SWIFT, the DTCC and Russia’s Sberbank also had news at the SIBOS conference underway this week in Sydney, Australia.
Broadridge Launches Asset Servicing Solution at SIBOS
Broadridge Financial Solutions is debuting at SIBOS in Sydney Australia a cloud-based processing solution that addresses the challenges with end-to-end asset servicing, officials say.
The solution targets the “industry, business and operational challenges” that are part of global asset servicing, say Broadridge officials. Global A-list banks have been helping Broadridge design and develop “the full end-to-end solution,” officials say.
The offering is intended to streamline “corporate actions, dividend and coupon processing across multiple asset classes, business lines and regions” officials add. By automating the entire asset-servicing lifecycle, the vendor wants to bring a new efficiency to firms.
Inefficient processes in asset servicing can increase “operational risk and a reduced ability to control costs,” say Broadridge officials. The global asset servicing solution to come helps firms “mitigate these drawbacks by standardizing and automating processes for announcements, notifications, elections, accruals, entitlements, and settlements globally.”
The new Broadridge solution can “support and enhance front office activities through comprehensive data management and analytics, helping traders and portfolio managers mitigate against losses and pursue revenue generation, for example through arbitrage opportunities,” officials say.
“This solution is currently being deployed by leading global firms, including as a unified global platform replacing multiple silo systems across geographies and business units, spanning the investment bank, wealth and asset management business lines. with one centralized platform, clients can view, manage and report across portfolios, events and global trading models, bringing visibility and transparency across the entire asset servicing lifecycle,” officials say.
The new service will target the growing number of corporate actions that is “increasing across global markets — each one navigating a complex network of intermediaries and custodians, says Tom Carey, president of Broadridge Global Technology and Operations, in a statement. Firms are facing fragmented systems and regulatory pressures that increase processing challenges, Carey adds.
New SWIFT Service Blocks Suspicious Payments
SWIFT has introduced an in-network solution, Payment Controls, that is intended to combat fraudulent payments, and to bolster customers’ existing security, officials say.
“The commercial availability of the service marks an important milestone in SWIFT’s Customer Security Programme (CSP) — a community initiative launched in 2016 that has increased security and trust across the global financial community,” according to SWIFT.
“Payment Controls helps payment operations teams mitigate fraud risk in real-time through its unique alerting and reporting capabilities. The service may be set to flag, hold, release or reject high-risk or uncharacteristic payments in real-time, according to business needs,” SWIFT officials say. “Initially targeted at smaller financial institutions, the utility service is hosted in the SWIFT cloud to allow users immediate access, with no hardware or software installation or maintenance.”
The Payment Controls service bolsters SWIFT’s global payments innovation (gpi) for cross-border payments, officials say. “As part of gpi, and to further strengthen customer defenses, SWIFT will introduce a new ‘stop and recall’ capability that will enable banks to immediately stop and recall a payment anywhere in the chain. The new feature will provide another barrier against fraud — mitigating business disruption and financial losses in the face of rising threats.”
SIBOS flags
DTCC Aggregates U.S. Equity Trade Volume Data
DTCC officials report the vendor released at SIBOS Sydney the DTCC Equity Kinetics data service that provides “an aggregated view of all U.S. equity trade volumes over time, in the context of broader market activity.”
The data from the new service “is therefore ideal for quantitative market participants seeking insights to enhance their understanding of the U.S. equities markets,” DTCC officials say.
“DTCC Equity Kinetics facilitates analysis of U.S. equity market activity by providing a daily feed of trade data based on activity cleared through DTCC’s National Securities Clearing Corporation (NSCC) subsidiary,” according to the DTCC. “This data includes aggregated trade volumes for the market, the 10 most-active brokers and an anonymous peer group of nine global brokers, by security and transaction type, covering buy activity and sell activity — sale, short sale and short sale exempt data. This unique offering includes historical data from December 2011 onwards.”
“Post-crisis regulation and the related focus on increased transparency through transaction and trade reporting have led to a surge in demand for data generated from financial market infrastructures (FMIs) like DTCC,” says Tim Lind, managing director of data services at DTCC, in a prepared statement. “We capture and optimize data from our processing engines and data repositories to provide innovative solutions that help our clients address challenges related to risk management, capital adequacy, liquidity and market transparency. DTCC Equity Kinetics allows clients to gain greater insight into movements and trends across select market segments and asset classes, and now joins an expanding portfolio of aggregated data solutions across various assets classes.”
Sberbank & SWIFT Extend AMH Cooperation via MOU
Russia’s largest bank Sberbank has signed a memorandum of understanding with the SWIFT financial messaging cooperative that extends their cooperative efforts via the Alliance Messaging Hub (AMH), a financial messaging platform created by SWIFT, officials say.
“The parties agreed to enter the second phase of their AMH implementation project, which aims to extend use of AMH to Sberbank’s subsidiaries that are not currently serviced by the bank’s HQ infrastructure, and to support ISO 20022 messaging,” according to officials. “The first phase of the implementation of the AMH solution has been ongoing through the joint work of Sberbank and SWIFT experts since the parties signed the initial agreement in 2017.”
Sberbank will use the SWIFT AMH platform to facilitate “the centralization and optimization of processing Sberbank Group’s internal and external payment flows and other financial operations,” officials say.
In Russia, Sberbank holds almost one-third of aggregate Russian banking sector assets, bank officials say. The Central Bank of the Russian Federation is the founder and principal shareholder of Sberbank owning 50 percent of the firm’s authorized capital plus one voting share, with the remaining 50% held by domestic and international investors.
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