COR Financial Solutions (FS) has unveiled a new release of its Salerio post-trade exception management solution which includes a new user interface, enhanced search capabilities and easier navigation around standing data tables, designed to make reference data easier to manage.
According to Lee Runciman, head of business development at COR FS, standing settlement instruction (SSI) processing (broker delivery instructions (BDIs) and place of settlement) is one of the key strengths of Salerio, which is targeted to meet the post-trade exception processing requirements of investment managers. “The reason it is such a strength is that Salerio is able to pick up free format text brokers deliver from contracts for Oasys Global (Omgeo’s electronic trade confirmation system), and then apply a unique proprietary algorithm that calculates a check sum on that free format text and spits out a 32-bit check sum string,” Runciman explains. The ability to process free format text is important because Oasys Global does not impose any structure on brokers.
“Salerio then has a look on the database to see if another instruction with the exact same string has been received previously,” he continues. “If the instruction has been received before it will match in the database, and Salerio will enrich the outgoing settlement instruction message with the appropriate SSI information.”
If Salerio can’t find a match, it will compare the market, broker, instrument type and settlement currency to see if it has a record for the relevant combination. “If it doesn’t find a match – or it finds multiple possible matches – it will alert the user that there is a need for repair,” Runciman says. If no match is found, the user is able to select an SSI from drop-down tabs which will link to the database as a record, so Salerio can then find it and enrich automatically. If there are multiple records, the user can select the one it wants.
Not all Salerio clients use the check sum functionality today, but they all use the default processing capability, Runciman says. “This is widely accepted as being a really good way of processing BDIs. The power is in Salerio’s learning capabilities: if you do get an instruction you haven’t had before, the system will learn it for next time,” he concludes.