First execution provider with a fully certified auto-recovery solution to reconcile trades within 30 minutes, in accordance with Singapore Exchange (SGX)’s requirements.
Itiviti, the leading global provider of multi-asset trading technology and financial infrastructure, today announced that it has become the first independent software vendor to support SGX’s requirement to reconcile trades within 30 minutes after a market disruption.
The fully automated solution, part of Itiviti’s SGX market access gateway, will enable members to meet the exchange’s 30-minute deadline to reconcile trades with the exchange and update downstream components, such as positions, limits and P&L.
In 2016, SGX formed an Industry Working Group (IWG) in consultation with the Monetary Authority of Singapore to assess and make recommendations to improve the operational resilience of Singapore’s securities market. In March 2017, SGX announced it would adopt all recommendations of the IWG.
One of the main initiatives arising from the recommendations is the provision of a recovery file that SGX will make available to market members in case of a master order or trade corruption. Itiviti has extended its SGX equities market gateway to automate reconciliation based on this file; the solution will automatically process the recovery file and extract trades related to orders sent through Itiviti’s gateway, verify trades, identify and cancel duplicates, and identify missing trades and re-create them.
Because Itiviti’s solution is fully automated, it will enable members to easily meet the 30-minute deadline SGX has set for firms to reconcile trades in the event the exchange resumes operation intra-day following an outage. Through the Itiviti gateway’s API connectivity with downstream order management systems (OMSs) and other infrastructure, the solution will seamlessly update positions, limits, P&L and other trading and risk-related data.
“Itiviti has worked closely with SGX in order to refine the requirement, test and certify the new recovery capabilities. We value SGX support throughout the process, in development, testing and certification of the new capabilities,” said Richard Bentley, Itiviti’s Chief Product Officer. “Our clients require us to keep pace with new exchange capabilities and requirements, and this demonstrates our focus on serving their critical need for a reliable exchange connectivity partner,” he concluded.
Tan Geok Min, Head of Trading & Market Data, Technology, SGX, adds, “We are glad that Itiviti is one of the first to develop an automated solution that will benefit its clients and our member firms, allowing them to refer to a single source file in trade data reconciliation. We believe that Itiviti’s leadership in connectivity and this newly created solution will no doubt translate into operational benefits for our common clients.”