Front Capital Systems, part of Sungard, has released a new version of its FRONT ARENA Treasury Trader for foreign exchange and money markets. It can process more than 70,000 trades per hour.
The key feature in the new release is a rules-based spread matrix that allows clients to automate the sales margin process based on such attributes as counterparty, currency and amount. Sales traders and managers can also track customer sales margins over days, weeks, months or years while at the same time banks can aggregate and track sales margins based on legal entity or customer. “By fine tuning their customer classifications, financial institutions can focus their relationship management for optimal margin and revenue generation, explains a SunGard spokesman.
Decision support features include simulated trade functionality allowing users to run ‘”what if” scenarios to evaluate how a certain trade would impact an existing portfolio without actually affecting it. Users can then convert the simulated trade into a live trade with full trade validation if they want. Another added feature is the ability to calculate pre-settlement credit risk to evaluate the replacement cost of trades should a counterparty default.
“This latest version of Treasury Trader brings an easy-to-use, yet powerful, rules-based margin matrix, allowing banks to create automated spread matrixes using a basic flat spread across all counterparties. On top of that, banks can add any specific spread for any currency pair as well as variable margins. This will help our international clients to better serve their customers across the world,” says Stephen Butcher, chief operating officer at Front Capital Systems.