NEX has looked to bolster its ENSO Core capabilities in 2018, culminating in the expansion of an existing relationship with US-based hedge fund, MKP Capital Management. The new deal will see NEX emphasize its margin and treasury activity in the prime brokerage space, while also fostering greater efficiency across the trading lifecycle.
NEX has previously partnered with MKP, having serviced the group with its triResolve portfolio reconciliation, Clientlink FX matching, and NEX Regulatory Reporting suite. The latest expansion of the deal will include a focus on next generation analytics and process efficiency.
Sean Perrotta, Partner and Head of Portfolio Finance & STIRT, MKP, commented: “We are thrilled to further utilise the advanced suite of services offered by NEX and benefit from the company’s continued focus on new technology developments and innovation catered to the unique needs of the buy side. By bringing on ENSO Core and triResolve Margin, we are enabled to manage margin exceptions and overall cash flows in a workflow customisable to our specific investment needs.”
Indeed, NEX will be providing MKP with ENSO Core and its Exposure Management capabilities. This also includes its triResolve margin, which operates as NEX’s web-based collateral management service. The duality of products is extremely relevant for several functions, providing a view of exposure, margin, and treasury activity across prime brokerage.
The deal will also see NEX leverage its full suite of services to include triResolve Margin and ENSO Core. Consequently, MKP will be able to utilize optimized investment decisions and efficiency across the entirety of the trading lifecycle. ENSO Core functions as NEX’s treasury, cash, counterparty and portfolio finance management service that caters to hedge funds and other buy side institutions.
The utility is a primary asset for MKP, which will be able to see a wide range of benefits per the accord. “NEX has seen a significant uptick in the adoption of its services that help clients manage the increase in margin call volume and complexity that new regulations have generated,” explained Ken Pigaga, CEO of NEX Optimisation.
According to Mr. Pigaga: “The suite of services we are now providing to MKP showcases NEX’s broad range of capabilities available to the buy-side looking for customised workflows to make their processes more effective in this new regulatory era. We look forward to bringing those critical efficiencies to MKP’s treasury management function.”
The enhanced partnership is the second development for NEX in as many days, after the group expanded its effort in the Chinese market earlier this week. After earlier committing to a partnership with the People’s Bank of China’s CFETS (China Foreign Exchange Trading System), the firm is rolling out its platform.
This saw the launch if its new FX trading platform for Chinese institutional investors, called CFETS FX2017. The PBOC’s CFETS system is an interbank trading platform that is providing infrastructure to local players. The first day of trading saw a total of 480 institutions logging into the product, with 307 of them executing orders.