Inferno handles trade capture from a number of standard systems including Fidessa, Bloomberg, Sophis, Imagine, Front Arena and Murex. All incoming data can be validated and enriched. Inferno handles all the requirements for self-clearing including messaging to and from SWIFT, CREST and secure cash payments. It automatically handles CREST transformations and stock borrows, and connects directly to a Swift Alliance Gateway or to a SWIFT service bureau.
Transactions from multiple front office systems and locations can be captured and enriched by the Inferno Pipeline, ensuring all transactions, regardless of asset class, are consolidated onto a single platform at the earliest opportunity within the processing lifecycle.
For each product type and counterparty combination, Inferno automatically determines the type of confirmation and the required delivery mechanism. For equity and bond trades, Inferno can generate printed trade confirmations, or send confirmations automatically via email or fax to the client. Block and allocation confirmations can be sent via CTM and MT300 confirmations can be sent via the SWIFT network.
For derivative transactions, Inferno provides a fully featured workflow system that allows e-mails and documents to be attached and the final confirmation electronically signed. Statuses from matching systems such as DTCC can also be uploaded.
Inferno achieves high STP rates through automatic two-way settlement messaging and status updates over the SWIFT network. These are managed in real time by a suite of screens that identify exceptions and show the current status of open trades. Settlement risk is reduced through netting at both the trade and the instruction level. Cash and inventory management screens allow Operations to monitor and control the settlements process efficiently and effectively. Inferno handles both the ISO15022 standard and CREST’s DEX format messages and has been extended to handle ISO20022.
Inferno provides transaction reporting to ARMs (Approved Reporting Mechanisms) including Unavista and Abide. Incoming statuses are recorded against the trade that generated the report. Inferno also provides a suite of reports containing the relevant data to satisfy Basel III and other capital and liquidity reporting requirements. There are also several hundred out-of-the-box internal reports to enable Management to analyse and question all aspects of their business.
Rather than relying on a generic reconciler, Inferno provides three reconciliation engines that have been specifically tailored to the reconciliation of cash, positions and trades. Data is loaded into the reconcilers (from Swift messages and other sources), with the reconciliation engines using configurable rules to automatically match transactions. Any remaining breaks are aged and assigned to users. The user-friendly screens display breaks and allow the recording of any investigations undertaken. Tolerances can be configured for each reconciliation and write-offs are created automatically.
Inferno models the terms of a CSA and then uses these terms together with the data it already has about positions and cash to calculate collateral calls and to warn when a call is expected. At any time, a user can generate a collateral calculation statement that can then be sent to the counterparty to make a call.
Inferno allows users to book stock borrow and loan trades and their associated returns. Both cash and non-cash collateral are handled. Fees and rebates are calculated and a set of reports provided that allow Operations to ensure the correct amounts are paid and received each month.
Inferno also supports CREST stock borrows, creating a stock borrow return automatically.
Inferno handles classic repos, buy-sellbacks and tri-party repos, plus the full range of mid-life events. Integrated collateral management and exposure calculation for trades under GMRA is supported with instruction of cash and non-cash collateral. Tri-party activity is supported with all movements of collateral reflected back into Inferno’s trade capture system and stock record.
Inferno will also calculate the cost-of-carry during its end-of-day processing, posting entries to the ledger so that each book can clearly see its true cost of trading.
Inferno automatically processes incoming corporate action data and provides a user-friendly event diary and workflow system. Users can review corporate action data and then generate advice notices for clients that detail the corporate action and any action the client needs to take. These notices are automatically e-mailed to the clients containing details of their holdings. Consolidated tax voucher statements can also be generated automatically for clients.
Corporate action postings are largely automated, including all dividend accruals and payments, and automatic adjustment of open trades based on transformation messages received from a CSD such as CREST.
Inferno models complex instruments and hierarchical organisations and also contains data on calendars, markets, regions, credit ratings and currencies. Static data received via feeds from the major vendors is cleaned and automatically merged with existing data. Inferno can therefore be used as an organisation’s central data repository and act as the master copy for static data, distributing this information to other systems as required.
Inferno includes a client custody module that allows trades to be automatically generated that represent the clients’ view of the world. The postings from these trades provide client stock, P&L and cash data that are used to generate client holding and cash statements at month end. These are then automatically e-mailed to clients.
Inferno produces a Client Money and Asset Return (CMAR) report containing the data required for input onto the CMAR return, and also provides a resolution pack to satisfy regulations. Internal and external client money reconciliations are also available.