Jefferies adopts TwoFour Systems cash management tools
Global investment bank Jefferies has chosen a cash management solution from software firm TwoFour Systems for its UK and US-based Jefferies Bache Treasury business, to help it keep better track of its business processes.
The TwoFour CM cash management technology is designed to provide intra-day real-time aggregation of balances and cash flows. It also consolidates cash forecasting and processing of payments and receipts in one core system and provides global real-time liquidity views, intra-day cash-flow matching and exception handling. The idea is to reduce settlement risk while increasing funding accuracy. In addition, the product includes a blotter that helps users see details of consolidated balances and the actual cash flow item level.
The need for major financial institutions to better keep track of their business processes was highlighted in October, when US business intelligence company QlikTech reported that many firms are relying on outdated information that is inadequate for controlling risks.
Based on a study of risk managers within capital markets companies, the report found that only 5 per cent of risk managers are receiving the information needed to do their jobs in real-time. Some 38 per cent said it took more than four hours to get the latest data after the markets had changed, and 31 per cent of those questioned said they were relying on information only updated on a monthly basis to make important decisions around risk management.
The research also found that 42 per cent of the data was still presented in a static spreadsheet format, with 34 per cent unable to drill further down into the information to get detailed insights. Some 14 per cent admitted that the data held by front office personnel and risk managers was contradictory.
“The flexibility of TwoFour’s workflow-based solutions allows our implementation teams to work closely with clients and ensure TwoFour’s software is adapted to meet their business,” said Paul Radding, TwoFour’s director of client services. “TwoFour’s extensive usability allows us to train the client to configure features such as screen layout, reports, interfaces and workflows as their requirements evolve over time. We aim to empower our users.”
Jefferies provides investment banking, sales, trading, research and strategy for equities, fixed income, foreign exchange, futures and commodities in the US, Europe and Asia.