AcuMaestro’s BASE Application for Securities Processing Transactions

The US financial services market represents a collection of industries (banking, securities, and insurance) where change is the norm, competition is ferocious, margins are under constant pressure, and value is consistently redefined. Thus, financial institutions are continuously seeking and investing to retain and extend their competitive edge in this highly commoditized market. Customers continue to increase their level of sophistication and demand higher service levels within shorter timeframes, on global and cross-border transactions. Regulatory and infrastructure changes also intensify pressure to transact business more efficiently.

Best-breed organizations consistently seek opportunities solidify their client relationships, from anticipating and exceeding client expectations through improved straight through processing (STP), whereby any manual interventions are on an exception-only basis, to anticipating and introducing new product/ process innovations.

As a service sector, Financial Services represents unique technology opportunities and challenges. It is an industry that often seems an enigma to technology models in that it continually innovates new business models, embraces the concept of business standards (e.g., the FIX and SWIFT message protocols), increasingly relies on outsourcing and new business federations to achieve competitive advantage, yet simultaneously perpetuates “legacy” systems. Effective and efficient service delivery requires financial institutions to utilize and continually invest in new technology paradigms (internal and outsourced processes, systems and infrastructures). Business Process Owners must team with the IT organization(s) to innovative new systems that leverage existing investments, continuity and time-frame aspects to improve margins and differentiate offerings.

To compete, AcuMaestro must deliver effective solutions that will enable FI’s to exceed their stakeholders’ (customers, partners and investors) expectations.  

Industry Needs

At a macro level, Financial Services Providers must have the ability to dynamically pull together fragmented bits of information to make quick and accurate decisions, while adhering to strict governmental regulatory standards. This implies a reliance on applications that ensure system performance excellence that maintain the highest quality of service from all resources.

Best Execution – In deciding how to execute orders, brokers have the duty to achieve the best execution reasonably available for the order(s). This is an opportunity for Broker Dealers to leverage internal liquidity first and foremost in relation to competing markets, market makers, or electronic communications networks (ECNs) in order to offer the most favorable terms of execution. Additional execution factors include: better price opportunities than what is currently quoted, speed of execution, and the likelihood trade will be executed.

Client/Broker Interaction– Performance assessment of broker/client interaction vis-à-vis profitability (e.g., client activity commitment, “clean” transactions, order flow, etc.) and/or automated versus “desk” order flow.

Operational Performance Excellence – root cause analyses for exceptions to achieve performance levels within Key Performance Indicator (KPI) Benchmarks that impact ability to meet Service Level Agreements (SLAs) with clients and/or present financial risks to the organization.

Timely and Accurate processing (T+1 and Straight Through Processing (STP)) – coupled with balanced scorecard measures/indicators tied to timeliness and STP, BASE can enable quick assessment/root cause analysis for adoption of changes to support T+1/STP initiatives that streamline/improve activities and allow for competitive advantage.

Regulatory: Sarbanes-Oxley and Basel II – group-wide internal risk management processes and control testing processes that assist risk managers/auditors in assessing and reporting of risks associated with major classes of transactions.