FCStone LLC, a Kansas City-based futures commission merchant, has implemented SunGard’s Sierra Advanced Margining module to support the expansion of its FX offering to include FX cash and FX derivative products. Sierra’s Advanced Margining module provides brokers and their clients with a centralized workspace in which they can manage real-time margin, fee, trading activity, position, and revaluation calculations. This helps them improve monitoring of house and client positions, client orders and risk breakdown.
A Sierra customer since 2005, FCStone selected Sierra’s Advanced Margining module because of the solution’s access to liquidity. Sierra offers out-of-the-box connectivity to the major FX electronic communications networks as well as to a large network of prime brokers. The solution is also customizable, helping FCStone tailor its FX offering, client agreements, and collateral and margining requirements to match those of its clients.
Xuong Nguyen, executive vice president and chief operating officer of the Clearing and Execution Services division of FCStone, said, “As we looked to grow our business amidst new regulations and the increasing complexity of client demands, we decided to work with SunGard because of Sierra’s proven product capabilities and scalability. Our FX trade volumes have grown over 800% compared to when we started using Sierra five years ago. SunGard’s Sierra offers us a cost-effective solution that is scalable as we continue to grow our business.”
Jim Dennelly, senior vice president of SunGard’s Sierra business unit, said, “As US-based institutional banks and FX brokers look to respond to changing regulatory requirements, such as those of the National Futures Association in the US, they need a customizable and easily implemented solution that helps them be nimble. SunGard’s Sierra has proven its scalability in supporting FCStone’s growth since 2005, and will now help it continue to expand the FX offerings to its clients.”
