Financial Tradeware
Financial Tradeware mitigates risk with escrow from NCC Group
About
Formed in 1997, Financial Tradeware provides integrated portfolio management and messaging solutions and cost effective SWIFT connectivityfor Investment Managers, Investment Funds and Hedge Funds. Since its inception, the company has established a strong European base, with offices in London, Rome, Geneva and Brussels.
Challenge
The purchase and sales of stocks, bonds, options and futures contracts can be a complex business. Investment managers and hedge funds need to ensure that they trade as effectively as possible whilst at the same time, concentrating on cost reduction and operational efficiency.
Financial Tradeware’s customers rely on products such as H-Fund, Ultra-Net and S-Messenger to enhance real-time trading and to ensure compliance. The automation of these processes provides real benefits, but at the same time, the reliance on these products brings new risks.
Financial Tradeware’s customers may depend on H-Fund, Ultra-Net and S-Messenger for a critical part of their own offering, but they do not own or control the source code behind them which is required to support and maintain them. Meaning business continuity could be jeopardised should anything happen to disrupt the ongoing smooth operation of the application.
Financial Tradeware wanted to enhance its offering further by providing its customers with the peace of mind that they could continue to enjoy the benefits of their applications even if an event occurred that prevented Financial Tradeware from meeting its contractual obligations, and supporting and maintaining its products in the future.
Graham Bright, Managing Director, Financial Tradeware commented: “We wanted a solution that would strengthen both our clients and our own business continuity strategies.”
Solution
Following a review of the marketplace, Financial Tradeware approached the world’s largest software escrow provider, NCC Group for a solution.
NCC Group’s software escrow solutions are a smart, simple way of managing risk and demonstrating good corporate governance.
Under the terms of its software escrow agreement, NCC Group holds a copy of Financial Tradeware’s product source code, which its clients depend upon but do not own or have access to under the terms of their license agreement.
By entering into the software escrow agreement, Financial Tradeware is granting its customers the right to access the source code for its applications in the unlikely event that it was no longer able to support or maintain them.
Customers can apply for the material to be released quickly and safely, minimising disruption and cost.
Results
“Our clients can take great comfort in knowing that their interests are being safeguarded through an independent software escrow agreement. It has helped us to establish stronger relationships and has proved very effective in reassuring clients of our stability,” said Bright.
As part of the escrow agreement, Financial Tradeware also fully verifies every agreement in place at no extra charge.Full Verification provides assurance that the material deposited in escrow is correct and complete.
As part of the full verification process, an NCC Group consultant observes the complete build of the application and documents every detail of the environment and build process in a comprehensive report.
The final report is a detailed handbook describing every step in the process of building the source code into the working application.
Bright added: “As part of our escrow offering we also believe that it is vital to offer peace of mind thatthe material deposited is complete and correct. If the integrity of the material is not tested, there is no way of telling if a basic error has been made.”
Jon Leigh, Director of Escrow Solutions, NCC Group concluded: “Our escrow solutions protect end users from the impact of events that are outside of their control. With escrow, Financial Tradeware is taking its client’s needs to the heart of its risk management strategy.”
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NCC Group is a leading global provider of independent IT assurance, security and consultancy services. As a trusted advisor, we help over 15,000 public, private and not for profit sector organisations, including 92 of the FTSE 100, to make the most efficient use of information and technology and to manage the associated risks.
About Financial Tradeware
Financial Tradeware provides integrated portfolio management and messaging solutions and cost effective SWIFT connectivity, and is registered as the EGP/FT Member Concentrator service provider. Financial Tradeware has developed a suite of modules covering front-office order entry, middle and back office administration, accounting, compliance, as well as clearing and settlement with counterparties. The solutions can be used individually to achieve Straight Through Processing (STP), or integrated to provide automation and management for the entire trade life cycle for small to medium sized investment management firms, fund managers and hedge funds. Financial Tradeware, part of the European investment management group, Dharma Holdings, is headquartered in London and has offices in Rome, Brussels and Geneva. Clients include Caxton FX, MFEX, Manifest, Vector Aerospace, EIM, Karla Derivative Strategies and GlobeTax.
Quote
“Our clients can take great comfort in knowing that their interests are being safeguarded through an independent software escrow agreement. It has helped us to establish stronger relationships and has proved very effective in reassuring clients of our stability”
Graham Bright, Managing Director, Financial Tradeware
Challenge
Financial Tradeware wanted to enhance its offering further by providing its customers with the peace of mind that they could continue to enjoy the benefits of their applications even if an event occurred that prevented Financial Tradeware from meeting its contractual obligations
Solution
Following a review of the marketplace, Financial Tradeware approached the world’s largest software escrow provider, NCC Group for a solution
As part of the escrow agreement, Financial Tradeware also fully verifies every agreement in place at no extra charge, to ensure that the material deposited in escrow is correct and complete
Results
Through its escrow agreement, Financial Tradeware has strengthened both its clients and its own business continuity strategies