SimCorp has collaborated with J.P. Morgan Securities Services to create a front-to-middle office custody integration, which is set to deliver a global response to investment operations challenges, including post-trade processing for mutual clients.
The integration aims to tackle the costly and fragmented investment processes that contribute to operational risk, such as high settlement trade failures seen in recent months.
With heightened market conditions and low margins continuing to dominate institutional investment, asset managers and asset owners are faced with a plethora of operations challenges, says SimCorp.
As part of the deal, SimCorp’s software-enabled services and J.P. Morgan Securities Services will provide interoperability and transparency in the front office, middle office and custody.
The sharing of intra-day, multi-asset data will enhance key investment workflows from tax reclaims to proactive risk management of unprocessed trades, delivering improved automation and user experience.
Meanwhile, augmented exception commentary will provide compliance teams with greater context, indicating action ownership for faster settlement, reducing the number of failed trades in the market today.
Marc Schröter, senior vice president, global product management at SimCorp, says: “As we move towards a diverse and connected future, opening up our architecture and creating an open ecosystem will facilitate the buy side with more flexibility in their operations.”
“The value created in these partnerships, goes beyond data and operations, delivering reduced cost and risk, while importantly supporting investment decision making and optimising operational agility for our clients,” Schröter notes.
Naveen TV, managing director in securities services, J.P. Morgan, notes: “The integration with SimCorp enables mutual clients with seamless data delivery across both SimCorp Dimension and J.P. Morgan’s Securities Services."
"By sharing enriched transaction data sets and operational workflows within an open integration, we firmly believe that the flexibility this delivers, combined with our joint capabilities, will greatly benefit clients in their quest for efficient and transparent operations,” TV adds.
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