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FCMs voice concern over economics and timeline of repo and treasury clearing

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In association with ION, Acuiti published a whitepaper on the impact of the US Treasury market’s upcoming clearing mandate.

LONDON, Nov. 18, 2024 /PRNewswire/ — Sell-side firms that will provide clearing services to clients under the SEC’s treasury and repo clearing mandates have raised concerns over the economics of participation in the market and the timeline for implementation, a report from Acuiti has found.

The Securities and Exchange Commission (SEC) has introduced mandates for centralized clearing of treasury and repo transactions to enhance transparency, stability, and resilience in the $27 trillion Treasury market. The move represents one of the most significant shifts in US capital markets for decades.

US Treasury Markets: Plotting the Sell-Side’s Path to Mandatory Clearing, released today and produced in partnership with ION, surveyed or interviewed senior executives at the major Future Commission Merchants (FCMs) and banks that will be active in the market.

The report found that FCMs have concerns over the timeline and the economics of providing clearing services in treasuries and repos. In addition, many question the capacity of the market to absorb the demand for clearing.

With just over 12 months until the treasury clearing deadline and 18 until repo clearing, the central clearinghouses that will process the transactions under the new mandated framework are still developing their access models.

In addition, many FCMs are still uncertain about their approach to the market and the models they will offer clients from day 1.

Most importantly, around a third of respondents said that they were “critically concerned” over the overall level of returns from offering repo clearing in what is likely to be a capital-intensive, high-volume, low-margin business.

The key findings of the report are:

There is significant industry uncertainty about the viability of current mandate deadlines, with 48% of survey respondents saying the repo deadline was unlikely or impossible and 31% saying the same for the cash deadline.76% of survey respondents favor a phased implementation of the mandate.There remains widespread doubt that current sell-side models and infrastructure can scale to meet incoming demand.There is significant concern over the economics of providing treasury and repo clearing services for the FCMs that offer it to clients.FCMs are planning investments in technology to increase automation and reduce overheads in what is likely to be a high-volume, low-margin business.Consideration of building the required technology is still at an early stage, but almost two-thirds of the market will work with third-party vendors for some or all of the required build.

“With just over a year until introduction of the mandate begins, there remain significant uncertainties in how FCMs and repo desks will approach treasury and repo clearing,” says Ross Lancaster, Head of Research at Acuiti.

“Clarifications and potential additional regulatory activity around accounting treatment, capital requirements, and cross-asset margin offsets will ultimately indicate whether a dominant model will emerge, or the current sponsored model will co-exist with an agency clearing model.”

Francesco Margini, Chief Product Officer for Cleared Derivates, ION Markets, says “Despite the current uncertainties, what is clear today is that automation and scalability of the clearing process will be essential for firms to support the high-volume US Treasury cash and repo business. Big decisions lie ahead of sellside firms on the technology strategy in support of the clearing mandate. The expectation is that market standardization brought by a centrally cleared business will enable software vendors like ION to play an important role in delivering solutions that meet the needs of our customers.”

Download the full report here.

About Acuiti
Acuiti is a management intelligence platform designed to provide Senior Industry Professionals in the Derivatives Industry with high-value insight into industry-wide performance and business operations. Acuiti provides a platform through which our exclusive network of Senior Industry Executives can share and source information on day-to-day operational challenges, providing them and their management teams with increased transparency and in-depth analysis to make more informed decisions and benchmark company performance. Financial Institutions benefiting from our services include Banks, Non-bank FCMs, Brokers, Proprietary Trading Firms, Hedge Funds, and Asset Managers.

About ION

ION provides mission-critical trading and workflow automation software, high-value analytics and insights, and strategic consulting to financial institutions, central banks, governments, and corporates. Our solutions and services simplify complex processes, boost efficiency, and enable better decision-making. We build long-term partnerships with our clients, helping transform their business for sustained success through continuous innovation. For more information, visit https://iongroup.com/.

