UK fintech vendor SmartStream Technologies has launched TLM Trade Process Management, a software package designed to help financial firms automate post-trade processes across multiple asset classes, including OTC derivatives.
The product automates transaction lifecycles from the point of execution through to settlement confirmation, says Smartstream, and provides a "highly scalable approach" to managing post trade allocation, confirmation, clearing and settlement.
Upon installation, the package can be fine-tuned to collect and validate trades from a multitidue of order management and deal capture systems. Where necessary data is enriched and users are able to route trades through the appropriate allocation and confirmation processes. The system also features exception management functionality so users can identify and resolve failing transactions.
The settlement process is automated with messages automatically constructed from matched allocations and instructed via Swift or through proprietary networks. The system tracks the settlement status updates to ensure the transaction is on track and eventually reconciles settlement notifications to provide an accurate view of the firm's overall positions.
Commanting on client demand for the new technology, Steve Miller, SmartStream's senior product manager, says many firms that are struggling to handle an increased volume of trades and specifically the explosive growth in OTC derivatives.
"TLM Trade Process Management is a massive step forward for firms struggling to improve operational efficiency and consolidate their fragmented infrastructures across asset class and lines of business," says Miller. "By leveraging their existing infrastructures TLM Trade Process Management hands transactions off to existing systems or people whilst retaining ownership of that transaction."
Smartstream says the first implementation of TLM Trade Process Management is already underway at an un-named financial institution.
Last week the Bank for International Settlements (BIS) called on financial firms to introduce automated systems to cut confirmation backlogs in the OTC derivatives markets.
In a report the Committee on Payment and Settlement Systems, the public policy forum of the BIS, said financial firms need to extend the successful efforts to reduce confirmation backlogs in credit derivatives to other OTC derivative products.