Dimension Data`s strategic business development arm, Protocol, and investment banking firm Coronation Capital have entered a multi-bank trading platform joint venture, Randmarkets.net.
The venture provides a secure real-time treasury transactional capability allowing corporate treasuries to source and secure market prices, utilising their existing banking partners, for the purposes of foreign exchange and interest rate risk management through a secure electronic platform.
"A key differentiating feature is that RandMarkets.net is a `bank-independent-system`, " says Coronation Capital director Michael Brooks, who adds that the venture "takes into account the existing relationships between banks and corporates and will not seek to influence these relationships".
He says RandMarkets.net will act as the agent in sourcing the best price available from the banks with which the corporate has an existing relationship.
"The relationship between the bank and the corporate will continue to be the bank`s responsibility, while RandMarkets.net will facilitate the transaction between the two parties. Coronation Capital will provide the impartial pricing objectivity as the independent third-party to the process.
"The intention is to make RandMarkets.net the multi-bank trading platform for corporates, and Dimension Data is the natural IT partner."
Dimension Data will provide the technology services and support, as well as expertise in setting up industry hubs, says Protocol`s Paul Vorster.
RandMarkets.net makes use of Dimension Data`s Internet Solutions.
Accounting firm Deloitte & Touche will verify the integrity of the trading platform and the methodologies used.
"We will be verifying the transaction process with a view to providing an independent opinion as to the transparency, independence and recording of the trades, " says Deloitte & Touche partner Allan Immelman. "It will be our responsibility to ensure that the methodologies comply with exchange control and other regulations."
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