than half of all open banking traffic in the UK, Ireland and Spain. 

·         Deals reflect Blackfinch Ventures’ commitment to innovative tech companies 

·         New investments include Payaca, Illuma, WatchMyCompetitor and Culture Shift 

Blackfinch Ventures has completed on four new investment deals totalling £3.27million in a move which demonstrates its ongoing commitment to facilitating the growth of innovative technology and tech-enabled companies.  

Business intelligence platform WatchMyCompetitor received a total of £1.0m, and Culture Shift, an online platform that is designed to identify and prevent harassment and bullying in the workplace, received £775k. 

In addition, llluma Technology, a contextual advertising company which uses AI to learn from online browsing behaviour during live campaigns to reach target audiences, has received £1.1m, and job management software company Payaca received £330k. 

This is the second cohort of investments for Blackfinch Ventures in 2021, which completed on 17 investment deals totalling in excess of GBP11 million ahead of the tax-year-end deadline in April. These included several follow-on investments, such as in commercial real estate valuation software firm Edozo. 

Commenting on the latest investment update Dr Reuben Wilcock, ventures director at Blackfinch, said: “Blackfinch Ventures targets high-growth opportunities, as well as supporting start-ups, and early stage and growth stage businesses with technological potential.  

“The focus is on disruptive businesses, offering products that address real world needs, with the capability to make an impact in global markets.  

“This latest round of investments demonstrates our ongoing commitment to investing in businesses that deliver a solid return on investment, and we are delighted to now have the opportunity to work alongside these innovative and ambitious companies as they take advantage of the investment funds to fuel further growth and success.” 

Earlier this year Blackfinch revealed it had raised a total of GBP10.6 million through its EIS Ventures Portfolios in the tax year ending April 2021, which has been invested in innovative start-up and early-stage technology companies across the UK in a variety of industry sectors. 

A further GBP5.8 million was raised through its Spring Venture Capital Trust (VCT) which invests primarily in companies at the start of their growth journey.  

The EIS portfolio now includes businesses such as Candidate.ID, Staffcircle and Kokoon, as well as digital vendor management platform Brooklyn Vendor Assurance, global client engagement platform Clientshare, embedded integration platform Cyclr, real-time market research company OnePulse, and hyper-realistic text-to-speech platform LSTN. 

The latest round of investments is indicative of the wider Blackfinch Group’s commitment to helping to create a more sustainable world through its own focus on environment, social and governance factors. 

Dr Reuben Wilcock added: “The growing Ventures portfolio is reflective not only of Blackfinch’s commitment to investing in innovative technology driven companies that reflect our own environment, social and governance (ESG) values, but also the value that those businesses see in having us as their investment partner and the role that we can play in furthering their growth ambitions.” 

Investment summary: 

New Investments: 

·                     Illuma Technology – Total investment from Blackfinch Ventures GBP 1.1 million; 

·                     Payaca – Total investment from Blackfinch Ventures GBP 330k; 

·                     Culture Shift – Total investment from Blackfinch Ventures GBP 775k; 

·                     WatchMyCompetitor – Total investment from Blackfinch Ventures GBP 1.0m. 

·                     Total value – GBP 3.27million 

• First challenger bank in the UK to focus on the needs of ~4.8 million “mass affluent” clients: professionals, entrepreneurs, property investors, and others looking for a bank that is responsive to their needs
• Monument will operate as a deposit-taking institution with competitive savings products and offer clients property investment lending solutions
• Leading-edge technology combined with the skill and experience of professionals will set a new service standard in reliable onboarding and customer service
• Entering the next phase in building a financial institution which will seek to provide a broad array of innovative financial, wealth building, service, support, and lifestyle enhancing opportunities in phases over the coming months and years

Monument (or the “Bank”) is delighted to announce that the UK regulatory authorities, the Prudential Regulation Authority and Financial Conduct Authority, have lifted deposit restrictions on its licence, so it can now operate as a fully-licensed deposit taking bank, built during the Covid-19 pandemic.

Monument is the first neo-bank to be launched in the UK specifically to meet the unmet demands of mass affluent clients – approximately 4.8 million professionals, entrepreneurs, property investors and others – who are seeking a bank to help them save and grow their wealth (which is estimated at c.£6 trillion). Monument is uniquely focused on the needs of the mass-affluent and will demonstrate through its exceptional service, that it treats their time as more valuable than its own.

The Bank has raised £60 million in capital to date having successfully completed one of the largest Series A funding rounds in fintech-banking earlier this year and including our current fundraising round (which is shortly to close having exceeded £20m). Monument has attracted investment from highly-experienced investors, including respected figures in venture capital, private equity, fintech and real estate as well as a significant South American financial institution and S CUBE Capital, a fund managed by a Singapore based financial institution.

