Source: Hudson Fintech
Hudson Fintech, the London-based technology firm, today announced the launch of its new front office technology platform for sell-side and buy-side institutions trading in the Repo markets.
The platform supports all aspects of Repo trading and has been developed to offer clients maximum flexibility, increased customisation and faster release cycles.
Hudson’s software captures and displays trade and market data, provides position blotters and real-time analytics, and supports end-to-end workflow processes. It improves efficiency and risk management, whilst reducing costs for the processing and reporting of Repo trades. Financial Institutions are given more ownership and control of trading operations, whilst the software provides the tools and capabilities to allow customers to quickly adapt to changes in the regulatory landscape, such as SFTR.
The new technology platform uses system architecture new to Financial Markets where components have only a small number of interdependencies and code that is designed to be extensively re-used. As a result, Hudson aims to significantly reduce the time taken to upgrade systems, and to cut typical licence fees by up to 50%, reflecting institutions’ needs to reduce costs and increase efficiency.
Hudson was established to resolve the issues faced by Financial Institutions operating in the Repo and Securities Finance market, namely the requirement for increased regulatory reporting and transparency, improved risk management processes, and balance sheet constraints. Regulators around the world demand increased data control and reporting, leading to many Financial Institutions reviewing their outdated legacy systems, typically using multiple technology bolt-ons, which limit the flow and efficiency of trading operations.
As the Financial Markets continue to evolve, many of the larger sell- and buy-side institutions are moving away from all-encompassing technology solutions that are difficult install. Specialist Fintech’s like Hudson are able to offer easy to implement technology modules that address specific issues without impacting an entire technology stack. Hudson’s new technology platform is designed to be implemented quickly, in parallel with existing systems, with little regression testing.
Hudson’s core technology is unique to the Financial Markets. It is based on an advanced system architecture, known as Entity-Component-System (ECS). ECS architecture works with a data model where all objects become individual entities to which arbitrary data can be added or removed at runtime. Business logic is implemented in the form of unique behaviours that operate on combinations of attached data components. This new style of data model resolves legacy issues, where traditional ‘hierarchical’ systems are interdependent on other components of the system.
With less interdependencies Hudson’s platform is designed to be flexible in the event of a regulatory or technological change to the business, faster to develop, and ultimately less expensive. Code is extensively re-used with continuous automated testing, meaning that less time is spent on manual regression testing.
“As many existing technology platforms reach their end of life, we see a demand for a new technology player in Repo trading,” said Rupert Bull, CEO of The Disruption House. “There is also a desire towards a component based approach, as opposed to implementing enterprise systems.”
“With more than 30 years’ experience working in FICC technology, combined with a robust technology development and support platform, Hudson resolves many of the issues faced by Financial Institutions trading Repos and other financial instruments,” said Michael Walliss, CEO of Hudson Fintech. “By using Entity Component System technology, we have created an order management platform that is adaptable, fast to develop and requires less testing compared to incumbent providers.”
He added, “Our technology gives clients more control, reduces costs and enables faster deployment.”
The Hudson platform technology is built to allow future expansion to support multiple asset types and business lines on a single application, enabling an organisation to consolidate its front-office operations over time on to a single, easy to support, platform.
Hudson Fintech’s management team:
Michael Walliss, CEO/Co-Founder - Michael is a business leader, experienced in operating technology start-ups and established businesses focusing on market growth. His specialism is in operational management and strategy, including business restructuring, mergers and acquisitions, and investment in both public and private entities.
Troy Peterson, Co-Founder - Troy is a lead developer in the global banking sector, specialising in design and architecture development for trading systems including Repo, prime brokerage, and fixed income eTrading. He has extensive programme management experience in delivering high performance, high volume software.
Dietmar Nowatschek, Co-Founder - Dietmar is a senior eTrading specialist with over 22 years of experience in the global banking sector on both the vendor and the client side. His experience includes analysis and development in front- and middle-office areas, and he has worked on projects optimising trading platforms and designing and implementing resource-effective systems.