NeoNet and SIS SegaInterSettle collaborate on trading and settlement
19 October 2004 | 1184 views | 0
NeoNet, the neutral and independent agency broker for professional investors, today announced a joint endeavour with the Swiss-based SIS SegaInterSettle launching an integrated cross-border trading and settlement solution "INSET Access".
INSET Access enables clients of SIS SegaInterSettle to trade on NeoNet's 13 connected European equity marketplaces and settle seamlessly with SIS SegaInterSettle on all of these markets. This is possible through automatically generated settlement instructions in the trading process, which eliminates the need for the client to send separate instructions to SIS SegaInterSettle. Further, clients do not require relationships with multiple brokers or custody banks in the local marketplaces but instead have one settlement contact with SIS SegaInterSettle and one broker contact with NeoNet.
"We are very delighted with the opportunity to establish a cooperation and joint solution with SIS SegaInterSettle for cross-border trading and settlement services to significantly increase the efficiency of transaction processing for common clients," says Simon Nathanson, CEO of NeoNet.
"Trading is simplified considerably thanks to INSET Access and clients can at the same time keep their current international settlement structure."
The pooling effect of settlement transactions drastically reduces the number of settlements per ISIN. From the clients' point of view, the delinked system of SIS SegaInterSettle allows for efficient, transparent, low risk settlement that is also conducive to arbitrage business.
"The introduction of INSET Access is yet another proof of SIS SegaInterSettle's ability to respond swiftly to client requirements," says Marco Strimer, Member of the Executive Committee of SIS SegaInterSettle.
On the advantages of the new solution, Strimer says: "INSET Access underpins our efforts to press forward with straight through processing (STP) in cross-border settlement. The existing value chain will be further strengthened and expanded, bringing us a step closer to the European Value Chain. The model, which can be seamlessly integrated in the current infrastructure, is open to all clients of SIS SegaInterSettle and flexible with respect to connections to other market participants."
The first client of the solution will be a leading Swiss Private Bank, Bank Hofmann AG.
Caspar Ruetz, Director at Bank Hofmann AG and in charge of Securities Operations, is pleased with the new collaboration of NeoNet and SIS: "Thanks to NeoNet's role as intermediary, Bank Hofmann AG can process transactions faster, more transparently and on best-execution basis. The units involved therefore have more resources for supporting client advisors in special transactions. Bank clients benefit most from the enhanced quality and efficiency and banks' core business can thus be further strengthened."
"Moreover, thanks to NeoNet, Bank Hofmann AG is able to place electronic orders directly in the local market places without being a member," Ruetz adds. "This new approach - straight through processing (STP) - with an independent intermediary is a further milestone in electronic order settlement: Since 1996, the SWX Stock Exchange, probably the most efficient exchange solution worldwide, has successfully applied the STP principle." Ruetz stressed.