New York-based ING Capital Markets, a subsidiary of ING Financial Holdings Corporation, has launched a synthetic prime-brokerage platform, enabling the company to serve hedge-fund clients and to take advantage of its growing demand for derivatives services. It also plans to expand to fixed-income and other derivatives.
The firm’s new synthetic solution will absorb ING’s contracts-for-difference business, but while the traditional CFD product is equity-focused, the SPS offering will cover all markets and securities.
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ING’s offering will seek to fill the growing need of mid-sized hedge funds for quality prime brokerage services which are no longer being provided by the larger firms following the Swiss National Bank Swan in January 2015.
ING Capital’s system will initially support the full equity derivatives lifecycle. It offers capabilities of managing and executing all balance sheet, back office and administrative functions associated with derivative exposure to equities. In the next phase, the system will provide workflow that covers fixed income and additional asset classes in line with the clients’ needs, especially from hedge funds who want to diversify their credit risk and exposures.
Michael Baudo, Regional Head of Financial Markets Americas and Global Head of Securities Finance, commented: “We offer the flexibility of a multi-asset portfolio swap which is operationally efficient, streamlined and provides additional collateral and portfolio margin benefits. We are excited to launch a platform that differentiates itself and adds value to clients while drawing upon the more than 20 years of experience our team has been providing securities finance solutions to the market.”