committed to achieving high quality returns for our clients.
to construct a diversified portfolio of systematic and quantitative strategies.
to capitalize on avant-garde research.
Squarepoint or Squarepoint Capital refers to the network of member firms of the Squarepoint Group, each of which is a separate and independent legal entity.
This site is presented for information purposes only and is intended for your personal, non-commercial use. No information or opinions contained in this site constitute a solicitation or offer by Squarepoint to buy or sell securities or to furnish any investment advice or service.
This site is intended as a general introduction to Squarepoint. It does not provide specific investment advice nor does it represent that the services described are suitable for any specific investor. Moreover, the information contained in this site does not provide a basis for making a fully informed investment decision. Please note that investment in markets traded by Squarepoint involve significant risk and any past performance does not guarantee future results.
The contents of this site are not intended for distribution to, or use by, any individual or entity in any jurisdiction where their distribution or use would be contrary to local law or regulation or which would subject Squarepoint to registration with the jurisdiction. You should be aware that any rules and/or regulations applicable to providing financial services (and the resultant investor protections that may be available), may not apply to persons who obtain information from the internet and its various applications, of which this material forms part.
Information contained on this site, including commentary or opinions, reflects Squarepoint’s analysis and other information available as at, either the time such information was posted in the site or as otherwise at the date indicate, and whilst believed to be reliable, Squarepoint cannot and does not guarantee its accuracy, timeliness or completeness, nor is Squarepoint under any obligation to update such information.
Neither Squarepoint nor any of its directors, officers or employees, nor any third party vendor will be liable or responsible for any loss or damage that you may incur from any cause relating to your access to, inability to access, or use of the site or these materials, whether or not the circumstances giving rise to such cause may have been within the control of Squarepoint or of any vendor providing software or services support. In no event will Squarepoint or any third party vendor be liable to you for any direct, special, indirect, consequential, incidental damages or any other damages of any kind even if Squarepoint or any other party had been advised of the possibility that these damages might occur.
Squarepoint Capital LLP is a limited liability partnership registered in England and Wales with registered number OC393269. Squarepoint Capital LLP is authorized and regulated by the Financial Conduct Authority in the UK, and is on the Financial Services Register (Firm Reference Number 627994).
Squarepoint Ops LLC is registered with the US Securities Exchange Commission, registered with US Commodity Futures Trading Commission (“CFTC”) as a Commodity Pool Operator (“CPO”) and is member of the National Futures Association (“NFA”).
Squarepoint Operations Private Limited is regulated by the Monetary Authority of Singapore.
COMMITMENT TO THE UK STEWARDSHIP CODE - Under Rule 2.2.3R of the Financial Conduct Authority's (“FCA”) Conduct of Business Sourcebook, Squarepoint Capital LLP (“Squarepoint UK LLP” or “the Firm”), to the extent it is managing investments for a professional client (as defined by the FCA), is required to include a disclosure about the nature of its commitment to the UK Financial Reporting Council's Stewardship Code (the "Code") or, where it does not commit to the Code, explain its considered choice based on the Firm’s investment approach. The Code is a voluntary code and sets out a number of principles relating to engagement by investors in UK-listed companies.
Squarepoint UK LLP invests in a broad range of asset classes on a predominantly systematic basis in a variety of jurisdictions globally and exposure to UK-listed issuers is, as a result, likely to be relatively limited in terms of overall exposure at any given point. Therefore, whilst Squarepoint UK LLP generally supports the objectives that underlie the Code, the nature of its investment strategy would mean that it is not practical for it to formally engage with investee companies on a voluntary basis in any particular jurisdiction through the exercise of its voting rights. The Firm has therefore chosen not to commit to the Code at this time.
Shareholder Rights Directive (SRD II)
SRD II aims to promote effective stewardship and long term investment decision making. It sets requirements in several areas, including transparency of engagement policies and investment strategies across the institutional investment community.
Under Rule 2.2B.5R of the Financial Conduct Authority's (“FCA”) Conduct of Business Sourcebook, and with respect to investment activity in shares admitted to trading on regulated markets in the EEA, or on comparable regulated markets outside the EEA, Squarepoint Capital LLP “Squarepoint UK LLP” or “the Firm”) is required to either
1. develop and publicly disclose an “Engagement Policy” providing details of how the Firms investment strategies and shareholder engagement activities, and their implementation, contribute towards the medium and long term performance of the assets of the fund; or
2. publicly disclose a clear and reasoned explanation of why it has chosen not to comply with any of the requirements under this rule
As Squarepoint UK LLP has a quantitative and systematic trading approach, the nature of its investment strategy would mean that it is not practical for it to formally engage with investee companies and carry out shareholder engagement activities. The Firm has therefore chosen not to implement an Engagement Policy at this time.
