Traiana Launches Post Trade Automation Tool for Equity Swaps

This utility improves the longstanding negative affirmation issues in the equity swaps market.

Traiana, a provider of pre-trade risk and post-trade processing solutions, has unveiled its Equity Swaps Lifecycle Management, a newly tailored services suite to automate the post-trade lifecycle management in the equity swaps market.

The launch of Traiana’s newest offering allows swaps providers to electronically normalize data and conduct a reconciliation of their respective daily valuations, payments, and legal confirmations across equity swaps. This streamlines several different functionalities across swap transactions and helps identify any changes to the underlying attributes.

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Moreover, Equity Swaps Lifecycle Management helps empower swap providers and their clients with a cost-effective exception manager tool to resolve disputes between counterparties on a daily basis, rather than after monthly resets are struck. This runs in direct contrast to existing or traditional methods deployed by swaps providers, which can be labor intensive and leads to inefficient post-trade affirmation processes.

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Phase one already live

This utility will also enable buy-side firms to view all exceptions in one place, which improves the longstanding negative affirmation issues in the equity swaps market. The technologies fall under post-trade processing, which refers to automated trade matching and real-time communication of trade details between counterparties.

The New York-headquartered firm, which was acquired by CME Group as part of its $5.4 billion takeover of UK Fintech NEX, said the phase one of its new service is now live with further phases set to be released throughout 2019 and 2020. This reflects the strong adoption of electronic trading in this market and increased access by global buy-side firms.

Commenting on the news, Global Head of Traiana Joanna Davies, said: “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. Our new Equity Swaps Lifecycle Management service creates huge operational efficiencies and significantly reduces settlement risk for market participants.”

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