GlobeOp Integrates Auto-novation Processing with DTCC Deriv/SERV

GlobeOp Financial Services, an independent provider of business process outsourcing, financial technology services and analytics to hedge funds and asset managers, has rolled out an automated novation processing for credit derivatives. The service supports the Operation Management Group's (OMG) commitment that the industry will implement automated novations for credit derivatives by the end of 2008.

Auto-novation enables all trade counterparties to receive real-time notification, standardized information and novation consent electronically via DTCC Deriv/SERV. Through GlobeOp's direct, real-time link to DTCC, clients can execute novations electronically, and be fully integrated with GlobeOp's straight-through-processing (STP) into trade booking, accounting, risk and other systems. The entire process occurs within GlobeOp's GoOTC over-the-counter (OTC) derivatives trade processing system.

"Providing this link to the Deriv/SERV novation process helps clients reduce operational risk by replacing novation consent emails with a robust real-time electronic platform," said Jon Anderson, global head of OTC derivatives, in a press release. "GlobeOp's technology platform reduces errors related to manual booking & email processes, eliminates time spent booking assignments and increases efficiency through autogeneration of trade confirmation to DTCC. This latest innovation also enables our clients to act ahead of the February 28, 2009 deadline after which major dealers will not accept novation consents by email," he said.

By Leslie Kramer

Source URL: http://www.wallstreetandtech.com/showArticle.jhtml?articleID=212501198
Publish Date: December 18, 2008