Pillar 3, and Remuneration Disclosure
Squarepoint Capital LLP
(“Squarepoint UK LLP” or the “Firm”)
Disclosure Policy
The Capital Requirements Directive (“CRD”) of the European Union established a revised regulatory capital framework across Europe governing the amount and nature of capital credit institutions and investment firms must maintain.
In the United Kingdom, the CRD has been implemented by the Financial Conduct Authority (‘FCA’) through (as relevant to Squarepoint UK LLP) the General Prudential Sourcebook (“GENPRU”), and the Prudential Sourcebook for Banks, Building Societies and Investment Firms (“BIPRU”).
The CRD consists of three ‘Pillars’:
· Pillar 1 sets out the minimum capital amount that meets the Firm’s credit, market and (where applicable) operational risk capital requirements.
· Pillar 2 requires the Firm to assess whether its capital reserves, processes, strategies and systems are adequate to meet pillar 1 requirements and further, determine whether it should apply additional capital, processes, strategies or systems to cover any other risks that it considers itself to be exposed to: and
· Pillar 3 requires disclosure of specified information about the underlying risk management controls and capital position to encourage market discipline.
The rules in BIPRU 11 set out the provision for Pillar 3 disclosure. This document is designed to meet the Firm’s Pillar 3 obligations.
This Pillar 3 disclosure document has been prepared by Squarepoint UK LLP in accordance with the requirements of BIPRU 11. Unless otherwise stated, all figures are as at the 31 December 2020 financial year-end.
Squarepoint UK LLP makes Pillar 3 disclosures annually, via the firm’s website. The information contained in this disclosure is accurate as at 31 December 2020 and has been audited by Squarepoint UK LLP’s external auditors and does not constitute any form of financial statement.
Squarepoint UK LLP is permitted to omit required disclosures on the basis that the Firm has deemed the information to be immaterial such that omission would be unlikely to change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions about the Firm, or the Firm regards the information as proprietary/confidential and where sharing that information with the public would undermine Squarepoint UK LLP’s competitive position. Proprietary/confidential information may include information on products or systems which, if shared with competitors, would render the Firm’s investments therein less valuable. Further, the Firm must regard information as confidential if there are obligations to customers or other counterparty relationships binding the Firm to confidentiality.
Background to the Firm
Squarepoint UK LLP is authorised and regulated by the FCA and as such is subject to minimum regulatory capital requirements. The Firm is categorised by the FCA, for prudential purposes, as a ‘BIPRU firm’. It is an investment management firm authorised to manage assets, as well as perform certain other regulated activities, on behalf of clients. It is not authorised to deal on its own account and thus has no trading book exposures. The Firm reports to the FCA on a solo basis and is not required to prepare consolidated reporting for prudential purposes.
Risk Management Objectives and Policies
Due to the nature, size and complexity of the Firm, Squarepoint UK LLP does not have an independent risk management function. Squarepoint UK LLP has established a risk management process in order to ensure that it has effective systems and controls in place to identify, monitor and manage risks arising in the business. The risk management process is overseen by the Firm’s Management Body (the “Management Committee”). The Management Committee is responsible for the management of risk within the Firm, with input from the Group Risk Committee and their individual responsibilities are clearly defined. Senior management report to the Firm’s Management Committee on a frequent basis regarding these risk exposures. Squarepoint UK LLP has clearly documented policies and procedures, which are designed to minimise risks to the Firm and all staff are required to confirm that they have read and understood them.
Squarepoint UK LLP undertakes an ICAAP at least annually, which is the process through which the Firm determines that it is able to identify and manage its key risks on an ongoing basis and that it has sufficient capital in respect of such risks. The process is forward looking and is an integral part of the management of the Firm.
Following the completion of the ICAAP, the Firm has concluded that its Tier 1 capital is sufficient to cover its Pillar 1 and Pillar 2 requirements.
Capital Resources Requirement
Pillar 1 - Minimum Capital Requirements
As a BIPRU firm, Squarepoint UK LLP has adopted the simplified standardised approach for the Pillar 1 regulatory capital calculation of credit risk. The Firm is not subject to Pillar 1 operational risk requirements under BIPRU 6.
The Pillar 1 capital requirement for a BIPRU firm is calculated as the higher of:
· €50,000; and
· the sum of the market and credit risk requirements; or
· the fixed overheads requirement (“FOR”) which equates to 25% of the Firm’s operating expenses less certain variable costs.
The Firm has deemed the FOR to be the higher of these requirements and this is therefore used for the Firm’s Pillar 1 minimum capital calculation.
