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SEC: Crypto Exposure Surveillance May No Longer Be Optional

adamh@sqx.com (Adam Hammond) — Thu, 11 Aug 2022 18:17:29 GMT

SEC: Crypto Exposure Surveillance May No Longer Be Optional for Hedge Funds

Segments of LinkedIn lit up on Wednesday, August 10 ^th with comments about the SEC’s proposed revisions to Form PF, revisions which would require private hedge funds to disclose their assets’ exposure to the crypto market. SEC chair Gary Gensler argued that the revisions would enable regulators to “gain transparency into an important sector of the financial marketplace to better assess risk to the overall system.”

Among other changes, the proposed rules would require companies to separate crypto exposure and crypto assets from cash and cash equivalents on their balance sheets.

Too Burdensome?

But quantifying the value of crypto exposure is no easy feat. Hedge funds may not only own digital assets themselves but have indirect exposure through shares in companies with digital assets and through the holdings of instruments such as ETFs, UITs, and mutual funds. SEC Commissioner Mark Uyeda, an opponent of the change, pointed out in a statement that the costs of these “more granular disclosures” would disproportionately burden smaller private funds that are less able to allocate additional resources to compliance.

The Solution

Fortunately, SQX is ready with a solution for both large and small private advisers. SQX began offering crypto exposure surveillance earlier this year, and we have already cleared the hurdles to tracking exposure to the turbulent and miasmic crypto market. And we level the playing field through pricing tailored to the size and need of the financial institution so that smaller firms aren’t unduly burdened.

We track exposure for a range of instruments such as ETF's, ETP's, UIT's, Mutual Funds, Equities, Indices, and Derivatives. For each instrument, we report the type of crypto exposure, such as blockchain, mining, hardware, etc. For securities, we show the ratio of digital assets to total holdings, plus we calculate a qualitative weighting of the security’s exposure and indicate the correlations between the price of the security and the prices of Bitcoin and Ethereum.

This robust Crypto exposure surveillance has benefits beyond compliance, though. Clients have expressed interest in our data to develop internal risk management controls and exposure monitoring, create and sell ETFs with customized exposure types, recommend products or funds based on clients’ risk tolerances, and make trading decisions to gain exposure to or hedge against crypto.

Whichever group you fall into—whether it’s SEC compliance, product development, or strategic trading—SQX can make the task of tracking your crypto exposure easy and affordable.

The Importance of Crypto Exposure Surveillance | Crypto Crash Exposes the Vulnerability of Institutional Assets

adamh@sqx.com (Adam Hammond) — Tue, 17 May 2022 22:40:19 GMT

Crypto Crash Exposes the Vulnerability of Institutional Assets: The Importance of Crypto Exposure Surveillance

Last week’s crypto crash sent tremors through the broader market due to the increasing exposure that institutional investors have to crypto volatility. Treasury Secretary Janet Yellen called last week for increased regulation of cryptocurrencies, stating in a Senate hearing Tuesday that “digital assets may present risks to the financial system” and that stablecoins in particular are a “rapidly growing product” that present “rapidly growing risks.”

The problem is, regulation will likely legitimate and accelerate crypto’s integration into the broader market, and thus actually increase some forms of risk exposure. It’s hard to imagine that regulation will do much to moderate the volatility that’s always been endemic to the crypto market, especially unbacked currencies such as bitcoin and Ethereum.

In short, crypto may continue to carry substantial risk, a risk that would be increasingly felt by traditional financial institutions as they respond to the public’s desire for crypto and other digital assets.

But the devil here will be in the details. How will the holdings of a mutual fund or a trust be affected if more and more companies, like Microstrategy, start holding large portions of their cash in bitcoin? How will volatile changes in corporate assets or sovereign debt impact the value of derivatives on fixed-income instruments? These details will likely proliferate, and it will become more and more difficult for asset managers and compliance officers to have any accurate idea of their risk exposure.

SQX’s crypto exposure surveillance tracks the full range of global securities and derivatives exposed to the cryptocurrency ecosystem. For ETFs we also show the ratio of digital assets to total holdings, plus we calculate a qualitative weighting of the security’s exposure and indicate the correlations between the price of the security and the prices of Bitcoin and Ethereum.

Data like this may not solve the problem of increasing crypto exposure, but it can help compliance officers, regulators, exchanges, hedge funds, institutional investors, and custodians more accurately analyze their risk and take the necessary steps to protect the value of their entrusted assets.

SQX Launches Crypto Exposure Surveillance Service

adamh@sqx.com (Adam Hammond) — Thu, 17 Mar 2022 09:11:35 GMT

SQX Launches Crypto Exposure Data Service

Chicago, March 17, 2022 - Securities Quote Xchange (SQX) has launched an industry-leading database linking securities worldwide with their crypto holdings. This database covers exchange-traded products, mutual funds, and listed equities that hold crypto assets.

