With Torstone Inferno, you can handle trade capture, clearing, and reconciliation all in one place. Inferno manages trade capture from many standard systems including Fidessa, Bloomberg, ULLINK, Sophis, Imagine, Front Arena and Murex, while automating the self-clearing process, including messaging to and from SWIFT, CREST, and secure cash payments. You can also automate CREST transformations and stock borrows, and connect directly to a Swift Alliance Gateway or SWIFT service bureau. Both internal and external reconciliations can be handled through Inferno without the need for third-party reconciliation products.
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.
For each product type and counterparty combination, Inferno automatically determines the type of confirmation and the proper delivery mechanism. For equity and bond trades, Inferno can generate printed trade confirmations, or send automatic confirmations to the client via email or fax. You can also send block and allocation confirmations via CTM and MT300 confirmations via the SWIFT network.
Inferno has a robust workflow system for derivative transactions, with the ability to attach e-mails and documents, and e-signing abilities for the final confirmation. You can also upload statuses from matching systems such as DTCC.
Inferno comes with three reconciliation engines, tailored to the reconciliation of cash, positions and trades. Simply load your data into the reconcilers (from Swift messages and other sources) and configure the reconciliation engine with rules to automatically match transactions: any remaining breaks are aged and assigned to users. Inferno’s user-friendly screens display breaks and allow the recording of any investigations undertaken. And you can configure tolerances for each reconciliation and create write-offs automatically.
Inferno has some of the highest STP rates in the industry thanks to automatic two-way settlement messaging and status updates over the SWIFT network. These messages are updated in real-time via a suite of screens that identify exceptions and show the current status of open trades. And because you have access to this data at lightning speed, Inferno can help you manage the settlements process faster and easier than ever before. Inferno is equipped to handle ISO15022 standard messaging, CREST’s DEX format, and ISO20022.
Inferno models the terms of a CSA, then uses these terms — together with existing positions and cash data — to calculate collateral calls and to warn you when a call is expected. At any time, you can generate a collateral calculation statement that can then be sent to the counterparty to make a call.
Inferno allows you to book stock borrow, loan trades, and their associated returns. You can handle both cash and non-cash collateral. With Inferno, your Operations department can calculate fees and rebates, and review a series of reports to ensure the correct amounts are paid and received each month. Inferno also supports CREST stock borrows, creating a stock borrow return automatically.
Delivery and Cash Management
Inferno’s cash and inventory management screens help you control the settlements process faster and with more accuracy. Through these screens, you can view and manage cross-border transfer of securities and geta real-time view of current positions.
In addition, Inferno gives you the agility to handle classic repos, buy-sellbacks and tri-party repos, plus the full range of mid-life events. Inferno calculates interest accrual and cost of carry, integrated with cash bond positions, to give you a day-to-day view of your lent or borrowed positions and P&L, independent of the front office. It also supports integrated collateral management and exposure calculation for trades under GMRA, with instruction of cash and non-cash collateral. Tri-party activity is also supported, with all movements of collateral sent back into Inferno’s trade capture system and stock record.
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 is powerful enough to be your organisation’s central data repository and act as the master copy for static data, distributing this information to other systems as required. Static data — received via feeds from the major vendors — is cleaned and automatically merged with your existing data. This gives you the power to model complex instruments and hierarchical organisations that contain data on calendars, markets, regions, credit ratings and currencies in addition to your own data.
Inferno’s client custody module allows trades to be automatically generated that represent your clients’ view of the world. The postings from these trades give you the client stock, P&L and cash data that you need to generate client holding and cash statements at month end. These are then automatically emailed to clients.
Inferno can also produce a Client Money and Asset Return (CMAR) report with the data required for input onto the CMAR return, as well as a resolution pack to satisfy regulations. Internal and external client money reconciliations are also available.