Syntegra, the consulting and systems integration arm of BT, has joined forces with Sphere Group to provide an online financial reconciliation service for fund managers and investment banks lending and borrowing securities.
The new service will allow counterparties to achieve real-time reconciliation between their back offices. “This will enable them to identify and resolve any contract errors much earlier in the cycle and substantially reduce operational overheads,” said the partners in a joint statement. “It will also allow the front office to spend more time trading rather than handling back office queries.”
The financial reconciliation service, which will be available to both lenders and borrowers of securities via the Internet, is being launched as part of the Syntegra financial communities portfolio, a range of services aimed at solving common business problems in the financial services industry. Other services include SettleNET, the gilt and equity electronic settlement network; and SwapsWire, the electronic derivatives trading and communications network, for which Syntegra acts as technology partner.
“The securities lending business has always suffered from post trade administration and reconciliation problems,” said Kevin Covington, head of Syntegra financial communities. “This service will allow market participants to flag up any mistakes far earlier in the cycle and make them easier to resolve.”
Rob Denham, managing director of Sphere Group added that “the only way to truly provide value to the market and improve the process is to bring the market together for everyone’s benefit. Utilising this service will enable our customers to improve their operations process and reduce risk. By bringing together the complementary skills sets of Syntegra and Sphere, we have created a robust business model that will provide long-term benefit to our customers.”
Syntegra and Sphere plan to extend the financial reconciliation service to include other asset classes in addition to securities and will be working closely with the market to prioritise them.