The platform offers users additional processing support for tri-party repurchase agreements, auto-borrows and mortgage-backed securities as well as new P&L methodology and a Bloomberg interface. In parallel, Broadridge has extended its global fixed income client base for Gloss with three new implementations.
Gloss’ new functionality will further increase users’ operational efficiency, and includes:
•Tri-party repurchase agreements (repos): Gloss creates SWIFT MT527 messages for deal initiation and closing, the receipt of the related MT558 status messages, and the receipt of MT54n messages that carry information about the collateral assigned. It also supports the representation of these movements as transactions and as entries in the books and records of the broker.
•New Auto-borrows functionality supports the receipt of reports, in particular the RP31 report from Euroclear, on a schedule defined by the client. It automatically represents these movements as transactions and as entries in the books and records of the broker, both as a record against the depot and as sub-balances for auto-borrows/loans. This will enable brokerages to improve control of depot balances and benefit from a more straightforward reconciliation.
•Mortgage-backed securities: Gloss calculates the partial redemption proceeds when a factor is changed, and automatically updates the book cost. It also interacts automatically with upstream trading systems to ensure that transaction processing, instruction messaging, booking and accounting entries are made in a controlled way.
•P&L methodology: To ensure a consistent profit and loss methodology can be used across the widest range of financial products, Gloss supports the value dated constant yield accretion methodology with FIFO trade matching. Yield prices can be calculated from clean prices using either the Monaco formula or the RBA/RBNZ formula for Australia / New Zealand.
•Bloomberg: The market interface between Bloomberg and Gloss has been extended to handle principal outright trades, repos, prices and fixed income instruments from Bloomberg into Gloss.
Large-scale issuance of debt has stimulated banks’ desires to trade globally in fixed income products. Broadridge has worked with three investment banks to help them quickly launch or extend their global fixed income businesses in Europe and Asia Pacific in less than six months, with one of the operations going live in under three months. A number of other clients are also in the process of rolling out the Gloss solution this year.
“We are very pleased to be supporting the ambitions of our clients and responding to the evolving requirements of the brokerage community as they seek to rapidly launch or extend their businesses in new areas and geographies. We have been particularly pleased to help clients get these complex businesses up and running in less than six months from start to go-live,” said Robin Kneale, head of strategy & product management, Securities Processing Solutions International, Broadridge. “This should be seen as another element of our ongoing roll-out of in-depth multi-asset capabilities which deliver increased efficiency and automation to our users’ trade processing and settlement operations,” Kneale added.