Shadow Financial Systems Expands Fixed-Income Securities Trade Processing Capability
-ShadowSuite Securities Processing System Can Now Process General Collateral Financing Trades-
EDISON, N.J. (November 21, 2005) Shadow Financial Systems, developers of the ShadowSuite global securities processing system, today announced that ShadowSuite’s fixed-income securities trade processing capability has been expanded to include the processing of GCF Repo (General Collateral Financing Repurchase) trades on a real-time basis.
“As current interest rates begin to rise, investors are turning to the fixed-income market to gain higher yields,” stated Donald Marino, CEO of Shadow Financial Systems. “With this increase in activity, operations managers are seeking more efficient processing solutions, and U.S. treasury dealers are faced with limited choices in fixed-income settlement systems. Expanding the functionality of ShadowSuite to process GCF Repo trades is part of our commitment to provide clients with the most advanced securities processing system.”
ShadowSuite is a comprehensive global securities processing system that handles multi-currency trade processing, clearing and accounting for all combinations of currencies, products and types of trades, maintaining every position in its originally traded currency in real-time. ShadowSuite is now able to handle GCF processing through the FICC (Fixed Income Clearing Corporation) beginning with the recognition of all eligible GCF CUSIP numbers and the processing of all GCF Repo trades.
As part of this increased functionality, ShadowSuite now features a directory screen that displays GCF Blind Broker trades and includes drill-down capabilities to view the details of the individual trades that make up the position. The system also includes a summary screen with real-time updates as GCF trades are booked and real-time monitoring of the trade’s position. The summary screen contains a column to display the FICC position once received by the system as well as a difference column in the event a discrepancy exists between the in-house and FICC positions. Summaries are created on a CUSIP level and contain total repo, total reverse and net position values per GCF CUSIP.
ShadowSuite captures both the GCF comparison file for reconciliation and the GCF netting file for instructing settlement on a net basis at the end of the day utilizing the tri-party process. The GCF netting file is used to automatically generate tri-party shell deals for each applicable GCF CUSIP. These shell deals are then collateralized utilizing ShadowSuite’s automated interface to RepoEdge®, The Bank of New York’s proprietary collateral management system.
ShadowSuite features real-time interfaces to GSCC, DTCC, FICC, OCC, The Bank of New York and Global Custodians via SWIFT. Shadow Financial Systems is also fully committed to providing its customers with high-quality service to satisfy their securities processing needs. From pre-installation to post-installation, Shadow Financial Systems forms long-term partnerships with its customers’ operations personnel and management team to continually maximize the effectiveness and efficiency of ShadowSuite for their ongoing changing needs. For more information about Shadow Financial Systems, please contact firstname.lastname@example.org.
Designed to handle the complex transactions of institutional investors as well as the volume of retail brokerage firms, ShadowSuite is a comprehensive global securities processing system. ShadowSuite handles multi-currency trade processing, clearing and accounting for all combinations of currencies, products and types of trades. Unlike many other systems, ShadowSuite maintains every position in its originally traded currency in real-time.
ShadowSuite operates on the Windows 2003/XP platform, using Oracle relational database technologies. It utilizes a three-tier client/server architecture, which provides flexible and scalable infrastructure that can grow as a client’s business expands.
Trades can be entered from one easy-to-use screen with ShadowSuite’s intuitive Windows-based point and click user interface or through the extensive API provided to their clients. ShadowSuite tracks all purchases and sales, deliveries of securities and money through banks, reconciles positions with outside firms, and maintains an integrated general ledger and stock record.
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.