SunGard has enhanced its Stream Fail Monitor solution, part of its Stream suite of post-trade solutions, to help financial services firms comply with the expansion of the Treasury Market Practice Group (TMPG) penalties to apply to mortgages and agency debt fails.
Under the latest TMPG recommendations, firms will be penalized for any fails related to mortgage and agency debt transactions. The fees will go into effect on February 1, 2012. The TMPG recommendations are currently limited to U.S. Government Treasury securities.
Stream Fail Monitor receives all fails from a customer's trading systems, helping the firm identify fail trends by security and monitor counterparty risk across multiple platforms. In addition, the solution applies the appropriate penalty interest rate to fails based on the TMPG's rules. Stream Fail Monitor also identifies receivables and payables and prepares interest claims.
John Grimaldi, executive vice president of SunGard's North American securities operations and securities finance business, said, "As the industry looks for ways to reduce systemic risk, financial services firms need a way to quickly identify and control key sources of risk, such as trade fails. Stream Fail Monitor easily identifies fails from multiple sources across all asset classes, helping firms monitor their exposure and be ready for new industry rules."