LONDON, May 23 (IFR) - NEX Group is reshaping its post-trade services group, NEX Optimisation, into a cloud-hosted platform that will use blockchain technology and artificial intelligence to reduce costs and optimise clients’ risk and capital across the transaction lifecycle.
NEX Infinity will act as a single gateway for clients to access the firm’s post-trade services as well as permissioning third-party providers to ensure that all trade and portfolio processing requirements sit in once place through the entire transaction lifecycle.
After building the underlying architecture for NEX Infinity in March, the group is planning to move to production testing with clients in July. Beginning with matching, allocation and confirmation for spot foreign exchange and cash equities, additional services including new asset classes and connectivity to third parties are scheduled to be added for production testing by autumn 2017.
Jenny Knott, CEO of NEX Optimisation, said that by bringing the portfolio of services onto a single platform, NEX Infinity represents a new era of efficiency in a traditionally siloed and fragmented market for financial services technology. She said that clients typically need to maintain 200 to 400 connections to their participants and intermediaries, resulting in fragmented data and additional cost, complexity and risk.
“NEX Infinity solves these problems for the market,” Knott said in a statement. “Through a single, cross-asset platform, which uses emerging technology, clients will connect once to access NEX Optimisation’s 6,500 connections and consume multiple services.”
To access NEX Infinity, clients sign up to a single master services agreement. Clients will then be automatically migrated to the new platform using artificial intelligence reconciliation tools provided by data technology firm, Duco.
The platform comes as banks and their clients face increased costs associated with new regulations that require detailed reporting of swaps and securities trades to data repositories, while more transactions must be verified and reconciled before being sent to clearinghouses.
“Regulations are adding numerous processes to client workflows and technology architectures are becoming even more complex, ultimately limiting our clients’ ability to grow revenue,” NEX CEO Michael Spencer said in a statement.
NEX Optimisation is one of four business units created by NEX Group following the sale of ICAP’s broking activities to Tullett.
The portfolio of trade lifecycle services includes pre and post-trade processing unit Traiana, swaps reconciliation and compression firm TriOptima, matching engine Rest and treasury portfolio management firm Enso. It also houses pricing, analytics and regulatory reporting arm NEX Data as well as MiFID and EMIR reporting firm Abide Financial. (Reporting by Helen Bartholomew)