An equity derivatives software solution for synthetic prime brokerage is launched by Financial software provider 4sight.
Dubbed, 4sight Synthetic Finance, the system supports the full equity derivatives lifecycle. It provides a front to back office solution for change transactions counting Contracts for Difference (CFDs), Total Return Swaps (TRS) and Portfolio Swaps over a range of underlying assets including Equities, Futures, Bonds, Index/Sector Indices and Custom Baskets on a single or cross-currency basis.
It offers workflow and control for position management, trade entry, corporate actions, settlement and reporting. As a real-time management and calculation system, the platform is ready to meet the demands of regulatory reporting requirements for Dodd-Frank and EMIR.
We expect significant growth in the equity derivatives and synthetic finance space in response to the regulatory pressures facing prime brokers and their clients. This latest addition to our product range enables 4sight's clients to take advantage of this trend and establish new revenue streams as synthetic trading gathers pace."
Basel III capital necessities and balance sheet pressures are rising costs for prime brokers servicing hedge fund clients.
Synthetic trades using equity derivatives enable significant netting and balance sheet efficiencies across counterparties compared with traditional securities finance structures.
This is ensuing in a rising trend for prime brokers to launch enhanced Synthetic Finance services for their clients. Their hedge fund counterparties gain exposure to a wider set of international markets and products with a reduction in operation costs and complexity.
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