IBS Journal October 2015


Sungard InvestOne glitch creates pricing collapse worth billions of dollars


Sungard has been left red-faced and forced to apologise following a glitch in one of its systems potentially disrupting the pricing of billions of dollars of assets. The outage occurred


BNY Mellon HQ, New York IN BRIEF


NatWest customers in the UK were un- able to log on to their internet banking services in early September, following an issue with the bank’s IT systems. Users trying to access their


as Sungard attempted to upgrade the InvestOne platform used by invest- ments and asset man- agement corporation BNY Mellon. The system, according to Sungard may have calculated inaccu- rate prices, leaving BNY Mellon the task of having to go through its pricing with a fine-tooth comb and involve financial reg- ulators. In a public statement, BNY Mellon


announced that it would be working with its clients through alternative NAV produc- tion options. The company will also, it con- firms, be contacting exchanges and indus- try members to support getting its systems back on the straight and narrow. Sungard has recently been acquired by


US software heavyweight FIS, which paid $9.1 billion for the privilege in a deal that


accounts online were met with an error message detailing that the ser- vice was temporarily unavailable. They took to social media to complain about the apparent issue but were told by NatWest representatives that the site wasn’t experiencing any issues. The bank eventually restored


IBS was first to hint at. With the purchase FIS made a step into the treasury and capi- tal markets space and gained a number of investment and asset management systems. The glitch comes at a time where the financial market is already in a vola- tile state, but it is believed that the glitch is unrelated to the ‘Black Monday’ market crashes in China. ‘We at Sungard apologise to BNY Mellon


for the adverse impact this unfortunate inci- dent has had on its operations and clients,’ president Rus Fradin said in a statement. Alex Hamilton


service by the end of the day, with payments processing that night. Customers would have been forgiv- en for worrying, though, after RBS – which runs the NatWest brand – was hit by glitches which affected the payments of more than 600,000 cus- tomers earlier this year. The banking group announced


radical plans to slash its IT infra- structure in 2014, with up to 40 core banking systems and as many as 70 payment systems worth £1 billion facing the axe. —Alex Hamilton


GlobalTrade Corporation first to incorporate Swift Alliance Lite2 for Business Applications


Canada-based GlobalTrade Corporation (GTC) has integrated Swift’s Alliance Lite2 for Business Applications (L2BA) into its platform offering, becoming the first trade finance software provider to do so. GTC, which operates with a network of 10,800 financial institutions in 200 coun- tries, provides multi-bank trade finance solutions on a Software-as-a-Service (SaaS) basis. Integration with L2BA, believes Swift, will enable GTC to offer corporates a ‘one- stop-shop’ to automate trade flows with


their banking partners. Trade finance, according to Swift’s global head of corporate and supply chain, André Casterman, is a key priority for Swift’s market strategy. Centralisation, automation and multi-banking trading solutions, he adds, are helping to increase the amount of control corporates have on their trade finance flows. Swift can help banks grow their risk mitigation and financ- ing businesses, he continues, by adopting its MT 798 and ISO 20022 standards.


© IBS Intelligence 2015 L2BA, which is available for cloud/out-


sourced application providers, includes support for payments, cash management, trade, securities and funds. It will be devel- oped further, according to Swift, to appeal to new segments and markets – including banking apps and on-premises software. Swift already has an established relation-


ship with GTC, having worked closely with it in 2010 on the implementation of its Swift- Ready for Corporates – Trade Finance label. Alex Hamilton


www.ibsintelligence.com 23


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