Abel/Noser launches real-time TCA
Pre-trade and post-trade tool provider Abel/Noser has developed a real-time transaction cost analysis (TCA) service for every stage of execution aimed at the buy-side.
The application lets investors analyse the execution cost of potential trades, while real-time monitoring helps them identify securities trades that are moving away from the stated benchmark.
Its features include: constantly updated trade alerts; heat map visuals; ability to add to an existing or completed trade, fill level rolls up and indicators of volume participation; pivot table view; and grouping and export functionality.
Executive vice president of sales at Abel/Noser, Peter Weiler. said: “The functionality and benefits of this new tool which include the ability to view the cost to complete a trade at any time during the trade, help investors to produce measurably better trading results. The ability to analyse execution costs in real time allows institutional investors to be more effective while they are trading.”
SunGard updates cost accounting application
SunGard has added two features to its accounting solution, Asset Arena InvestOne, enabling maintenance of multiple record books from different regions; and greater oversight and management over company operations.
The tool, Asset Arena Control Center, lets users monitor reported exceptions, and manage workflow. Its new multiple books of record capabilities extends the ways users can combine existing datasets, enabling them to support more jurisdictions and services, eliminating redundant data and systems.
Chief operating officer of Asset Arena InvestOne at SunGard, Gail Schulman, said: “Investors and regulators are seeking greater transparency from fund sponsors and their administrators by having evidence of robust processes and strict controls. Monitoring and automating activity in fund accounting is key to managing risk and ensuring all processes are transparent, timely and accurate.”
Dion Global unveils one-stop RFQ solution for FX Options
Dion Global Solutions has released an automated request for quote (RFQ) solution for the OTC FX options market. It incorporates all the transaction steps, including placing, pricing and executing an order.
The module provides consistent and transparent pricing of FX options and allows users to issue and respond rapidly to RFQs. Formerly manual processes and relationships have been transferred to an automated network, with significant efficiency savings and recordkeeping that allows multi-jurisdictional compliance and auditability.
Rob Gray at Dion Global Solutions said: “The regulators’ spotlight remains very firmly focused on this sector. Firms face three underlying requirements: accurate pricing and valuations; efficient risk and portfolio management; and support for effective price discovery both for single trades and whole books of options. The differentia platform provides exactly these capabilities.”
Numerix launches calculation tool for collateral offsets
Valuation software provider Numerix has designed a tool to find the funding value adjustment (FVA) required to offset collateral costs on derivatives, incorporating uncertain factors like callability and optionality.
It uses the “Monte Carlo” approach to determine the distribution of prices under future dates, returning accurate real-time calculations for exotic and vanilla products. Numerix claims this is the first commercial, automated application of the formula.
Chief strategy officer and senior vice president at Numerix, Satyam Kancharla, said: “Collateral was first introduced to mitigate Counterparty Credit Risk, but institutions have realised that if collateral affects the funding costs of a trade, it also affects its profitability, raising questions over how an institution can ultimately pass this cost on to counterparties or build it into the mark-to-market price of the transaction.”
The application would also allow banks to chart how their own credit quality might change over time, as a result of options contracts agreed on and acted upon at different points.