The new regulatory requirements by the PRA and the FCA have added further pressures for trading desks to understand their cash positions and manage risk in real-time. Previously, front office traders have predominately used multiple end-of-day accounting platforms with no real-time visibility of daily positions. Now there is a need to view company and legal entity-wide aggregated positions by the minute in order to make comprehensive internal funding decisions, economically viable trading decisions and appropriately manage liquidity risk.

The new solution is a module of the existing TLM Cash Management solution,with the key benefit of real-time visibility for the front-office. Cash is reconciled and consolidated to deliver a multiple views for trading desk and risk teams, including individual balances for every business line, book, portfolio and product - across all currencies in real time. The system also provides alerts notifying the trading desk of any potential risk challenges.

Darryl Twiggs, Head of Product Management, SmartStream, states: “For a long time SmartStream has realised the importance of linking the back-office with the front-office to manage trading positions in real-time. TLM Cash Management is essential for any global trading desk looking to gain tighter control on risk, and at the same time allowing better investment and funding decisions. In addition, with TLM Cash Management, trading desks can maximise earnings potential by viewing and reducing idle balances, as well as keeping in line with regulatory requirements. The interest from banks in this product has been phenomenal, purely based on the demand for the product, as well as working with us for years on various other strategic initiatives.”