Financial Models Company Inc. (FMC), the Toronto-based technology company, says it has launched FMCNet2, the upgraded version of its trade matching service. The company, which has migrated 35 of the 118 investment managers using its network to FMCNet2, is offering central as well as local matching.
Following months of beta-testing with industry participants, the first phase of the FMCNet2 release took place in mid February, when over 60 clients moved to FMC’s upgraded standing settlement instruction database. The current phase involves individually migrating over 240 clients world-wide to the full FMCNet2 system, as well as putting new clients on to the network.
In addition to local matching, and its DTCC-ID Hub and SWIFT Hub capabilities, FMCNet2 offers users a Central Matching Utility. It is Canada’s first central matching utility, and competes directly with Omgeo and SunGard Data Systems. It has yet to be approved for use in the United States by the Securities and Exchange Commission–a status curently enjoyed by Omgeo’s Central Trade Manager only. SunGard has applied to the SEC for approval of its own central matching service. The SEC makes links with other matching utilities a condition of gaining a licence
The company says central matching means that users can greatly reduce the risk of trade failures, achieve higher STP rates and so lower costs. “In combination, the capabilities of FMCNet2 bring greater workplace efficiencies to all participants in a trade, including investment managers, broker/dealers and custodians,” says FMC.
FMCNet2 can be accessed via the Internet through a web browser. Its built-in 128-bit encryption ensures that data transmission is secure and fast. Like its predecessor, FMCNet2 supports multiple formats and connections. Interfacing with many networks, it provides all of a user’s data over a single, secure pipeline without having to incur the costs of adopting multiple systems.
“FMCNet2 offers users a remarkable improvement in efficiency,” says Bob Shaw, FMC’s Director of Electronic Trade Settlement. “It creates a fully automated path from the initiation of the trade through settlement, while retaining flexibility and interoperability to integrate with any trade order management, portfolio accounting, or settlement system in the world.”
FMCNet was originally launched in 1990, and supports equities, bonds, money market, foreign exchange, futures and term deposits.