PIMCO licenses Communicator's OTC derivatives platform
26 January 2006 | 3837 views | 0
Communicator Inc, a leading financial technology firm specializing in secure communication solutions for Wall Street, announced today that PIMCO, one of the largest specialty fixed income managers in the world, has selected Communicator's OTC derivative platform to meet the January 15, 2006 deadline to enroll in the Depository Trust & Clearing Corporation (DTCC) Deriv/SERV trading matching service.
The deadline, recently driven by dealers, is targeted at all credit derivative counterparts to improve settlement and trade processing efficiency in the industry.
Compliance Hub is a web-based solution that minimizes the risks associated with OTC derivative post-trade processing. PIMCO selected Compliance Hub to reduce the time, risk and exposure of unconfirmed swaps on trade date and accurately capture and transmit trade data directly to DTCC with little-to-no internal technical effort or cost.
Specifically, PIMCO will use Compliance Hub to manage credit derivative product documentation, centralize post-trade processing for trade confirmations, supply trade data for auto-matching in real-time, track confirmation statuses and process exceptions (including complex or non-supported product classes).
In addition, Compliance Hub allows the firm to enhance workflow and communication through real-time messaging and generate comprehensive reports on all trades, transmitted through DTCC or otherwise. Compliance Hub also features connectivity options to other industry matching utilities and prime brokers, in addition to DTCC.
"Finding a solution to meet the industry deadline - that's easy and fast to implement and more cost effective than building it ourselves - was very important to PIMCO," said David Lown, executive vice president of PIMCO. "However, Compliance Hub's most significant value to our firm was having an all-inclusive electronic solution to lower risk, eliminate trade discrepancies and expedite the trade confirmation process."
In addition to supporting straight-through-processing (STP) and providing electronic workflow tools for credit derivatives, Compliance Hub features a wide array of OTC derivative solutions that offer post-trade automation, exception handling and efficiency for a variety of products, including interest rate, currency, commodity, credit and equity swaps. Those solutions include a trade date tie-out service for counterparties to electronically reconcile daily trade activity and notification alerts on critical issues which allow rapid response to unknown trades (DKs), potentially un-booked trades and disputes.
"Providing a direct electronic link to DTCC is strategically valuable to many of our clients, and our technology not only allows our clients to meet the January date requirement but enhances their overall trade-processing efficiency," commented Leo Schlinkert, president and chief executive officer, Communicator Inc. "PIMCO's selection of Communicator confirms that we are answering the growing need to have an all-inclusive solution to electronically manage trade volumes, confirmations and disputes."