Shadow Financial Systems Featured in Aite Group’s Latest Straight Through Processing (STP) Industry Report
– Report Highlights Raymond James’ International Success with ShadowSuite Global Securities System –
EDISON, N.J. (June 28, 2006) Shadow Financial Systems, developers of the ShadowSuite global securities processing and accounting system, today announced that the company’s ShadowSuite system is featured in the Aite Group’s latest straight-through-processing market overview, titled “New Approach in STP: Inching Closer to Reality.”
In this report, the Aite Group, a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry, highlights the four initiatives – eliminating paper, business process management, platform improvements, and post-trade process outsourcing – and industry drivers that are facilitating a new STP reality. According to the report, released in June 2006, the industry will spend about US$15 billion on brokerage, clearing, and exchange fees in 2006, and the financial services industry will sustain a Compound Annual Growth Rate (CAGR) of 18.95 percent over the next four years.
One case study in the report highlights the method behind Raymond James’ ability to capitalize on this market growth by expanding their international business. Due to ShadowSuite’s flexible platform and its ability to send SWIFT messages to foreign depositories and receive trade matches back, then move matched trades into the settlement process, Raymond James has been able to substantially grow their international business without adding any staff. Raymond James has been using ShadowSuite, which was integrated with their existing legacy back-office systems, for the past three and a half years.
“STP has transformed into quiet, sequential initiatives solving immediate pain points,” said Adam Honoré, author of the report and a senior analyst at Aite Group, LLC. “While financial services firms still have a very long way to go, the market is driving renewed efforts in STP. As trade volumes continue to rise, cost will also climb. Further, expansion in product lines and global opportunities create new challenges for existing operations personnel. If you compound that with new market and compliance regulations, dealing with trade exceptions and general customer inquiries, firms are clearly experiencing some growing pains in their operations groups.”
Donald Marino, CEO of Shadow Financial Systems, said, “ShadowSuite was specifically designed to meet the dynamic needs of today’s global financial industry. For financial services institutions that are looking to cut costs with every transaction, our highly scalable ShadowSuite solution provides an automated, real-time enterprise solution that utilizes the concept of management by exception, thereby reducing the need for manual intervention.” He continued, “Research reports, such as this latest one from the Aite Group, provide insight into trends in operational improvements based on trade pressures, industry focus, and priority setting. At Shadow Financial Systems, we’re committed to staying ahead of industry trends and providing our customers with the most advanced securities processing systems.”
ShadowSuite operates on the Windows NT platform using Oracle relational database technology and features real-time interfaces to GSCC, DTCC, OMGEO, FICC, OCC, The Bank of New York and SWIFT. The full Aite Group report can be purchased by visiting www.aitegroup.com or by calling (617) 338-6050.
ShadowSuite is a highly scalable on-premise installed software solution for post-trade processing, clearing and accounting, regardless of trading volume, currency combinations, financial instruments and transaction types. ShadowSuite features deep functionality, on-demand data access and delivery and global support. ShadowSuite can be deployed as a fully integrated enterprise solution or as distinct point solutions as required. As a result, ShadowSuite can be rapidly implemented in a wide variety of environments, helping facilitate business process improvements, exception management, and generate operational cost savings.
About Aite Group
Aite Group is a leading independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry.
It was founded by leading industry experts in Banking and Securities & Investments. Aite Group brings together a team of business strategy, technology and regulatory experts to deliver comprehensive, timely, and actionable advice to financial institutions and technology vendors.
It seeks to become a true partner, advisor, and catalyst by exchanging ideas and challenging basic assumptions to ensure that our clients always stay one step ahead of the competition.
About Shadow Financial Systems
Founded in 1997 by industry professionals, Shadow Financial’s technology provides comprehensive post trade processing, treasury and accounting functionality on a cost-effective platform for trading organizations. Among the Company’s clients are NYSE Arca, National Financial Services LLC, a Fidelity Investments Company, Raymond James & Associates, MF Global, NYFIX International, and Belzberg Technologies. More information can be found at www.shadowfinancial.com.