Copenhagen-based Danske Bank today announced a major addition of front-office modules to its existing Summit STP back-office software infrastructure, encompassing the bank’s users sites in London, New York, Copenhagen, Helsinki, Oslo, and Stockholm. New capabilities include real-time/high-volume forex trading, a real-time incremental hedge position server, advanced tools for customizing applications, real-time STP workflow monitors, and license support for a total of 275 concurrent users. Other additions scheduled for future delivery include support for callable multi-asset instruments, real-time cash management, and a Web-based swap trading system earmarked for external institutional customers.
“The new software components,” according to Steen Blaafalk, Senior VP, “represent another major milestone in the bank’s strategic plan to implement a comprehensive and cost-efficient STP solution for our forex and bond businesses.”
Danske Bank, a client for Summit’s front-office derivatives since 1997, signed a contract amendment that added a broad range of functionalities. “The initial implementation phase-installation of integrated front-to-back components-delivered on STP’s promise of reducing overhead costs along with providing critical trading and risk management capabilities. Now we’re adding more advanced capabilities. All deals will be entered and processed in real-time, and we’ll be able to efficiently manage non-linear risk. Our front-office professionals will make excellent use of real-time incremental hedging, and easy-to-use customization tools will enable the bank to adjust very quickly to changing business demands. Overall, we’ll be well positioned for future business opportunities with an n-tier distributed system designed for expansion, speed, and scalability.”
With regard to future directions, Steen Blaafalk said, “We’ll soon gain Summit support for exotic callable instruments. Shortly thereafter we’ll add Summit’s real-time cash management module, which will give us precision cash monitoring and control capabilities. We are excited about the business potential behind a new Web-based swap trading system, to be built using proven Internet technology components pioneered by Summit’s e-FX product.”
Raphael Bensimhon, Sales Manager at Summit’s Paris office, remarked: “During the bank’s software selection and review process, a natural concern arose about making such a large global commitment to a single software supplier. The issue was put to rest by the bank’s experience with us, our overall track record and reputation, and the fact that we are a subsidiary of a very large software services organization, Misys. Summit is very pleased to have the opportunity to expand our business partnership with Danske Bank.”
In a separate development, Milan-based UniCredit Banca Mobiliare (UBM), part of UniCredito Italiano Group, Italy’s largest investment bank, completed a strategic milestone by updating its existing front-to-back Summit infrastructure. The bank has added real-time STP capabilities, real-time hedging, credit and commercial lending instrument support, and a new Internet toolkit. The bank’s new STP Operations software will make full use of Summit’s real-time, event-driven trade processing capabilities.
“Summit’s STP products,” says Cesare Tagliabue, UBM’s program manager responsible for Summit business support, “will automatically handle data flows from external systems, rate resets, documentation generation and transmission, payment netting calculations, miscellaneous data entry tasks…the list goes on and on. It will also give our traders and risk managers additional sophisticated analysis tools-like the new real-time hedge engine-to make informed business decisions.”
The UBM program manager charged with Summit technical support within the bank, William Di Francesco, commented on UBM’s use of the new e-Toolkit module, which, among other capabilities, will extend powerful Summit-based functionality to external applications like Excel spreadsheets and Web browsers. “We will implement a two-part rollout of new services based on eToolkit. The initial phase will consist of exposing Summit calculation functionality and database information to the spreadsheets and report applications used by our traders in the dealing room. This means the ad hoc analysis all traders like to perform will be based on validated algorithms and data. In the second phase, we will use e-Toolkit to enable thin-client system access for our several front office departments.”
Raphael Bensimhon, Sales Manager at Summit’s Paris office, also commented on the new sale. “Clearly, the ever-increasing scope of implementation at UBM is a very good endorsement of the competitive advantages Summit has to offer. UBM first acquired Summit in 1998 for front-to-back support for IR derivatives, futures, bond options, exotics, and structured instruments. FX options were added in 1999, followed by back-office support for equities in May of this year.
“With each successful addition to their Summit suite, UBM’s confidence in our ability to handle their business needs grows stronger. We at Summit are committed to helping them gain even more process automation and efficiencies in the future.”