Misys First to Launch Exotic FX Options Matching for Buy Side
By Misys Plc, PRNESunday, March 21, 2010
Availability of MT306 for Banks and Counterparties Will Improve Efficiency and Reduce Risk
LONDON, March 22, 2010 - Misys plc (LSE: MSY), the global application software and
services company, today announces it has extended its Confirmation Matching
Service (CMS) to include MT306 messages for matching Exotic FX Options. This
extended capability within Misys' market-leading matching engine enables the
buy-side counterparties to benefit from increased automation and improved
risk management, whilst also reducing manual processes executed by banks.
The US Federal Reserve and the Bank of England have been
increasingly vocal in their recommendations that banks improve automation and
reduce manual processes in order to reduce risk associated with errors. In
response, Misys joined the Exotic FX Options Group that was set up by the
banks to address automation of MT306 messages for confirming and matching
Exotic FX Options and has been an active participant in the group, leading to
today's announcement.
MT306 messages through SWIFT enable banks to exchange Exotic
FX Options between each other in a simple automated manner. However, many of
these are also traded with fund managers and other buy-side organisations
that are not on the SWIFT network. As such, traditional post-trade
confirmation via fax or over the phone was still necessary for organisations
trading outside of the banking network. With Misys adding the MT306 to its
Confirmation Matching Service, its non-bank customers will now also be able
to enjoy automated post trade confirmation and matching of Exotic FX Options.
"It's good news for the industry that Misys is opening up
MT306 and confirmation of exotic trades to non-banks," Patrick Fisher, JP
Morgan Chase, Head of the Post Trade Automation Industry Working Group.
"Every opportunity for the industry to mitigate risk and streamline processes
through automation should be explored and exploited. We intend to further
expand the range of currency products that we can automate in 2010, and will
continue to work with Misys to ensure their continued involvement with this
key initiative. "
Manual processes are in popular decline, in part to improve
operational efficiency, but in particular in response to regulatory demands
to reduce risk. Misys worked closely with the banks to develop the highly
complex addition of Exotic FX Options and Derivatives quickly. It is the
first solution to make post-trade confirmation possible between banks and
non-banks resulting in increased efficiencies, reduced operational risk and
an easier way for banks and non-banks to work together.
"This step is the latest in a long line of market-led
enhancements by Misys that respond to the changing industry dynamics and the
regulatory framework in which it operates," comments Gil Bray, Solutions
Director, Misys Confirmation Matching Service. "We have more than 950
customers who all put their trust in our service for confirmation, netting
and settlement needs around the world. Ultimately, this will make their
businesses more efficient with faster processing and settlement times and
fewer errors, leading to an increase in margins. At the same time they will
ensure they are attractive partners for the banks by simplifying the
confirmation of complex trades that were otherwise manually completed."
The latest release from Misys builds on its strategy of
working closely with banks on the latest industry developments and rapidly
providing a solution, however complex. In the last year Misys has also
launched the MT600 series messages to include base metals along with precious
metals, as well as the ability to send or receive an MT305 message for an NDO
(Non-Deliverable Options). The result is that customers are confident that
Misys will help them to remain competitive and compliant, whilst
significantly reducing operational risk associated with manual processing.
About Misys plc
Misys plc (FTSE: MSY.L), provides integrated, comprehensive solutions
that deliver significant results to organisations in the financial services
and healthcare industries. We maximise value for our customers by combining
our deep knowledge of their business with our commitment to their success.
In banking and treasury & capital markets, Misys is a market leader, with
over 1,200 customers, including all of the world's top 50 banks. In
healthcare, Misys plc owns a controlling stake in NASDAQ-listed
Allscripts-Misys Healthcare Solutions, Inc, a clear leader in the provision
of healthcare technology, serving more than 150,000 physicians, 700 hospitals
and nearly 7,000 post-acute and homecare organisations. Misys employs around
6,000 people who serve customers in more than 120 countries.
We aspire to be the world's best application software and services
company, delivering results for the most important industries in the world.
Misys: experience, solutions, results
Contact us today, visit: www.misys.com
For further information please contact Edward Taylor Global Head of Public Relations Misys Solutions for Banking and Treasury & Capital Markets +44(0)20-3320-5530 edward.taylor@misys.com Sebastian Mathews FD +44(0)20-7269-7158 sebastian.mathews@fd.com
For further information please contact: Edward Taylor, Global Head of Public Relations, Misys Solutions for Banking and Treasury & Capital Markets, +44(0)20-3320-5530, edward.taylor at misys.com; Sebastian Mathews, FD, +44(0)20-7269-7158, sebastian.mathews at fd.com
Tags: London, March 22, Misys plc, United Kingdom