Client type: US Bank
Challenge:
A US bank has seen significant expansion in their cross currency trading book over the last three years. The trading expansion has increased settlement risk for the bank given the large notional exchanges across multiple counterparties, and settling payments on a gross bilateral basis results in operational inefficiencies, liquidity constraints and substantial Herstatt risk. These trades were already confirmed on the OSTTRA MarkitWire platform.
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 rigorous UAT cycle including hundreds of test deals across eligible products and currencies. 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 client legal entities, users and interest groups building on existing set-up
- Dedicated technical support and workflow expertise throughout the implementation
- 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
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 OSTTRA MarkitWire’s auto-fixing functionality
- Joining a network of a dozen banks
- Scalable solution to manage settlement risk via the confirmations process
- Customisable static data for users and built-in eligibility workflow rules
- Simplified and speedier onboarding building on existing connectivity and well established workflows
Focused, Tried and Tested
For more information or to arrange a call with a member of the Team please email info@osttra.com.