SunGard’s Stream Credit Monitor Helps Daiwa Securities America to Manage Repo Exposure across Asset Classes

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New York-based Daiwa Securities America has gone live on SunGard’s Stream Credit Monitor, a real-time, cross-asset credit and margin monitoring tool used by financial institutions to help quickly forecast, identify and respond to position and market changes.

New York-based Daiwa Securities America has gone live on SunGard’s Stream Credit Monitor, a real-time, cross-asset credit and margin monitoring tool used by financial institutions to help quickly forecast, identify and respond to position and market changes. Daiwa is using Stream Credit Monitor, integrated with SunGard’s Phase3 multi-asset, multi-currency securities processing solution, to manage collateral and monitor counterparty margin and exposure on its repurchase agreements or “repo” financing transactions for futures, equities and fixed income instruments on a single platform.

As credit and liquidity have become more difficult to come by in the current financial crisis, financial institutions participating in repo transactions need to be able to effectively manage collateral and reduce counterparty risk throughout the repo lifecycle. Using SunGard’s Stream Credit Monitor, Daiwa is able to eliminate the use of multiple margin and credit monitoring systems, and consolidate these processes onto one platform to provide a holistic view of risk and exposure.

Nicholas Rubino, executive vice president and chief operations officer at Daiwa Securities America, said, “SunGard’s Stream Credit Monitor provides a single application for multiple asset classes that shows our total cross-product, cross-counterparty exposure in one place, even taking into consideration stock loan activity, interest rate swaps and total return swaps. Stream Credit Monitor has had a direct, positive effect on Daiwa’s bottom line and viability in an unpredictable market, helping to make us immediately aware of exposures.”

Developed using SunGard’s Common Services Architecture (CSA)*, Stream Credit Monitor integrates with SunGard’s Phase3, which provides traditional intraday and end-of-day margin on equities and margin accounts and provides repo and margin transactions to the Stream Credit Monitor system. Stream Credit Monitor calculates margin requirements for each counterparty, monitors repo margin exposure for transactions processed on Phase3, and supports specific haircut requirements, accrued interest, and market value calculations to determine the repo margin or exposure amount for each counterparty.

Gerry Murphy, president of SunGard’s brokerage and clearance business, said, “In today’s financial landscape, it is imperative for financial institutions to be able to closely monitor and gauge risk and exposure at the firm level in order to react quickly and appropriately. Stream Credit Monitor provides real-time, cross-asset margin and credit functionality that extends to many non-traditional areas to help firms monitor and control risk in a holistic manner.”

  • SunGard Financial Systems is pursuing a visionary initiative to transform some of the key functionality of its core systems into components to form a new software development and on-demand delivery environment called Infinity. Infinity enables financial institutions to develop and deploy custom applications, integrating SunGard components with their own proprietary or third party components. Infinity uses SunGard's Common Services Architecture (CSA), a service-oriented architecture (SOA) development framework, offering business process management (BPM) and a virtualized, software-as-a-service (SaaS) infrastructure.

About Daiwa Securities America
Daiwa Securities America Inc. (DSA) is a corporation organized under the laws of New York, a broker-dealer registered with the U.S. Securities and Exchange Commission, a futures commission merchant (FCM) regulated as such by the CFTC, and a primary dealer in U.S. government securities. Daiwa America Corporation (DAC), a corporation organized under the laws of Delaware, owns 100% of DSA. Daiwa Securities Group Inc. (DSGI), a holding company based in Japan, owns 100% of DAC. Backed by DSGI’s $173 billion in AUM, DSA reported approximately $29 billion in AUM as of Fiscal Year Ending March 2008. DSA’s total Capital for Rule 15c3 purposes is approximately $364 million with our Net Capital being $173 million. Daiwa is a member of the Securities and Exchange Commission, FINRA, NYSE Euronext, all regional exchanges, Chicago Board Options Exchange, Futures Commission Merchant, Depository Trust Clearing Corp., Fixed Income Clearing Corp., Options Clearing Corp., Mortgage Backed Securities Clearing Corp., and SIPC. Daiwa’s Global Clearing Network actively clears in 25 local markets as well as Euroclear.

About SunGard’s Stream Credit Monitor
Stream Credit Monitor is an intra-day and end-of-day margining solution that iterates from price and activity triggers, prompting the recalculation of strategy-based accounts taking advantage of sophisticated pairing rules. Stream Credit Monitor helps financial institutions to enhance service to customers and reduce risk by producing timely and accurate measurements of requirement and excess. In addition to automated margin call issuance and resolution features, Stream Credit Monitor provides a deep set of workflow events used by managers to quantify their exposure and facilitate resolution workflow. Using continuous feeds from global markets, Stream Credit Monitor generates intra-day margin calculations, supports margin rules from the major exchanges worldwide, and integrates with most transaction processing applications.

About SunGard’s Phase3
A real-time, order-to-settlement system for processing securities transactions, Phase3 supports retail and institutional broker-dealers, ECNs, and correspondent clearing firms. Phase3 helps organizations automate securities processing, helping to reduce the delays and errors associated with manual interventions and helping to efficiently accommodate large trade volumes. It also assists customers in consolidating their records by enabling them to process all securities types on a single platform, using a single database, including equities, fixed income, mutual funds, and annuities.

About SunGard
SunGard is one of the world’s leading software and IT services companies. SunGard serves more than 25,000 customers in more than 70 countries, including the world’s 25 largest financial services companies.

SunGard provides software and processing solutions for financial services, higher education and the public sector. SunGard also provides disaster recovery services, managed IT services, information availability consulting services and business continuity management software.

With annual revenue exceeding $5 billion, SunGard is ranked 472 on the Fortune 500 and is the largest privately held business software and services company on the Forbes list of private businesses. Based on information compiled by Datamonitor*, SunGard is the third largest provider of business applications software after Oracle and SAP. Continuity, Insurance & Risk has recognized SunGard as service provider of the year an unprecedented five times. For more information, please visit SunGard at http://www.sungard.com.

*January 2009 Technology Vendors Financial Database Tracker http://www.datamonitor.com

Trademark Information: SunGard, the SunGard logo, Stream Credit Monitorand Phase3 are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.

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