Straight-through processing and the move to a T+1 settlement cycle are buzz words that you'd better get used to hearing if you plan on attending the annual SIBOS convention in Munich. Exhibitors and delegates at the S.W.I.F.T-sponsored SIBOS convention, taking place September 13 -17, will be highlighting and investigating the latest in straight-through processing. Wall Street & Technology takes an inside look at what exhibitors are going to be showing at SIBOS as the march to STP continues.
Wilco International will be highlighting several products this year, including the latest additions to the Gloss system. This summer Wilco announced the addition of a trade order management module, with order routing, management and execution functionality for the Gloss trading and settlement system. The new module can either be integrated with the Gloss system or used with other host systems. "The order management system automates all steps of the transaction including order capture, grouping, routing, execution, matching and allocation and can also receive executions for trade completion and settlement," says a Wilco spokesman. The orders are fed through an interface such as SWIFT or FIX messaging. The spokesman adds that the grouping and matching of orders is done through intelligent criteria which takes the appropriate market orders from various routes and automatically sends them in the right direction. The first client for the new module, Banque Generale du Luxembourg, is currently in the implementation phase and plans to go live with the product by the end of this year.
"Everything that we do facilitates global straight-through processing, principally through the Gloss system," says the spokesman. Wilco will also be featuring the Gloss STP explorer exception handling system. "Instead of having to go into the system and make an inquiry, print up a report and try to find out what went wrong, Gloss STP proactively routes details of the processing exception or failure to the appropriate users desk top for full analysis," he explains.
Wilco's middleware product, Enterprise Broker, will also be exhibited at SIBOS. This product was recently re-named by Wilco and can integrate any two systems. "The Enterprise Broker provides straight forward fast connectivity and has an intuitive configuration tool that allows users to connect systems quickly and easily," says the spokesman. Enterprise Broker also has a two-way market interface to international exchanges and clearing centers and is used extensively across the international Wilco client base.
New York-based IQ Financial Systems is jumping on the straight-through processing bandwagon at this years SIBOS with Trade IQ Version 2.6, a global real-time trading and risk management platform. Greg Wood, sales manager at IQ Financial, expects at least three customers to be live with the Trade IQ Version 2.6 by SIBOS. The upgraded front-to back-office processing system covers treasury, fixed income, foreign exchange instruments and derivatives. Trade IQ Version 2.6 is a true straight-through processing system," says Wood. "Other systems go as far as settlements with S.W.I.F.T. but don't post to general ledger, Trade IQ is automated all the way through, from the time the trade enters the system through back-office settlement and accounting." IQ will also be showing its commercial lending product Loan IQ along with the latest in risk management products: Desktop Risk IQ and Default Filter.
Summit Systems will be featuring the latest enhancements to its transaction processing system for fixed income, treasury, derivatives and lending. At the SIBOS convention, Summit will be showing several new modules that were recently made available, according to Michael Gouverneur, managing director at Summit Systems. "Summit is a modular system, so you can combine modules any way you want to address a broad range of functionality," says Gouverneur. The latest functionality for the Summit product includes a credit derivatives module, a real-time FX trading module and an FX options module.
New Era of Networks (NEON) plans to showcase its brand new product, the NEON Trading System or NTS. Scott Saber, vice president of global financial services at NEON, says of the new product, "the key to NTS is that it's message based, fits into modern architectures and is user defined and modular." Saber adds that modules will be dedicated to order handling and routing, positions and holdings and will feature a user-defined component called Fusion. "Fusion is like a container," says Saber. "For example, if you have Reuters on one screen, your trading system on another and your client management system on yet another, Fusion allows you to bring all of them together into one look."
ADP Brokerage Services announces the availability of a global trade processing system for support of treasury and capital markets for its clients. Following the recent acquisition of OMR Systems, ADP will be offering the Trading Assistant, OMR's flagship product as part of its global processing solution set. Trading Assistant provides trading room, middle- and back-office processing for FX, money market, derivatives and bullion.
Separately, OMR Systems has developed an Internet version for its Trading Assistant software. The browser based presentation offers users trade capture, positions and P/L. OMR is currently alpha testing the product and expects to be ready for production by the end of this year.
CRESTCo's settlement system for U.K. and Irish corporate securities is broadening its range of services. The CREST system will now cover British government stock, money market instruments and international securities as well. CREST will be showing its full range of settlement services at SIBOS, including recent additions to cover German and Swiss securities along with a new program to provide additional settlement services for a wide range of other European securities.