As Squarepoint UK LLP does not deal in investments for its own account and holds no current assets other than cash, in sterling or foreign currency, the Firm’s non-trading book market risk requirement is the Foreign Currency Position Risk Requirement, for which the Firm multiplies the sum of the absolute values of its ‘open currency position’ by 8%.
Pillar 2 – ICAAP
The Firm’s ICAAP includes an assessment of the design and performance of the internal controls in place to mitigate risks, the probability of the risk occurring, the potential financial and reputational impact, and the adequacy of the Firm’s capital base.
The ICAAP is the process through which Squarepoint UK LLP determines that it is able to identify and manage its key risks on an on-going basis and ensure that it has sufficient capital in respect of such risks. The process is forward looking and is an integral part of the management of the Firm. The Chief Compliance Officer (“CCO”) is responsible for the ICAAP within Squarepoint UK LLP and consulted with other appropriate members of staff and within the Squarepoint Group to ensure the accuracy of their findings.
As part of the Firm’s ICAAP performed in 2021 the impact of the ongoing COVID-19 pandemic on its strategic planning, as well as its operations and business continuity arrangements, was assessed and factored into the assumptions underlying the stress and scenario testing applied.
The Firm’s Management Committee formally reviews and approves a finalised ICAAP document on at least an annual basis (or more frequently if there are material changes to the Firm’s business model and risk exposures). The Management Committee, as part of its review of the ICAAP, sets the Firm’s risk appetite, validates that the Firm’s key material risks have been considered and assessed, and validates the stress testing scenarios.
Capital Resources
The main features of the Firm’s capital resources, as at 31 December 2020, are as follows:
| Capital Item | £’000s |
| Tier 1 capital less innovative tier 1 capital | 18,280 |
| Tier 2 capital | |
| Tier 3 capital | |
| Total capital resources, net of deductions | 18,280 |
Remuneration
Squarepoint UK LLP must comply with the BIPRU Remuneration Code (the “Code”). The purpose of the Code is to ensure that firms have risk focused remuneration policies, which are consistent with and promote effective risk management and do not expose themselves to excessive risk.
The Management Committee is responsible for setting the Remuneration Policy Statement for all staff and the Firm’s Compliance Officer is a member of the Management Committee. No external consultants have been engaged on remuneration matters.
Proportionality
Enshrined in the regulatory requirements in respect of remuneration which apply to firms such as Squarepoint UK LLP is the principle of proportionality. The FCA has sought to apply proportionality in the first instance by instituting two tests. Firstly, a firm that is significant in terms of its size must disclose quantitative information referred to in BIPRU 11.5.18R at the level of senior personnel. Secondly, that a firm must make disclosure that is appropriate to the size, internal organisation and the nature, scope and complexity of their activities.
Squarepoint UK LLP is not ‘significant’ (that is to say has relevant total assets <£50bn*) and so makes this disclosure in accordance with the second test (BIPRU 11.5.20R(2)).
* average total assets on the last three accounting dates.
As such, the Management Committee has determined that the following rules are not proportionate to Squarepoint UK LLP and thus have not implemented these detailed rules:
· SYSC 19C.3.47 – Retained shares or other instruments.
· SYSC 19C.3.49 – Deferral; and
· SYSC 19C.3.51 – Performance adjustment
Variable remuneration is not based solely on the financial performance of the individual. The Management Committee also considered the individual’s overall (non-financial) performance to the whole team and the overall results of the Firm and its clients. The performance of the individual is assessed over the entire year.
Quantitative Information
The Firm has one business area and the aggregate remuneration of Code Staff, all of whom are Senior Managers, for the year ended 31 December 2020 was £2.82 million.
This Privacy Policy explains how we use the Personal Data that Squarepoint Capital collects or generates in relation to our Website and interactions with individuals and third parties.
The list below sets out what is covered in this Privacy Policy and you can click on the headings below to go to a specific section.
BACKGROUND
We do not collect Personal Data, such as names and addresses, when you visit our Website. Should you decide to send us any Personal Data, for example if you apply for an open role at Squarepoint Capital or via email or other communications with us, we will collect and use such Personal Data in accordance with this Privacy Policy. Squarepoint Capital is responsible for ensuring that it uses that Personal Data in compliance with data protection laws. We also collect some limited Personal Data through other means, for example from publicly available sources, third parties and through CCTV at our premises.
At Squarepoint Capital, we respect privacy and we are committed to keeping all your Personal Data secure. This Privacy Policy governs the handling of Personal Data by Squarepoint Capital in connection with our Website and other interactions and communications with us.
