Gloss is an international processing solution for equities, fixed income and warrants, plus a growing range of treasury and derivative instruments.
Broadridge said that the latest investment in CFD processing functionality follows the recently added FX forwards, non-deliverable forwards (NDFs) and forward rate agreements (FRAs) to Gloss.
According to the Broadridge, with this enhancement, international banks and brokerage firms taking advantage of Broadridge’s investment in CFD processing on Gloss will benefit from a full suite of agency and principal transaction processing and position keeping for equity, FX, index and interest rate CFDs, including exchange-traded CFDs.
Broadridge said that opening and closing events in the CFD lifecycle will be supported with close-out on a FIFO basis and initial margin (cash or securities) deposited on open and returned on close-out will be supported with full settlement processing.
Trading profit and loss can be calculated in real time, with variation margin based on mark-to-market of open trades and the daily financing charge calculated at end of day as well as automating the most commonly encountered corporate actions on CFD positions.
The new CFD functionality is expected to be available available by the summer of 2011.
Broadridge Head of Strategy & Product Management, Securities Processing Solutions International Robin Kneale said this is the latest step in the response to the requirement to process many different asset classes on a single platform, as well as a reflection of the demands and activity in client base at the moment.
"Now we plan to go on to provide functionality for exchange-traded futures and options," Kneale said.
