SimCorp, a leading provider of investment management solutions and services to the global financial services industry, has released version 6.2 of its front to back investment management solution, SimCorp Dimension.
Resulting from SimCorp’s continuous investment of more than 20 per cent of its annual revenue into R&D, the second of this year’s bi-annual SimCorp Dimension releases introduces new functionality for all parts of the investment management lifecycle and to support all financial instrument types in one system.
A recent InvestOps survey found regulatory compliance to be a top concern for global investment managers and listed MiFID II among the most demanding to implement. A solution that integrates seamlessly across front office and IBOR will help investment managers with several aspects of MiFID II compliance ahead of the 2018 deadline. Building on its already tight integration, the new SimCorp Dimension release offers enhanced front office workflows to establish automated T+1 Article 26 transaction reporting.
Furthermore, Release 6.2 introduces a new FIX based connector from SimCorp Dimension’s Order Manager to support real-time post-trade reporting, and new additions to the interfaces with trading venues ensure that clients can provide the information needed to satisfy MiFID II’s order record keeping requirements. In coming versions, the Order Manager will be enhanced to align with emerging best practices around ‘commission unbundling’ and workflows for ‘best execution’ in accordance with MiFID II.
Adding to SimCorp’s already advanced accounting functionality, the release also provides a smooth process for the operational handling of defaulted securities, plus support for the deferral of profit/loss on trades between internal entities. When two portfolios that belong to the same company make an internal trade – a scenario often seen in insurance asset management firms – the new Deferred Gain/Loss Module enables the company to defer the P/L realised by the selling part. Meanwhile, the Defaulted Fixed Income Securities Module makes it possible to take the registered default date on a fixed income security and create actual default transactions, which will reverse any outstanding coupon payments, redemption payments, interest accrual and amortisation. Both new modules enable investment managers to automate even more of their accounting processes to increase efficiency and minimise operational risk.
Other new additions to SimCorp Dimension introduced with Release 6.2 include a new Steuer Reform Gesetz module that provides German investment funds with the functionality needed to comply with the new German tax reform coming onto effect on 1 January, 2018, plus an XpressInstruments Pricing Model SABR , which supports the handling of all instrument types in one system. This new module further improves valuation and risk calculations of vanilla options such as CMS caps, FX options and equity options.
A new Collateral Positions Overview dashboard provides collateral positions data which can be disseminated throughout the organisation, for instance to risk managers and front office staff.
Marc Schröter (pictured), SVP and head of SimCorp’s Product Management says: “It is our core belief that industry complexity, for instance regulatory pressures and increasing data volumes, is best handled with a system that integrates across functions, supports a broad range of instrument types, and is regularly updated to meet new market demands. By constantly investing in our integrated solution, we are providing our clients with increasing levels of automation and efficiency, giving them a distinct competitive advantage.”