SWITZERLAND – Fallout from the collapse of the Global Straight Through Processing Association claimed another victim today with Swiss central securities depositary SIS Group announcing a 40 million Swiss franc (27.2 million euro) “value adjustment” and passing on its annual dividend.
SIS was one of a consortium behind a so-called virtual matching utility called Transaction Flow Manager that was developed to be used as an integral part of the GSTPA’s much-heralded securities handling system. GSTP AG, the operating company which was to have run the system, has filed for bankruptcy.
“This development has led to a value adjustment of about 40 million Swiss francs,” SIS said in a statement today. It added that it would propose not to distribute any dividend next year.
Other members of the development group besides SIS were Swiss-Indian software firm TKS/TCS and Swift, the Society for Worldwide Interbank Financial Telecommunication. They have formed a company, AccuMatch, that has already started investigating how the software can be used in the future. AccuMatch was formerly called axion4stp Ltd.
The 40 million franc adjustment does not impact the profitability of SIS’s other operations, it said.
GSTP AG was set up in 2000 by the 41 members of the Global Straight Through Processing Association to facilitate the development and operation of a virtual matching utility. The eventual product, dubbed Transaction Flow Manager, made its debut on September 9 this year but failed to gain enough transaction volume from institutions.