The digital future
20 June 2018
Walter Kraushaar of Comyno explains how competition in the securities finance market has changed from its historical ways
Image: Shutterstock
Historically, the securities finance market has been competing over products but in today鈥檚 digital age, competition is rapidly increasing through the creation of platforms and networks, which offer straight-through processing and connectivity.
In today鈥檚 world, the ultimate advantage over the competition will be achieved by building a better platform, rather than by continuing the use of existing outdated product suites.
Especially in light of the need for transparency, many market participants, regardless of being big or small, are burdened by the need to break off silos and fulfil all regulatory requirements. Since the financial crisis, banks, brokers and asset managers have spent a lot of time, effort and money introducing new business models, integrating acquired businesses, and modernising their technologies to bring the best solutions and products to the market and to reorganise their businesses.
However, these strategic investments have often led to a jumble of old systems, knowledge, processes, and corporate cultures.
At the same time, new digital companies are entering the market without legacy issues and with a new digital approach to today鈥檚 markets and regulatory challenges.
As a result, digital platforms have been introduced to the market to handle the increased volumes of data more efficiently and with a variety of connectivity options to communicate with other IT systems.
In general, a digital platform creates a combined development and delivery environment that provides users with consistent, accurate and timely data.
A data management platform imports data from many systems and enables customers to view the data in a clear and concise manner. Comyno has gone a step further with it鈥檚 C-ONE platform that combines data management technologies and data analytic tools into a single software suite with an intuitive and easy-to-navigate customised dashboard/cockpit.
With its plug and play technology, Comyno provides various tools such as, C-One Collateral, C-One Trading, -One Risk Management and C-One Reporting.
These tools give our clients the ability to cover all securities finance related topics as efficiently as possible. The tools will be designed for the clients solely based on their respective requirements. A key role of the C-ONE platform is that it collects structured and unstructured data from a range of internal and external sources and then integrates and stores that data. This platform also analyses and organises data to provide insight to data-driven parts of the business, such as securities finance trade, risk or counterparty analysis.The data incorporated into the platform can be first-party data, coming from an organisation鈥檚 own applications, systems, websites and products, as well as second-party data from the outside world.
In addition, platforms use third-party data to fill in gaps in a company鈥檚 own data environment.
Subsequently, Comyno鈥檚 approach has always been to provide a proficient tailor-made securities finance platform that combines the client鈥檚 specific business and reporting requirements with the necessary connectivity of the platform to almost any existing clearing house, tri-party agent, central counterparty (CCP) as well as other IT-system solutions for in-house trading systems in the securities finance world.
By building a digital platform one party can easily connect its business with another party to build products and services, co-create value and save costs.
This ability to 鈥榩lug-and-play鈥� is the defining characteristic of 鈥榩latform thinking鈥� and has resulted in the development of our C-ONE platform.
In the future, we will see more and more companies shifting from products to platforms and Comyno has already taken the next step to support that trend.
Some other securities finance systems, which are currently available on the market offer a rather standardised securities finance product suite, which comes at a high cost, licensing fees as well as complex interfaces. Unlike these systems, the Comyno platform will offer customised adaptors and functionality available in the form of specific tools and single products, which can stand alone or be combined in any possible way.
The clients will always decide based on their own business requirements, which combination of tools, products and other services they will need to build their own personalised C-ONE platform.
In addition, Comyno offers independent strategic advice to merge our clients existing infrastructure and personal requirements with the available tools of the C-ONE platform or in some cases we can develop additional customised tools as needed. Once all of this data is available on the digital C-ONE platform, the client is able to reshuffle the existing data not only extract several reports but also develop their own user interface.
Furthermore, it provides a tailor-made hosted solution with front end, middle- and back-office functionality at a reasonable cost for our clients. With the adaptor-based new platform technology, C-ONE does not need the programming and maintenance that is necessary for thousands of other interfaces and existing in-house systems. Moreover, our newly founded company Comyno DLT will add distributed ledger technology to the platform to support the world of crypto currencies and crypto assets soon.
