Appendium, which was acquired for an undisclosed sum, boasts an enterprise system for the booking and transaction processing of stock loan, repo, cash deposits and collateral. Delta Capita plans to use the technology to support the development of its securities finance managed service proposition.
The deal will create a full-scope managed service solution aimed at the sell side, allowing participants to move away from their in-house technology and operations platforms towards a ‘pay for use model’, according to Delta Capita.
A testing period for the securities finance industry has seen significantly reduced volumes and operating margins, the consultancy added.
Commenting on the purchase, Joe Channer, CEO of Delta Capita, said: “Adding Appendium to our existing suite of technology solutions further expands our cross-product managed service offering where we are seeing significant demand from clients as they seek to change their business model.”
“The solution will enable clients to overcome what has been a challenging time for the securities finance industry. We will operate a standardised service model, supported by expert resources situated both onshore in London and offshore in Johannesburg, offering significant cost reduction.”
Former Appendium technology founder Benoit Xhenseval, who is now chief technology for securities finance at Delta Capita, added: "Designed specifically to support an outsourced model, we are confident that a combination of Appendium’s technology and Delta Capita’s managed services expertise will provide a compelling alternative to ageing legacy solutions embedded in banks today.”
Delta Capita is also experiencing growth in its structured products business and continues to act as a managed services consultant to the Plato Partnership, a consortium of asset managers and broker-dealers, including Fidelity Worldwide Investment and Deutsche Bank, dedicated to improving equities markets.