About ION Markets

ION Markets provides transformative technology and solutions to financial institutions dealing asset management, cleared derivatives, equities, fixed income, foreign exchange, and secured funding. Our award-winning end-to-end solutions simplify clients’ operations by automating the full trade lifecycle, providing tools to manage risk, and maximizing access to liquidity, while giving real-time access to critical information required for timely operational decisions and execution on a global scale. For more information, visit https://iongroup.com/markets/.  

View original content to download multimedia:https://www.prnewswire.com/news-releases/fcms-voice-concern-over-economics-and-timeline-of-repo-and-treasury-clearing-302307340.html

SOURCE ION

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Guidehouse Adds Two Leaders to Growing Health Segment

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Mark Korth and Angela Hunt, RN, join as partners to help healthcare organizations advance clinical and operational performance

MCLEAN, Va., Nov. 18, 2024 /PRNewswire/ — Guidehouse, a global consultancy providing advisory, digital, and managed services to the commercial and public sectors, has added two partners, Mark Korth and Angela Hunt, RN, to the firm’s Health segment.

A former health system C-suite executive, Korth will support providers with optimizing large-scale mergers and integrations, transformations, and operating model implementation. Hunt will assist providers with improving quality, clinical documentation and coding, payer contracting, and operating performance.

“We are thrilled to welcome Angela and Mark to Guidehouse,” said Tim Kinney, Guidehouse partner and Payer/Provider practice leader. “Their deep expertise and proven leadership in the healthcare industry will enhance our ability to provide innovative, patient-centered solutions that address our clients’ most pressing challenges. Angela’s and Mark’s unique perspectives will be invaluable as we continue to help healthcare leaders meaningfully serve their communities.”

Korth joins Guidehouse following a more than 25-year career leading large health systems, hospitals, and medical groups. A strategic executive with a proven ability to guide mergers, partnerships, and systemwide transformations, he has consistently advanced initiatives that improved population health and delivered sustainable margins. Korth’s experience spans large for-profit and nonprofit hospitals and health systems, having served as CEO, regional president, system chief transformation officer, and chief operating officer. 

With close to 30 years of strategic experience, Hunt brings a proven track record of leading teams through complex projects that have helped health systems and physician enterprises improve clinical and operational outcomes. Her proficiency spans data analytics, change management, clinical data management, strategic communication, and detailed outcomes improvement. This includes working with IT departments to develop analytics to better focus clinical integrity teams through benchmark opportunities in high volume MS-DRGs.

With 19 Best in KLAS® awards, Guidehouse’s Health segment serves providers, government agencies, life sciences companies, payers, and other healthcare organizations. Backed by proven success in modernizing and innovating healthcare services, finances, and operations, the firm delivers a comprehensive approach to solving interrelated industry challenges.

About Guidehouse
Guidehouse is a global consultancy providing advisory, digital, and managed services to the commercial and public sectors. Guidehouse is purpose-built to serve the national security, financial services, healthcare, energy, and infrastructure industries. Disrupting legacy consulting delivery models with its agility, capabilities, and scale, the firm delivers technology-enabled and focused solutions that position clients for innovation, resilience, and growth. With high-quality standards and a relentless pursuit of client success, Guidehouse’s more than 17,000 employees collaborate with leaders to outwit complexity and achieve transformational changes that meaningfully shape the future. guidehouse.com

Media Contact:
Guidehouse
Cecile Fradkin cfradkin@scprgroup.com  

View original content to download multimedia:https://www.prnewswire.com/news-releases/guidehouse-adds-two-leaders-to-growing-health-segment-302307957.html

SOURCE Guidehouse

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Northern Virginia: The Hidden Giant of U.S. Tech? NVTC Study Reveals World Class Talent, Investments in AI, Cybersecurity, and Cloud

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Survey of 82 Northern Virginia Companies Underscores Region’s Tech Opportunity and How it Is Poised for Continued Growth

MCLEAN, Va, Nov. 18, 2024 /PRNewswire-PRWeb/ — The Northern Virginia Technology Council (NVTC) today announced the findings of a groundbreaking study of top technology executives in Northern Virginia. The findings highlight the region’s position as one of the nation’s leading technology hubs, while exploring the opportunities and challenges that will shape the region’s future growth and innovation.

