Source: Hudson Fintech
Hudson Fintech, the London-based Capital Markets technology firm, today announced the launch of Trade Hospital.
A key component of the Hudson Edge technology platform, Trade Hospital acts as an advanced workflow management service which filters, aggregates and reconciles trade messages before sending optimised submissions to back office systems for confirmation and settlement.
“Hudson Trade Hospital resolves a major headache for our clients, optimising processing workflows and immediately saving on processing costs,” said Michael Walliss, CEO of Hudson Fintech. “This shows the power of the Hudson Edge platform, where we are able to apply our flexible ECS technology to solutions such as the Trade Hospital by quickly creating workflows which deliver real benefits.”
He added, “Hudson is live with Trade Hospital and Repo Trading modules. We are already in development with several new products as our clients see what can be achieved by using innovative ECS architecture.”
Hudson developed Trade Hospital in response to clients requesting a post-trade flow optimiser to manage their trade submission processes. Trade Hospital introduces a new holding stage where the majority of trades can be processed immediately to settlement systems, whilst those which can be aggregated or are not required, follow a different workflow. One example is a block trade workflow where trades are held until the original block trade is fully allocated to the relevant sub accounts. Once done, these trades are submitted for processing and the original block trade is subsequently cancelled within Hudson’s Trade Hospital, meaning no unnecessary submissions or charges are incurred. The holding process is completely configurable and compliant with the regulations regarding booking times for transactions.
Many financial organisations use back office systems which process trades on a cost per transaction basis, where costs rise with the volume of transactions. In certain circumstances a transaction results in multiple trade messages being created, each incurring a fee. Trade Hospital’s intelligent post-trade processing minimises the number of messages being sent without impacting the trade economics and reducing costs.
Providing financial institutions with a flexible, modular and future-proof design which promises cost savings of over 50%, Hudson is used to support multiple asset types and business lines, such as Repo trade capture, Securities Lending, data management for regulatory reporting, clearing complex structures like TRS, and reducing the risk of ‘shadow computing’. Hudson is the first FinTech to use Entity-Component-System (ECS) in Capital Markets, an advanced software architecture, which resolves the inherent issues associated with traditional ‘hierarchical’ software design. ECS works with a flexible data model where changes can be incorporated at any stage, not just during the initial design process.