Logiscope a leading player in deal notification and integration for financial markets has formed a partnership with TwoFour a global technology solutions provider for financiall institutions in capital markets. The partnership enhances the renowned TradeSTP product developed by Logiscope for the institutional FX markets.
TradeSTP is one the most sophisticated cross asset deal notification technology available. Deals contributed to TradeSTP are delivered to end users via a secure, fully-hosted distribution architecture that supports ‘one to one’ and ‘one to many’ connectivity options, ensuring efficient and comprehensive post-trade STP.
The collaboration works effectively for both companies mutual client base. Trades are executes on TwoFour interfaces regardless of the message format thus ensring speed and uniformity as TwoFours back office takes delivery. TwoFours system can take greater control in credit utilisation and processing of the post trade workflows. The system operates on a wide raneg of FX product types including Spot, Forwards, Swaps and NDF’s.
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The Post Trade element has been problematic for FX trades as settlement and counterparty risk have been key factors affecting the process. Furthermore to a trades life cycle in FX has come under much pressure.
Logiscopes service for Retail Aggregators provides post trade connectivity to their central clearing partner (large banks or prime brokers) in addition to ticket compression. The processing cost of small tickets has been a challenge for both technology vendors and FX brokers as the retail flow is geared towards small ticket sizes however the processing costs for small trades are costly. Logiscopes service aggregates the tickets (individual including micro 1,000 units and mini 10,000) either over a time period or notional amount, an additional point is that the mass (excess retail flow) tickets need to be matched against the prime brokers figures. Under CLS rules these trades cannot be netted, therefore Logiscopes functionality aggregates all the buy and sell tickets separately.
Logiscope was acquired by MarkitServe a market leader in processing of OTC derivatives transactions earlier this year, thus offering advanced post trade facilities for Markit clients.