Nikko Systems Solutions, technology subsidiary of Nikko, chooses Iris Financial to develop next generation bond trading system

The distribution partner supplies both Nikko and other Japanese banks, but the development of the Java based platform is specifically for the parent. Nikko wants consistency across its front office solutions.

Iris Financial is building a new bond trading system for Nikko Systems Solutions, a division of the Japanese banking giant. Nikko Systems Solutions, a local distribution agent to its parent and other banks, has been supporting an older bond trading system from Iris for a number of years, but has contracted the vendor to develop a replacement based on Java and J2EE.

The Iris job for Nikko Systems Solutions is specifically for its main client, its banking group parent. Says Michelle McGovern, CEO, Iris Financial: "They are using J2EE and Java in other areas of their business now and they want consistency across their technologies from a maintenance point of view. J2EE and Java also enable Nikko Systems Solutions to create their own systems more quickly."

The incumbent bond trading system was based on C++, but there is a move away from this programming language towards newer code, she adds. "Some of the tier one banks are still using C++, particularly for analytics and mathematical computations, but increasingly they are moving to the next generation of trading technology."

The new Java and J2EE framework combined with the Iris approach will enable Nikko Systems Solutions to bring new features to market more quickly. "Iris adopts the platform based approach," says McGovern. "We provide pre-built platforms and business components, and then work with the customers to establish their unique ways of doing business and configure the application to meet their particular requirements. This represents a hybrid approach between the package solution and the inhouse built system," she told stpzone.com. The Iris Financial bond trading system comprises four main areas of trading functionality - matrix pricing, trade capture, position keeping and analytics.

The Japanese market is a potentially lucrative one for Iris, continues McGovern. "We are growing our business in Japan. We typically use distribution partners in the Japanese market and Nikko Systems Solutions is a valued partner as they are well regarded and have a large client base. We look to further expand our relationships in the Japanese financial services market by working with Nikko Systems Solutions as well as other highly regarded distribution partners."

Copyright (c) 2005 STP, Ltd.