truePTS, the automated trade processing platform for derivatives, has processed its first buy-side trades with J.P. Morgan and Citadel, as demand grows across the industry for a fully-integrated allocation and validation platform.
While addressing immediate buy-side regulatory compliance requirements, truePTS is also driving down operational costs with a lower-cost, digital alternative to legacy ‘confirmation’ providers.
Buy-side firms can utilize truePTS as a one-stop solution for post-trade affirmation and matching as well as to facilitate confirmation and reporting workflows. Integrated into the leading trade repositories, central counterparties, and buy-side platforms, truePTS’ ecosystem facilitates industry collaboration through multi-lateral automation.
With electronic execution becoming standard, the need for physical confirmation has been replaced by demand for automated, real-time matching and front-to-back trade flows. truePTS's 'no-touch' processing environment delivers these features at greater speed and cost-effectiveness than traditional systems, automating complex instruments such as swaptions.
“This is an exciting development in the post-trade industry,” said Kieran Hanrahan, Global Head of Markets Middle Office at J.P. Morgan. “Buy-side firms’ participation will be critical to the scalability of the truePTS platform.”
“In recent years, derivatives trading has migrated to electronic venues which has significantly improved execution workflow, but post-trade processing for many of these instruments still relies on legacy technology resulting in inefficiencies downstream,” said Dan Dufresne, Global Treasurer at Citadel. “We are excited about the truePTS offering, which will improve post-trade efficiency, decrease costs, and reduce operational risk.”
"New regulatory requirements have shifted responsibilities and fees once paid by the banks to the buy-side,” said Zohar Hod, CEO of truePTS. “We will be the catalyst that provides transparency, mitigation of needed resources, and lower costs for our clients by leveraging the most progressive technology to automate workflows and comply with regulatory change.”
The buy-side launch follows the announcement of strategic relationships with J.P. Morgan and Citi in December 2017. As a result of the insight gained from this collaboration and hundreds of meetings with market participants, the truePTS solution benefits from using the latest technologies to drive real innovation in a sector that has changed little over the past few decades.
The truePTS matching and validation engine determines an instrument’s eligibility reporting requirements based on liquidity and size, which are continuously updated to support the latest regulatory revisions. truePTS’ AI-enhanced deal capture, auto-affirmation, and direct to clearing workflows also offer important benefits for voice trades, lowering costs and risks while increasing operational efficiency.