Trumid’s Post

Abaxx Provides Q1 Corporate Update We're excited to share our latest activity and developments with shareholders and our larger community inclusive of: 🧮 Received three regulatory licenses from the Monetary Authority of Singapore (“MAS”) in December 2023 to operate Abaxx Commodity Futures Exchange and Clearinghouse as a recognised market operator, an approved clearing house and an approved holding company. Engaged with prospective members on onboarding processes and sharing of #risk frameworks. 🤝🏼 Approved applications for two initial clearing members and announced Abaxx Singapore’s membership approval into FIA, Inc. Began onboarding global inter-dealer broker networks — key in building market liquidity for the debut of Abaxx product verticals. Conducted extensive series of demos intended to familiarize brokers with the Abaxx Trade Registration Platform for block trade entry. Finalizing additional membership approvals to build a key group of clearing members at launch. 🚢 Continued to enhance readiness of trading participants by ensuring adequacy of product knowledge of our launch suite of #LNG, #Carbon and #Nickel Sulphate futures contracts. #Lithium futures progressed to Stage 2  (Scoping/Design/Drafting). Precious Metals solutions in Stage 3 (Industry Review/Risk/Regulatory). 🏦 Completed Abaxx Exchange and Abaxx Clearing ISV certification process. Integration, training and onboarding of all user classes (trading firm, broker firm and clearing firm) into production and payment network underway and on time for targeted Q1 2024 launch. Abaxx Singapore completed the onboarding of a multinational bank as Abaxx Clearing’s second settlement bank and Abaxx Clearing is now active on the Swift network. 📈 Closed equity private placement as previously announced on January 10, 2024 with Abaxx’s first group of strategic investors including Cboe Global Markets, TLW, and Traxys Group. 💻 Continued to advance design and development work on prototypes and advanced foundational productization. Held our first private demo day, reviewing our full slate of product applications and prototypes. Advanced work on prototyping processes and tooling for a novel, privacy-preserving deployment of Large Language Model (#LLM) applications within the Abaxx Console Suite using ID++. Read Full Release 🔗 https://lnkd.in/e6cMJ7nV

The new edition of clearing guidelines released by the Shanghai Clearing House (SHCH), effective 22 December 2023, provides for the failure to pay or deliver by the SHCH as a new SHCH event of default which will give a right to clearing members to close-out relevant transactions and apply netting upon the occurrence of such an event of default. This should allow clearing members and their clearing clients to apply close-out netting for transactions at SHCH and thereby enjoy favourable regulatory capital treatment. Read our latest bulletin for the specific amendments, steps, timeline and more on this regulatory development!

The online Ponzi scheme known as MTFE, masquerading as an international financial trading platform, has collapsed, resulting in significant financial losses for tens of thousands of individuals across the country. What initially appeared as an opportunity to trade in global financial markets turned out to be a fraudulent scheme, leaving many without their hard-earned money. Link in the comments section ⬇️ #businessra #mtfebangladesh #scam

A very timely development which should allow for favourable regulatory capital treatmentfor for clearing members of Shanghai Clearing House The new edition of clearing guidelines released by the Shanghai Clearing House (SHCH), effective 22 December 2023, provides for the failure to pay or deliver by the SHCH as a new SHCH event of default which will give a right to clearing members to close-out relevant transactions and apply netting upon the occurrence of such an event of default. This should allow clearing members and their clearing clients to apply close-out netting for transactions at SHCH and thereby enjoy favourable regulatory capital treatment. Read our latest bulletin for the specific amendments, steps, timeline and more on this regulatory development!

