Institutional Trading, Exchanges and Settlements
Overview
Globally, the exchange and OTC traded market places are going through a sea change. Increasing number of cross border transactions and ever-reducing order sizes in exchange traded markets are putting pressure on trading systems and processes. Rules-based trading and regulatory requirements have not only put 'best execution' requirements but are also eroding margins from traditional trading houses. At the same time, the higher margin fetching OTC business is characterized by mounting backlogs leading to higher counter party and operational risks. Complexity and a variety of structured products are on the rise, making automation difficult for trading houses.
Trading and Settlements
HCL's 1000 plus strong team dedicated to trading and settlements is uniquely positioned to deliver integrated services in technology and operations. For broker dealers, prime brokerages, investment banks and other trading firms, HCL offers solutions across the trade lifecycle in trade capture, order management and routing, trade validation and enrichment, confirmations and allocations, intra-day risk management and settlements.
Key Highlights
- Expertise across the trade lifecycle covering:
- Front Office: Order Management and Routing, Trade Capture, Pre matching, Trade incoming and Review.
- Middle Office: Intra-day VaR reports, Limits Management, Reporting, Confirmation matching etc.
- Back Office: Clearing and Settlements, Fees and Commissions, Payment Messages, Securities and cash management and custodian network management.
- Strong experience in Third party technology products including:
(1) SmartStream, Summit, Wall Street Systems, Kondor+, STP Connect, STP Connect, Bloomberg, Reuters, SMARGARD, Currenx, DTCC DeriServ, DART, UPCS, Gifts, Documentum, Quadrus, MetaMatrix, Metatomix, SAS, Actuate and Hyperion.
(2) Strong experience in handling automation of structured products in rates and credit swaps for major banks.
Case Studies
With test automation, world's top derivatives house reduces the test execution effort of transaction processing system by 40%
Application Portfolio Optimization for US based full-service Investment Bank with a potential to reduce the maintenance cost by 50%
Comprehensive Fixed Income Trading Platform for a leading global investment bank
Facilitating efficient Direct Market Access transactions for one of the leading international financial service providers
Development, maintenance and support of Custody application for a global investment bank
Feed Management solution for a leading financial services provider
EXCHANGES
Exchanges face unprecedented opportunities, driven by regulatory & technology change and increased competition. All this demands new business models and a focus on cost reduction. Also explosive growth in automated trading across asset classes is causing transaction and market data volumes to surge, demanding new high performance trading and information infrastructure. HCL understands the market dynamics and the enabling exchanges technology, and stands ready to assist Liquidity Providers and Consumers in the necessary transformation process with a comprehensive range of solutions and services. The core services in Exchanges are shown in Figure below.
Exchanges Service Offerings
Next Generation Order Matching Engine for Liquidity Providers
- 100,000 transactions per second on entry level servers
- Linearly scalable, virtually without limit
- Model and Rule Driven Development Environment
- All asset classes and popular market models supported
- Five nines availability
- Enterprise Service Bus ready
Black Box Trading/Algorithmic Trading Platforms for Liquidity Consumers
- Greater than 100,000 messages per second performance on entry level commodity grids, with linear scaling
- Sub-millisecond latency enabled by streaming technologies & fast vector engines
- Easy to use Visual Studio for algorithm development and testing
- Pre-built library of popular statistical models
- SOA compliant to capitalize on best of breed components
- Next Generation Market Data Framework
- Greater than 100,000 messages per second performance on entry level commodity blades with linear scaling, virtually without limit
- Very low latency, suitable for driving black box trading
- In-built data cleansing, normalization and enrichment using fast streaming technologies
- SOA complaint approach capitalizes on best of breed components for feed handling and time series storage/retrieval
State of the Art Surveillance System
HCL has competence in integrating and customizing the popular SMARTS surveillance system
FIX
We are familiar with all the most popular FIX engines and all flavors of FIX, and can provide comprehensive FIX consulting, implementation, testing, latency measurement and certification services.
Solution Framework: Next-Generation Order Matching Engine
HCL has developed next-generation Order Matching Engine framework, which can meet the following customer objectives:
- Reduce trading system cost
- High scalability to handle growth in trading volumes
- Easy to integrate into enterprise architecture
- Service availability to the order of 99.999%
Case Studies
Achieved 20% annualised productivity gain in managing software products for Leading European Exchange Operator
Real-time monitoring solution for one of the largest Stock Market Regulators in Asia Pacific
Managing Complex Infrastructure for Asia's Largest Stock Exchange
