Torstone Technology has secured a new contract for the provision of Inferno for post-trade securities processing and trade accounting at London-based Daiwa Capital Markets Europe.
The four year deal, negotiated with Daiwa Institute of Research – the global systems integration and research arm of Daiwa Securities Group – will involve the ongoing use of Torstone’s Inferno for convertible bonds and associated equity/hedge products, and for FX/MM treasury functions.
The firm’s cash equity business will also move to the system by the end of 2012 and fixed income securities will follow in 2013. Inferno will then become the sole back office system in use by Daiwa Europe.
Daiwa Europe is the wholly owned investment banking subsidiary of Daiwa Securities Group, one of the largest brokerage and financial services groups in Japan, employing more than 15,000 professionals across more than 20 countries. Following the expansion of the firm’s range of services through the acquisition of parts of KBC Financial Products in 2010, the firm explored a number of options to replace its aging mainframe back office system. Real-time, event-driven Inferno became a candidate for its replacement alongside traditional back office systems’ vendors.
Matthew Hargreaves, chief information officer of Daiwa Europe, says: “Inferno is a one stop shop where you go for everything. No matter what the product or whether you are in finance, compliance, middle or back office, the suite of functions you need are all in one place – and it is comparatively easy to add new ones. The application is well designed and the Torstone team is uniquely able to drill into the detail of both technology and business, which very much simplifies the working relationship.”
Inferno Reconciliation now provides visibility across multiple asset classes and was the first stepping stone in moving the equity and fixed income business from the mainframe onto Inferno. Having all positions reconciled in one place also provides a central source of accurate data, which simplifies regulatory reporting requirements.
Brian Collings, chief executive of Torstone Technology, says: “We are delighted that Daiwa Europe is consolidating its back office operations on Inferno. Torstone is rapidly gaining recognition as a new force in back office solutions because of Inferno’s flexible technology and breadth of functionality across multiple assets. We also believe that we offer a fresh and agile approach to support.”