This is what we at Comyno understand as the digital future of the securities finance industry.
In today鈥檚 world, the ultimate advantage over the competition will be achieved by building a better platform, rather than by continuing the use of existing outdated product suites.
Especially in light of the need for transparency, many market participants, regardless of being big or small, are burdened by the need to break off silos and fulfil all regulatory requirements. Since the financial crisis, banks, brokers and asset managers have spent a lot of time, effort and money introducing new business models, integrating acquired businesses, and modernising their technologies to bring the best solutions and products to the market and to reorganise their businesses.
However, these strategic investments have often led to a jumble of old systems, knowledge, processes, and corporate cultures.
At the same time, new digital companies are entering the market without legacy issues and with a new digital approach to today鈥檚 markets and regulatory challenges.
As a result, digital platforms have been introduced to the market to handle the increased volumes of data more efficiently and with a variety of connectivity options to communicate with other IT systems.
In general, a digital platform creates a combined development and delivery environment that provides users with consistent, accurate and timely data.
A data management platform imports data from many systems and enables customers to view the data in a clear and concise manner. Comyno has gone a step further with it鈥檚 C-ONE platform that combines data management technologies and data analytic tools into a single software suite with an intuitive and easy-to-navigate customised dashboard/cockpit.
With its plug and play technology, Comyno provides various tools such as, C-One Collateral, C-One Trading, -One Risk Management and C-One Reporting.
These tools give our clients the ability to cover all securities finance related topics as efficiently as possible. The tools will be designed for the clients solely based on their respective requirements. A key role of the C-ONE platform is that it collects structured and unstructured data from a range of internal and external sources and then integrates and stores that data. This platform also analyses and organises data to provide insight to data-driven parts of the business, such as securities finance trade, risk or counterparty analysis.The data incorporated into the platform can be first-party data, coming from an organisation鈥檚 own applications, systems, websites and products, as well as second-party data from the outside world.
In addition, platforms use third-party data to fill in gaps in a company鈥檚 own data environment.
Subsequently, Comyno鈥檚 approach has always been to provide a proficient tailor-made securities finance platform that combines the client鈥檚 specific business and reporting requirements with the necessary connectivity of the platform to almost any existing clearing house, tri-party agent, central counterparty (CCP) as well as other IT-system solutions for in-house trading systems in the securities finance world.
By building a digital platform one party can easily connect its business with another party to build products and services, co-create value and save costs.
This ability to 鈥榩lug-and-play鈥� is the defining characteristic of 鈥榩latform thinking鈥� and has resulted in the development of our C-ONE platform.
In the future, we will see more and more companies shifting from products to platforms and Comyno has already taken the next step to support that trend.
Some other securities finance systems, which are currently available on the market offer a rather standardised securities finance product suite, which comes at a high cost, licensing fees as well as complex interfaces. Unlike these systems, the Comyno platform will offer customised adaptors and functionality available in the form of specific tools and single products, which can stand alone or be combined in any possible way.
The clients will always decide based on their own business requirements, which combination of tools, products and other services they will need to build their own personalised C-ONE platform.
In addition, Comyno offers independent strategic advice to merge our clients existing infrastructure and personal requirements with the available tools of the C-ONE platform or in some cases we can develop additional customised tools as needed. Once all of this data is available on the digital C-ONE platform, the client is able to reshuffle the existing data not only extract several reports but also develop their own user interface.
Furthermore, it provides a tailor-made hosted solution with front end, middle- and back-office functionality at a reasonable cost for our clients. With the adaptor-based new platform technology, C-ONE does not need the programming and maintenance that is necessary for thousands of other interfaces and existing in-house systems. Moreover, our newly founded company Comyno DLT will add distributed ledger technology to the platform to support the world of crypto currencies and crypto assets soon.
This is what we at Comyno understand as the digital future of the securities finance industry.
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