BT has partnered with financial application vendor SAM Systems to launch a managed back office outsourcing service for City securities houses.
Available as an extension to BT's SettleNet Crest networking service, the 'Managed Back-Office' is being pitched as a way for organisations to dispense with IT infrastructure management, while retaining client relationship management in-house and keeping full control of their settlement accounts.
Rod MacDonald, managing director, financial services, BT consulting and systems integration says: "Traditionally, settling trades is the key area of cost and carries the most operational risk. The options to date have been outsourcing the entire back office operation to a clearing agent with loss of control and high costs or continuing to maintain an in-house legacy system with ongoing maintenance and support costs."
The BT alternative utilises SAM Systems' InterSet software, and supports global securities and multiple asset classes through the trade life cycle.
Jeremy Sibthorp, sales and marketing director, SAM Systems, says: "InterSet is suitable for the global financial markets with a proven ability to support high value, high volume businesses but also provide an attractive low cost entry-route for smaller businesses."
Available via a secure virtual private network (VPN), users can tailor the solution to their requirements with options on service level agreements and pay-as-you-go tariff structures.
For UK domestic securities for settlement in Crest, the service supports ISO15022 and DEX messaging. All Swift messages are supported for payments, says BT, and the 'double entry' accounting method is used for both cash and stock.