The new Japanese margin trading module handles all aspects of transaction processing for margin trading, from trade capture to settlement and accounting. The module includes management features for daily loan and cash movements with the Securities Finance Corporation (SFC); collateral calculations and daily margin call corrections; and 'what if' simulations for positions pending closure. Corporate actions support is also provided for Japanese margin trades.
The module also handles the Japanese convention for settling margin trades at a transactional level rather than settling at a position level as practised in the US and Europe. Revaluation and charging is also handled at transaction level.
Development of the module was carried out at Wilco's international development centre in Hyderabad, India, with support from Wilco's Tokyo office for interfacing requirements. The module provides support for both Japanese and English language character sets.
Wilco can deliver the module as an integrated component of Gloss or independently. The first user is expected to commence live operations with the module during Q4 of 2002.
Paul Grassham, Wilco's General Manager in Tokyo, said: "We have underlined our commitment to the Japanese market through this further extension of our product range for this strategically important region. Again, we have demonstrated our ability to deliver solutions that meet local market needs and, importantly, provide the flexibility to enable clients to embrace the changes that will be introduced in the market during the next few years."
The new margin trading module is the latest in a succession of Wilco developments to support STP in Japan. Since opening its first office in Tokyo in 1998 Wilco has introduced a range of functionality to support Japanese market requirements including the Tokyo Stock Exchange's (TSE) DVP processing, JASDEC's pre-settlement matching system (PSMS), JASDEC settlement, and New Gensaki trading.