Boston-based money manager builds on its strategic relationship with HelioGraph
New York and London, 12th November 2001 - HelioGraph, specialists in financial messaging technology, are supplying the technology allowing US-based fund manager MFS Investment Management to implement ISO15022-empowered straight-through processing.
Boston-based MFS plans to go live with its Electronic Trade Delivery system on 10th December, implemented with straight-through processing (STP) technology by HelioGraph. The fund manager has implemented HelioGraph's SWIFT Ready Gold accredited application integration solution, Helio Message Broker and its STP
platform, Helio TradeFlow. TradeFlow includes a unique message workstation, allowing users to view and manage the entire post-trade messaging process.
As part of its STP project, MFS will use TradeFlow for FX confirmations and failed trade tracking. TradeFlow will compare messages from its order management system with messages from brokers and custodians, providing an easy way to pinpoint the source of any discrepancies.
MFS had already chosen to implement HelioGraph's eVent solution to automate its corporate actions processes and will now take advantage of HelioGraph's component-based architecture by combining the two solutions. The combined solution will create a future-proofed, standards-based STP and corporate action system that will cut its costs, reduce risks, increase efficiency and
deliver greater management information.
This announcement represents an early success for HelioGraph's recently established New York office. The HelioGraph solution will increase the efficiency of MFS's trade delivery and monitoring systems, allowing the fund manager to oversee its operation in real time and to benchmark its performance more effectively.
"A year ago we were looking to set up an STP system. We were very paper-intensive and we wanted to reduce our risk and exposure,while cutting costs and increasing our ability to monitor and benchmark our performance," said Martin Pearce, Head of Investment Operations at MFS. "We had to look for a solution which would offer hands-off STP, and which would sit well on the XML and
MQSeries based technology platform we wanted to implement."
"HelioGraph fitted the mould. We liked the flexibility of their systems and we liked where they wanted to go," continued Pearce.
"We had some future projects which their technology could deal with; they had the answers to problems that we wanted to address in the future."
MFS implemented the HelioGraph solution in a very short timeframe,beginning only in July this year, and with systems ready for the 10 December live date. "HelioGraph delivered, and delivered on time. We like their approach and their level of service," said Pearce. "we are very pleased with the professionalism of their work."
In addition to the immediate STP benefits, using HelioGraph's data field dictionary architecture will also allow MFS to take advantage of central matching utilities when they eventually come to fruition, and other market infrastructures adopting ISO15022.
"With HelioGraph, we can continue to develop our own initiatives but we will keep a foot in the door of GSTPA and OMGEO," Pearce.
By using HelioGraph's STP platform, MFS expects to gain several major business benefits, including:
·reduced risk of message and processing errors, as re-keying
·increased efficiency, as manual processes are streamlined and
·cost containment, as scalable and efficient automated
processes replace manual intervention,
·more comprehensive management information, with information
drawn from several sources now consolidated into a single
management view, and
·better management information, including improved real-time
monitoring of trades and benchmarking and metrics capabilities,allowing MFS to become more pro-active in its use of management information
Taken together, the business benefits of the system mean that MFS's investment is highly cost-effective. "We expect the investment to pay for itself in a relatively short period of time," Pearce said.
Because HelioGraph solutions use industry standards such as ISO 15022 and the XML data description language, users can easily transfer their data to and from different messaging formats. And because HelioGraph bases its solutions on re-usable component technology, users can quickly and cheaply maintain, change and
reconfigure their systems with no intervention by HelioGraph.
Training staff in HelioGraph's solutions is also simple, allowing financial institutions to quickly become proficient and independent of the vendor.
"A number of companies have been leading the industry STP initiative, we will be up there with them. It's fair to say that HelioGraph is MFS' vendor of choice for STP" concluded Mr Pearce.