AccessFintech has announced the completion of production launch and says it is now live with a new industry use case aimed at enhancing and improving the market’s settlement exception resolution process.

The company has partnered with four banks in this effort, with Citi, Credit Suisse, Goldman Sachs and JP Morgan jointly launching an industry-wide collaboration workflow utilising AccessFintech’s Global Data Network, focusing on settlements and supporting multiple asset classes.

The Global Data Network is a service where banks, custodians, buy-side, fund administrators and other interested parties can externalise data, agree on fail resolution parameters, visualise settlement breaks and prioritise and share their exceptions across the industry. The aim of the initiative is to reduce resources and improve resolution times in the settlements process, AccessFintech says.

“By creating a shared workflow, all counterparties across the trading and settlement ecosystem will benefit through reducing time for exception resolution, offer better client servicing, minimise sanctions and ultimately reduce costs,” says Roy Saadon, CEO of AccessFintech. “We are continuously expanding the use case of the service where collaboration can maximize efficiencies across the market and the settlement resolution space is an example of that. All business processes are industry neutral and delivered open access, and market participants are providing their input to create standard workflows.”

Exceptions are transactions that are entered into a financial institution’s system, but fail to process. Settlement fails are expensive and slow to process, investigate and resolve, the firm says, adding the cost of which is due to grow with the enforcement of forthcoming Central Securities Depositaries Regulation (CSDR) regulations.

“The current settlement process involves many participants to bilaterally clear trades,” says Steve Morgan, head of markets operations solutions at Citi. “When trades do not settle on time, or process with exceptions, you can have as many as five establishments involved in the manual resolution which takes place over a chain of emails. We are excited to see the AccessFintech solution working in this space and to be a part of the increased collaboration across the industry. There are tremendous opportunities here for transparency, automation and greatly improved service for our clients.”

Tom Damico, global head of equities operations at JP Morgan, adds, “We are always looking for better industry collaboration tools to improve the efficiency of our post trade process, reducing costs for both market participants and our clients. The ability of AccessFintech to enable multiple firms and buy-side participants to share information real time and clear post trade exceptions in a controlled and cost-effective manner is a critical step along that path.”

Meanwhile, Brian Steele managing director, global head of market solutions at Goldman Sachs, says, “AccessFintech is supporting this industry transformation by moving away from email and into a digital, data-driven environment across post-trade exception management,” and Karen Newton, head of global markets and investment banking & capital markets operations at Credit Suisse, adds, “Alongside our peers we have successfully implemented a workflow between Credit Suisse and other participants via the AccessFintech UI, which enables us to radically improve the management and resolution of exceptions across the industry. We are very excited to leverage this sophisticated technology and view it as a key component of the future exception management process.  Ultimately, we see this as a tool to better serve our clients and we look forward to collaborating to support further adoption.”

Colin Lambert

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