SunGard's Stream Phase3, a real-time securities processing solution, and Stream STN Settlements, a central interface management service, have received certification from the Fixed Income Clearing Corporation (FICC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), as fully compliant with the FICC's new Central Counterparty (CCP) services for mortgage-backed securities (MBS).
This certification eliminates the need for Stream Phase3 and Stream STN Settlements customers to obtain FICC certification on their own or incur the time and expense of testing internally and externally with the FICC's Mortgage Backed Securities Division (MBSD).
The certification of Stream Phase3 and Stream STN Settlements will also help customers using the FICC's CCP services to make trading and matching MBS transactions more transparent and gain operational efficiencies in clearing, settlement and recordkeeping. Stream STN Settlements automatically collects, normalizes and routes trade information from the FICC and then communicates with Stream Phase3 or another back-office processing system.
The CCP initiative, which is expected to help reduce post-trade risks and costs for the fixed income industry, is currently in the process of receiving final regulatory approval from the Securities and Exchange Commission (SEC).
Gerry Murphy, president of SunGard's brokerage and clearance business, said, "Firms trading mortgage-backed securities need to be able to mitigate operational and credit risk, as well as streamline and simplify operations to achieve greater efficiencies. Stream Phase3 and Stream STN Settlements help to increase the transparency needed in this arena by helping firms resolve clearance and settlement issues more quickly, increasing client satisfaction and retention, providing balance sheet relief and enhancing decision-making with up-to-date information."