Hudson Fintech launches trade message triage for back office optimization

Hudson Fintech, the London-based Capital Markets technology firm, announced the launch of Trade Hospital, which acts as an advanced workflow management service that filters, aggregates and reconciles trade messages. It then sends optimized submissions to back-office systems for confirmation and settlement.

“Hudson Trade Hospital resolves a major headache for our clients, optimizing processing workflows and immediately saving on processing costs,” said Michael Walliss, CEO of Hudson Fintech, in a statement. “Hudson is live with Trade Hospital and Repo Trading modules. We are already in development with several new products as our clients see what can be achieved by using innovative ECS architecture.”

Entity-Component-System (ECS) architecture is used in video game technology, and Hudson Fintech is the first company to use it for capital markets. ECS works with a flexible data model where changes can be incorporated at any stage, not just during the initial design process.

Hudson developed Trade Hospital in response to clients requesting a post-trade flow optimizer to manage their trade submission processes. Trade Hospital introduces a new holding stage where the majority of trades can be processed immediately to settlement systems, whilst those which can be aggregated or are not required, follow a different workflow.

One example is a block trade workflow where trades are held until the original block trade is fully allocated to the relevant sub-accounts. Once done, these trades are submitted for processing and the original block trade is subsequently canceled within Hudson’s Trade Hospital, meaning no unnecessary submissions or charges are incurred. The holding process is completely configurable and compliant with the regulations regarding booking times for transactions.

Many financial organizations use back-office systems that process trades on a cost per transaction basis, where costs rise with the volume of transactions. In certain circumstances a transaction results in multiple trade messages being created, each incurring a fee. Trade Hospital’s intelligent post-trade processing minimizes the number of messages being sent without impacting the trade economics and reducing costs.

Hudson is used to support multiple asset types and business lines, such as repo trade capture, securities lending, data management for regulatory reporting, clearing complex structures like total return swaps (TRS), and helps mitigate some cybersecurity risks. The fintech says its systems design promises over 50% on costs.

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