SimCorp, a leading provider of investment management solutions and services to the global financial services industry, today announced the 6.2 release of its front to back investment management solution, SimCorp Dimension. Resulting from SimCorp’s continuous investment of more than 20% of its annual revenue into R&D, the second of this year’s bi-annual SimCorp Dimension releases introduces new functionality for all parts of the investment management lifecycle and to support all financial instrument types in one system.
MiFID II Compliance
A recent InvestOps survey found regulatory compliance to be a top concern for global investment managers and listed MiFID II among the most demanding to implement. A solution that integrates seamlessly across front office and IBOR will help investment managers with several aspects of MiFID II compliance ahead of the 2018 deadline. Building on its already tight integration, the new SimCorp Dimension release offers enhanced front office workflows to establish automated T+1 Article 26 transaction reporting.
Furthermore, Release 6.2 introduces a new FIX based connector from SimCorp Dimension’s Order Manager to support real-time post-trade reporting, and new additions to the interfaces with trading venues ensure that clients can provide the information needed to satisfy MiFID II’s order record keeping requirements. In coming versions, the Order Manager will be enhanced to align with emerging best practices around ‘commission unbundling’ and workflows for ‘best execution’ in accordance with MiFID II.
New accounting modules
Adding to SimCorp’s already advanced accounting functionality, the release also provides a smooth process for the operational handling of defaulted securities, plus support for the deferral of profit/loss on trades between internal entities. When two portfolios that belong to the same company make an internal trade – a scenario often seen in insurance asset management firms – the new Deferred Gain/Loss Module enables the company to defer the P/L realized by the selling part. Meanwhile, the Defaulted Fixed Income Securities Module makes it possible to take the registered default date on a fixed income security and create actual default transactions, which will reverse any outstanding coupon payments, redemption payments, interest accrual and amortization. Both new modules enable investment managers to automate even more of their accounting processes to increase efficiency and minimize operational risk.
Other new additions to SimCorp Dimension introduced with Release 6.2 include:
- Steuer Reform Gesetz Module: New module that provides German investment funds with the functionality needed to comply with the new German tax reform coming onto effect on January 1, 2018.
- XpressInstruments Pricing Model SABR (Pricing with Stochastic Volatility Model): Supporting the handling of all instrument types in one system, this new module further improves valuation and risk calculations of vanilla options such as CMS caps, FX options and equity options.
- Collateral Positions Overview: A dashboard that provides collateral positions data which can be disseminated throughout the organization, for instance to risk managers and front office staff.
Marc Schröter, SVP and head of SimCorp’s Product Management said: “It is our core belief that industry complexity, for instance regulatory pressures and increasing data volumes, is best handled with a system that integrates across functions, supports a broad range of instrument types, and is regularly updated to meet new market demands. By constantly investing in our integrated solution, we are providing our clients with increasing levels of automation and efficiency, giving them a distinct competitive advantage.”
The next version of SimCorp Dimension will be released in February 2018.
SimCorp provides integrated, best-in-class investment management solutions to the world’s leading asset managers, fund managers, asset servicers, pension and insurance funds, wealth managers and sovereign wealth funds. Whether deployed on premise or as an ASP solution, its core system, SimCorp Dimension, supports the entire investment value chain and range of instruments, all based on a market-leading IBOR. SimCorp invests more than 20% of its annual revenue in R&D, helping clients develop their business and stay ahead of ever-changing industry demands. Listed on NASDAQ Copenhagen, SimCorp is a global company, regionally covering all of Europe, North America, and Asia Pacific.