Post-Trade Services See Efficiency Gains

Terry Flanagan

Reconciliation, confirmation and matching extend across asset classes.

Market participants, in response to regulation, are seeking out platforms that afford them greater visibility into how their trading counterparty’s are managing trading errors and exceptions in the back office, while enabling them to accelerate the trade process at a time when settlement cycles are shortening.

“Firms are increasingly looking to process different types of international asset classes on a single solution to reduce costs, gain process efficiencies and a central view of their business,” Mike West, vice president of international marketing at Broadridge Financial Solutions, told Markets Media.

“We have also experienced demand from existing users looking to diversify into new asset-based business lines, in order to capture new revenue streams quickly and efficiently,” said West. “The same is true when firms want to expand into new geographical markets.

Support for trading in multiple asset classes is being driven by demands from trading firms, which increasingly conduct trading across multiple geographies and asset classes.

“Given the nature of our client base and the need for multi-asset and cross-border trading, our suite of products have been build from the grown up to support different asset classes,” Mo Takhim, head of managed services at Ullink, a provider of low-latency connectivity and trading solutions, told Markets Media.

Broadridge is extending the range of multi-asset processing capabilities of Gloss, its multi-currency trade processing and settlement solution, to include post-execution transaction processing for exchange-traded options.

The extended Gloss capability can be combined with other Broadridge products, such as the PROactive suite of tools covering reconciliations, confirmation matching, fee and commission management, to provide a comprehensive post-execution platform.

“Reconciliation is a complementary process to the functions that Gloss performs,” said West. “Firms need to reconcile internally between systems and departments, and externally.”

Gloss will have the capability to model and process a wide range of exchange-traded options (currency, equity, index, and interest rate futures) and provide full functionality for trade capture, position-keeping, exercise (both manual and automatic) and assignment, the automation of close-out and end of day settlement, and provide additional support for the margin calculations and interfaces as required by brokers.

Within the last year, Broadridge has added treasury and derivatives instruments including contracts for difference, exchange-traded futures, forward rate agreements, non-deliverable forwards and interest rate swaps.

“Although there are common elements to how different asset classes are handled, each different type has its own variations and nuances, which can vary further based on other requirements such as geographic market conventions,” West said.

“Gloss users benefit from having this functional depth and domain expertise in a single solution, or integrated as part of a wider suite of Broadridge’s capabilities.”

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