Investec Bank in South Africa has gone live with an extended version of Information Internet’s MarketMaker online FX trading technology. Six new money market instruments have been added to the MarketMaker service, including fixed loans and deposits, FRAs, overnight call, rand overnight deposit swaps, client foreign currency accounts and trade finance.
Additionally, the existing foreign exchange products have been expanded to include overnight and tom/next.
“The money markets enhancement to MarketMaker has allowed us to offer our corporate base real-time trading in a full portfolio of treasury products via the Internet. In addition, we have integrated MarketMaker into Investec’s back office and risk management systems to provide true straight-through processing. We believe the impact on our business will be significant,” says Investec’s Neil Oberholzer.
Officials say a key development in the enhancement is the “negotiate” button, which allows the bank’s clients to negotiate the prices being offered by Investec on the money market products by entering the price at which they would like to deal. A trade confirmation or re-quoted price is then electronically returned to the client by Investec, in real-time.
“Whilst the technology will deliver huge efficiency gains to Investec’s treasury department in head count terms and client coverage, we believe MarketMaker’s real strength lies in its ability to fully integrate trading with middle and back office treasury processes. The combination of electronically processing pricing, trading, risk and payment in a single integrated solution represents near Nirvana for any bank with a serious treasury operation. This is exactly what Investec have achieved,” says John Ersser, marketing director at Information Internet, which is based in Hertford, UK.
Other MarketMaker features that have been extended from the original FX product to the money markets release are position reports, news, charting, alerts, payment instructions and an online chat function.
Investec plans to migrate the technology worldwide in early 2000.