Daily Archives: June 19, 2018

Industry stakeholders partner on blockchain based margin and collateral solution

AMSTERDAM, the Netherlands, BRUSSELS, Belgium, STOCKHOLM, Sweden and LONDON, June 19, 2018 (GLOBE NEWSWIRE) — ABN AMRO Clearing, EuroCCP, Euroclear and Nasdaq have completed a joint proof of concept to make the use of securities more efficient when used to cover margin calls, including after business hours, using blockchain, or distributed ledger technology (DLT).

This solution addresses significant business challenges and inefficiencies related to the current provision of collateral to Central Counterparties (CCPs) and has demonstrated that a shared, resilient network can be built between collateral givers, collateral takers and intermediaries.

The inefficiencies of collateral processing have been heightened as a result of recent market changes such as extended trading hours by stock exchanges and the requirement to centrally clear derivatives traded bilaterally (OTC) under the European Market Infrastructure Regulation (EMIR). Today, a CCP margin call typically needs to be covered by euro collateral within a short time frame. After the regular hours of central banks and central securities depositories, usually ending at 18:00 CET, options are limited. Several CCPs currently allow for the use of securities to cover intraday (evening) initial margin calls, but this method is rarely used due to inefficient and complex securities delivery processes.

As an increasing number of buy-side market participants centrally clear their derivatives trades, the need to provide an efficient securities collateral solution has become essential. Using the solution developed in the proof of concept, parties were able to handle the margin call, the securities collateral delivery and the return process within minutes. Clearing participants and CCPs were able to optimise their collateral positions through a collateral dashboard.

The underlying collateral transfers were processed by Euroclear’s Central Securities Depository, ensuring settlement finality and regulatory compliance.

Nasdaq developed the proof of concept for the DLT nodes while ABN AMRO Clearing, EuroCCP and Nasdaq Clearing developed a specific front-end and managed integration into their own environments.

Coen van Walbeek, Global Head of Treasury and SBL at ABN AMRO Clearing said: “With a faster and more globalised market, it is essential to make the processing of collateral more efficient. Expanding the possibilities to use securities as collateral will make clearing through CCPs more attractive and cheaper for buy-side market participants. This is a breakthrough for the CCP model.”

Diana Chan, CEO at EuroCCP said: “We are excited to be partnering on a proof of concept  that is extremely useful for transactions that are not already well-served by market infrastructures. With a solution like this in place we will be able to efficiently provide counterparty risk protection of equity trades after hours while reducing operational complexities. Today we are limited by European banking hours or arrangements in other time zones.”

Walter Verbeke, Global Head of Business Model and Innovation at Euroclear added: “As a major collateral house, holding € 28.5 trillion worth of assets, we are pleased to participate in this initiative. It demonstrates that a smart combination of NewTech and the resilience of the Central Securities Depository can work effectively and in full compliance with regulatory requirements.”

“As both a leading market technology provider and a CCP operator, Nasdaq is uniquely positioned to bring efficiencies to collateral management. We believe that blockchain technology brings with it a huge potential to transform markets everywhere, and this project is an excellent showcase of this,” said Julia Haglind, CEO of Nasdaq Clearing.

About ABN AMRO Clearing

ABN AMRO Clearing is one of the world’s leading providers of clearing and financing services for listed derivatives and cash securities, OTC products, warrants, commodities and FX. With 11 offices globally employing more than 800 staff, ABN AMRO Clearing services clients on 160+ exchanges, MTFs and FX liquidity centres and consistently ranks as a top 3 clearer in most time zones.   We consistently post over 20% market share of transactions cleared on most relevant derivatives exchanges globally. ABN AMRO Clearing offers an integrated approach to global transaction processing, financial logistics and risk management and processes over 16 million trades per day.

