Traiana has launched a new service to fully automate the post trade lifecycle management of the equity swaps market, the firm’s Equity Swaps Lifecycle Management service will, it says, “transform the market’s previously manual, labour intensive and inefficient post trade affirmation processes for clients globally”.
The new service normalises data reported by swap providers and conducts reconciliation and affirmation of daily valuations, payments and legal confirmations to identify any changes to the underlying swap attributes. It also improves the longstanding negative affirmation issues in the equity swaps market by allowing buyside firms to view all exceptions in one place. Disputes can then be resolved between counterparties on a daily basis using the exception manager tool, rather than after monthly resets are struck.
“Until now, it has been extremely challenging for buyside firms to sift through multiple swap provider reporting statements in various formats, across thousands of trades and positions per day to look for potential issues and work out exactly what has changed at the month-end reset,” says Joanna Davies, global head of Traiana. “Our new Equity Swaps Lifecycle Management service creates huge operational efficiencies and significantly reduces settlement risk for market participants.”
Phase one of service is now live with further phases set to be released throughout 2019 and 2020.