In comments from FXCM Drew Niv during his company’s Q4 conference call, he pointed out that European CFD providers could experience a drop in trading activity due to the Financial Transaction Taxes that are set to be applied to the product. Similar to other new laws, brokers will be required to update their post trade reporting to comply with the taxes and accounting. Responding to that need, Torstone Technology, a provider of financial market processing software has announced an update to their Inferno, post trade reporting solution. The upgrade provides flexibility for users to comply with the new Financial Transactions Tax and easily make changes in the future.
In regards to CFDs, Brian Collings, Chairman & CEO of Torstone explained to us that the firm has had a client offering CFDs which were processed through Inferno in the past but the company has moved out of the market so they haven’t “investigated specific CFD requirements within the new FTT regulations.” He added “Generally Inferno’s architecture allows market rule and regulation changes to be implemented very efficiently.”
Torstone Technology rolls out Inferno FTT upgrade to clients
London, 13 March, 2013 — Torstone Technology, providers of securities and derivatives processing software to the global financial markets has readied its Inferno post-trade processing solution for Financial Transaction Tax (FTT) and is rolling out the upgrade to existing clients.
Some 11 European countries have decided to impose the FTT across a range of equities and derivatives with France and Italy being first to introduce the tax.
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Highly configurable, Inferno is built for adaptability enabling rapid customisation for clients and a speedy response to new market requirements. Brian Collings, chief executive of Torstone Technology said: “FTT is a core systems upgrade as far as we are concerned which means that it will be automatically provided to clients. The inherent design, support for a broad range of asset classes within one system and the ease of centralising trade and reference data from disparate front office systems, has made it relatively straightforward for us to implement the changes in Inferno and provide the data required for FTT regulatory reporting.”
The taxation logic within Inferno, which has already been applied for the French and Italian FTT can be adapted on the fly as regulations are clarified and the needs of other countries are more clearly defined. Inferno’s online and instantly accessible historic transaction and reference data simplify backdated tax calculations and back reporting which the new rules may demand. Inferno also offers scope for further tax efficiency by calculating net trading positions across multiple source systems throughout the organisation.
About Torstone Technology http://www.torstonetechnology.com/
Torstone Technology, headquartered in London with offices in New York and Hong Kong, provides securities and derivatives processing software to the global financial markets. Its flagship product is Inferno which is designed to support high volumes of straight through processing for settlement of a wide range of asset classes from complex derivatives to high volume equity processing. The software is designed for today’s more fragmented and highly regulated markets.