Shadow Financial Services Expands Fixed-Income Securities Trade Processing Capability

Shadow Financial Services Corp. announced that its fixed income securities trade processing capability has been expanded to include the processing of GCF Repo(R) (General Collateral Financing Repurchase) trades on a real time basis. "As current interest rates begin to rise,

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Shadow Financial Services Corp. announced that its fixed-income securities trade processing capability has been expanded to include the processing of GCF Repo(R) (General Collateral Financing Repurchase) trades on a real-time basis.

“As current interest rates begin to rise, investors are turning to the fixed-income market to gain higher yields,” said Donald Marino, CEO of Shadow Financial Services. “With this increase in activity, operations managers are seeking more efficient processing solutions, and US treasury dealers are faced with limited choices in fixed-income settlement systems.”

ShadoSuite is a global securities processing system that handles multi-currency trade processing, clearing and accounting for all combinations of currencies, products and types of trades, maintaining every position in its originally traded currency in real-time. ShadoSuite is now able to handle GCF processing through the FICC (Fixed Income Clearing Corporation) beginning with the recognition of all eligible GCF CUSIP numbers and the processing of all GCF Repo trades.

ShadoSuite now features a directory screen that displays GCF blind broker trades and includes drill-down capabilities to view the details of the individual trades that make up the position.

The system also includes a summary screen with real-time updates as GCF trades are booked and real-time monitoring of the trade’s position. The summary screen contains a column to display the FICC position once received by the system as well as a difference column in the event a discrepancy exists between the in-house and FICC positions. Summaries are created on a CUSIP level and contain total repo, total reverse and net position values per GCF CUSIP.

ShadoSuite captures both the GCF comparison file for reconciliation and the GCF netting file for instructing settlement on a net basis at the end of the day utilizing the tri-party process. The GCF netting file is used to automatically generate tri-party shell deals for each applicable GCF CUSIP. These shell deals are then collateralized utilizing ShadoSuite’s automated interface to RepoEdge(R), The Bank of New York’s proprietary collateral management system.

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