Front Arena

Market turbulence has forced fund managers to turn to new asset types to generate growth. Meanwhile, you require transparency and the ability to effectively and efficiently identify risk and exposure in order to raise capital. SunGard's Front Arena solution, a real-time, enterprise-wide platform for portfolio and risk management, is used by some of the largest hedge funds and fund administrators to manage their multi-strategy portfolios.

Front Arena provides traders with pricing, trading and position management, real-time profit and loss, and risk and sensitivity analysis. Managers and middle-office staff can view the portfolios from the highest level, customize these according to relevant criteria, and drill down to the lowest levels in real time. In the back office, Front Arena supports confirmations, settlements and interfaces to transaction processing networks.

Front Arena helps third-party administrators to:

  • Handle a range of strategies, from standard to complex
  • Support operations and life cycle processing
  • Process real-time pricing
  • Facilitate the capture of new trading strategies

What we offer

  • Back-Office

    Today’s market requires real-time decision-making so that firms can seize on market opportunities and make accelerated investment decisions. With SunGard's Front Arena solution for the back office, you can maximize your straight-through processing (STP) while implementing your specific operational controls. The result is a fast, safe and cost-efficient business environment.

    You can assign different access and control rights to individual users or groups, making the workflow definition as detailed as needed. You can even assign access rights to each data entry, thus encouraging a flexible but thorough approach to data integrity and data ownership.

    Front Arena also features a flexible settlement manager that lets you decide when, and in what order, payments are processed. The solution can handle payments that diverge from the standard settlement process, as well as ad hoc netting of cash flows, splitting of payments and manual transfers between accounts.

    Front Arena's sub ledger lets you capture your firm's full chart of accounts to define your accounting rules by portfolio, currency, trading desk or any other feature. A sub-ledger report is then run in real time, listing the day's accounting events and the accounts to be posted.

    Features

    • Features a trade capture interface and direct OTC deal entry
    • Provides broad pricing and simulation capabilities
    • Can be scaled across multiple asset classes

    Benefits

    • Helps you effectively identify and capitalize on opportunities
    • Increases efficiency with user-friendly interfaces and automated real-time position and price updates
    • Accelerates the decision-making process
    • Manages large amounts of data across a number of asset classes, currencies, clients and strategies
    • Reduces operating costs

  • Credit Derivatives

    Many firms have relied on in-house spreadsheets to support basic credit derivatives, structured securities investment and trading. With the intense volatility of tightening spreads and locking credit markets, relying on spreadsheets creates inefficiencies and increases operational risk through credit exposure. SunGard’s Front Arena's comprehensive credit derivatives solution helps mitigate this operational risk and offers a comprehensive infrastructure for all credit trading needs.

    Front Arena offers front-to-back infrastructure for pricing, deal capturing, risk management and processing across the entire credit life cycle on a single, integrated platform. Utilizing a single platform helps you cut operating costs by reducing the number of systems supporting your business. You can also decrease the risk involved with operating multiple disparate systems to compose credit investment strategy. Front Arena offers powerful, easy-to-use tools to help you further increase efficiency and enhance performance. Broad product coverage across all asset classes gives you the opportunity to capitalize on arbitrage opportunities among the equity, fixed income and credit markets.

    Features

    • Quantifies and accurately reports volatility exposure and risk through flexible reporting tools
    • Creates one mark-to-market process across all books
    • Integrates market and credit risk management for the calculation of sensitivities and generation of hedge suggestions
    • Implements straight-through processing (STP) from pre-deal capture and pricing to deal capture and position management and payment processing, confirmation generation and posting to the general ledger

    Benefits

    • Provides consistent and accurate pricing across all asset classes using default probabilities, correlations and recovery rates
    • Supports different pricing models, such as the arbitrage-free spread approach and intensity-based hazard rate models
    • Identifies net issuer risk across instruments on a country, counterparty and issuer basis and sets limits to these levels based on credit spread delta exposures
    • Manages credit spreads by issuer and asset swap spreads, default probabilities and other attributes
    • Prices and manages any cash-flow-based credit product using a flexible, hazard rate pricing engine

  • Equities

    Hedge funds face a growing need to quickly adapt to varying market conditions in order to make better, smarter and faster decisions that will help them acquire capital. Maintaining and executing against a clear strategy is often what sets hedge funds apart within this very competitive industry.

