BT and SAM Systems have launched a managed back-office service intended to help securities organisations outsource their IT related back-office settlement infrastructure.
The new service allows BT to extend SettleNet – its system for connecting financial institutions securely to CREST for electronic settlement of equities and gilts – to offer a hosted managed clearing and settlement service. The managed back-office service utilises SAM systems’ InterSet, a software product which processes securities transactions for a range of firms including UK high street banks, traditional and internet stockbrokers, market makers and other securities trading firms.
The managed back-office service from BT supports global securities and multiple asset classes through the trade life cycle from allocations to post-settlement, custody and corporate actions, stock situations and benefits, with real-time exception-based processing. For UK domestic securities for settlement in CREST, the service supports ISO15022 and DEX messaging. All SWIFT messages are supported for payments and the ‘double entry’ accounting method is used for both cash and stock.
Available via a secure virtual private network (VPN) offering low cost and reliable communications connectivity, the managed back-office Service offers users the option of BT’s business continuity planning for disaster recovery ensuring constant connectivity. The BT service is flexible and scalable. Users can tailor the solution to their requirements with options on service level agreements and pay-as-you-go tariff structures.