ABN AMRO Clearing received the FOW Award as the ‘Proprietary Traders’ Clearing Firm of the Year’ (Dec 2013, 2014, 2015, 2016,2017); the CTA Intelligence Award for FCM – Best Client Service (US, Jan 2015 and 2016; Europe, Nov 2016), FCM – Innovation (US, Jan 2017;  Europe, Nov 2017) and Best FCM – Overall (Europe, Nov 2015).  We also received the HFM-Week Service Award for Best Prime Broker – Client Service (Europe, Apr 2016). For more information: www.abnamroclearing.com

About EuroCCP

EuroCCP clears equities traded on stock exchanges, multilateral trading facilities and other trade sources. After a trade has been executed, EuroCCP centrally manages counterparty risk for trading firms and reduces their post-trade costs through netting. EuroCCP is the most connected CCP in Europe, with access to 82% of equity trades executed on 26 trading platforms. EuroCCP clears equities, ETFs and depositary receipts listed in 19 national markets including the United States.

EuroCCP is headquartered in Amsterdam, equally owned by the stock exchanges Cboe Europe, Euronext and Nasdaq, by ABN AMRO Clearing Bank and by The Depository Trust & Clearing Corporation (DTCC).

About Euroclear

Euroclear group is the financial industry’s trusted provider of post trade services. At the core, the group provides settlement, safe-keeping and servicing of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.

The Euroclear group includes Euroclear Bank – which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s – as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 733 trillion in securities transactions in 2017, representing 215 million domestic and cross-border transactions and held EUR 28.6 trillion in assets for clients.

About Nasdaq

Nasdaq (Nasdaq:NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets. As the creator of the world’s first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world’s securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion.

To learn more, visit: http://business.nasdaq.com

For further information please contact

ABN AMRO Clearing:  Brigitte Seegers +31 20 6283365, brigitte.seegers@nl.abnamro.com

EuroCCP: Jeff Watt, Greentarget, +44 207 324 5482, jeff.watt@greentarget.co.uk

Euroclear: Inge Drijkoningen, +32 2 326 4431, inge.drijkoningen@euroclear.com

Nasdaq: David Augustsson, +46 734496135, david.augustsson@nasdaq.com

Lithium Werks and Endrich agree pan-Asian battery distribution deal

AUSTIN, Texas, June 19, 2018 (GLOBE NEWSWIRE) — Battery and portable power solutions group Lithium Werks B.V. has signed a strategic distribution agreement with Taipei, Taiwan-based distributor Endrich Co., Ltd to bolster its support for Asian customers.

“Demand for lithium batteries from Asian customers has been strong for a long time, but even so, we’ve seen nothing yet. We expect an enormous uptick in demand in the years ahead,” said T. Joseph Fisher III, CEO and co-founder of Lithium Werks.

“With its unrivaled knowledge of Asian markets, Endrich is a trusted supplier to a number of tier-one ODMs (original design manufacturers) and OEMs (original equipment manufacturers).

“Together, we will continue to develop ever closer relationships with customers in markets such as Taiwan, Japan, South Korea and, not least, China, where we are preparing to build a lithium battery giga factory,” he said.

“I have known Endrich for a long time, so I already know that this partnership will be beneficial, not only for them and for us, but also for our manufacturing and development customers, and therefore it will benefit consumers too,” Mr Fisher said.

“Our tier-one ODM and OEM customers are impressed with Lithium Werks’ ability to deliver long-lasting, safe and reliable battery solutions that are not only lighter and smaller than those offered by other companies, but often more cost-effective too,” said Olivia Chang, CEO, Endrich.

“Lithium Werks is already a world leader in Lithium Iron Phosphate cells, modules and scalable power systems, to name but one area of strength,” she said.

“This partnership will forge even closer relationships with tier-one ODMs and OEMs, and as we grow together, I am convinced that Lithium Werks’ R&D (research and development) teams will continue to come up with revolutionary solutions,” she said.

Lithium Werks specialises in Lithium Iron Phosphate technology, a lithium-ion chemistry that offers high thermal and chemical stability and is seen as the safest lithium-ion technology available today. The strategic cooperation builds on an existing relationship that has now become even stronger.

About Lithium Werks B.V.
Lithium Werks is a fast-growing global lithium ion battery company with production facilities in China and offices in the USA, the Netherlands, Northern Ireland, Great Britain and Norway. Lithium Werks provides cells, modules, and battery management systems into markets such as material handling, stationary energy storage, medical, and commercial marine.