    SunGard’s Front Arena solution for equity pricing and risk management helps traders, portfolio managers and risk managers maintain complete control of their equity business. A comprehensive, high performance, real-time position keeping and risk management system, Front Arena helps you manage large amounts of data so you can analyze and adapt strategies to react to changing market conditions.

    Front Arena calculates the risk across multiple equity products, including vanilla, exotic and structured products. Using real-time market data, it delivers continuous updates across all of a trader’s or firm’s positions in an intuitive user interface. Front Arena combines this valuable information with real-time statistics for profit and loss and aggregated risk figures and limit calculations to help you make quick, informed decisions.

    Features

    • Provides a trade capture interface and direct OTC deal entry
    • Offers broad pricing and simulation capabilities
    • Can be scaled across multiple asset classes

    Benefits

    • Helps you effectively identify and capitalize on opportunities
    • Increases efficiency with user-friendly interfaces and automated real-time position and price updates
    • Accelerates the decision-making process
    • Manages large amounts of data across a number of asset classes, currencies, customers and strategies
    • Reduces operating costs
    • Integrates proprietary valuation models
    • Leverages the power of grid computing
    • Computes figures in real time for risk, profit and loss

  • Fixed Income

    SunGard’s Front Arena solution for fixed income supports all aspects of pricing and position management across the fixed income trading business, from liquid government debt to credit products. You can manage large amounts of data and speed up the decision making process.

    Front Arena offers real-time pricing and position updates for greater efficiency, helping you identify and effectively capitalize on opportunities. It supports a wide range of business functions, allowing you to consolidate systems, reduce operational costs and manage business activities from one platform without taking on costly integration projects.

    Features

    • Provides a trade capture interface and direct OTC deal entry
    • Offers broad pricing and simulation capabilities
    • Can be scaled across multiple asset classes

    Benefits

    • Helps you more effectively identify opportunities
    • Provides automated real-time position and price updates
    • Accelerates the decision-making process
    • Manages large of data across a number of asset classes, currencies, customers and strategies
    • Reduces operating costs by offering a single risk solution
    • Computes figures in real time for risk, profit and loss

  • Interest Rate Derivatives

    Interest rate movements can have an impact on almost any kind of portfolio, regardless of asset class. They are also an increasingly popular tool to hedge interest rate exposures or take speculative positions. SunGard's Front Arena solution helps you manage the sales, trading and risk functions related to interest rate derivatives in a single environment.

    Front Arena provides a comprehensive set of models for consistent pricing across a broad range of interest rate derivative products. It offers a fast and dynamic approach to pricing in a controlled and secure environment. As soon as trades are entered, they are available for risk management and back-office processing.

    Features

    • Offers real-time simulations and pricing
    • Provides real-time market data tools and automatically generates most fields in the pricing sheet
    • Integrates credit derivatives, interest rate derivatives and fixed income

    Benefits

    • Helps you more effectively identify opportunities
    • Provides automated real-time position and price updates
    • Accelerates the decision-making process
    • Reduces operating costs by offering a single risk solution
    • Lets you manipulate yield curves, volatility surfaces, etc.
    • Automates the selection of optimum hedge strategies once the underlying hedge instruments are identified

  • Middle-Office

    A fund manager’s exposure to risk changes with every market movement, and it increases with the prevalence of structured multi-asset products. As an integrated, cross-asset-class risk and portfolio management solution, SunGard's Front Arena platform provides users with the transparency that is needed to assess real-time risk scenarios across portfolios to ensure the best investment decisions are being made. You can manage portfolios using Greeks, theoretical and other parameters; apply scenario and what-if analyses; and compute Value at Risk (VaR) and consolidated firm-wide risk.

    Features

    • Provides a trade capture interface and direct OTC deal entry
    • Offers broad pricing and simulation capabilities
    • Can be scaled across multiple asset classes

    Benefits

    • Helps you effectively identify and capitalize on opportunities
    • Increases efficiency with user-friendly interfaces and automated real-time position and price updates
    • Accelerates the decision-making process
    • Manages large amounts of data across a number of asset classes, currencies, clients and strategies
    • Reduces operating costs

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