Fidelity Capital Markets, a subsidiary of Fidelity Investments, has licensed FNX’s Sierra System for its FX cash and FX options trading operations. Sierra System will provide the information infrastructure and central data repository for all transaction processing, trading, credit limit, and risk management activity for the FX cash and options businesses within Fidelity Capital Markets.
The move to fully integrate front, middle, and back office systems including general ledger and credit limits functionality, is expected to improve Fidelity’s trading operations by enabling streamlined capital growth and a reduced cost base.
Fidelity seeks improved processing efficiencies via the back office and general ledger modules, and aims to reduce operational risk by ensuring consistency of data between the front office, back office and accounting processes. Sierra System’s limits module will monitor position, credit and risk exposures in real-time. Limit checking is performed at deal entry and can be tracked by trader, desk or counterparty.
James Savely, vice president, FX, at Fidelity says, “We needed a system with proven functionality and dependability that could handle our projected growth and plans for global expansion. We actively searched for an STP solution that provided not only extensive FX cash and FX options instrument coverage, but also excellent risk and general ledger functionality. FNX’s Internet strategy was also a strong selling point ‘ the ability to migrate to an Internet-based product such as eSierra, with a robust, fast time-to-market rollout made FNX our vendor of choice.”
Simon Moss, president of FNX, adds, “Our vision was to develop a customer-centric Internet strategy that would enable our clients to further customise the way in which they use our solutions, while reducing the technology and system support costs traditionally associated with fully integrated STP applications.”