Fundtech Ltd., an end-to-end supplier of corporate banking and securities processing software, has signed a definitive agreement to acquire Radius Partners, a provider of straight-through processing solutions to the global securities industry.
Fundtech says by acquiring Pembroke, Mass.-based Radius Partners it stands to add domain knowledge and management depth in the securities processing arena. Fundtech, based in Jersey City, NJ., recently announced its intention to enter the securities market segment.
The two companies have been collaborating on the development of TRADEplus, a software solution designed to achieve real-time Delivery versus Payment (DVP) in post-trade securities processing. With TRADEplus, financial market participants integrate trade execution, trade allocation, matching, account/settlement instruction and settlement notification processes into a single, automated process.
Over time, Fundtech expects to help financial firms increase their investment capital and returns by linking securities, foreign exchanges and cash payment processes to reduce levels of uninvested cash and collateral required to support their investment activities.
Fundtech says it will focus on helping financial firms improve efficiency and controls, thereby reducing the cost time and risk of processing transactions. Secondly, it will effectively distribute work processes via a Web-based thin-client solution accessible across groups, offices and individuals, and third, increase revenues through new Web-based securities services.
HED: Online Broker Goes Live With Xcitek Client Cost Basis Service
Xcitek announced that a major online brokerage firm headquartered in San Francisco, Calif. has implemented its Xcitek Client Cost Basis service and is actively servicing end clients; however, the online brokerage firm was not named in Xcitek's release.
Clients of the brokerage firm now have the ability -'through a secure session on the broker's Web site- to calculate the cost basis of equity positions back to the original trade date. The client enters in a minimum of information to receive a bottom-line calculation in seconds that factors in all splits, spin-offs, distributions, mergers and other cost basis affecting events.
Launched in 2004, Xcitek Client Cost Basis is a hosted ASP service linked from the broker's site and customized to match the broker's Web environment, the company's release said. "Xcitek Client Cost Basis was designed to alleviate the burden on broker call centers and branch offices from clients seeking cost basis data. This burden is especially heavy during tax season," stated Charles Price, senior vice president at Xcitek, in the release.
The tool utilizes the Xcitek Cost Basis Calculator, which is used in hundreds of financial institution back-office areas such as ACATS Transfer, Tax Reporting, Fund Accounting and Corporation Actions- for the automated calculation of cost basis adjustments. Xcitek says it plans to further enhance the calculator to include Tax Lots and more advanced fund accounting tools.