C24 Technologies, a leader in financial services messaging and integration solutions, today announced updates to the C24 OTC Derivatives STP solution, a software product and services framework enabling firms to jumpstart their over-the-counter (OTC) derivatives integration initiatives.
With this release, C24 includes new options for integrating FpML 5.3, MarkitSERV, SWIFTNet Derivatives and a free online C24 Validation Service for testing derivatives messages.
A recent survey from the International Swaps and Derivatives Association (ISDA) highlighted that less than 50% of all derivatives are automated across confirmation through settlement processes. The lack of automation leads to costly errors and increased operational risks. After the financial crisis, governments have imposed sweeping changes for financial firms to increase transparency in their derivatives processes, e.g. clearing swaps through central counterparties and increasing margin requirements. To comply with these changes, firms need to integrate disparate collateral management, risk management, liquidity and trading systems.
The C24 OTC Derivatives STP solution increases derivatives straight-through processing rates by simplifying the task of integrating industry recommended financial standards and internal systems with partner and counterparty applications. The solution provides the software framework for firms to implement the recently announced ISITC market practice for cleared derivatives communications. With higher rates of automation, errors are reduced, there is less ambiguity with counterparties, reports are more reliable, and financial organizations significantly reduce the risk of failed derivatives communications.
The C24 OTC Derivatives STP solution consists of C24 Integration Objects; prebuilt FpML, MarkitSERV and SWIFTNet Derivatives standards libraries; test cases; and derivatives consulting services tailored to the user's specific needs. C24 Integration Objects is a data modelling, meta-data management, transformation and messaging integration toolkit based on Java data binding technology that fully integrates with Spring, ESB, grid, caching and cloud technologies.
"New regulations have become the tipping point forcing financial firms to further automate OTC derivatives processes and incorporate financial messaging standards," said Wayne Meikle, commercial director, C24 Technologies. "C24's solution enhances existing IT messaging investments to address derivatives reform, so firms do not need to perform a costly and time consuming IT infrastructure replacement."