The study is based on a survey of 82 top technology organizations in the Northern Virginia (NOVA) region, as well as in-depth interviews with 30+ senior executives, and evaluates the region across five key dimensions: Talent, Innovation, Ecosystem, Business Attractiveness, and Proximity to the U.S. Federal Government.

Northern Virginia is finally getting the recognition it deserves as a technology powerhouse,” said NVTC President and CEO, Jennifer Taylor. “We have the second highest tech employment of any U.S. metro area with 11.2% of the workforce, we are the largest data center market in the world with over two-times total inventory of the next largest market, and we have 2.5 times more computer science graduates than peer-tech hubs like New York, San Francisco, and Seattle. The growth opportunity in this region is clear.”

What the study found:

Talent Access, Skills Gaps: 73% of employers consider access to talent a key advantage, with 55% ranking it as the top factor defining a leading tech hub. Tech leaders noted challenging skills gaps in AI/ML (62%), Cybersecurity (43%), and Software Development (39%). The Northern Virgina region boasts the nation’s second highest net tech employment by metro area – only behind New York City — with 376K tech industry and tech occupation workers, providing a rich and diverse talent pool. In net tech employment, the region is slightly ahead of tech hubs including San Francisco, San Jose, Los Angeles, and Dallas.

Innovation Focus: GenAI, cybersecurity, and cloud computing are the top three emerging technologies that organizations are investing in for NOVA-specific operations over the next 2-3 years. 89% of NOVA tech leaders are investing in Generative AI, 83% in Cybersecurity and Digital Identity, and 61% in Cloud and Edge Computing. Early-stage tech like Space and Quantum are in the early stages of tech adoption.

Ecosystem: NOVA excels in developing growth-stage companies, ranking #1 in the number of firms that scaled up (>50 employees within 10 years) and #1 in the density of high-growth companies (>$2M revenue per 1K firms), compared to peers. Northern Virginia excels at scaling growth-stage companies, and recent surges in VC funding, start-ups, and five-year survival rates highlight its potential. However, one in three tech leaders still cite investment capital and entrepreneurial ecosystem as barriers. Leaders say more support is needed, including tech accelerators and incubators.

Business Attraction: Tech organizations are committed to Northern Virginia – 77% of surveyed organizations plan to stay in NOVA, with 29% considering expanding within the region in the next three years. NOVA boasts the nation’s largest data center market (~5x capacity of Silicon Valley). Still, executives say the high cost of living and transportation issues make it harder to attract and retain key talent.

Federal Government: Tech firms value Northern Virginia’s unique access to the federal government, prompting many major technology companies to have large offices in the region to be close to the federal government to bring IT solutions that address their mission challenges. In fact, companies in Northern Virginia received 31% of federal government’s IT contracting spend in 2023, totaling $24B. However, start-ups and niche firms face high barriers to entry due to contract procurement hurdles.

“This research confirms what many of us have long known – Northern Virginia is a powerhouse in the tech industry,” said Bruce Caswell, chair of the NVTC Board and CEO, Maximus. “Our unique combination of world-class talent, proximity to the federal government, and our focus on cutting-edge technologies like AI and cybersecurity positions us for continued growth and innovation. As we look to the future, NVTC is committed to addressing the challenges identified in this study and further strengthening our region’s tech ecosystem.”

The study, in line with NVTC’s mission, is intended to foster collaboration across the region to address challenges and drive future innovation. As Jennifer Taylor commented, “We see this as the start of an important conversation about the region and the path forward to address the challenges. We are enthusiastic about working with stakeholders across Northern Virginia – including both private sector leaders, university leaders and our public officials – to put these insights into strategic action.

