The Global Straight Through Processing Association (GSTP) and vendor coalition partner axion4 have announced the successful completion of initial pilot tests of the Transaction Flow Manager trade matching solution
The GSTP is an industry-led initiative to develop a seamless process for post-trade processing of cross-border securities. It is facing competition from Omgeo - a rival initiative from Thompson Financial and the DTCC, which is scheduled for launch later this year.
The first GSTP trade for participant integration testing was completed by TD Asset Management as investment manager, and Morgan Stanley as broker/dealer. The two companies matched a basic equity trade in the TFM at all levels using the axion4 single-user workstation - an interface developed for low-volume users.
Fidelity as investment manager, Morgan Stanley as broker/dealer and Northern Trust as global custodian also successfully completed a basic trade. The basic Finnish equity trade was executed via the TFM using the axion4 single-user workstation. The test marks the first trade conducted by three independent financial institutions.
In addition, Morgan Stanley and TD Asset Management also successfully conducted automated trades internally. Morgan Stanley’s trade was executed by setting up testing for all three constituencies’ profiles - investment manager, broker/dealer and global custodian. This has enabled them to complete the fully automated trade as broker/dealer using the axion4 gateway - an application-to-application interface for higher volumes trade matching. The trade progressed automatically from order management to back office to the gateway and then to the TFM and back. TD Asset Management’s trade was carried out through the file upload process in the axion4 single-user workstation.
Donald Thomas, CEO axion4, comments: "With this early success, the pilot testing has got off to a flying start and provides a significant step forward."
More than two dozen firms from investment managers, broker/dealers and global custodians are currently involved in integration testing with the TFM.