Bank XYZ’s existing architecture was typical of the way that many banks have created STP on a piecemeal basis. Each new trading venue added by the business had triggered an individual integration project to connect directly to the risk and trading system, leaving the bank to attempt to support a number of bespoke in-house feed handlers, perhaps where the original developer had subsequently left the bank.
DealHub’s solution installed individual DealHub STP feed handlers for each venue to take completed trade tickets into the DealHub core, where they are converted into a common format, and archived into a SOX compliant SQL database. A single outbound interface was then created to the legacy risk and trading system as an initial stage: unification of the STP process at this early stage offered the bank the choice of then creating a new interface to any chosen new risk and trading system.
Adding the DealHub layer between the various ECNs and trading venues and the bank’s downstream systems effectively decoupled them ready for the migration to new systems, and allowed the bank to add a new trading venue rapidly at any stage.
During UAT testing of the new risk and back office system DealHub was able to supply a real-time duplicate feed of copies of production trades, to create an accelerated replay of a whole day of trades, and to facilitate the setup of static data in the new system. At the point of crossover the bank was able to move efficiently to the new system having proved that it was aligned correctly with the legacy system.
DealHub was also able to offer Quality of Service tuning to facilitate the priority booking of tickets for the increased volumes being processed by the bank.
For more information on the DealHub components used in this solution, please click on the following links:
STP Feed HandlersArchive Database
Rules Engine
Quality of Service
Outbound Interfaces
For more information on DealHub Price Distribution Solutions, click here
