Front Capital Systems is to expand its coverage of convertibles and deliver improved pricing functionality through an alliance with Monis Software.
Users of Front's Arena desktop trading platform will soon be able to evaluate convertibles using the Monis formulae following completion of a joint development project between the two vendors. The integrated system is ready to be tested, with talks underway with Front customers to upgrade their current systems and conduct a full pilot exercise.
The package features aggregated risk management, hedging and arbitrage, with straight-through processing of trades, from deal capture and position keeping to risk management and back-office processing. It also offers automatic import of convertible data using Monis' XML-based format into Arena.
Emanuel Mond, co-chairman of Monis Software, believes the correct pricing of trading instruments is paramount as convertible securities become an ever-more important asset in trading strategies.