Misys (FTSE: MSY.L), the global application software and services company, announces the launch of Summit Invest, the buy-side derivatives solution that leverages the 20 years of OTC and derivatives expertise of Misys Summit FT.
Misys Summit Invest enables trading, risk management, trade processing and OTC lifecycle management in a tailored buy-side environment. It includes many new features to ensure organisations handle the complexity, risk and regulatory reporting of these complex products. The solution is being deployed this month by a major UK-based Asset Manager. This release along with a strong product roadmap for buy-side signals Misys' commitment to be a significant buy-side solutions provider.
Delivered in a flexible and customisable ASP environment, Summit Invest also meets the need for fast deployment, enabling organisations to be up and running within just a few months. It provides a risk-free and flexible approach that ensures buy-side firms of all sizes are able to afford and benefit from the highest levels of automation of OTCs.
Over recent years, buy-side organisations have faced many challenges manually managing OTCs in systems and spreadsheets that were not designed for this purpose. These businesses have particularly struggled with traditional systems which cannot cope with the complex trade lifecycle and industry demands of these complex instruments. Misys solves this need with Summit Invest, a new solution that consolidates positions across asset classes and includes pricing, risk analysis, collateral management and lifecycle management of OTCs. It combines this proven OTC functionality with new portfolio functionality, valuation techniques and reporting.
"Despite the financial crisis we continue to see interest from buy-side firms who understand they need robust systems for handling these higher risk products," comments David Dixon, Buy-side Solutions Manager at Misys. "Industry research has shown that the trade processing cost of an OTC is between five and 100 times greater than an exchange-traded equity, depending on complexity. Much of this cost is related to the extended lifecycle, which can be 20 years or more. Additionally, the need to to automate valuations and processes, such as rate resets and collateral, is particularly strong. The launch of Summit Invest demonstrates our commitment to this growing group of Summit customers that already represents 10% of the Summit customer base."
This announcement builds on a proven track record with hedge funds, asset managers and asset servicers who have purchased the Summit FT solution. Current customers include M&G Investments, Soc Gen Securities Services and Northern Trust.