Keen to reduce its reliance on outsourcing, Sydney-based trading company Tricom Equities, is implementing New Zealand-made stockbrocking software SecuritEase to manage all of its front and back office functions.
In the past three years, Tricom’s business has more than doubled. As with any rapidly growing company, Tricom CFO, Werner Stals, says the challenge is to leverage economies of scale, ensure new business is profitable business, and maintain levels of customer service.
“We looked at what would enable us to do achieve this, and pretty quickly identified that our choice of underlying technology was a critical factor,” Stals says.
“We also recognised it was increasingly important to be able to manage services internally rather than outsourcing.
“So we started looking for a Windows-based product that was easy-to-use, modern, flexible enough to accommodate our broad range of requirements and scalable enough to grow with us as we expand.”
As a result the company has implemented the SecuritEase system, from Petone-based SecuritEase International, to deliver direct market access.
Development of SecuritEase began in 2000 and it was accredited for use by the New Zealand Stock Exchange in 2004. Managing director Bill Tonkin says development began with a blank sheet of paper so the system is totally modern and uses modern technologies.
“Nothing under the hood is more than two-years old,” he says.
Tonkin says Australia hold huge growth and export potential for the software. New Zealand has 10 brokers, of which about half are customers, while in Australia there are 90 brokers. SecuritEase’s two customers there are both in the top third of that business, he says.
SecuritEase is a multi-market, multi-currency back office settlement system for stockbrokers and non-broker ASX market participants. It has CHESS communication and messaging accreditation and can be used as a standalone gateway or a fully integrated back office system.
Tricom is the second Australian company to implement the software since it was introduced to the local market in 2006. The first company was ASX-listed Tolhurst Limited .
With 240 staff, Tricom has offices in Australia, New Zealand, Switzerland and Hong Kong. Plans are underway to open an office in China later this year.
Stals says the system has been customised to meet its requirements and is part of a broader business strategy to take full control of its back office.
He says the software will support stock broking settlement and margin lending systems and SecuritEase is providing training and support as part of the installation.
“The SecuritEase team can develop a margin-lending module that is fully integrated into the SecuritEase suite — which means that Tricom staff can do everything they need to from a single application,” Stals says.
“This integration offers huge benefits in terms of ease-of-use, reduced training, improved compliance reporting and risk management and provides the ability to service client’s needs more efficiently.”
Tonkin, says the software is expected to be operating at Tricom in November 2007.
“Last financial year we successfully launched the system in Australia and announced Tolhurst as the first Australian customer,” he says.
“This year we intend to roll out a wave of customer implementations.”
Additional reporting by Rob O’Neill