The Company is providing one of the UKâs most sophisticated interfaces to the CREST settlement system, allowing the bank to process Money Market Instruments (MMIs).
The move of instrument issuance and processing from the Central Moneymarkets Office to the leading depository CREST is likely to save the UK market millions of pounds per year, through reductions in membership and processing costs. As a leading player in this market HBOSTS has been able to take advantage of this change with the successful implementation of the Peter Evans Axim product.
The system provides a vital link between the bank and CREST.
Peter Evans Managing Director Dr Mike Foley said: âThe enhanced Axim functionality we have developed for HBOSTS gives their team a unique opportunity to streamline a traditionally laborious process and save time and money by processing increasingly large numbers of transactions.
âWeâre delighted to have been instrumental in creating the new set-up which will consolidate HBOSTSâ position as one of the leading institutions in the London Money Markets.â
Money Market Instruments are defined as forms of short-term investment that are traded in the money markets and are easily turned into cash. The money markets are regulated by the Financial Services Authority (FSA).
Typical MMIs which will be traded under the new electronic system include Treasury Bills, Bank Bills, Certificates of Deposits and Commercial Paper. The value of MMIs in circulation is approximately Â£160billion on a daily basis.
Dr Foley said that the choice of solution and provider was fundamental for success in the new system, for those wishing to outsource.
âThere is no doubt that the switch to CREST is a milestone for the market. Itâs critical that Institutions have the best possible software solution which allows them to communicate and deliver MMIs quickly and effectively. Straight-through processing is the easiest and most cost-effective way to achieve this.â