Market upheaval caused by Covid-19 has “tested” back offices and highlighted the need for systems to track positions, haircuts and collateral, a New York tech firm has said.
“Covid-19 has brought about unprecedented volumes and volatility, which has impacted the value of holdings and underlying fundamentals that the derivative market is pricing in,” head of regulatory affairs Venu Palaparthi told Global Investor on Wednesday.
“As markets whipsawed back and forth in waves of buying and selling, the mettle of this aspect of back-office infrastructure was tested,” Palaparthi said.
His comments came as Dash Regulatory Technologies, an affiliate of Dash Financial Technologies, launched Dash 360R, offering a software-as-a-service (SaaS) version of its existing US regulatory capital compliance suite.
“With Dash 360R we have taken our highly trusted LDB (Len D. Bole) system and SaaS-enabled it, giving it the ability to support multiple configurations and parallel computations.”
The latest SaaS-enabled version enables broker-dealers to choose between on-premises or cloud deployment options, offering automation of regulatory calculating and reporting as well as any firm-specific requirements, the firm has said.
Research published in April said back offices are creaking under the strain of extreme trading volumes linked to the coronavirus pandemic.
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