Thunderhead to automate FpML processing for OTC trades across SwiftNet

UK-based Thunderhead has signed a partnership agreement with financial industry network Swift aimed at simplifying OTC derivative post-trade processing across the SwiftNet platform via the use of industry standard FpML messaging.

Thunderhead says its ability to generate FpML (Financial products Markup Language) output - combined with its support for DTCC's Deriv/Serv's OTC derivatives matching service and trade information warehouse - enables Swift members to dramatically simplify the process of generating electronic trade confirmations and achieve automated trade matching.

The vendor's XML adapter for Deriv/SERV provides an interface that allows users to quickly define and generate accurate FpML messages for delivery across the Swift network.

"The combination of Swift's broad reach of network and services infrastructure, combined with Thunderhead's extensive support for creating and delivering FpML, speeds the deployment and implementation of FpML to both the buy-side and sell-side participants to improve operational efficiencies and reduce operating costs," says Glen Manchester, CEO of Thunderhead.

"The need to streamline the trade confirmation process and reduce operational risk across a vast spectrum of asset classes is increasing dramatically," adds Fabian Vandenreydt, head of broker dealer and pre-settlement services for Swift. "Thunderhead's experience in helping financial services firms manage STP in derivatives trading makes them a welcome addition to Swift's partner community."

Last year US investment bank Morgan Stanley implemented Thunderhead's document generation technology to help automate the creation of OTC derivative trade confirmations.

Source URL:http://www.finextra.com/fullstory.asp?id=17467

Publish Date:21 September, 2007

Barclays and BBH exchanges FpML messages over SwiftNet

Swift announced today that Barclays Global Investors and Brown Brothers Harriman were the first asset manager and custodian to exchange FpML (Financial products Markup Language) based Contract Notifications over SWIFNet.

The following week, State Street on behalf of PIMCO and other customers began testing FpML communication with Bank of New York, Mellon Bank, Northern Trust and State Street Corporation.
SWIFT has launched the SWIFTNet FpML programme, in cooperation with ISDA (the International Swaps and Derivatives Association) earlier this year. This initiative seeks to automate OTC derivative post-trade processing. By using SWIFTNet FpML the industry players will be able to manage the rapidly growing volumes in the OTC derivatives market in a more efficient way.

"Our successful test is evidence of Brown Brothers Harriman's commitment to improving STP and reducing risk for our clients' derivatives activity," said Cherie Graham, Head of Brown Brothers Harriman's Derivatives Product Group. "We are excited to play a key role in helping the industry move forward with making derivative trade automation a reality through the FpML format."

Steve Goswell, Director, Barclays Global Investors, a strong advocate for automation and standardisation in the asset management community, said, "Barclays Global Investors is building a strategic platform to support the growth in OTC derivative volumes. With the help of SWIFT we have a global, secure, and reliable transport mechanism."

"This industry initiative will become an additional vehicle for improving the STP handling of OTC derivatives and help to mitigate the settlement risk for these products," said Terry Randall, senior vice president of State Street Corporation.

The first phase of SWIFTNet FpML involves transporting contract notification messages between asset managers and custodians. Later phases involve additional market participants, such as dealers and additional services, including trade confirmations and portfolio statements.

"This initiative brings the industrial strength and reach of SWIFTNet to the OTC Derivatives processing area, complementing our existing post-trade messaging services for the FX, equities and fixed income spaces," said Fabian Vandenreydt, Acting Head, Securities Industry Division, SWIFT.

Source URL - http://finextra.com/fullpr.asp?id=16055
Published Date - July 07, 2007