SunGard integrates cash and derivatives trading systems under Front Arena

Pennsylvania-based risk technology firm SunGard Trading Systems is integrating its major cash and derivatives trading systems to offer a cross-asset front- to back-office straight-through processing solution under the Front Arena brand.

The agreement combines SunGard-owned Front Arena, the flagship product of Stockholm-based trading and risk management technology provider Front Capital Systems, with Global Trader and Treasury Trader, the core products of SunGard's Global Markets product range, headquartered in California. The new operating unit will be headed by Jonas Lindström, former chief executive of Front Capital Systems.

“This is a strategic move on behalf of SunGard Trading Systems to exploit opportunities by bringing Front Capital Systems and Global Markets together," Lindström said in a statement. However, John Mooren, head of product management at Front in London, told RiskNews: ”The impetus for this has come from ourselves and Global Markets rather than SunGard.”

Mooren said the integration with Global Markets will strengthen Front’s capacity in the foreign exchange and money markets, as well as extending its reach in new geographical areas.Front Arena is predominately used in Europe and South Africa and offers equities, fixed income and derivatives trading functionality, exchange interfaces and credit derivatives enhancements. Global Markets' Global Trader product, used in the US and Asia, is a front-office trade, order management and transaction processing system for fixed income and foreign exchange. Its Treasury Trader product is a global foreign exchange and money markets system.

The combined product offerings have an installed base of over 150 institutions comprising more than 9,000 users.

Last year Front started a global sales drive, appointing Stephen Butcher as head of global operations in June. Some success was seen in Asia after a new office was opened in Singapore last November and deals were made with Bank of Tokyo-Mitsubishi and the Development Bank of Singapore. Mooren says the technical details of the product alignment have not yet been decided.