Digiterre Welcomes HFWG’s Work on Operational Risk Compliance in Trading and Execution

9 April 2008

Digiterre, London-based software provider to the hedge fund and alternative investment community, welcomes the Hedge Fund Working Group’s efforts to ensure the reduction of operational risk amongst its members, particularly in the areas of trading and execution associated risk, where the company has concentrated much of its recent product development effort.

Ravi Sawhney, Digiterre Head of Trading Systems at says:
“We support the Hedge Fund Working Group report, in particular the fact that they are conscious that having a of robust trade confirmations platform is a key factor in effectively managing trade and execution risk. The continued growth in OTC derivatives coupled with the fact that most funds are multi-asset means managing the confirmations lifecycle is a headache for most hedge funds, and certainly one that can’t be overlooked.”

Sawhney continues:
“ The post-trade problem for hedge funds is something that we have been looking at for some time, marked last year by the successful launch of our dConfirm product.”

In a nutshell, dConfirm allows hedge funds to automate parts of the confirmation lifecycle to produce real-time views on all unconfirmed trades in a few clicks. It is backed by a powerful and highly flexible reporting engine and will later in the year support connectivity to the major electronic confirmation platforms, including Swapswire and DTCC.

The dConfirm dashboard provides Head of Operations and COO’s with a “cockpit view” of all confirmation activity including feedback on configurable Key Performance Indicators. In addition, the product gives users the ability to set up human and system workflows, thus enabling financial institutions to stay on top of operational risk compliance.

While it may be generally perceived that funds with low volumes may not warrant the use of electronic matching and confirmation systems, Digiterre has found otherwise:
“We are even finding that clients who trade a relatively small volumes of OTC products still want to electronically manage the confirmation lifecycle to allow them to producing daily ‘Ageing Reports’, for example. Not only is it fundamental to tracking their operational risk, but also their investors are now placing a strong emphasis on it, which highlights how timely the HFWG’s set of standards really are. ” says Sawhney.

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