Interwoven, (Nasdaq: IWOV), provider of Enterprise Content Management (ECM) solutions for business, today announced it has worked with The Depository Trust & Clearing Corporation (DTCC) to become one of the first providers to supply access to DTCC Deriv/SERV’s Trade Information Warehouse.
Interwoven's upgraded Scrittura Messaging module allows its buy and sell side clients access to the full functionality of the Trade Information Warehouse, a secure, centralised global infrastructure for the post-trade processing of over-the-counter (OTC) derivatives, which launched in November 2006. This latest development allows Interwoven's clients to take advantage of this central platform to process OTC derivatives trades more efficiently and securely than ever before.
The announcement comes as several industry bodies have expressed concern on the associated risk where OTC derivatives trades are not processed accurately and settled promptly and efficiently. The UK Financial Services Authority (FSA) originally issued a caution to market participants which was followed by a report from the Counterparty Risk Management Policy Group, urging the market to address operational risk as a result of outstanding credit derivative confirmations. The US Federal Reserve subsequently called a meeting with top executives of the 14 leading banks to discuss concerns surrounding operational risk management practices.
Scrittura Messaging is embedded into Interwoven's Scrittura Dealer and Scrittura BuySide solutions, and generates and validates trade confirmation messages for all OTC derivatives products, including DTCC messages for all product types such as credit, equity and interest rate derivatives. It produces and delivers electronic messages to trade matching bodies such as DTCC and also handles subsequent incoming responses, increasing automation and cost efficiency.
With this key development to Interwoven's Scrittura product suite, customers can access the full range of post-trade processing tools available from the Trade Information Warehouse, which includes infrastructure to support processes such as payments, notional adjustments, contract term changes, trade matching, backload, TRI changes, and workflow updates for a variety of instruments, including credit default swaps, credit index swaps and credit index tranches.
Bill Hodgson, vice president, DTCC business development said, "The warehouse has an open architecture allowing a range of complementary providers to offer services that enhance the value of our platform to our joint customers. We continue to work with a number of third party firms to make connection to the warehouse easier for our mutual clients and to bring additional efficiencies to the OTC processing environment."
"DTCC's Trade Information Warehouse is designed to better support the post-trade life-cycle for OTC derivatives, and the market as a whole. We welcome Interwoven's initiative and look forward to extending the capabilities of the Warehouse in the coming year."
Jos Stoop, vice president and general manager of financial services solutions at Interwoven, commented, "Interwoven is proud to offer system compatibility with the DTCC Deriv/SERV's Trade Information Warehouse. This additional functionality will encourage cost and risk reduction in the market and further assist our customers in achieving true straight-through-processing (STP) in their OTC derivatives trade processing systems. Interwoven continues to strive to reduce the risk of manual errors affecting OTC derivatives trades and allow our clients a greater ability to scale their business. We are proud that we deliver market-leading solutions to our customers."