TradingLinx.com, a Web-based application service provider (ASP), has launched a universal trade confirmation service. The start-up aims to link financial services firms within their own countries and globally, for real-time straight-through processing of domestic and cross-border transactions across multiple instrument types.
"There is a great deal of talk about how and when a centrally-based, global trade confirmation system will become fully operational," says TradingLinx.com co-ceo, Justin Lowe. "Financial institutions are anxious for an immediate resolution to the escalating costs and complexities of processing trades among each other."
He says that published studies indicate that one-third of all cross-border trades contain serious mistakes, and that 21% of cross-border trades fail to settle on time.
An early adopter is SG Asset Management, a subsidiary of Paris-based Societe Generale. TradingLinx.com has contracted to hook up an unspecified number of broker/dealer firms that transact with SG Asset Management.
Usage fees are charged on an annual subscription rate. Each individual user within a participating firm receives a designated login that permits access only to a part of the system related to their job function (eg trader, back office).