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Switching to BT SettleNET secure messaging helps Winterflood safeguard profitability against varying trading volumes

In global equities, communication is crucial during the entire execution cycle from pre-trade right through to settlement. When issues with their old messaging platform started to impact operations, Wayne Davies of Winterflood considered alternative solutions.

Moving to BT SettleNET would allow the company to use its existing BT Radianz Cloud network for resilient connectivity and so get rid of expensive dedicated circuits. Not only that, but flexible BT SettleNET pricing matches market volumes rather than insisting upon meeting a fixed minimum threshold.

Now Winterflood has a more resilient and secure messaging platform that its traders can rely on, while also saving significant networking costs each year.

With BT SettleNET we’ve freed-up valuable resources, and settlement costs are now predictable, protecting our profitability.”
- Wayne Davies, Head of Networks and Infrastructure Winterflood Securities

Messaging critical to maintaining Number One spot

Winterflood Securities decided to move to the BT SettleNET managed messaging platform around two years ago.

Wayne Davies, Head of Networks and Infrastructure at Winterflood Securities, explains: “We had issues with our old messaging system, needing to spend more and more time to keep messages flowing. Also its commercial terms were inflexible, with financial penalties should volumes drop below a certain threshold.”

Europe’s leading market maker, Winterflood Securities processes some 47,000 trades every day. Supporting 450 customers on 41 trading venues across 17 countries, it’s traded almost 200 billion shares to date.

Meeting financial markets’ rigorous requirements

Part of the BT Radianz Messaging portfolio, BT SettleNET is a managed service linking financial institutions with CREST, the central securities depository for the electronic settlement of UK, Irish and international securities, operated by Euroclear UK & Ireland. BT SettleNET provides a reliable message exchange service designed to meet financial markets’ rigorous requirements for security, scalability and compliance.

The pricing structure delivers commercial advantages too. “With a fixed price per 100 kilobytes of data and most messages of a standard size our settlement costs are now more predictable,” says Wayne Davies. “They vary with trading volume, which helps safeguard our profitability regardless of market conditions.”

Comprehensive support with significant savings

The BT-hosted platform operates from two different sites for added resilience, while advanced security features ensure confidentiality and authentication along with non-repudiation. The platform is simple to use and offers a well-defined file transfer interface to simplify back office connectivity.

As part of the service BT manages and monitors the SettleNET gateways, while a call or email to the 24/7 helpdesk gets a virtually instant response. “The support provided by the BT SettleNET team is very good,” says Wayne Davies. “We don’t have to spend time fire-fighting any more. It’s freed up our resources to focus on more productive work.”

Winterflood is also a customer of BT Radianz Cloud and, whereas the previous messaging platform used dedicated circuits, BT SettleNET makes the most of the Radianz connectivity. That offers significant network cost savings. “By moving to BT SettleNET our network costs have reduced by around two-thirds,” confirms Wayne Davies.

Switching to BT SettleNET has proven to be a wise decision. “We’ve been very impressed with SettleNET,” concludes Wayne Davies. “It’s been so reliable we’ve had zero problems over the two years we’ve been using it.” In fact, Winterflood has recently confirmed its commitment to BT SettleNET with a five-year contract extension.

Core services

  • BT SettleNET – part of the BT Radianz Messaging portfolio
  • BT Radianz Cloud