Mintoo Bhandari, CEO of Monument, said: “We are very pleased to share the news that the Regulators have given us the green light to proceed to commercial launch. We are ready and eager to serve clients, who we believe have been lacking a bank that is being developed to serve their needs and service requirements.

“While we never planned to build and launch a bank in the middle of a global pandemic, the timing could not have been more relevant as the demand for, and comfort with, digital finance has accelerated dramatically over the past 18 months.

“We are very excited to take our first steps of addressing the substantial, aspirational, hard-working, asset-rich but time-poor community which holds trillions in wealth in the UK and which lacks the right financial services partner.

“We will be entirely focused on understanding our clients’ needs and providing them with great service, enabled by technology, which we think will set a new standard. Our goal is to create an institution that truly understands this community, helps them save and grow their wealth, but which also recognises that there is more to wealth than money. Today marks an important step for us towards achieving that goal as we launch for clients as a fully-licensed bank”.

SAVINGS AND PROPERTY INVESTMENT LENDING

At launch, the Bank is offering clients buy-to-let and bridging loans to support experienced and busy landlords to manage and grow their portfolios. Clients will be able to borrow up to £3 million for buy-to-let property investments, supported by specialist relationship managers with deep experience of the market and understanding of client needs.

Monument will also offer easy access and various fixed term savings products very shortly, providing competitive rates which offer fair and flexible savings opportunities for individuals looking to save upwards of £25,000. Monument’s approach to client loyalty is fundamentally different as well: if an existing saver deposits money for a subsequent fixed term, they will get a better rate than a new customer. And an existing borrower who renews their loan, or takes an additional loan, will also be offered a favourable rate.

In addition, the Bank is developing a further suite of ancillary services specifically for the mass-affluent which will be launched in due course, which we refer to as ‘Member Services’.

Potential clients can now register their interest and join the waiting list on the Monument website - https://www.monument.co/register/  - to ensure they are among the first to experience Monument and hear about the Bank’s future products and services.

Bhandari continued: “We have assembled a team that really understands the clients we will be serving. Nowhere is this more evident than with our Lending specialists, with their many years of dealing with clients’ borrowing needs, who will truly bring a better experience to experienced landlords”.

TECHNOLOGY AND CLIENT SERVICE

Monument’s proposition marries exceptional client service with modern technology and as part of this it has developed an app which sits at the heart of its service. The app, shortly to be available on the App and Play store, will allow clients to open savings accounts in minutes, making the process one of the quickest in the market. Monument is continuing to develop its cloud-based, micro-services SaaS architecture, to set a new standard of experience for its clients.

Bhandari explained: “We are proud to bring to market an App that provides intuitive and highly efficient client onboarding and an immersive service experience. Through the App our clients will be able to interact with us by live chat, phone, video and email, and to switch between those channels at the touch of a finger.

“We believe we are the first bank in the UK, and possibly one of the first in the world, to offer simultaneous “video and co-browsing” capabilities, enabling our relationship team to interact with clients almost as if they were "in the same room", saving time by addressing questions “live” so their applications can be completed and processed as quickly as possible.

“We are focused on using technology innovatively to deliver great experiences to our mass affluent clients, and on establishing the standard that other financial institutions will aspire to match”.

Monument is designed to make the most of modern cloud and microservices technology – which enables a plug and play approach to new tech innovations as they are developed and as client requirements evolve – to deliver unparalleled speed, efficiency, convenience, and transparency.

The Bank – whose executives and board have held senior roles in HSBC, Barclays, McKinsey & Co, UBS, Goldman Sachs, Apollo Global Management, PWC, Coutts and the UK regulators, amongst others – received its “authorisation with restriction” license in October 2020. The removal of all restrictions today marks the successful completion of the last stage of the licensing journey – mobilisation – whereby Monument finished building the infrastructure and processes, expanded its team, and demonstrated to the regulators that it is ready for launch.

Digitalisation partnership enables Apex to more efficiently and securely deliver client services in full regulatory compliance, starting with its subsidiary entity, the Luxembourg-based European Depositary Bank (“EDB”)

Governance.com, the leading low-code process management platform for regulated companies, today announces the signing of a 5-year deal with global financial services provider Apex Group Ltd. (“Apex”), to implement a digital process management platform and systems. Starting with Apex Group’s Luxembourg-based entity, European Depositary Bank (“EDB”), Governance.com will deliver the new digitalisation partnership that will enable Apex to more efficiently and securely deliver services to its clients, underpinned by robust regulatory compliance.

