City Networks adds currency options to CityNet Conversation Checker

CityNet Conversation Checker automatically stores, analyses and reconciles dealing error conversations with tickets from Reuters, EBS and online trading systems. Costly errors such as missed trades can be highlighted and non-trade related conversations can be managed automatically, allowing users to concentrate on exceptions. Previously, automation covered Foreign Exchange (FX), FX Swaps Money Market (MM) and Call Deposits. City Networks will start with the addition of vanilla currency options and plans to expand to more complicated instruments such as exotic options and Interest Rate Swaps (IRS).

Banks use CityNet Conversation Checker in the back-office to increase its Straight Through Processing (STP) capabilities and reduce risk by automating a manual printing and processing procedure, highlighting exceptions in real-time and automating the confirmation of trades made in text-based conversational messages. The product enables the conversation checking process to be managed by users from a simple status screen. CityNet Conversation Checker can also replace electronic repositories that store deals and conversations but do not perform automated checks.

"The addition of currency options not only creates value to our clients by increasing their STP capabilities by automating a manual process, but gives them a greater return on investment for a missed options trade than for FX and MM transactions due to the greater level of complexity," comments Janet Yagle, City Networks Managing Director for North American activities. "In addition, conversational dealing is a risky practice. Conversations between banks, their counterparties or brokers do include considerable dialogue, which may or may not be deal related. CityNet Conversation Checker reduces that risk by using keywords to search through the conversations and turn missed trades into a confirmation."