Traiana has announced that they have launched their newest version of Harmony Securities, the company’s cross-asset post-trade reporting network. In a nutshell, the Harmony network connects brokers and trading venues to provide post-trade reconciliation reporting. For example, using the information, prime brokers who extend credit to customers receive aggregated reports of their overall risk and customer positions. The product’s roots began in FX, as it provided a centralized network for connecting trading of the fragmented foreign exchange market.
Due in part to the results of the global financial crisis as well as increase in algorithmic trading, monitoring pre and post-trade credit has become more important in curbing systematic risk in the markets. Beyond just Harmony, other forms of monitoring include pre-trade reporting that takes place on the execution platform level, with firms like Fluent Trade Technologies and Portware providing such risk management solutions.
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In terms of Traiana having created a network to connect the FX market, Harmony Securities is part of the firm’s expansion of its solution for other assets. According to Traiana, between July 2013 to 2014, participants of the network have grown by 300%, with volume growth of 1000%. Matching trades between buy and sell-side firms, Harmony Securities support includes cash equities, equity swaps, and multiple forms of bonds. According to Traiana, explaining a portion of the growth has been the adoption of the FIX 4.4 protocol for their post-trade processing by large asset managers.
In the new version, Harmony Securities now provides support to clients that allocate funds with multiple brokers for execution. In addition, Traiana explained in the statement about the news, “The matching service now has tolerance based matching at a per relationship level and detailed MIS statistics that will offer all clients the ability to measure their processing efficiency in terms of timeliness of matching and confirming trades, number of cancelled and rejected trades.”
Commenting about the upgrade launch, Roy Saadon, Co-Founder and Head of EMEA, Traiana stated, “The growth of our Harmony Securities network means our clients can now use one platform for their post-trade trading activity, across asset classes, and across the global markets. Our sell-side participants are servicing EMEA cash equity flow alongside APAC synthetic flow over the same singular platform. Our participants are shielded from bespoke investment in a client specific FIX based workflow, while offering the controls of real-time matching to their entire client base. By delivering same-day trade affirmation and trade matching, Harmony reduces both operational and counterparty risk as well as the risk of settlement failure.”