New York's Global Electronic Markets (GEM) and London-based Systemwire have developed a platform that provides automated OTC derivatives trade matching and data validation using the Financial products Markup Language (FpML) standard.
The new platform, called FpML Mediator, integrates Systemswire's xlinkit product and GEM's GemDelta product to create an automated trade matching and business rule validation system that works 'off the shelf' with the FpML standard.
A recent consultation paper by the International Swaps and Derivatives Association calling for the automation of all OTC derivatives trades by 2005 identified trade matching as a key area for automation.
Brian Lynn, founder and CTO of GEM, and one of the founders of the FpML standard, says: "Finally, there is a simple, robust, and cost effective way to automatically reconcile inventories of complex derivatives as tracked by different parties, organisational units, or systems."
Ramin Dilmaghanian, founder and MD of Systemwire - a spin-off from University College of London - adds: "It is now possible to assess very quickly and precisely why mismatches occur, cutting short operations time and taking a big step towards T+0 settlement."
The platform will be available from April 2004.