DekaBank implements valantic’s iQbonds for swap trading

Financial Service Automation and Digitalization in the Financial Sector in New York - Wallstreet Street

DekaBank now uses iQbonds

DekaBank now uses the iQbonds standard software from valantic Trading Solutions AG for swap trading. The securities trading bank of the German savings banks (Sparkassen) has thereby expanded their implementation of icubic solutions. This decision was based on their positive experience with the IT service provider’s applications in the past as well as pending regulatory requirements. The software implementation was fully completed in only about two weeks. With the implementation of iQbonds, DekaBank already fulfils upcoming regulatory requirements and benefits from significant advantages in electronic trading:

  • MiFID II readiness
  • Partial replacement of the existing trade order management solution
  • No costs for mandatory updates

As per the 2014/65/EU guidelines concerning markets for financial instruments (MiFID II), swap trading – trading of financial derivatives which target an exchange of future cash flows – will be subject to new regulations as of 2018. However, this was not the only reason for the switch to iQbonds for swap trading explains Jens Lippoldt, Head of Sales and Business Development at valantic Trading Solutions AG. “With this iQbonds expansion, the bank can now process swap trades on various markets almost completely electronically. This means that future MIFID II requirements are already fulfilled and the process optimisations will add value for both the bank and its clients.”

The mentioned process improvements also resulted from high performance interfaces from icubic that were implemented for swap trading after partially replacing an existing trade order management solution. Dietmar Jakal, Chairman of the Board at valantic Trading Solutions AG, also provides a positive summary: “We were able to implement our application at DekaBank in only two weeks, thereby adhering to a challenging timetable without a problem. During installation and sometimes also for support, we utilised our particularly efficient remote access. The fact that DekaBank, one of the leading companies in the financial sector, is using iQbonds, emphasises the quality of our application.” The Chairman of the Board also stressed that DekaBank need not budget for any cost-intensive mandatory updates.

The iQbonds software is based on valantics’s standard solutions for efficient electronic trading. The application not only supports trading on classic bond markets, but can also be used with the required components and licenses as a powerful application for trading numerous other financial instruments – such as futures, ETFs, promissory notes, convertibles, repos or swaps. This offers users many advantages because the program combines different aspects – market-making, pricing and the connections to diverse information platforms, exchanges and other markets – into a complete solution. This results in a simplification of procedures, significant speed advantages as well as a lower error rate. The software also includes many useful features including auto hedging, multi-level pricing and comprehensive security mechanisms.

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