CAPITAL MARKETS

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Overview

The financial services industry is witnessing a phase of rapid transformation driven by disruptive technologies such as Smart Contracts, Blockchain, Automation, and Artificial Intelligence. A number of factors including shrinking revenues, increasing costs, and capital market compliance add further to the challenges.

Today’s customers demand a rich ecosystem of value-added services and a holistic capital and asset management solutions. This requires a complete reconfiguration of core systems, enabling a competitive advantage as well as sustenance in the long run. Globally, most companies are now embracing agile and experience-centric capital market and asset management solutions.

HCL believes in rationalizing and converging IT and operations across business processes. Our market leading solutions for Run and Change management are complemented by a robust partner ecosystem, introducing multi-faceted capabilities to create a ‘one-stop-shop’ of ideas, platforms, and processes. This ensures stringent regulatory adherence, and enhanced customer-centricity, capital market compliance, and capital market solutions.

Key Features

Over a dozen state-of-the-art innovation labs across the globe are currently working closely with end-business users and a multi-disciplinary team to accelerate idea-to-value cycle for our clients. We streamline the adoption of cutting-edge Fintech trends and deliver award winning customer experience solutions. Capital market risk management relies heavily on modern and efficient capital management software. Our services for the capital markets sector include:

  • FinanceSolutionsTM intersects the best in software platforms and practice methodologies, enhancing capital market applications’ efficiency. Capital market management is now simplified with an intelligent lending and leasing pipeline for large business volumes.
  • BestXekTM Smart Order Routing (SOR) is a low latency suite for capital market consulting which help firms accelerate venue selection for executing trades. It is also geared to reduce costs while expanding rebates.
  • Finastra FusionCapital Opics Plus is a capital market service that helps manage cross-asset processing for capital market applications.
  • Finastra FusionCapital Summit is engineered for derivatives and structured products for global investment banks. It addresses capital market risk management, pricing, booking, back-office processing, and regulatory complexities.

Key Benefits

DMA - DIRECT MARKET ACCESS

The adoption of direct market access or DMA services is compelling investors to embrace high frequency trading strategies around buy or sell orders. The reasons for the buy side include contained trade costs and smarter execution. Hedge funds are DMA’s biggest customer segment, given the stringent anonymity standards. For the sell side, a more managed trade support expense account and a better risk mitigation approach are key considerations.

Conventionally, DMA services catered to the equity trading market with the US as their primary operational area. Today, it is gaining global relevance with the inclusion of FI, derivatives, and other asset classes. On the other hand, Regulatory standards such as MiFID encourage swift adoption of the DMA framework.

DMA services and DMA solutions are integral to HCL’s Fintech suite. Our capabilities across application development and maintenance, systems integration, and product implementation are powered by algorithmic trading frameworks. Key business benefits include:

  • Consumer service level demand management
  • Transaction execution speed uplift
  • FIX connectivity maintenance
  • High-end resource reallocation for strategic initiatives
  • Cost reduction for greater profitability from the direct market access business

HCL’s capabilities in the sector have led to successful management of over a million transactions. Our rich experience in institutional trading, exchanges, and settlements helps us build a comprehensive DMA solutions delivery portfolio, which includes:

  • Interfaces that support messaging protocols like FIX with multiple applications
  • Monitoring, analysis, and resolution of FIX connectivity issues to/from order management systems
  • Leveraging cross-trade life cycle capacities for a flexible algorithmic trading platform

FINANCIAL ACCOUNTING & REPORTING

Financial Reporting is an area of concern, in an intense regulatory and complex environment.

Risk officers are struggling to architect a well-outlined reporting structure that can navigate criticalities such as business risk management, financial reporting, compliance, and data. A number of new regulatory and internal process compliance challenges hinder analytical report generation while effectively managing cost.

Post-crash regulatory mechanisms such as Basel III, Dodd-Frank, FATCA and CCAR, and EMIR in Europe require agile and business-focused financial reporting software. There is also the need for additional financial reporting software, such as financial statement software, financial analysis software, and financial accounting software which offer on-time and ad hoc reporting with enhanced efficiency.

HCL’s Reporting Factory utilizes component-based reporting architecture and financial reporting software that is not only transferable but also highly scalable. Configurability is key to the HCL approach, creating analytical, client, regulatory, industry standard, ad hoc, and MIS reports with ease.

Reporting Factory includes next-gen frameworks, designed to segment and simplify the reporting infrastructure:

  • Design Office is led by a team of financial software experts who receive reports and work on prototypes
  • Ongoing Report Production function furnishes reports based on users’ requirements

Structured for assembly line delivery, both feature standard processes for risk management.

HCL’s Reporting Factory offers a single, integrated platform with upgrade and maintenance capabilities. This reinforces the fundamentals of banking: predictability, transferability, scalability, and repeatability as well as reduced user training and dependence on IT.

RISK MANAGEMENT SOLUTIONS

The banking industry has witnessed a tectonic shift, with local firms adopting global operating models. New entrants are rapidly making inroads in both developing and developed markets, threatening the dominance of older, traditional entities.

In the current 21 CE environment, stringent data monitoring and renewed compliance parameters compel financial institutions to improve functional efficiencies and ensure sustainable competitive advantage. The emergence of Basel II market regulations is another area that demands urgent attention.

Despite the robust safeguarding mechanisms as prescribed by these norms, their deployment poses a significant challenge. Basel II’s recommendations must be actioned within a stipulated timeline, putting considerable pressure on organizations to conform to the set standards. Firms must also build an efficient architectural framework for regulatory compliance and risk management.

HCL’s Market Risk Management solution has been designed specially to maintain and engineer applications from liquidity risk to credit scoring models. At HCL’s Center of Excellence (CoE), we develop market risk management solutions for various financial institutions across the globe.

By gathering data from a variety of sources and importing it into the solution outline, HCL’s interface and design development services ensure BASEL II conformity. HCL’s services help implement enterprise-wide risk and reporting tools and integrate these packages with existing systems.

For more information please visit: https://www.hcltech.com/financial-services/capital-market-services