Features include crypto exposure surveillance, crypto holdings, and crypto price correlation.

Despite regulatory uncertainty the financial markets have embraced crypto assets. Increasingly listed instruments and collective investment have invested in crypto assets. Because of their extreme volatility investors need to know to what extent they are exposed to crypto assets so that they can manage their risks.

Tim Tatum, SQX CEO says “This database will be valuable to compliance officers, investors, clearing firms, custodians, and exchanges. As we can see from recent events, cryptocurrencies are extremely volatile, and investors should be monitoring the risk as they invest in instruments with underlying assets exposed to cryptocurrencies.”

The Crypto Exposure Data service covers all global regions, including, Australia, Asia, Canada, Europe, the United Kingdom, and the United States.

Available via SFTP and API. Updated daily

For more information, please visit sqx.com/crypto-exposure-data or get in touch with our team via inquiries@sqx.com .

About Securities Quote Xchange:

Securities Quote Xchange ("SQX"), a Chicago based company specializes in covering hard-to-price securities, including broker-quoted notes, municipal and corporate bonds as well as the exposure of listed instruments to crypto assets.

Note to Editors

Tim Tatum CEO of SQX is available for interviews timt@sqx.com

EDI Partnership: Broker-Quoted, Structured-Note Pricing

adamh@sqx.com (Adam Hammond) — Fri, 16 Apr 2021 10:51:53 GMT

EDI Partnership: Broker-Quoted, Structured-Note Pricing

In this video, Jonathan Bloch, chief executive officer of EDI and Tim Tatum, chief executive of SQX talks about the recent joint venture to provide broker-quoted, structured-note pricing. The discussion covers market demand for structured-notes in light of IDC discontinuing their product, SQX’s value proposition and their flexibility to customize the product based on individual specifications.

Find out more at here or visit EDI’s website .

Exchange Data International (EDI) helps the global financial and investment community make informed decisions through the provision of fast, accurate, timely, and affordable data reference services. EDI’s extensive content database includes worldwide equity and fixed income corporate actions, dividends, static reference data, closing prices and shares outstanding, delivered via data feeds and the internet. Headquartered in the United Kingdom, EDI has staff in Canada, India, Morocco, South Africa and the United States.

New Structured-Note Pricing Partner EDI

adamh@sqx.com (Adam Hammond) — Fri, 16 Apr 2021 10:36:34 GMT

New Structured-Note Pricing Partner EDI

Chicago, London, 14th July 2020: SQX, developer of the first broker-quote aggregation service for the US bond market, today announced a partnership with Exchange Data International (EDI) to distribute broker-quoted, structured-note pricing.

Through this collaboration, EDI can now distribute structured-note pricing that is competitive to the established providers.

Tim Tatum, CEO of SQX says:

“In light of the need for structured-note pricing coming this fall, SQX offers a comprehensive, custom-made solution to cover more than 45k structured-note securities.”

SQX specializes in data aggregation services, allowing clients to receive a single, consolidated file rather than chasing prices from individual broker-dealers.

Jonathan Bloch, Chief Executive Officer of EDI says:

“Fixed income markets are becoming more dependent on data to function optimally. Through our partnership with SQX we will be able to cover daily pricing of structured notes. These data sets are either not available or accessible through more expensive offerings. EDI is happy to give our clients new structured note solutions and better options.”

The service is available through FIX API or intraday via secure SFTP files.

For more information, please visit our product page at www.sqx.com or contact inquiries@sqx.com .

For more information, please visit our product page at www.exchange-data.com or contact info@exchange-data.com

About SQX

Securities Quote Xchange (SQX) is a leading provider of fixed-income securities data analytics and pricing, specializing in pricing and analytics for municipal bonds, corporate bonds, and broker-quoted securities. To learn more, please visit www.sqx.com .

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SEC: Crypto Exposure Surveillance May No Longer Be Optional

SEC: Crypto Exposure Surveillance May No Longer Be Optional for Hedge Funds

Too Burdensome?

The Solution

The Importance of Crypto Exposure Surveillance | Crypto Crash Exposes the Vulnerability of Institutional Assets

Crypto Crash Exposes the Vulnerability of Institutional Assets: The Importance of Crypto Exposure Surveillance

SQX Launches Crypto Exposure Surveillance Service

SQX Launches Crypto Exposure Data Service

EDI Partnership: Broker-Quoted, Structured-Note Pricing

EDI Partnership: Broker-Quoted, Structured-Note Pricing

New Structured-Note Pricing Partner EDI

New Structured-Note Pricing Partner EDI

Chicago, London, 14th July 2020: SQX, developer of the first broker-quote aggregation service for the US bond market, today announced a partnership with Exchange Data International (EDI) to distribute broker-quoted, structured-note pricing.

About SQX

About Exchange Data International