Following the successful completion of vendor testing, Logica has rolled out LCM support for settlement of Option Premiums (OPRs) through CLS to the first settlement members who will pioneer the new service this year. Settlement of OPRs through CLS will eliminate settlement risk and provide the benefit of netting, already offered for FX trades and Non-Deliverable Forwards (NDFs).

Option Premiums is the latest service to be offered to the settlement banks by CLS, following the successful go-live of NDFs in December 2007. Ahead of the CLS live date the LCM in-house module enabled Logica settlement members to realise the benefits of netting and settling NDFs internally.

Standard Bank of South Africa successfully deployed LCM in 2004 and as a result of the quality of the product and the professional service provided by Logica have recently also purchased the Logica All Payments Solution (LAPS).

Brian Shone, Director Services at Standard Bank of South Africa, an established LCM customer testing the new Option Premiums service, comments: "We have a reputation for deploying innovative technologies that help to achieve competitive advantage on the global stage. For a number of years we have an excellent relationship with Logica and are highly satisfied with the performance of their CLS system. We are now in the development stage with the Logica All Payments Solution (LAPS) which will support the migration of our existing SWIFT legacy payment systems. This will enable the Bank to deliver high quality processes and consistent SWIFT messages where implemented."

Tim Brew, Director Global Products at Logica, comments: "We have always ensured that LCM has been at the forefront of CLS innovations so that our customers can maximise the business benefits from day one. The timely release of the LCM OPR module reinforces this principal".

Separately, Logica, a leading IT and business services company, today announced the launch of a new, innovative corporate payment solution for the European market. This unique and cost-efficient solution is SEPA compliant and enables an easy transition for corporates to introduce e-Invoices. The system can process pension payments, social benefit payments, salary payments and other payment types and related messages for taxation, reconciliation and internal bookings.

Logica is responsible for the implementation, maintenance, service development and customer support of the Corporate Payment System. It enables customers to centralise the internal payments and payment transactions of their organisation, harmonise the payment-related practices, handle payments related fraud and create a controlled banking connection. This results in cost reductions and fewer fixed cost for the corporate.

Logica developed this new solution for companies which aim to rationalise and improve the efficiency of their operating models and processes for payments. The solution is based on a new way of splitting tasks and responsibilities between corporates and Logica. It enables companies to focus on their core business while Logica ensures that their payment solution is constantly on top of the rapidly changing market demands. The service is available across Europe.

Roel Wolfert, group director Payments at Logica, said: ‘We have solid expertise and long standing experience in providing payments products and services to the financial sector. The last few years we have noticed an increasing need for corporates to manage the complexity of payments transformation processes and the associated knowledge and investments required. I am pleased to extend our expertise and domain knowledge to the corporate market place. We will help corporates to transform their payments business and enable innovation in the post SEPA era."

Jukka Tarkiainen, managing director of Logica's financial services business in Finland, comments: "As part of our new payment system service Logica builds the basic system and adapts it to the customer's needs and the operating environment. Our customers have the system at their disposal as a service, and Logica is responsible for maintenance, support and development. The customers pay for the respective use and performance."

This corporate payment solution supports Logica's ambition to help the market transform their payments environments. The service is based on Logica's standard software products and its payments expertise.