SmartStream's new DClear Utilities division, launched at Sibos in Hong Kong, aims to serve financial institutions using a shared service centre model for common processing services. The DClear Reference Data Management Utility is the first such utility to be launched and the company says it has already signed an un-named US-based financial institution.
DClear Utilities says its first utility will aggregate, reconcile and monitor the agreed aspects of clients’ reference data at an individual data field level, providing integration and cleansing of data sources, with rules-based processing providing integrity checks on all incoming data. As a result, it says, the utility will ensure fewer trade breaks by providing clean and consistent data, integrated across all assets, entities and instructions.
The company also aims to deliver centralised processing of financial instruments across their entire lifecycle through an on demand style platform, consolidating functions such as confirmations matching, order/trade matching and position management into a single entity.
Philippe Chambadal, CEO of SmartStream Technologies, says: “DClear’s industry Utilities can create a network effect by demonstrating to all market participants that using the same reference data and reconciliation and exception management processes will significantly reduce risk and cost. By taking a co-operative approach among market participants to solve a common problem these Utilities deliver the economies of scale that benefit all participants, initially for reference data and then for more generic back office processing.”
DClear is the name of DIFC Investment's acquisition vehicle which became SmartStream's parent company in November 2007 when DIFC stepped in to acquire the vendor after its aborted IPO.
DClear CEO John Mason explains all in this Finextra video.