Torstone Technology has today launched Inferno in what is believed to be the first major release of post-trade securities and derivatives processing software in almost a decade.
Targeting regional and mid-sized investment banks, asset managers, hedge funds and brokers, the enterprise-level clearing, settlement and integrated accounting application supports multi-asset, multi-currency and multi-location operations. It addresses today's pressing needs to reduce middle and back office costs and support the front office with improved operational efficiency, simplified regulatory compliance, better client service and risk management.
Today's financial markets are fragmented with increasing numbers of trading venues and counterparties. Inferno's timely launch tackles the needs to capture trades from multiple front office systems and interface with clearing houses, globally. Delivered as software-as-a-service (SaaS), Inferno is a cost-effective solution which achieves high levels of straight through processing (STP) from a single business solution.
Management is supported with real-time event-driven settlement status and trade accounting and the ability to centrally manage multiple, cross-border operations. Inferno features an unprecedented depth of control and discipline which was instilled by industry accountants who helped design the software and who understand the consequence of trading decisions.
The management team behind Torstone Technology reached an agreement with the KBC Group on a management buy-out of the software and the development/support team. As a result although Torstone Technology is new, the Inferno system has been widely deployed and proven to support highly complex, structured credit and equity derivatives as well as high volume equity products. The new business is supporting existing clients in New York, Hong Kong and London. Products processed through Inferno include equities, bonds, convertible bonds, reverse mortgages, warrants, and equity, fx, insurance, credit and fund derivatives.
"Inferno was born out of the shortcomings and inflexibility of other settlement systems to meet the processing requirements of a wide range of instruments, complex trades, multiple venues and the demands of very high volumes," said Torstone Technology Chairman and Chief Executive Brian Collings.
"Inferno is settlement software for our times. The financial markets have become so fragmented with increasing numbers of trading venues, centralised counterparties and rules, that middle and back office costs and efficiencies are under the spotlight more than ever before. People are asking has it now become more cost-effective for the back office to invest in one application that can address all our needs rather than maintain disparate solutions? The pressure is also on back office systems to take information from the wide range of specialist front office trading systems and provide a comprehensive, cohesive view of business performance and exposure to risk. Torstone is ready off the blocks with a new proven solution - Inferno - which is right for today's challenges. However in these economically-constrained times, we are realistic that our next group of clients will be adopting Inferno as a point solution which has the potential to take on more asset classes and execution venues, longer term."
In addition to its broad capabilities and functionality, Inferno is differentiated in the marketplace in several other ways. Firstly it has been designed by practitioners and a multi-disciplined team of developers and accountants, who also support the product. "We are able to deliver very high standards and quality of service rooted in a deep practical knowledge of settlement and trade accounting so are able to solve business as well as technical issues," Mr Collings commented.
Secondly, the Torstone implementation process involves close collaborative working with clients to promote rapid customisation of the highly configurable software, which is built for adaptability. The modern Web Service based software architecture supports rapid deployment of new business rules and incremental upgrades. Thirdly, the ease of use minimises the need for and higher cost of super users and the speedy resolution of failed trades also supports a slimmed down back office.
"Complex products can cause difficulties for other systems," said Mr Collings. "No-one yet knows where or what will emerge as the next complex market, but Inferno will make it easier for firms to participate at an early stage, not be constrained by inflexible systems and be equipped to rationalise settlements on a global basis."