In May 2001, the TSE implemented a new DVP settlement process for market side settlements. To cope with the requirement, Wilco has enhanced the Gloss settlement system to process the TSE DVP files. The functional enhancements made to Gloss include the matching of Gloss trades to TSE reported executions, automatic netting of trades for reconciliation with the TSE DVP files and automatic processing of DVP failed settlements.
As a step in the move to T+1, JASDEC commenced live operation of its pre-settlement matching system (PSMS) in September 2001. The system provides matching of trade and settlement details between the buy and sell side of the market. The system promotes the early resolution of any issues which could result in settlement failure so that the move to a shorter settlement period can be introduced with the minimum of impact.
To address this market change, Wilco has developed a new product, the JASDEC
Matching Adapter (first announced in October 2001), to provide message
processing functions using ISO15022 message formats and system connectivity
to JASDEC using TCP/IP. The Adapter successfully completed the industry
tests and went live on the first day that JASDEC introduced the system.
JASDEC has since implemented a second phase to cover non-resident
transactions and convertible bonds and again Wilco's Adapter underwent
industry testing prior to going live in January 2002.
Enhancements have also been made to facilitate settlement of JASDEC eligible
securities. Functionality has been developed to generate JASDEC delivery
instruction files and read JASDEC status files and account statement files.
As part of the standard functionality, Gloss contains the decision logic to
ascertain when settlement instructions are necessary and trigger the
generation of a JASDEC delivery instruction. Information from the JASDEC
status files is sent to Gloss and recorded against the original delivery
instruction with data from the account statement file being posted into
Gloss for reconciliation with internally calculated account positions. In
addition, Wilco's Corporate Actions module is able to generate JASDEC
Beneficial Ownership files based on account balance data held within the
Gloss Position Management module.
More recently, Wilco has enhanced its Gensaki trading capabilities to cope
with new requirements introduced into the market for so called New Gensaki
trades. The trading of New Gensaki has adopted a repo like model - it allows
open contracts and introduces the concept of collateral to facilitate risk
management and collateral substitution. The first Wilco client went live
with the New Gensaki functionality in December last year.
For the past three years, Wilco's STP solutions have been able to support
Japanese character sets for reporting, confirmations and statements.
However, Wilco has now added Japanese field labels and menu options to
provide the user community with a Japanese look and feel to its market
leading real-time systems.
Paul Thomas, Wilco's Sales & Marketing Director, who delivered the welcome
address at this week's STP/T+1 forum said: 'We are very proud of our
achievements in the Japanese market and have demonstrated our commitment to
providing good STP solutions to help firms in the Japanese market realise
their STP goals.'
One development currently in progress is that of Japanese Margin trading
functionality. Wilco has been requested by clients to provide a solution,
which Wilco will make available to clients later this year.