Following a successful integration with Mizuho, Helix’s chief executive Todd Berlent speaks to SLT about the market and his plans for the future.
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SLT: Can you tell me a little about Helix and its background?
Todd Berlent: Helix originated over 20 years ago. It was originally developed to address the needs of the repo market, but has since expanded to cover securities lending and mortgage backed securities, as well as settlements and clearing.
In 2005, the company was acquired by Cantor Fitzgerald, one of our biggest customers. The thought behind the acquisition was that the company was a customer, and the focus was on expanding into the repo space but also has other products. This meant we could share our improvements with both Cantor and our other clients.
We maintain an arms length agreement with Cantor, but we also get access to its repo desk, which gives us great feedback about their needs, their relationships with the system and any future market developments we need to be aware of.
SLT: Real time information appears to be the key driver for new technologies right now. Are firms making the most of the technology available to them?
Berlent: We’re seeing a lot of firms - and not just smaller companies - still using antiquated systems and spreadsheets. So we spend a lot of time educating customers about the options available to them. Many people still think that buying a vendor system is the more expensive way to go, but in many cases in-house systems end up costing much more - and we have a pricing model that allows all customers, regardless of their size, to get access to our systems.
This is combined with the narrowing spreads that mean customers are reevaluating their technology spends but increasingly realising the need for real time systems. It’s a bit of a mixed bag - a lot of customers seek us out to see how we can improve their technology, but sometimes they are set in the ways they are doing things and it’s not until they view what’s available that they can see the benefits.
SLT: Securities lending in general is still thought of by the wider market as fairly opaque. What are your views on this?
Berlent: I do think securities lending has become more transparent since the financial crisis. Products like Helix help people manage their business more effectively and identify the opportunities for more consistent funding.
Any good technology should be an enabler. We provide consolidated positions, we capture the information, we can provide information on risk and profit and loss, and we can control the post trade environment. We’re giving customers the ability to see the whole picture. Knowing what financial vehicles they can support should give beneficial owners new confidence in the market.
SLT: You have plans for a new securities lending product. Can you give any further information on this?
Berlent: We’re looking to launch a stock loan product, which is a natural complement to our existing offering. Our plan is for us to show something to prospective customers in time for the RMA conference [in mid October] We’re also looking at expanding into wider overseas markets, with an initial focus in Europe.
As part of our development process, we’re also looking at major improvements to Helix EPN, our mortgage allocation platform.
SLT: Your systems were recently transitioned into Mizuho. How did you find the process?
Berlent: It was a terrific experience. This was a significantly complex product launch that required a lot of pre-planning. We were replacing an existing system that Mizuho had used for several years, and we had to have a very close look at the advantages of transitioning and implementing over to what we could offer. It was a very close co-operation to ensure we understood Mizuho’s requirements and when it ultimately went live on time and on budget after about 18 months of planning it was very rewarding.
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