SunGard Securities Processing announced today that Credit Lyonnais Securities (USA) Inc. has implemented SunGard’s STN Settlements system to manage trade messaging between the Phase3 securities processing system and SWIFT/Euroclear for both U.S. and foreign securities.
STN Settlements is an automated clearance and settlement service that consolidates and controls multiple messaging interfaces on a single platform, connecting custodians, broker-dealers, banks and futures commission merchants to custodians, depositories and clearing institutions. STN Settlements handles trade comparison, reconciliation, clearance and settlement.
“With the breadth of securities products that we handle, both domestic and international, it is crucial that we quickly and accurately communicate with customers and entities in all of the markets in which we operate, and the STN Settlements and Phase3 solution meets these needs effectively,” says Rich Jablonski, chief operating officer at Credit Lyonnais Securities (USA) Inc. “Phase3 and STN Settlements give us the flexibility to add new products to our repertoire as our business needs dictate, and automatically handle processes with less manpower and without errors.”
Credit Lyonnais Securities (USA) Inc. began using Phase3 in March 2001 to process the firm’s U.S. and foreign equities, U.S. Treasury bonds, corporate bonds, and foreign fixed income securities on a single platform. STN Settlements interfaces directly with Phase3 to update trade positions and account books and records instantly in a straight-through processing environment, helping to reduce the risk and cost of manual processes, errors and delays. Credit Lyonnais Securities (USA) Inc. uses both SunGard systems on an ASP basis .
“We had two choices for implementing a central interface solution: Get STN Settlements, or build it ourselves. SunGard had done all of the interface groundwork, so the choice was easy,” adds Jablonski.
Credit Lyonnais also uses STN Settlements to communicate details of U.S. trading activity with its Paris headquarters, and plans to add STN Settlements’ interface with the Government Securities Clearing Corporation’s (GSCC) Real-Time Trade Matching (RTTM) system in early 2003 to handle Fed-eligible fixed income trades.
STN Settlements currently includes, from a single point of access, interfaces with the GSCC RTTM, SWIFT Category 5 compliant with ISO 15022 standards, Euroclear, and the Depository Trust Corporation (DTC) inventory management system. SunGard plans to add several more interfaces to STN Settlements, including Bank of New York government securities and Mortgage-Backed Securities Clearing Corporation’s (MBSCC) RTTM.