Société Générale Securities Services (SGSS) has rolled out Xenomorph's TimeScape data management solution in response to mushrooming demand for more complex financial instruments among buy-side firms seeking independent valuation services.
Société Générale Securities Services (SGSS) has rolled out Xenomorph's TimeScape data management solution in response to mushrooming demand for more complex financial instruments among buy-side firms seeking independent valuation services.
SGSS has integrated the data management system in its derivatives operations support services, which the fund administrator offers to asset management clients in a five-year deal. The data management services provided by TimeScape, including the independent valuation of structured derivatives products and risk management support, are in demand as a result of the EU's Undertakings for Collective Investment in Transferable Securities III (Ucits III) directive. The pan-European legislation has extended the range of financial instruments in which funds are able to invest.
Rachid Lassoued, head of financial engineering at SGSS, says the firm last year witnessed "surging demand" for independent valuation services for complex derivatives products, chiefly among buy-side firms. Investment banks are also requesting the services for their insurance, corporate and fund management clients, says Lassoued.
"In the past, buy-side firms relied on the counterparty's valuation services in a trade. There was no independent check. Also, every time you have a crisis, there is an incentive for firms to go to independent valuation services," says Lassoued.
"The growth in more sophisticated financial instruments among buy side firms is the driver. More asset managers are using derivatives," says Xenomorph CEO Brian Sentance.
TimeScape's validation capabilities are also utilized to control and cleanse multiple sources of market and instrument data for use by other downstream systems.
SGSS began integrating the TimeScape solution earlier this spring with Summit, the fund administrator's front-to-back office system for derivatives. Officials from both parties decline to disclose the value of the deal.
Source URL: http://www.watersonline.com/public/showPage.html?page=printer_friendly&print=637354
Publish Date: 1 November, 2007
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