About Endrich
Endrich was founded in 2009 as a distributor of batteries and smart chargers, over time broadening its expertise to also include the integration of individual components in systems that deliver complete sustainable power solutions that have been designed to meet customers’ requirements.
www.endrich.com.tw

Media contacts:
Endrich:
Endrich Press/Media relations
Telephone +886 (0) 2 2697 2069
Lithium Werks:
Lithium Werks Press/Media Relations
Telephone +44 (0) 28 9084 5411

Vricon’s disruptive 3D GEOINT technology fuels company growth

Company’s momentum reflects growing need for high-resolution, extremely accurate 3D data and solutions

McLean, VA, June 18, 2018 (GLOBE NEWSWIRE) — Vricon, a global leader in 3D data and solutions, today announced that it has more than doubled its year-over-year sales growth rate and set a record pace for new customer acquisition.

Vricon serves the global professional geospatial market with world-leading 3D geodata and 3D visualization solutions. With direct access to the world’s largest global imagery archive, Vricon uses automated 3D image-processing algorithms inside a state-of-the-art high-performance computing environment to produce its high-resolution 3D data and solutions for government and commercial clients. Use of 3D geodata helps users to see the world as it really exists, explain what they’re seeing more clearly, and better convey their findings to decision makers.

Vricon has greatly increased and diversified its government-sector portfolio.  From early 2017 to today, Vricon increased its support to foreign government clients, who now generate roughly 35 percent of Vricon revenue. Vricon also grew its US Government (USG) client base by 67 percent; USG clients account for slightly less than 50 percent of total Vricon revenue.

On the commercial side, “the real excitement is coming in the telecommunications sector,” said Eric Von Eckartsberg, Vricon Chief Revenue Officer. “As recently as last year, we expanded into the telco market, where we immediately picked up new clients and quickly grew this nascent opportunity to approximately 11 percent of our 2017 revenue. We anticipate explosive growth in this sector throughout 2018.”

Vricon’s expansion into the telecommunications sector reflects a critical need for telecommunications companies to navigate the rapid changes happening throughout the industry. With an increasing number of connected devices, high-definition content, and new services, the demands on networks are accelerating and growing exponentially; telecommunications companies need cost-effective, next-generation geodata solutions that allow them to design networks that can perform optimally for 4G LTE but can also accommodate the 5G environment to empower smart homes and the Internet of Things.

“The company’s momentum reflects the growing need for high-resolution, extremely accurate 3D data and solutions,” said Magnus Brege, Vricon CEO. “When we launched the company in 2015, we initially targeted the defense community. But other industry sectors quickly recognized the power of Vricon 3D products and solutions to create new opportunities effectively and overcome their challenges. We’re also building an international commercial clientele, who now contribute over 7 percent to our revenue and is growing quickly.”

Vricon, which just celebrated its third birthday, has achieved a number of other timely milestones:

  • By early 2018, Vricon increased sales by 130 percent over the previous 12 months, enabling the company to become debt free.
  • In just the first quarter of 2018, Vricon generated $10 million in revenue.
  • In February 2018, Vricon launched its new Telco Suite, a comprehensive, cost-effective, next-generation solution for the telecommunication sector.
  • In 2017, Esri—the market leader in geographic information system (GIS) software—became a Vricon reseller, opening the door to many new and diverse customers who now can use Esri tools to work with Vricon 3D data to support public safety, energy, and other key sectors.

“Vricon’s mission is to build The Globe in 3D by producing photorealistic 3D products and digital elevation models with unmatched coverage and delivery timelines,” adds Brege. “It’s not just a tag line — we’re really doing it, as the company’s financial and technical achievements demonstrate.”

About Vricon

Vricon serves the global professional geospatial market with world-leading 3D geodata and 3D visualization solutions. Vricon is headquartered in McLean, Virginia. For further information, visit http://www.vricon.com. Follow us on LinkedIn, YouTube, Twitter, Instagram, and Facebook.

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Craig Brower
Vricon
703-283-4588
craig.brower@vricon.com