September 29, 2008 Issue Abstract

Financial Markets Turmoil: Credit Crisis Tests Limits of Investing Billions In Derivatives Without Operations Infrastructure. With the impending auctions of outstanding deliverable obligations for credit derivatives from Freddie Mac, Fannie Mae and Lehman Brothers, numerous challenges in unwinding portfolio positions, managing risk and valuing portfolios are already emerging for institutional investors.

Industry Alert: Short-Selling Bans Dampen 130/30 Strategies Worldwide. Bans on short-selling by the SEC and the FSA are likely to make institutional investors more cautious about investing in 130/30 funds, which are based on a ratio of an investment being sold short for proceeds that in turn are used to buy long.

Business Strategies: Omgeo Broadens Service Offerings With Allustra, GEM. Post-trade-matching services provider Omgeo LLC is extending its operations into collateral with its acquisition of Allustra Ltd., a London-based provider of collateral management solutions, as well as an acquisition of a derivatives portfolio reconciliation platform designed by Global Electronic Markets (GEM), which it will join with Allustra’s solution.

Spotlight: Diana Chan, Chief Executive Officer, EuroCCP. European Central Counterparty Ltd., which offers post-trade clearing services for Turquoise and SmartPool, aims to lower costs for market participants and will also serve other multi-lateral trading facilities and eventually stock exchanges.

Fund Accounting Systems: Linedata Solutions Find Favor With Fund Services Clients. Users of the various fund accounting, portfolio accounting and transfer agency systems offered by IT solutions provider Linedata Services often find that after using one Linedata offering they are convinced to add other solutions from the company.

European Market Monitor: Down and Out Sans MTF Price Discovery in London. Although the impact of any future recurrence of the London Stock Exchange (LSE) service outage of September 8 could potentially be tempered by the increasing presence of alternative trading facilities in Europe, the hurdle to such redundancy could be the LSE’s continued dominance in setting prices for its listed securities.

 

   
     

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