Intraday liquidity becomes critical for front-office trading

London - 5 March 2014

SmartStream Technologies, the financial Transaction Lifecycle Management specialist, today announced the importance of intraday liquidity in the trading environment, following the release of its TLM Cash and Liquidity Management 2.5 solution and discussions with user groups in London. The key consensus was the focus of intraday liquidity and its impact on return on investment.

The front-office produces a summary report at the beginning of each day, which is used as an indicator for trading during the day. As markets move, this summary report remains static - traders will be making decisions on old information and possibly making decisions that could affect the liquidity position of the books. With intraday liquidity they can take advantage of knowing real time liquidity positions and have a holistic view of the current trading environment.

Darryl Twiggs, Head of Product Management, SmartStream Technologies, states: “The accuracy of the summary reports at the beginning of the day are questionable. Market positions vary in different time zones, where money is swept from one country to another. One bank we spoke to, the head of trading stated that intraday liquidity will now become a front-office tool, as traditionally it has been a focus for the back-office. They will look at how to make best use of this tool as part of their ROI.”

SmartStream recently launched its integrated Intraday Liquidity Management module alongside its Cash and Liquidity Management 2.5 solution - it delivers substantial new trading opportunities by adding to cash and liquidity management as an integrated front-office trading tool. It will enable banks to comply with the Basel III regulatory compliance for Monitoring Tools for Intraday Liquidity Management, which are to be in place by January 2015. The new product will also enable banks to view all liquidity and exposures on an intraday basis. 

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