Societe Generale Securities Services (SGSS) has launched CrossWise, a plug-and-play solution that combines its existing front, dealing, middle and back office services allowing clients to streamline their main activities around asset selection, performances and distribution to their clients.
Built as a modular solution, CrossWise enables asset managers to outsource as many services as needed so they can focus on their core business, according to Mathieu Maurier (pictured), global head of sales and relationship management for SGSS.
"Cross wise is a tool developed with asset managers in mind but it is relevant to structured products because asset managers use derivatives and structured products," said Maurier, adding that the new solution is not an issuing hub either but "a platform that replicates the back-office of a bank externally".
Bundling all SGSS' front to back expertise and its capacities in trading and securities services, the new platform enables clients to optimize their operating model and meet all regulatory constraints, such as audit trails or best execution. CrossWise also uses investment management solution SimCorp Dimension "which secures seamless integration and high levels of efficiency across front, middle and back office, covering all asset classes", according to Maurier.
"CrossWise is the result of significant work to come up with solutions to respond to the needs of the asset management market and the number of challenges it is going through," he said. "Over the last few years, the asset management industry has increasingly faced competitions from the passive investments segment (which includes structured products) and the facts that institutional investors are seeking cost efficiency and value for money when it comes to investment management."
Total expense ratio is going down, margins are tighter, there are pressures on costs as a result of regulatory requirements, and firms are operating in a more complex environment, according to Maurier. "As an asset servicing provider we are targeting investment managers with a comprehensive solutions that covers the whole value proposition and the full range of front to back activities," said Maurier, pointing that Crosswise combines front-office, execution, middle-office and back-office and is targeted at small and medium-sized investment management firms.
"The solution offers a one-stop-shop encapsulating the full asset servicing functions which currently are being delivered by multiple separate providers which adds complexity into the framework."
The front office module includes a portfolio management system; a pre-trade compliance module; and an order management tool whereas the dealing solution includes a multi-asset dealing desk for all kind of securities (bonds, listed derivatives, forex, derivatives) and funds that provides best execution service. In addition, Crosswise's middle office module provides transaction management, investment operations as well as reporting and analysis; while the back office provides the valuation, transfer agency and custody services and links towards external valuation and other custodians.
"Each of the functions within each module is usually provided by a different party so bringing all of these functions together provides a very efficient coverage of the full operational value chain," said Maurier.
The solution has been designed to provide operational efficiencies for firms with a best of breed solution for their trading and securities activities, according to Maurier. "The new platform is a cross-asset solution absolutely product agnostic and is not limited to any type of instrument," said Maurier. "We believe Crosswise will resonate with those firms because to develop in house this kind of infrastructure would not be economically viable. This is very relevant to smaller firms seeking to comply with new regulatory requirements and remain consistent and focus in their core activities around investment management and look after their distribution network."
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