OSTTRA MarkitWire CLS Connectivity Service: Global Tier 1 Bank

Client type: Global Tier 1 Bank

Challenge:

A Global Tier 1 bank has seen growth in their cross currency trading book post the COVID-19 pandemic. The trading expansion has increased settlement risk for the dealer given the large notional exchanges across counterparties and settling payments on a gross bilateral basis results in operational inefficiencies, liquidity constraints and substantial Herstatt risk. These trades were confirmed on the OSTTRA MarkitWire platform with counterparties already utilising the settlement service.

OSTTRA Solution:

The OSTTRA MarkitWire to CLS connectivity service helps firms to net the initial and final exchange settlements within the cross currency transaction seamlessly as part of the confirmation process. The client signed up to the service and went through a comprehensive UAT cycle including thousands of test deals across eligible currency pairs. OSTTRA MarkitWire successfully confirmed the transactions and delivered initial and final exchange instructions to CLS, enabling the client to validate and sign-off on their technical requirements.

OSTTRA Delivered:

End-to-end workflow demonstrations and materials
MarkitWire Test environment with connectivity to the CLS JAS environment
Customised static data configuration for legal entities, users and interest groups
Elevated levels of support for the initial Production deals ensuring a smooth go-live
OSTTRA MarkitWire Production environment with connectivity to the CLS Live environment
A self-service and customisable analytics tool to monitor workflow efficiency for eligible transactions

Customer Benefits

Fully automated and configurable workflow for cross currency swap settlements via the market-leading platform – OSTTRA MarkitWire

Mitigation of settlement risk with added settlement netting versus FX settlement
Automatic final notional calculation via the OSTTRA MarkitWire auto-fixing functionality
Joining a network of more than a dozen banks
Customisable static data for users and built-in eligibility workflow rules
Simplified and speedier onboarding building on existing connectivity
Post go-live metrics monitoring via a self-service analytics tool

Focused, Tried and Tested

For more information or to arrange a call with a member of the Team please email info@osttra.com.