The London-based technology firm Hudson Fintech launched its new front office technology platform for sell-side and buy-side institutions trading in the Repo markets which supports all aspects of Repo trading and has been developed to offer clients maximum flexibility, increased customization, and faster release cycles. The platform allows future expansion to support multiple asset types and business lines.
The platform captures and displays trade and market data, provides position blotters and real-time analytics, and supports end-to-end workflow processes, thus improving efficiency and risk management, whilst reducing costs for the processing and reporting of Repo trades.
Hudson Fintech’s solution gives financial institutions more ownership and control of trading operations, whilst providing the tools and capabilities to allow customers to quickly adapt to changes in the regulatory landscape, such as SFTR. The innovative system architecture is designed to reduce the time taken to upgrade systems and to cut typical license fees by up to 50%, reflecting institutions’ needs to reduce costs and increase efficiency. That is the result of having components with only a small number of interdependencies and code that is designed to be extensively re-used.
Hudson addresses the increased regulatory requirements within the Repo and Securities Finance market, namely reporting and transparency, improved risk management processes, and balance sheet constraints.
Hudson’s unique technology platform is designed to be implemented quickly, in parallel with existing systems, with little regression testing. Its advanced system architecture, known as Entity-Component-System (ECS), works with a data model where all objects become individual entities to which arbitrary data can be added or removed at runtime. This data model resolves legacy issues,
where traditional ‘hierarchical’ systems are interdependent on other components of the system.
Additionally, the platform allows future expansion to support multiple asset types and business lines on a single application, enabling an organization to consolidate its front-office operations over time on to a single, easy to support, platform. It is also flexible in the event of a regulatory change.
Rupert Bull, CEO of The Disruption House, said: “As many existing technology platforms reach their end of life, we see a demand for a new technology player in Repo trading. There is also a
desire towards a component-based approach, as opposed to implementing enterprise systems.”
Michael Wallis, CEO of Hudson Fintech, commented: “With more than 30 years’ experience working in FICC technology, combined with a robust technology development and support platform, Hudson resolves many of the issues faced by Financial Institutions trading Repos and other financial instruments. By using Entity Component System technology, we have created an order management platform that is adaptable, fast to develop and requires less testing compared to incumbent providers. Our technology gives clients more control, reduces costs and enables faster deployment.”