MiddleOffice

Who uses SynMiddleOffice?

Institutional stockbrokers
Global investment banks
Prime brokers
Third party clearers
Agency clearers
Custodians

SynMiddleOffice is a flexible solution design to adapt to the different requirements and definitions that clients may have for their middle office processing, which will vary according to location, instruments  and other factors. Generally it is a model-driven or rules-based  product supporting an investment bank’s diverse operational activities. Being rules based, the system is quick to configure to particular implementation requirements as well as adaptable to meet future changes.

SynMiddleOffice is particularly adept at supporting agency brokerage activity. It supports trades where a client, who is a fund manager, wishes to assign portions of the trade to their various funds. The initial trade is therefore represented as a ‘block’ trade and the splits that go to make up the block are represented as ‘allocations’.

The system also recognises that frequently the broker may use a series of companies within the group in order to execute business in global markets.  Typically a client trades with a limited number of the broker’s client facing entities potentially resulting in double or even triple contracted client trades.  This can result in a series of intercompany trades between the broker’s entity buying/selling the stock in the local market and the ultimate client-facing entity that buys/sells the stock from the end client. Processing rules within SynMiddleOffice support such intercompany requirements.

To minimise settlement costs, regardless of the number of legal entities involved in a trade, settling of stock and cash is carried out with two actual settlement instructions, the first between the broker and the local market and the second between the broker and the end client.