Read the Study & Watch the Webinar

The full study, which provides a comprehensive analysis of Northern Virginia’s technology ecosystem, is available for download at: https://www.nvtc.org/communities/2024-northern-virginia-tech-innovation-study/

An NVTC webinar on Tuesday, November 19, 2024 will review the study findings with a panel of local technology leaders from Amazon Web Services, GDIT, Maximus and ScienceLogic. Register to join the live webinar at: https://www.nvtc.org/event/hidden-in-plain-sight-northern-virginias-rise-as-a-us-tech-giant/

Contact:
Tarin Horan
Northern Virginia Technology Council (NVTC)
thoran@nvtc.org
703.946.0319

About the Northern Virginia Technology Council:
NVTC is where the region’s tech community comes together. From bold startups to Fortune 100 giants, we represent over 470 members across sectors shaping the future of technology. NVTC drives innovation, fosters connections, and advocates for policies that fuel growth and position Northern Virginia as a global leader in technology. Through its initiatives in cybersecurity, AI, cloud computing, and beyond, NVTC empowers the tech community to shape the future. Whether it’s through policy advocacy, peer networks, or industry promotion, NVTC drives innovation that’s transforming the world. Learn more at http://www.nvtc.org

Media Contact

Tarin Horan, NVTC, 7039460319, thoran@nvtc.org, www.nvtc.org

View original content to download multimedia:https://www.prweb.com/releases/northern-virginia-the-hidden-giant-of-us-tech-nvtc-study-reveals-world-class-talent-investments-in-ai-cybersecurity-and-cloud-302308165.html

SOURCE NVTC; NVTC

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Record-Breaking Pledge to USD Will Transform University’s STEM Programs

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SAN DIEGO, Nov. 18, 2024 /PRNewswire/ — The University of San Diego (USD) received a record-breaking pledge from Darlene Marcos Shiley, philanthropist and Chair Emerita of USD’s Board of Trustees, totaling $75 million. It’s the largest gift in university history and among the largest ever given to any Catholic university in the country. The gift will touch several different areas of USD’s campus, with a primary emphasis on creating what will be known as the ‘Shiley STEM Initiative‘, expanding innovative STEM (science, technology, engineering and math) programs, and funding new, state-of-the-art STEM facilities on USD’s campus.

Darlene Shiley is one of the most generous and kind individuals that anyone could ever meet. She’s always looking out for humanity and the best interests of our society, and she loves our students,” said USD President James T. Harris III, DEd. “We are a better institution because of Darlene Shiley and her late husband, Donald, and what they’ve decided to do for this institution and for this world.”

The Shiley-Marcos School of Engineering and College of Arts and Sciences embody USD’s mission to shape well-rounded leaders with a liberal arts education. Both schools boast impressive alumni in STEM, including two NASA astronauts. This gift will build upon USD’s commitment to STEM, meet the needs of growing biotechnology and scientific sectors in San Diego, and help train future STEM leaders and researchers.

“STEM fields touch all different aspects of our lives, and I believe they can be a force for good in our society,” Shiley said. “I was drawn to USD because of its emphasis on a values-based education. This gift fulfills my husband’s and my goals and makes me feel like I’ve made an impact. Now I hope it helps future students take what they learn at USD and make a positive impact of their own.”

Shiley’s gift comes at a key time for USD, where the number of students majoring in STEM disciplines has grown by 50 percent in the past decade. This gift will help expand USD’s STEM offerings by establishing a new integrated STEM space that connects engineering and the natural sciences, as well as expanded opportunities for undergraduate students to participate in research.

The pledge will also be directed to scholarships and programs benefiting veterans and military-connected students, as well as additional funding for USD’s top-ranked MFA in acting, The Old Globe and USD Shiley Graduate Theatre Program.

View original content to download multimedia:https://www.prnewswire.com/news-releases/record-breaking-pledge-to-usd-will-transform-universitys-stem-programs-302307922.html

SOURCE University of San Diego

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