Commerce Bank, a leading U.S. bank headquartered in Kansas City and St. Louis, has selected Spectrum from Financial Software Systems to manage its Foreign Exchange trading activities. Commerce Bank has over USD 20 billion in assets, and serves clients in Missouri, Kansas, Illinois, Oklahoma and Colorado from over 360 locations. Commerce Bank has a long and distinguished history, tracing its founding in Kansas City back to 1865. Today Commerce Bank provides a diversified line of financial services through its affiliated companies, including business and personal banking, investments, wealth management, and financial planning.
Spectrum is a comprehensive front-office to back-office position management and wealth management solution. Spectrum supports multiple asset classes including foreign exchange, money markets, fixed income, equities and derivatives. Commerce Bank will use Spectrum to manage all aspects of its foreign exchange operations, including the trading of FX Spot-Forward-Swap and Time Option contracts, FX OTC Option contracts and foreign currency bank notes.
Spectrum provides the complete range of FX management functionality for true straight-through-processing in a single system. As soon as transactions are captured in Spectrum, Commerce Bank's positions, P&L and projected cash flows will be updated. In the middle-office Spectrum provides real-time credit and risk management through pre-trade and post-trade credit checks. Spectrum's back-office produces SWIFT, printed and email confirmations as well as SWIFT payments and multiple formats of wire payments. General Ledger accounting entries are produced by Spectrum and stored in Spectrum's multi-currency Treasury sub-ledger.
In addition to licensing the core Spectrum system, Commerce Bank also licensed the Spectrum FX Client Portal, an internet banking portal that provides a direct bank-to-customer channel for FX transaction execution and management. The Spectrum FX Client Portal will allow Commerce Bank's customers to obtain competitive and executable FX quotes, and to establish and manage customized workflows for the settlement of FX spot-forward-swap and time option contracts. At the heart of the Spectrum FX Client Portal is a powerful Price Engine. The Price Engine will provide the correct price for all of Commerce Bank's customers in all currency pairs. FX Prices can be generated in the FX Client Portal based upon the currency being bought or sold, the size of the transaction, the tenor of the transaction and the classification of the client. The Spectrum FX Client Portal allows for dealer intervention in the pricing process so that special client requests can be handled and FX prices can be adjusted. The Spectrum FX Client Portal has a full audit trail of all requests for quotes and all trading activities.