Aurora Capital Group reaches cooperation intentions with multiple global custodian banks and prime brokers to establish operation and clearing channels

In September 2018, Aurora Capital Group achieved key progress in its simultaneous infrastructure development efforts in New York and Madrid. After months of negotiations, the company reached partnership agreements with several top global custodians and prime brokers, establishing efficient channels for operations and clearing across markets and asset classes. This move not only expands operational capabilities but also marks Aurora’s transition from strategic planning to substantial global investment execution.

At the New York headquarters, the core management team held a closed-door meeting with senior executives from custodian banks in North America and Europe to discuss details such as account structure, asset segregation mechanisms, and cross-currency settlement solutions. Aurora adheres to the highest standards of compliance and risk control from the architectural design stage to ensure that future capital allocations for US, European, and emerging market investment strategies can be completed within hours without compromising security. Simultaneously, the Madrid office held intensive discussions with European prime brokers to establish a collaborative framework for securities lending, margin management, and derivatives clearing.

For Aurora, this move is more than just about opening up a channel. During the preparatory phase, the company had accumulated a large number of executable investment solutions under its “Three-Pillar Investment Research Framework.” However, without a globally unified settlement and custody network, the cross-regional execution of these strategies would be significantly hampered by time differences and liquidity costs. The new partnership will enable Aurora to execute US stock and commodity positions at the New York opening, complete foreign exchange and bond settlement before the European market opens, and maintain liquidity for strategies in the Asia-Pacific time zone.

More importantly, this operational and clearing system is designed to be resilient. Aurora has established independent clearing paths for different asset classes. For example, US stocks, European stocks, foreign exchange, commodities, and fixed income products all have independent settlement channels and reconciliation mechanisms. This ensures that during extreme market fluctuations, risks in one asset class are not transmitted to other sectors. This architecture not only enhances security but also allows for more flexible strategy execution, enabling the rapid switching of funds and positions between different markets.

To ensure the long-term stability of this system, Aurora established an operations monitoring center in New York, responsible for routing and tracking global trade orders. A data reconciliation and compliance review center was established in Madrid to ensure that all cross-border transactions adhere to local and international regulatory standards. The two teams collaborate in real time via an encrypted dedicated line and a unified operations platform, creating a seamless time zone relay operation model.

This series of cooperation agreements signed in September also garnered Aurora greater attention within the industry. Several global hedge funds and asset management institutions noted that this relatively young company is using a highly systematic approach to building global infrastructure, demonstrating execution capabilities that surpass those of many established institutions in both speed and quality.

As the establishment of its custodian bank and prime broker network entered its operational phase, Aurora Capital Group became more than just a company with ambitious plans and a comprehensive investment research system. It now possessed substantial capabilities for rapid global market execution, instant settlement, and cross-time zone operations. The completion of this infrastructure in September 2018 laid a solid foundation for the company’s subsequent multi-market collaborative strategy.