GlobeOp adds T-Zero's CDS trade affirmation service to GoMarkets; signs Credaris

Source: GlobeOp Financial Services

GlobeOp Financial Services (GFS) or GlobeOp), a provider of fund administration and related support services for hedge funds, fund of funds, and high net worth family wealth offices, announced today that it will offer T-Zero's Credit Default Swap (CDS) Trade Affirmation Service via GoMarkets, GlobeOp's new electronic trading connectivity platform.

The integration allows GlobeOp clients to affirm trades with dealers before passing the trade data through GlobeOp's middle- and back-office systems. The arrangement will facilitate more efficient handling of trade exceptions, reduce operational risk and increase the efficiency of document execution, whether paper or electronic. This service is available immediately to GlobeOp and T-Zero clients.

"The integration of the T-Zero processing platform within our world-class suite of client offerings allows us to continue to deliver the most advanced middle- and back-office solutions for hedge funds. By embedding T-Zero within our existing processes, our clients will see reductions in operational risk, and GlobeOp will be able to offer even higher levels of client service," said Hans Hufschmid, GlobeOp's chairman and chief executive officer. "This new service further enhances GlobeOp's efforts to provide straight-through processing of credit derivatives swaps from trade entry through affirmation or confirmation."

"This partnership with GlobeOp marks a major milestone for T-Zero," said Mark Beeston, T-Zero president. "GlobeOp recognizes that T-Zero can contribute to a significant reduction in operational risk for its clients, and that together we can produce greater efficiencies for clients' own internal processing. Having GlobeOp's customer base on the T-Zero system means that a substantial number of buyside counterparties will have automated the post-trading processing of their credit derivatives trading. This partnership is an important step in bringing more automation to the markets and in helping the industry meet its objective of reducing operational issues."

"We are pleased to be the first users of this new integrated service from these two market leaders," said Jeremy Lee of Credaris, a credit specialist asset manager. "We have worked closely with both T-Zero and GlobeOp to develop a product that delivers industry-leading levels of efficiency. In turn this benefits our investors by reducing the volatility of fund performance due to risk from spurious sources, such as operational risk."

Customers of T-Zero have access to single-entry affirmation of trades from dealers. All DTCC-eligible trades, including single name credit default swaps and credit default indices, are legally confirmed by DTCC using T-Zero's real-time link to DTCC's Deriv/SERV matching, confirmation and payment services.

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