Dublin-based Davy Capital Markets, a division of Ireland's wealth management group Davy, has successfully implemented Torstone Technology's post-trade processing platform. This cloud-based software-as-a-service (SaaS) solution aims to boost operational efficiency and regulatory compliance for Davy's capital markets business.

Davy Capital Deploys Torstone Post Trade Solution

The integration comes after Davy selected Torstone last year to advance its post-trade processing capabilities. The announced move brings its continuation and allows Davy to leverage Torstone's integrated suite covering middle and back office functions, including reporting, accounting, reconciliations and Irish settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term.

According to the companies, the scalable platform provides the flexibility for Davy to adapt to evolving client needs and industry changes.

“At Torstone, we believe in growing with our clients’ business ambitions, and this successful deployment is evidence to that commitment,” Brian Collings, the CEO of Torstone, said. He added that the go-live represents the company's commitment to enabling clients' growth ambitions.

Founded in London, Torstone provides post-trade solutions to financial institutions globally. Davy Capital Markets operates as part of the wider Davy Group, which is an Irish financial services firm with over 800 staff and €16 billion in client assets.

“With this innovative SaaS platform in place, we are confident in our ability to meet the evolving demands of the financial industry,” Allison Connolly, the Head of Capital Markets Operations at Davy Capital Markets, added.

Torstone Technology Aligns with DTCC

In a separate move, Torstone Technology has obtained certification with the DTCC's Central Trade Manager. The significance of this integration lies in its timing, as the industry gears up for a reduced T+1 settlement cycle set to commence in 2024.

This partnership with DTCC provides clients with automated central matching features and an improved database of Standing Settlement Instructions, aiming to streamline and increase the accuracy of the post-trade process.

“With major post-trade structural changes on the horizon, including T+1 for North American markets in 2024, Torstone Technology provides a real-time, event-driven platform to support our clients’ requirements to meet the demands for efficiency and accuracy,” Brian Collings, the CEO of Torstone Technology, commented.

Market Participants See Elevated Risk in Moving to T+1 Settlements

In collaboration with Firebrand Research, a capital markets research provider, Torstone recently presented a study regarding the potential impacts of plans to reduce the settlement cycle in the USA over the next two years.

In March 2023, a comprehensive study involving viewpoints from buy-side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term, sell-side, and service provider market stakeholders was carried out. The study culminated in a report called “The British Perspective on T+1”, which highlights the UK market's primary challenges and focal points considering the impending transition to T+1 in North America.

Furthermore, the report casts substantial doubt on the feasibility of the timeline leading to the scheduled implementation date, determined by the United States Securities and Exchange Commission for 28 May 2024. The participants from various market sectors unanimously shared significant concerns across four key areas.

In May, the Global Financial Markets Association's Global Foreign Exchange Division cautioned that speeding up US securities settlement to T+1 increases the risk of delayed transaction funding reliant on FX settlement.