FIA and DMIST, the Derivatives Market Institute for Standards, jointly announce today the publication of the Average Pricing Standard. This second standard published by DMIST supports the final standard for Improving Timeliness of Trade Give-ups and Allocations (30/30/30) released in June 2023. The lack of standardized average price functionality across CCPs was cited as one of the issues that prevents processing trades on Trade Date. This Average Pricing Standard calls for Central Counterparties (CCPs) globally to adopt certain minimum standard average pricing functionality. Standardized functionality will help drive consistency and improve the current allocation and timing issues associated with average price order workflows. Read the full announcement here ➡️ https://lnkd.in/eAEaBNvu #### DMIST encourages widespread adoption of standards in the exchange-traded and cleared derivatives industry that will help make markets more efficient, resilient, and competitive. DMIST membership includes executing and clearing brokers, exchanges and clearinghouses, end-users, and technology vendors. In its first full year of operation, membership doubled, representing 34 firms and more than 360 subject matter experts contributing to the development and adoption of standards.  Learn more here ➡️https://lnkd.in/eMHZRyYr #DMIST #IndustryStandard #AveragePricing #TradeProcessing #CCPs

📢 Introducing DDPI at FYERS! Experience seamless and secure trading with our new DDPI feature. Forget OTPs and T-PINs and enjoy smoother transactions. DDPI allows you to authorize transactions easily, making your trading faster and more efficient. Check out our latest blog for more details: https://bit.ly/_DDPI #TradingSimplified #FYERS #DDPI

📢 EACH Responds to CPMI-IOSCO Report on Streamlining Variation Margin EACH has responded to the CPMI-IOSCO report "Streamlining Variation Margin in Centrally Cleared Markets – Examples of Effective Practices." We appreciate CPMI-IOSCO for giving us the opportunity to engage on this topic, and also for the report providing a collection of examples rather than additional standards, given that CCPs are already robustly regulated entities. Our main ideas are: - It is important for CCPs to continue judging the appropriate frequency, scheduling and timing of calls, such as when to use scheduled and unscheduled margin calls. - The offsetting of collateral and providing sufficient time to market participants may also be effective means of aiding liquidity preparedness. - We question that an ITD VM pass-through is an effective practice, as whilst it would appear to support market liquidity, there are several liquidity, operational and legal implications that should be considered 🔗 Read the full response below or here: https://lnkd.in/ekWWuPdz #Finance #ClearingHouses #CCPs #VariationMargin #FinancialStability #MarketInfrastructure #EACH

Margin period of Risk or MPOR is an often overlooked topic when looking for capital saves. However, it is ubiquitous in all capital calculations and tghat makes it one of the "easy wins" for capital optimization. MPOR increases due to a variety of factors such as disputes, illiquid instruments and trade count and they can be reduced if these issues are addressed. There has been a lot of work done by clearing houses such as LCH who have launched Swapagent to tackle MPOR. As the capital constraints increase from Basel endgame, there will increasingly be more work on this topic. Sharing a few key insights from my side"

Re: Public Consultation on Licensing Regime for OTC Trading of Virtual Assets On 8 February 2024, against the backdrop of recent developments such as the JPEX and Hounax incidents in which over-the-counter (“OTC”) trading of virtual assets (“VAs”) have been involved, the Financial Services and the Treasury Bureau (the “FSTB”) published a public consultation (the “Consultation Paper”), which sets out the FSTB’s proposals in relation to the regulation of VA OTC trading in Hong Kong. The proposed licensing regime for VA OTC operators (the “Proposed VA OTC Regime”) will apply to any person providing by way of business the service of spot trade of VA for money, regardless of whether such service is provided through a physical outlet (including an ATM) or a digital platform. The FSTB is currently inviting written comments from the public on the consultation questions contained in the Consultation Paper on or before 12 April 2024. In this Client Alert, we summarise and discuss the Proposed VA OTC Regime and share our views and observations. We also intend to make a submission to the FSTB in response to the Consultation Paper. If you have any views or questions on the issues raised in this Client Alert or the Consultation Paper, please do not hesitate to get in touch with our team members at ly@lylawoffice.com or at (+852) 2115-9525. #LYLawOffice #OTC #VAs #consultationpaper #ClientAlert