We use the following definitions in this Privacy Policy:
“Squarepoint Capital”, “we” or “us” means Squarepoint Capital LLP, a limited liability partnership registered in England and Wales with registration number OC393269, and each other legal entity within the Squarepoint Capital group. A full list of the entities of the Squarepoint Capital group that process your Personal Data can be obtained by contacting us using the information set out in section 10 below.
“Personal Data” means any information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked with, directly or indirectly, a particular living individual or household of living individuals and other personal information which is in the possession of, or is likely to come into the possession of, Squarepoint Capital. In addition to factual information, it includes any expression of opinion about an individual and any indication of the intentions of Squarepoint Capital or any other person in respect of an individual.
“Website” means www.squarepoint-capital.com.
THE TYPES OF PERSONAL DATA WE COLLECT
In relation to the use of our Website and other communications and interactions with us, we may collect and process the following Personal Data about you:
HOW WE USE YOUR INFORMATION
Your Personal Data may be stored and processed by us in the following ways and for the following purposes:
We use Personal Data for a variety of reasons. These include:
We collect and process personal data about our suppliers, vendors (including trading counterparties) and their representatives in order to manage the relationship, contract, to receive services from them.
We take steps to ensure that the Personal Data is accessed only by employees of Squarepoint Capital that have a need to do so for the purposes described in this Privacy Policy.
DISCLOSURE OF YOUR INFORMATION TO THIRD PARTIES
We may share your Personal Data within the Squarepoint Capital group of companies for the purposes described above.
We may also share your Personal Data outside of the Squarepoint Capital group for the following purposes:
INTERNATIONAL TRANSFERS OF PERSONAL DATA
Squarepoint Capital is a global business. Our customers and our operations are spread around the world. As a result, we collect and transfer Personal Data on a global basis. That means that we may transfer your Personal Data to locations outside of your country.
Where we transfer your Personal Data to another country outside the EEA, we take steps to ensure that it is protected and transferred in a manner consistent with legal requirements. In relation to data being transferred outside of Europe, for example, this may be done in one of the following ways:
You can obtain more details of the protection given to your Personal Data when it is transferred outside Europe (including a copy of the standard data protection clauses which we have entered into with recipients of your Personal Data, if applicable) by contacting us as described in section 10 below.
HOW WE SAFEGUARD YOUR INFORMATION
We have certain controls in place designed to maintain the security of our information and information systems, including controls designed to protect Personal Data with safeguards according to the sensitivity of the relevant information and controls (such as restricted access) placed on our computer systems. We take steps to ensure physical access to areas where Personal Data is gathered, processed or stored is limited to authorised employees.
As a condition of employment, Squarepoint Capital employees are required to follow all applicable laws and regulations, including in relation to data protection. We take steps to ensure access to Personal Data is limited to those employees who need it to perform their roles. Unauthorised use or disclosure of confidential client information by a Squarepoint Capital employee is prohibited and may result in disciplinary measures.
When you contact a Squarepoint Capital employee about your file, you may be asked for some Personal Data. This type of safeguard is designed to ensure that only you, or someone authorised by you, has access to your file.
Unfortunately, the transmission of information via the internet is not completely secure. Although we do our best to protect your personal information, we cannot guarantee the security of your personal information transmitted to our Website. Any transmission of personal information is at your own risk. We are not responsible for circumvention of any privacy settings or security measures contained on the Website.
HOW LONG WE KEEP YOUR PERSONAL DATA
How long we will hold your Personal Data for will vary and will be determined by the following criteria:
YOUR RIGHTS
In certain of the above cases in which we collect, use or store your Personal Data, you may have the following rights and, in most cases, you can exercise them free of charge. These rights include:
You can exercise your rights by contacting us using the details listed in section 10 below.
Your California Privacy Rights. California Civil Code Section 1798.83 permits users of our Website that are California residents to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes. To make such a request, please send an email to Dataprotection@squarepoint-capital.com.
DESIGNATED REPRESENTATIVE
Squarepoint Capital’s registered office and designated representative in the EU may be contacted using the following contact information:
Address: CityPoint, One Ropemaker Street
EC2Y 9AW, London
Email Address: Dataprotection@squarepoint-capital.com
QUESTIONS AND CONCERNS
If you have any questions or concerns about Squarepoint Capital’s handling of your Personal Data, or about this Privacy Policy, please contact our Data Protection Team using the following contact information:
Address: CityPoint, One Ropemaker Street
EC2Y 9AW, London
Email Address: Dataprotection@squarepoint-capital.com
We are usually able to resolve privacy questions or concerns promptly and effectively. If you are not satisfied with the response you receive from our Data Protection Team, you may escalate concerns to the applicable privacy regulator in your jurisdiction. Upon request, Squarepoint Capital’s Data Protection Team will provide you with the contact information for that regulator.