By securely digitalising Apex’s process management systems step by step, the new process management platform will support EDB's depositary duties such as asset registration, ownership verification and regulatory oversight. The new platform solution will be used by EDB’s teams across several locations starting with Luxembourg and Ireland.

Governance.com’s FinTech solutions are based on a low-code and open architecture approach that supports Apex’s “digital first” agenda and enable it to be an early adopter of FinTech in the space of regulatory process management.  

Through EDB, Apex offers independent banking, depositary and custody services to institutional investors and asset managers for UCITS and alternative investment structures, spanning the full spectrum of asset classes. The new deal will be executed with the support of global consultancy Alpha FMC to ensure expedient and effective implementation.

Peter Hughes, CEO and Founder, Apex Group comments: “This new digitalisation partnership with Governance.com is indicative of our commitment to providing our clients with the widest range of services in the market, underpinned by the highest levels of regulatory compliance. By automating process management for regulatory checks and related operations, we are continually improving our efficiencies and service offerings to our clients, as we grow and expand our range of solutions.”

Bert Boerman, Chief Executive Officer and Co-Founder of Governance.com, says: “We are excited to work with this global leader in financial services. Working together with EDB and Alpha FMC experts to quickly deliver our low-code process management platform and solutions means Apex entity, EDB, can perform its regulated duties while serving clients in a more efficient way. We look forward to supporting the Apex Group to digitalise operations and services, one process at a time so that these are more cost-effective, efficient and secure.”

Holger Barth, Managing Director, European Depositary Bank, adds: “EDB is delighted to be collaborating with Governance.com to implement a market leading solution based on fundamental business experience and modern technology. This partnership will support our fast-growing business and enable us to serve our global client base more efficiently across borders and multiple regulatory jurisdictions while exercising regulatory rigour.”

As the entire world watches heads of states’ debates on effective actions against climate change at the UN Climate Change Conference (COP26), many investors want to take the initiative into their own hands. BT Funds Management (BTNZ), which is Westpac NZ’s KiwiSaver and managed investment arm, has now committed NZD200m to a new Paris-aligned climate investing strategy managed by Legal & General Investment Management (L&G). The new product, which is in line with a 1.5°C scenario, tracks the Solactive L&G DM (ex AU-NZ) Paris-aligned ESG SDG Index. The index was developed in a joint effort between Solactive, BTNZ, and L&G.

The Paris agreement is recognized as one of the world’s most significant conventions. Its main goal is to keep the increase of global average temperature below a critical threshold of 2°C. While this limit already poses a challenge to the global community, BTNZ’s new product goes even further below the critical point of 2°C and accounts for a reduction of greenhouse gas emissions that are in line with a 1.5°C pathway. The underlying index, the Solactive L&G DM (ex AU-NZ) Paris-aligned ESG SDG Index, is an equity index including listed companies from developed markets (excluding Australia and New Zealand). It is designed to incorporate ESG as well as the UN’s Sustainable Development Goals (SDGs) and to meet the strict EU Paris-aligned Benchmark requirements. To achieve its desired 1.5°C scenario, the index, from the start, reduces its average carbon emissions intensity against its benchmark by 50% and features additional year-on-year self-decarbonization of 7%.

In addition to its climate and highly rated ESG performing companies tilt, the index incorporates a broad ESG screening based on normative and sectorial criteria. More precisely, companies that do not comply with the UN Global Compact filter including labor, human and environmental rights, as well as companies deriving, among others, their respective revenue from coal, oil, and natural gases, are excluded from the index. Furthermore, companies with a low SDG-score, as evaluated by L&G and including environmental, social, corporate governance, and transparency criteria, are excluded from the index universe.

“Tackling climate change is, undoubtedly, one of the most challenging issues of our time, and with BTNZ’s new climate investing strategy, investors receive a powerful tool to make the world a greener place. In addition to its climate focus, the often less regarded but equally important concerns of governance and social matters are also addressed in the strategy, rendering the product a holistic approach to ESG, and not only focusing on climate change. Working with BTNZ and L&G on this index was very productive, and we cannot wait to deliver more ESG strategies with them,” comments Timo Pfeiffer, Chief Markets Officer at Solactive.

“We believe investing sustainably is a powerful way to achieve results both on and off the balance sheet. We believe that companies who follow that approach will contribute positively to the world in which we all live, and will also perform well financially over the longer term,” comments Philip Houghton-Brown, Head of Investment Solutions, BT Funds Management NZ.