Source: Shadow Financial Services
Shadow Financial Services Corp., developers of the ShadoSuite global securities processing system, today announced that ShadoSuite's fixed-income securities trade processing capability has been expanded to include the processing of GCF Repo (General Collateral Financing Repurchase) trades on a real-time basis.
"As current interest rates begin to rise, investors are turning to the fixed-income market to gain higher yields," stated Donald Marino, CEO of Shadow Financial Services. "With this increase in activity, operations managers are seeking more efficient processing solutions, and U.S. treasury dealers are faced with limited choices in fixed-income settlement systems. Expanding the functionality of ShadoSuite to process GCF Repo trades is part of our commitment to provide clients with the most advanced securities processing system."
ShadoSuite is a comprehensive global securities processing system that handles multi-currency trade processing, clearing and accounting for all combinations of currencies, products and types of trades, maintaining every position in its originally traded currency in real-time. ShadoSuite is now able to handle GCF processing through the FICC (Fixed Income Clearing Corporation) beginning with the recognition of all eligible GCF CUSIP numbers and the processing of all GCF Repo trades.
As part of this increased functionality, ShadoSuite now features a directory screen that displays GCF Blind Broker trades and includes drill-down capabilities to view the details of the individual trades that make up the position. The system also includes a summary screen with real-time updates as GCF trades are booked and real-time monitoring of the trade's position. The summary screen contains a column to display the FICC position once received by the system as well as a difference column in the event a discrepancy exists between the in-house and FICC positions. Summaries are created on a CUSIP level and contain total repo, total reverse and net position values per GCF CUSIP.
ShadoSuite captures both the GCF comparison file for reconciliation and the GCF netting file for instructing settlement on a net basis at the end of the day utilizing the tri-party process. The GCF netting file is used to automatically generate tri-party shell deals for each applicable GCF CUSIP. These shell deals are then collateralized utilizing ShadoSuite's automated interface to RepoEdge®, The Bank of New York's proprietary collateral management system