Our free roundup includes news about ISDA & EMIR best practices, Rival’s CAT service, Optima & Drawbridge, FIA Tech & Baton Systems.
SmartStream & Luxoft Target Post-Trade Ops
London-based SmartStream Technologies, which characterizes itself as a financial transaction lifecycle management solutions provider, and Luxoft, a multinational corporation headquartered in Zug, Switzerland, that provides business-to-business IT services, report an agreement intended to “help financial institutions digitally transform the entire post-trade lifecycle, enabling more efficient, streamlined and cost-effective middle- and back-office operations,” as they say in their joint statement.
Their joint agreement “promises to accelerate and expand the delivery of SmartStream’s solutions, leveraging Luxoft’s deep financial services domain expertise, market coverage, and premium consulting, integration and implementation credentials,” according to the statement.
“Luxoft is exactly the type of organization we were looking to partner with,” Günther Ruf, SmartStream’s director of partnerships and alliances, says in a prepared statement.
“They have the necessary global footprint, plus the knowledge and experience needed to help financial institutions utilize our solutions in optimizing their back-office functions,” Ruf says about Luxoft. “Now it will be easier than ever for a business to increase automation levels, which results in a dramatic rise in STP [straight through processing] rates and a lowering of the overall cost of processing. This, coupled with a significant reduction in the amount of overall errors, can greatly improve a financial firm’s customer service efforts and add to their reputation.”
ISDA Leads Group Endorsement of EMIR Best Practices
The International Swaps and Derivatives Association (ISDA), the European Fund and Asset Management Association (EFAMA), the European Venues and Intermediaries Association (EVIA), the Futures Industry Association (FIA) and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association (GFMA) have jointly published a set of best practices for derivatives trade reporting under the European Market Infrastructure Regulation (EMIR).
The best practices document aims to “facilitate greater standardization in how firms complete certain data fields when reporting under EMIR,” the organizations say in a joint statement.
The document covers 87 data points across 61 reporting fields, including both over-the-counter (OTC) and exchange-traded derivatives,” according to the statement.
Information about ISDA and its various programs and activities is available at www.isda.org.
Rival Systems Launches Cloud-Based CAT Reporting
Rival Systems, a provider of trading and risk management software, has launched a cloud-based Consolidated Audit Trail (CAT) Reporting Service that includes a dedicated support team, officials say.
The cloud-and-support team combination is intended to “eliminate the need for clients to setup additional infrastructure or allocate valuable resources to support CAT,” officials say.
The Rival service targets the needs of firms that are trading equities and equity options, and offers support for comma separated value log files and custom log formats, officials say. “As a registered CAT Reporting Agent, Rival will offer CAT support for firms using any trading platform.”
“For clients using the Rival Trader platform, log files will automatically be uploaded to the CAT repository at the end of each day. Clients using other trading platforms will upload their proprietary log files to Rival’s secure FTP site. Rival will automatically parse the raw logs to generate a CAT formatted file and upload the data to the CAT repository,” according to Rival. “Rival’s support team will actively monitor the system and help resolve any errors to ensure all required data is successfully reported at the end of each day.”
Rival Systems offers data feed handlers, multi-asset trading capabilities, enterprise risk management, an API for strategy development and technology services, officials say.
Optima Partners Picks Drawbridge for DDQ Outsourcing
Optima Partners, a financial regulatory-compliance advisory firm, has picked Drawbridge Partners, a cybersecurity software and services firm focused on servicing hedge fund and private equity managers, for the distribution of its due diligence questionnaires (DDQs) distribution process, employing the DrawbridgeConnect platform.
The platform “allows customers to aggregate cybersecurity program data to drive analysis and determine program strength, remediation, and create and manage a resilient program to fulfill evolving regulatory and investor demands,” Drawbridge says in a statement.
Via the platform, Optima Partners can “assess third-party vendor risk, launch Due Diligence Questionnaires (DDQs) to third-party vendors, as well as track responses and completion status,” Drawbridge says in its statement.
“DrawbridgeConnect allows Optima Partners to streamline and simplify the DDQ distribution process, aggregate data in a centralized location, and reduce time and resources used while conducting due diligence,” according to Optima Partners.
Optima also notes that it “currently advises more than 600 clients across its … offices in New York, San Francisco, Chicago, London and Hong Kong.”
FIA Tech to Work with Baton Systems
FIA Tech, a provider of financial technology solutions for the futures industry, has picked Baton Systems, a provider of post-trade solutions for capital markets, to hasten brokerage payments via more frequent settlement cycles for FIA Tech customers, officials say.
“Longer term, the collaboration will enable FIA Tech customers to monitor completed payment cycles, payments in progress, or scheduled payments using the combined solution. This will also allow for more robust exception handling in case of failed payments,” according to FIA Tech.
The Baton Systems technology will be integrated with FIA Tech’s Atlantis brokerage platform, which has been in place for the past four years, FIA Tech officials say. Atlantis has processed brokerage payments for 46 global firms in 17 currencies.
“Futures brokers face long collection periods, increased costs and write-offs with disparate and error-prone processes across the global network of futures exchanges, clearing and executing brokers,” according to FIA Tech.
“Atlantis relies on traditional payments technologies, meaning that final payments are exchanged 25-50 days from trades being executed,” according to FIA Tech. To speed up the payments process, Baton will integrate into FIA Tech’s Atlantis platform via application programming interfaces (APIs) and ultimately provide improved transparency into the payment process.
“While Atlantis has brought brokerage processing into a continuous and highly automated operation for our customers, the final settlement and payment processes were lagging the new speed of the industry and subject to exceptions and breaks.” said Nick Solinger, president and CEO of FIA Tech, in a prepared statement.