In other news, SIFMA conducts a business continuity test, JPMorgan launches a data mesh & SSImple partners to revamp SSI.
New Offering Matches Fills In Real-Time
A FIX protocol-based reconciliation offering, dubbed NYFIX Fill Matching, has been launched by post-trade systems and services provider Broadridge Financial Solutions, which adds that the solution compliments Broadridge’s post-trade NYFIX Matching solution.
NYFIX Fill Matching targets the needs of asset managers “with high volume and/or high-touch orders,” according to Broadridge. “NYFIX Fill matching is the only platform that matches fills between brokers and asset managers in real-time.”
With the T+1 shortened settlement push underway, “Broadridge’s new Fill Matching Solution will rapidly identify trade discrepancies, enabling clients to address and fix these issues before the close of the trading day,” says George Rosenberger, head of NYFIX, Broadridge Trading and Connectivity Solutions, in a prepared statement.
“By reducing this key friction point, Broadridge is continuing to streamline and modernize the front-to-middle office environment for our buy-side clients,” Rosenberger says.
The Fill Matching solution offers real-time reconciliation, which will help brokers and asset managers to be “constantly in sync, minimizing end-of-day mismatches,” officials say.
For instance, “Drop Copies, or execution reports, are sent from the brokers’ front office platform and are matched against the fills received from the asset managers’ system. The matching criteria is flexible and can be configured by the asset manager to meet their respective requirements. The service informs the asset manager that all fills received from the brokers have been processed and that they can confidently allocate their trades and move into the post-trade matching process,” officials say.
SIFMA Reports on Business Continuity Test on Oct. 14
Charles DeSimone
Securities industry group SIFMA reports that more than 80 entities took part in an industry-wide business continuity test on Oct. 14 that went well.
“SIFMA and its members remain focused on operational resilience to protect clients, data, networks and operations from diverse cyber threats including theft, disruption and destruction,” says Charles DeSimone, SIFMA managing director, technology and operations, in a prepared statement.
“Last weekend we conducted our 2023 SIFMA Industry test, during which securities firms and market infrastructure providers and key third parties tested their business continuity and disaster recovery plans by exercising and verifying their ability to operate using backup sites, recovery facilities and backup communication capabilities,” DeSimone says. “Over 80 entities were available for testing, including equities and options exchanges, fixed income markets, market data providers, clearing agencies, payments platforms, and service bureaus, as well as a simulated Treasury auction.”
At the same time, organizations that come under the scope of the SEC’s Regulation Systems Compliance and Integrity (Regulation SCI) “completed their testing requirements with the industry. Regulation SCI requires that each SCI entity designate members and participants to take part in an annual business continuity and disaster recovery plan test. SIFMA facilitates a coordinated testing program for the industry as part of our business continuity planning and disaster recovery work,” DeSimone says.
“Reg SCI testing included simulated trading days for all Reg SCI exchanges and ATSs, along with simulated post-trade activity for clearing utilities, as well as simulated regulatory trade reporting,” he adds. “The successful test underscores the ability of the securities industry to operate through adverse conditions.”
The SIFMA trade association represents broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets.
JPMorgan Launches ‘Data Mesh’ for Securities Services
JPMorgan has launched a solution that helps its Securities Services clients “to retrieve critical investment data” that is held by the firm’s custody, fund accounting, and middle office services, officials say.
The “Data Mesh” offering for institutional investors is available via JPMorgan’s cloud-native Fusion platform, which provides data management, analytics, and reporting for institutional investors, officials say. Fusion also uses cloud-native channels including the REST application programming interfaces (APIs), Jupyter notebooks, and the Snowflake Financial Services Data Cloud, officials say.
“Organizations aiming to take advantage of the cloud’s elasticity and tap into the accelerated growth and rapid development in analytics, A.I., and machine learning require data within a modern technology stack that is ready to use and analyze,” officials say.
With the release of Data Mesh, the Fusion platform “now includes Securities Services data for the first time. By providing a range of cloud-native channels, Fusion is addressing long-experienced pain points in integrating asset servicing data including the challenges to ingest data at scale, especially as portfolios and investments grow in size and complexity,” according to the JPMorgan announcement.
The Data Mesh helps the firm “meet our clients where they are, delivering data directly to their Snowflake instances and Python notebooks. Clients can now access data directly from applications running in the cloud and on-premise through Fusion APIs and other modern delivery channels,” says Gerard Francis, head of data solutions, JPMorgan, in a prepared statement.
More about Data Mesh can be found here: https://bit.ly/3M43OOF
SSImple & Delta Capita Partner to Revamp SSI
SSImple, maker of a SaaS DLT platform for standing settlement instructions (SSIs) is working with Delta Capita, a capital markets consulting, managed services, and technology provider, “to transform the way that financial institutions (FIs) manage SSIs,” officials say.
The collaboration is focused on how SSIs “are stored, shared, and enriched across the financial services industry … This collaboration is primed to usher in a new era of efficiency, accuracy, and regulatory compliance within post-trade operations,” officials add.
“The financial services industry has long grappled with the complexities of SSI management, facing challenges such as manual processes, settlement failures, and operational risk. The partnership between Delta Capita and SSImple is specifically designed to tackle these pain points head-on, providing a holistic solution that automates and streamlines the entire process from start to finish,” according to the announcement.
With Delta Capital’s help, SSImple will provide access to:
- “An open-permissioned industry SSI repository, available to any legal entity that a client wants to provide access;”
- “Industry standard rules based on Place of Settlement (PSET) and security type, to ensure validated input;” and
- “The ability to add SSIs via a graphical user interface (GUI), with Excel upload and download options, plus Application Programming Interface (API) capabilities.”
“With significant penalties issued to financial institutions for settlement fails in 2022 under CSDR’s Settlement Discipline Regime as well as T+1 on the horizon for the United States and Canada in May 2024, now is the time to be implementing a robust process for SSI management,” says Bill Meenaghan, CEO at SSImple, in a statement. “Manual processes should no longer persist, but with a much shorter settlement timeframe and with market participants expected to see a reduction from 12 to just two hours of post-trade operations time, automating SSI management is now an imperative to enable an efficient settlement process.”
The platform from SSImple, which was launched in May 2023, uses R3’s Corda. Meenaghan and SSImple Chairman Matthew Cook are working “with custodians and prime brokers, the buy-side and outsourcer firms, broker-dealers, and multiple third parties to make a difference,” officials say.
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