Inferno is an integrated post-trade processing system for securities and derivatives that handles all functions from trade capture to regulatory reporting. It consolidates transactions from multiple sources onto a single platform and automates reconciliation, accounting, settlement, collateral management, securities lending, and corporate actions across asset classes. Inferno can be implemented as a full solution or standalone modules to streamline an organization's technology footprint for operations, finance, risk, and compliance functions.

1. The Back Office System written by an Investment Bank
Inferno is a complete securities and derivatives processing system. It integrates all the post-trade
processing functions for multiple asset classes and business types into a single coherent solution.
REGULATORY COMPLIANCEDATA MANAGEMENT
TRADE CAPTURE SETTLEMENT
CONFIRMATIONS ACCOUNTING
RECONCILIATIONS
P&L CONSOLIDATION COLLATERAL MANAGEMENT
SECURITIES LENDING
CORPORATE ACTIONS
REGULATORY COMPLIANCEDATA MANAGEMENT
TRADE CAPTURE SETTLEMENT
CONFIRMATIONS ACCOUNTING
RECONCILIATIONS
P&L CONSOLIDATION COLLATERAL MANAGEMENT
SECURITIES LENDING
CORPORATE ACTIONS
With Inferno, organisations can streamline the technology
footprint needed to support Operations, Finance, Middle Office,
Treasury, Risk and Compliance. Inferno is the one stop solution
– driving down costs and future proofing your business.
Trade Capture
Transactions from multiple front office systems and locations
can be captured and enriched by the Inferno Pipeline, ensuring
all transactions, regardless of asset class, are consolidated
onto a single platform at the earliest opportunity within the
processing lifecycle.
Confirmations
For each product type and counterparty combination,
Inferno automatically determines the type of confirmation
and the required delivery mechanism. For equity and bond
trades, Inferno transforms data in the trade into confirmation
messages that can be automatically printed, emailed or faxed
to the counterparty. Block and allocation confirmations are also
handled for derivative transactions, Inferno provides a fully-
featured workflow system that allows e-mails and documents
to be attached and the final confirmation electronically signed.
Statuses from matching systems such as DTCC can also
be uploaded.
Settlement
Inferno achieves high STP rates through automatic two-way
settlement messaging and status updates over the SWIFT
network. These are managed in real time by a suite of
screens that identify exceptions and show the current status
of open trades. Settlement risk is reduced through netting at
both the trade and the instruction level. Cash and inventory
management screens allow Operations to monitor and control
the settlements process efficiently and effectively.

2. Accounting
Inferno provides a full double-entry, multi-currency, multi-entity
sub-ledger environment and generates trial balance, P&L
and a full suite of financial reports. Whilst the bulk of entries
are automated through configurable posting rules, manual
journals can be entered to capture transactions not generated
by trades. Inferno’s end-of-day batch process automatically
creates unrealised P&L, accrued interest, reclassification and
FX postings without interrupting the processing of trades.
Our unique balance calculation engine allows reports to be
generated at any level and for any combination of input and
period date. Full drill down functionality from a balance to the
transactions is also a standard feature.
Reconciliations
Rather than relying on a generic reconciler, Inferno provides
three reconciliation engines that have been specifically tailored
to the reconciliation of cash, positions and trades. Data is
loaded into the reconcilers (from Swift messages and other
sources), with the reconciliation engines using configurable
rules to automatically match transactions. Any remaining
breaks are aged and assigned to users. The user-friendly
screens display breaks and allow the recording of any
investigations undertaken. Tolerances can be configured for
each reconciliation and write-offs are created automatically.
Data Management
Inferno models complex instruments and hierarchical
organisations and also contains data on calendars, markets,
regions, credit ratings and currencies. Static data received via
feeds from the major vendors is cleaned and automatically
merged with existing data. Inferno can therefore be used
as an organisation’s central data repository and act as the
master copy for static data, distributing this information to
other systems as required.
P&L Consolidation
Inferno’s middle office functionality includes the ability to
consolidate P&L from multiple front office systems, apply
adjustments and generate management reports. It will also
calculate the “hands off” P&L required to back-test Historical
Value at Risk numbers that may be required for calculating
capital requirements.
Inferno will also automatically calculate the cost-of-carry for the
business, based on the adjusted positions in the consolidated
P&L, and incorporates this cost into the management reports.
These cost-of-carry amounts can be fed back into the trading
systems if required.
Regulatory Compliance
Inferno provides transaction reporting in the UK to ARMs
(Approved Reporting Mechanisms) including Unavista and
Xtrakter. Incoming statuses are recorded against the trade
that generated the report. Inferno also provides a suite of
reports containing the relevant data to satisfy Basel III and
other capital and liquidity reporting requirements.
There are also several hundred of out-of-the-box internal
reports to enable Management to analyse and question all
aspects of their business.
Collateral Management
Inferno models the terms of a CSA and then uses these
terms together with the data it already has about positions
and cash to calculate collateral calls and to warn when a call
is expected. At any time, a user can generate a collateral
calculation statement that can then be sent to the
counterparty to make a margin call.
Securities Lending
Inferno allows users to book stock borrow and loan trades and
their associated returns. Both cash and non-cash collateral are
handled. Fees and rebates are calculated and a set of reports
provided that allow Operations to ensure the correct amounts
are paid and received each month. Inferno also supports
CREST stock borrows, creating a stock borrow
return automatically.
Inferno handles classic repos, buy-sellbacks and tri-party
repos, plus the full range of mid-life events. Interest accrual
and cost of carry integrated with cash bond positions are
calculated to provide a day-to-day view of lent or borrowed
positions and P&L independent of front office. Integrated
collateral management and exposure calculation for trades
under GMRA is supported with instruction of cash and
non-cash collateral. Tri-party activity is supported with all
movements of collateral reflected back into Inferno’s trade
capture system and stock record.
Corporate Actions
Inferno automatically processes incoming corporate action
data and provides a user-friendly event diary and workflow
system. Postings relating to the most frequent corporate
actions are automated, whilst optional events are high-lighted
to the user. Settlement transformation messages generated
by a CSD such as CREST are processed without user
intervention.
Flexible Deployment
Inferno can be implemented either as a complete solution
or as stand-alone modules to deliver tangible benefits for
minimum investment.
Inferno can be hosted by Torstone, deployed at your site
in your data centre or in a virtual private cloud.
London +44 207 418 7900
New York +1 347 708 1830
Hong Kong +852 58 083623
Singapore +65 6591 8602
Torstone Technology Limited is a company registered in England and Wales with company number 07490275
www.torstonetechnology.com
info@torstonetech.com
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