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HSBC Selects GoldenSource’s Data Management Platform, and more

HSBC Selects GoldenSource's Data Management Platform, DTCC Develops Central System for Tracking Buy-Ins, Shadow Financial Services Provides Direct Link to BoNY

HSBC Selects GoldenSource's Data Management Platform

HSBC's Corporate, Investment Banking and Markets (CIBM) division has licensed the GoldenSource Enterprise Data Management (EDM) suite as its data-management platform, according to a release by the vendor.

HSBC selected the GoldenSource EDM suite as the platform to manage and consolidate reference data for securities, customers and counterparties together with transaction data. The platform also includes a number of GoldenSource Connectors that provide interfaces to major market-data vendors, including Reuters, Bloomberg and Telekurs. HSBC is implementing the GoldenSource solution to build the enterprise data foundation that initially drives CIBM's electronic securities trading platform prior to rolling it out to other systems across CIBM.

According to GoldenSource, HSBC's strategy is to build on an integrated application suite that can deliver an operational trading environment based on centralized data repositories in a short time frame. This will avoid the time and resources it takes to build in-house as well as the cost of systems development and maintenance.

DTCC Develops Central System for Tracking Buy-Ins

The Depository Trust & Clearing Corporation (DTCC) has developed a new Web-based system that will standardize and automate the creation, delivery and tracking of buy-in notices for the securities industry.

The new service, offered through The Depository Trust Company (DTC) subsidiary of DTCC, is called SMART/Track for Buy-ins. It is meant to improve upon an earlier DTC system, the Participant Exchange (PEX) service, which was a messaging facility only for buy-ins. PEX is subject to regulatory approval.

Buy-in notifications are sent when a broker fails to deliver securities on time. The broker expecting the securities sends a buy-in notice to the broker that is failing to deliver, informing the firm that the broker failing to receive the securities will go into the market to buy them and hold the delivering broker liable for any price variation. For example, if a trade was executed at $10 a share and the securities now sell for $12 a share, the receiving broker will hold the delivering broker accountable for the $2-a-share difference.

The system will be implemented in two phases: Continuous Net Settlement (CNS) buy-in intents, orders, retransmittals and executions will be implemented in the fourth quarter of 2005 and non-CNS buy-in functionality will be implemented next year.

The browser-based system will provide a central point for inputting information, sending notifications and tracking the life of a buy-in notice. Data will be retained for seven years for broker-to-broker buy-in notices, including both CNS and non-CNS buy-ins.

Shadow Financial Services Provides Direct Link to BoNY

Shadow Financial Services Corp. released a tailored interface that provides a direct link to The Bank of New York (BoNY) through the ShadowSuite global securities processing system, according to the company's announcement. Shadow Financial clients that use BoNY execution and clearing services will now have real-time information on the day's trades in one location.

BoNY Securities Group provides execution services for 3,500 institutional investors in more than 80 markets, executing trades for 630 million shares per day. The firm is also the largest U.S. securities clearing agent -- approximately 50 percent of U.S. government securities are cleared through the BoNY Securities Group.

The BoNY interface has complete interaction with the FICC (Fixed Income Clearing Corporation) netting file process, which captures and queues up all FICC obligations while making them ready for settlement.

Donald Marino, CEO of Shadow Financial Services, stated in the release: "Clients that utilize the services of The Bank of New York now have one source for real-time information about trades, clearance status and the day's settlement processing."

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