Evare, a specialist in the acquisition, aggregation, rationalization, transformation and delivery of account and transaction data for financial institutions, has secured a major West Coast global investment manager as the first institution to adopt its recently unveiled SWIFT connectivity managed service offering. The investment management firm is now able to deliver trade notifications to its custodial counterparties over SWIFT, in each recipient’s data format through Evare, ensuring complete, post-trade straight-through-processing (STP).
Evare, through its majority stakeholder, broker/dealer and SWIFT member Loeb Partners, has launched a managed service that offers custodians, broker/dealers, insurance firms, industry utilities and other counterparties and corporate treasury departments the ability to communicate effectively and seamlessly with each other. By gaining access to SWIFT, Evare is the only provider that can provide direct proprietary communication amongst financial institutions without requiring any changes to the internal systems and processes used by each respective counterparty.
Prior to this new offering, financial institutions were often unable to communicate to all counterparties effectively over SWIFT, either due to the high internal costs that SWIFT technology and expertise incurs, or because they couldn’t qualify to be SWIFT members. As a result, STP has lagged on a global basis.
Evare simplifies communication with counterparties by taking data ‘as is’ and provides mapping, transformation, connectivity and monitoring so that the recipient of the transaction receives data in the specific format its systems require for true STP. Evare can accept or deliver any format of message or file-based traffic in cash and securities data by linking either via the SWIFT gateway, through FTP or hardwired links to institutions.
Without Evare, firms are required to build elaborate connectivity infrastructure that requires large upfront investments in hardware and software reengineering, as well as ongoing maintenance costs. For most firms, it’s a barrier to entry that’s nearly impossible to overcome. Instead, firms have traditionally had to manually prepare, deliver, read and re-key reports that introduce operational risk and impede a firm’s ability to effectively scale its business.
‘SWIFT has been instrumental in pushing forward the vision for seamless STP and is making a major effort to open the global financial network to corporations and securities firms, yet there are still gaps that need to be filled to make it all work,’ said Frederick Stanley, president and COO, Evare. “Our managed service offering completes the communication chain by providing data transformation, streamlining and managing what is otherwise a complex and expensive plumbing infrastructure, enabling firms to focus on their core competencies.”
The West Coast investment management firm selected Evare so that it could concentrate on its core business, advising institutional and retail investors on their overall investment strategies. By deploying Evare’s managed service, the investment manager has achieved the benefits of full STP throughout the post-trade lifecycle, fewer failed trades, no need to add bodies as volumes increase and has reduced operational risk without any changes to its internal investment systems and processes.
Nearly every financial services organization can benefit from using Evare. Securities firms and custodians can eliminate barriers to communication with their counterparties and clients, banks and their corporate clients can utilize Evare to concentrate all connectivity requirements through a single link. A corporation can use Evare as a single pipe to all of its banks, whether the bank uses SWIFT or direct links. Banks can receive concentrated SWIFT communications from corporate clients without forming an MA-CUG in which clients need to implement SWIFT or translate data from treasury workstations into ISO 15022. This can be helpful in cases in which it’s inappropriate to transfer client data from a secondary bank through a primary bank.
Although Evare has provided a connectivity offering for many years, by gaining access to SWIFT through Loeb Partners, Evare solves one of the primary barriers to direct proprietary communications and helps SWIFT open up the rest of the world to global STP.