Other additions scheduled for future delivery include support for callable multi-asset instruments, real-time cash management, and a Web-based swap trading system earmarked for external institutional customers.
"The new software components," according to Steen Blaafalk, Senior VP, "represent another major milestone in the bank's strategic plan to implement a comprehensive and cost-efficient STP solution for our forex and bond businesses."
Danske Bank, a client for Summit's front-office derivatives since 1997, signed a contract amendment that added a broad range of functionalities. "The initial implementation phaseâinstallation of integrated front-to-back componentsâdelivered on STP's promise of reducing overhead costs along with providing critical trading and risk management capabilities. Now we're adding more advanced capabilities. All deals will be entered and processed in real-time, and we'll be able to efficiently manage non-linear risk. Our front-office professionals will make excellent use of real-time incremental hedging, and easy-to-use customization tools will enable the bank to adjust very quickly to changing business demands. Overall, we'll be well positioned for future business opportunities with an n-tier distributed system designed for expansion, speed, and scalability."
With regard to future directions, Steen Blaafalk said, "We'll soon gain Summit support for exotic callable instruments. Shortly thereafter we'll add Summit's real-time cash management module, which will give us precision cash monitoring and control capabilities. We are excited about the business potential behind a new Web-based swap trading system, to be built using proven Internet technology components pioneered by Summit's e-FX product."
Raphael Bensimhon, Sales Manager at Summit's Paris office, remarked: "During the bank's software selection and review process, a natural concern arose about making such a large global commitment to a single software supplier. The issue was put to rest by the bank's experience with us, our overall track record and reputation, and the fact that we are a subsidiary of a very large software services organization, Misys. Summit is very pleased to have the opportunity to expand our business partnership with Danske Bank."