Shining history forming a bright future
As the new year of 2016 approaches, I would like to take the opportunity to recap the exciting past twelve months. From Cinnober’s perspective it can be summarized in three words — inspiring, developing and challenging. Let me take the reasoning a bit further.
Our impressive customers have notched up brilliant successes: significant launches, volume records and prestigious awards. And as their dedicated supplier of modern and efficient technology, it has been good proof that we’ve also succeeded in our mission.
It is gratifying that the global financial industry’s willingness to invest in technology has taken a positive turn during 2015. Given that most of the new regulations have been defined, we expect this to continue during 2016.
Breaking new ground
The beginning of 2015 turned out in an excellent way for us, as one of the world’s largest marketplaces, the Australian Securities Exchange (ASX), chose Cinnober as its new supplier on the trading side. This new collaboration has contributed to consolidate our global position in this segment and also in the rapidly growing Asian-Pacific region.
While achieving this major milestone for trading systems, we’ve also proceeded to solidify our position as the dominant provider of real-time clearing — a growth area that is increasingly receiving attention. Our major customer projects in the clearing segment, including the Brazilian BM&FBOVESPA, JSE of South Africa, DGCX in Dubai and the British LME Clear, have also progressed as planned over the year.
In the area of surveillance technology we secured another deal. One of the world’s most renowned exchanges, the New York Stock Exchange (NYSE), appointed Cinnober to supply new surveillance technology to their five wholly owned marketplaces.
Our customers have also forged ahead by launching innovative services powered by Cinnober’s TRADExpress technology. This includes Euronext, which this fall announced the launch of its new flexible post-trade service AtomX. This solution will complement the existing offering and addresses regulatory changes calling for increased transparency and reduced systematic risk — thus making exchanges even more attractive to the derivatives business.
One-stop shop for MiFID II trade reporting
Our strategic investment in broadening our target group to include banks and brokers continues, focusing on trade reporting and client clearing operations. In September we announced a new collaboration between Boat Services and the London Stock Exchange Group (LSEG). Together we will deliver a MiFID II compliant multi-asset trade reporting service, facilitating efficient and straightforward trade reporting in an increasingly complex regulatory landscape.
With its reporting service, Boat will be well positioned ahead of the new regulations, when MiFID II will force banks to report OTC transactions for asset classes other than equities.
Another prioritized area includes further adapting our pioneering technology for risk management and real-time clearing to international banks’ specific needs in “client clearing”. Cinnober was selected, in fierce competition, to receive funding from the European Commission through the Horizon 2020 program. The European Commission has announced that Cinnober has, with its disruptive technology, been chosen to receive funds to develop a real-time, multi-asset client clearing system for European and international banks and brokers. The system will provide an immediate and complete view of risk exposure across markets.
Quality standard initiative by Cinnober
For years we have been worried about the low quality in financial technology. We are reading about outages on a weekly basis. We are therefore very proud of the launch of our Financial IT Quality Assessment initiative (FIQA).
The goal of this new standard is to restore confidence in the financial industry and to help stakeholders achieve the best possible operational quality at an optimal cost, and provide tools to minimize and mitigate errors. With a standard in place, quality can be measured, defined and compared, making it possible to make business decisions about which quality level to invest in. This will enable actors to compete on the basis of quality in the long run.
2015 was marked by several outstanding events, as this short cavalcade of memorable moments shows — and I’m proud to state that we and our technology have been part of the success:
At the FOW International Awards recently, the LME Clear took a real grand slam. CEO Trevor Spanner was awarded “Chief Executive of the Year” and the clearinghouse “Best New Technology Product — Risk Management”, for their LMEmercury system.
In addition, the Stock Exchange of Thailand (SET) and its subsidiary Thai Futures Exchange (TFEX) were awarded the “Best Technology Innovation by an Exchange” for their new trading infrastructure. This award followed closely on the earlier FOW award when the bourse was designated Asia’s Best Technology Innovation.
An unforgettable moment was also the award ceremony at the Financial News Trading & Technology awards in London late October, when we received a statue representing the prestigious “Post-Trade Initiative of the Year” for our TRADExpress RealTime Clearing solution.
Last but not least, we recently made the 2015 Fintech 100 list, and received the additional distinction of being named as one of the 50 “emerging stars” — described as “exciting new fintechs with bold, disruptive and potentially game-changing ideas”.
Records were also set during the year, among others by the Dubai Gold & Commodities Exchange (DGCX). Their 10-year jubilee has noted several trading records in recent years, and a new one was achieved in November as trading volumes increased by 41%.
It has indeed been a memorable year, and with this in mind, we're now looking into the future with great confidence and expectation.
On that note, and on behalf of the entire Cinnober team — I would once again like to extend a big thank-you to all our friends for a brilliant year, and I’m sure that together we will make 2016 a boldly successful year!