SunGard has launched GL Options Watch, a new straight-through processing (STP) workflow solution for option exercise/assignment and close outs.
GL Options Watch helps firms to better manage operational risk and reduce the risk of potential losses on options exercise and close out processes.
As derivatives trades move from historically high-margin over-the-counter (OTC) trading to lower-margin listed derivatives trading, there is increased demand for greater process efficiency and lower operational costs. Many firms still have manually intensive methods to handle options exercises, assignments and abandons, which can cause multiple errors and financial losses on transactions.
The STP workflow provided by GL Options Watch helps to improve the management of options exercise/abandonment operations, reducing the risk of potential errors by closely monitoring each process step. SunGard's GL Options Watch also automates the close-out process with exchanges, managing the reconciliation of a broker's positions with those of the exchange. Brokers can thus better manage when they are going to be assigned. The solution helps to reduce delays in offsetting options, helps reduce the resources needed to handle the offsetting process, and helps brokers to better assess the risks of being assigned.
Vincent Burzynski, chief product officer for SunGard's global trading business, commented: "Addressing the problems inherent in options exercise/assignment and close out is an important issue in the markets today. By helping eliminate manual tasks and closely monitor and automate individual processes, GL Options Watch is well placed to help our customers reduce both operational cost and risk. Its launch completes SunGard's integrated suite of post-trade derivatives solutions."