Misys is building out its FusionCapital trading platform on the basis of its four core workflow solutions – Kondor, Summit, Opics and Sophis – and the addition of components including pricing, curves and securities inventory that can be used across the core solutions but also by third-party vendor solutions.
The FusionCapital platform is the culmination of product development since Vista Equity Partners acquired Thomson Reuters Trade and Risk Management business in January 2012, rebranded it as Turaz, and then acquired Misys, bringing the businesses together under the Misys brand. Thomson Reuters brought the Kondor fixed income solution to the party, with Misys contributing Summit for derivatives and cross-asset trading, Sophis for integrated derivatives trading, risk management and trade processing, and Opics for front-to-back operations at local and regional banks.
These products form the core solutions on the FusionCapital platform, which was introduced to the market in late 2014 as an on-premise solution designed to help banks reduce their technology costs by incrementally transitioning from complex, legacy IT landscapes to more open and agile architectures. The additional components have open application programming interfaces so that they can be used with both Misys and other vendor solutions.
The platform has recently been made available in a private Hewlett Packard Enterprise cloud, with a view to helping banks further reduce costs, improve operational efficiency and scale as necessary. Sadiq Javeri, head of product strategy, capital markets and enterprise risk at Misys, says: “This has not been a trivial path to go down. Significant investment has been made to open our core products and allow them to work with the components. Interest in FusionCapital is high as banks don’t need to rip out systems and can instead incrementally update and transform their environments.”
The first component based solution running in the cloud is for post-trade processing and includes Misys’ FusionCapital Insight user interface and FusionCapital Securities Inventory. Other components include pricing, electronic trading and curves, which could be combined and run in the cloud for use cases such as pre-trade risk mitigation, real-time risk monitoring, collateral management and pricing. Beyond the five initial components, Misys has plans to build a total of eight or nine with the next addition likely to be a reporting component.
The cloud vision of FusionCapital will be marketed by both Misys and Hewlett Packard. Javeri says the companies are talking to prospects about implementation and expects some existing Misys users, the company has over 800 users of its core products, and new customers to opt for the cloud solution.