Dec 2017, Singapore
FinIQ Fixed Income pricing and order management platform recently went live with a major international bank. 700 bankers from three major financial centres will use the system to transact variety of bonds.
The sales user functionality includes product search from bonds catalogue, yield and accrued interest computation, order management for both primary and secondary market workflows, sales spread handling, amendments and cancellations, limit orders.
The dealer desk functions include order aggregation and hedge splits, choice of routing order to Bloomberg market venue to execute client orders, automatic client order allocation, reconciliation between client and market orders, revenue and volume MIS, bond master maintenance and special price request workflow.
The FinIQ system supports government and corporate conventional bonds, callables, puttable, sinking notional, perpetuals, floating rate, par quoted, variable coupon, CoCo and other commonly traded bonds. Market conventions support from majority of markets are made available allowing the sales users to know the exact yield to maturity or yield to call as well as the accrued interest for any given bond inclusive of sales markup. The system also allows entry of client quotes in yield terms giving accurate yield to price conversion. The
FinIQ to Bloomberg electronic interface includes automation of not only the new orders, but also economic and non economic data amends, same day and next day cancels, limit order expiry, unsolicited cancels, done for the day, partial or full order fulfillment.
Primary market IPO orders can be entered with conditions based on spread over benchmark, absolute value, reoffer price as well as the issue size. Secondary market limit orders can have good till Friday, good till date or good till cancel choices.
The implementation started in March 2017 and the system went live in December 2017. Nitish Bandle, Vice President for Product Management at FinIQ comments, "Achieving such a comprehensive automation target including multiple STP interfaces, across multiple entities, covering all calculation verification was a major challenge. It looked almost impossible when we first started earlier this year. By tweaking our implementation methodology slightly, we could achieve it in the end, that too without compromising any of the SIT, UAT, performance testing, vulnerability test and operational test process requirements."
FinIQ has earlier implemented similar market venue access solutions for FX, FX options, ELN, Accumulators, Baskets and addition of bonds now means FinIQ clients can have FX, EQ and FI all three asset classes electronically traded from the retail branch and private banking channels. FinIQ also offers API support allowing banks to build their own web and mobile applications for part of the sales functionality.