New online solution for boosting foreign exchange and money market trade automation showcased at AFP by Misys

12 November 2008

Regional banks and their corporate customers attending this year’s AFP conference in Los Angeles will be able to experience a newly improved web trading and cash management solution for foreign exchange (FX) trading and foreign currency deposit accounts (FCDA) from Misys plc (FTSE: MSY.L), the global application software and services company.

Attendees will get a first look at Misys e-Opics Plus – a newly integrated solution which joins Misys Confirmation Matching Service (Misys CMS), the world’s leading post-trade confirmation solution and Misys Opics Plus, a powerful treasury and capital markets solution which enables cross asset transaction processing across front, middle and back office operations. The new hosted solution is rapidly deployed with reduced delivery costs, and enables businesses with expanding treasury needs to achieve faster time to market for new instruments, reduce the window of risk between trade and confirmation, and improve risk management.

In recent months, money market transactions have grown in volume to represent around 15% of the total trades confirmed every day by Misys CMS and the integration represents a major step forward in automation for Misys customers, increasing straight-through processing (STP) and reducing operational risk. Using Misys e-Opics Plus, regional banks can offer additional services to their customers including corporations and individuals. Through its highly secure online portal, customers will now be able to trade FX spots, forwards, swaps, forward options and deposits. Full cash and position management features and the ability to make payments and transfer money between accounts are offered.

Bob McDowall, Research Director-Europe at TowerGroup comments: “Accuracy in trade confirmation and processing in foreign exchange and money market trades is critically important in light of the concerns about counterparty risk in money markets. It is anticipated that governments and central banks will continue to supply liquidity through measures, which lower the resistance of banking institutions to using the money markets for short-term liquidity. Technology has a key role to play in re-engendering confidence in the market by executing trades in a way that minimize actual and perceived counterparty risks.”

Corporations using Misys CMS have long had the ability to confirm Money Market transactions, but through Misys e-Opics Plus the process is fully automated. Misys CMS obtains the trade information from the financial institution via SWIFT MT 320 messages. Corporate trades are booked and formatted automatically within the Misys Opics Plus applications and delivered to the outgoing SWIFT message queue for delivery to Misys CMS. The buy-side counterparty to the trade either uploads a file of messages to Misys CMS through a secure internet connection or can affirm the trade over the internet. Upon the trade being matched Misys CMS generates an MT 320 message to the financial institution notifying them that the trade has been confirmed.

David Stewart, Director of Risk Solutions in Misys Solutions for Treasury & Capital Markets business comments: “The dramatic increase in foreign account activity and more active cash management practices in the U.S. have highlighted the need for a front-to-back office, cross-asset capability to boost performance and improve management of operational risk. Through this integration, regional banks can now extend that capability through to seamless confirmation, eliminating the need for a SWIFT provider and further streamlining operations.”

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