Shadow Financial Systems Announces New Securities Finance System that Supports Outsourced Self-Clearing
– LoanStar from Shadow Financial Systems Allows Trading Groups to Self-Clear Without the Cost and Infrastructure of an Internal Securities Finance Operation –
EDISON, N.J. (September 13, 2004) Shadow Financial Systems, developers of the ShadowSuite global securities processing system, today announced the launch of LoanStar, a new securities finance system that enables trading groups using ShadowSuite as their clearing system to outsource the securities finance operations, reducing the capital and operating expenses of their clearing operation.
LoanStar, a component of Shadow Financial Systems’ ShadowSuite, calculates securities finance requirements. Based on these calculations, LoanStar instructs the associated stock loan group to “borrow to cover short,” “finance a long” or close out the most cost effective open financing position. All outstanding trading activity and positions for multiple trading groups can be aggregated and “netted down,” ensuring that only one instruction per security is sent to the securities finance group. Deals done are brought into the trading groups’ ShadowSuite system and automatically compared to what was previously instructed. Deals within pre-determined tolerances are passed into ShadowSuite’s AutoCage for auto-instructing and reconciliation and those outside the pre-set tolerances are sidelined for manual intervention.
Donald Marino, CEO of Shadow Financial Systems, said, “LoanStar was developed to enable a trading group to go self-clearing without the enormous costs associated with creating and maintaining an internal securities finance operation. If a trading group contracts with one or more securities finance groups, they can seamlessly outsource this function with LoanStar.”
“Shadow has provided a seamless front and back-end system with its LoanStar platform by electronically automating processes that, in the past, would have been manually intensive. This ultimately allows trading desks to concentrate on what they do best – trading. In addition to these benefits, it has also helped Maple Securities to become a provider of prime broker-like services to firms that electronically submit their requirements to us through this platform,” said Keith Kirsch, senior vice president, Maple Securities USA, Inc.
Self-clearing with ShadowSuite will reduce a firms cost per trade and provide real-time efficient access to transactions and positions. LoanStar enables trading groups to derive the benefits of self-clearing, without the expense and need for dedicated staff to manage the clearing process. For more information, 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 NT 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.