\ For CSDR

Supporting improved post-trade harmonisation

Prevent trade fails that could lead to penalties under the Central Securities Depository Discipline Regime (CSDR)

 

Pivotal in reducing costs and increasing efficiency through standardisation and automation.

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We provide comprehensive post-trade CSDR solutions for financial services firms:

 

  • Standardised workflows, trade and reference data, contract terms and interfaces help reduce complexity and eliminate duplication throughout the post-trade lifecycle, automating the messaging and matching required to confirm, give-up, allocate, clear and report trades.
  • Electronic trade affirmation and pre-agreed legal terms cut new trade and lifecycle event confirmation times from days to minutes, helping firms to meet their CSDR obligations.
  • Our cash prime brokerage service provides a unique solution that offers bilateral netting or matching and exception management between executing brokers and prime brokers.

CSDR Solutions

Cash Prime Brokerage

The OSTTRA Cash Prime Brokerage Service assists with CSDR’s Settlement Discipline Regime (SDR), a new settlement and reporting requirements for market participants. Through the use of cash penalties and mandatory buy-ins, SDR incentivises market participants to ensure timely settlement of EU-issued securities.

Our cash prime brokerage service is specifically designed to benefit executing brokers and prime brokers, including OTC cash equity and fixed income trades that are settled between the executing and prime brokers. We have combined existing established services to create a centralised global hub encompassing the entire cash prime activity to perform T+0 pre-settlement matches:

 

  • With many brokers now seeing the true impact of CSDR in this space, coinciding with the movement for shortened settlement cycles, our service is positioned to bring the required operational efficiency and cost savings to help optimise the processing of cash prime related trade settlements.
  • Brokers using our pre-settlement optimisation services can also benefit from an increase in inventory and capital efficiencies, as a result of alleging netted rather than gross trades for settlement.
  • Our real-time exceptions management process expedites participants’ break resolution, acting as a preventative measure for potential trade fails.
  • In addition to assisting the mitigation of participants’ CSDR footprint, our service also facilitates post-match pre-settlement optimisation of the underlying trade activity.
  • With established capabilities and the use of our smart routing logic, counterparties are able to direct trades for bilateral compression or central clearing, using our respective netting and clearing house connectivity services. This connectivity offers participants further opportunity to reduce the cost of settlement.

Trade Lifecycle Processing

OSTTRA provides critical post-trade infrastructure which helps firms manage their CSDR obligations:

  • Trade affirmation is simplified by our centralised platforms, where counterparties can review trades submitted by brokers, dealers or trading venues via a single consolidated user interface.
  • Confirming trade details by matching or affirming counterparty trade submissions is a vital process that sits at the heart of many of our workflows. Legal confirmations are created using standard terms managed by our platforms.
  • At the same time confirmation of other lifecycle steps such as give-ups, allocations and custodian bookings are also efficiently matched and communicated on our network, ensuring timely confirmations and eliminating trade breaks early in the post trade lifecycle.

Article

OSTTRA Expands Cash PB Matching Service to Clear OTC Equities in Readiness for CSDR

OSTTRA LimitHub for Equities

The OSTTRA LimitHub for Equities service launched with BNP Paribas Securities Services to extend clearing of European OTC equities in support of CSDR.

The service offers sponsoring General Clearing Members the ability to create and manage credit limits, as well as execute limit and authorisation checks for Non-Clearing Member (NCM) client broker and swap providers. This enables sponsored NCMs to join The OSTTRA Equity CCP network for clearing, which can aid in reducing settlement costs and risk associated with bilateral settlement.

OSTTRA LimitHub enables BNP Paribas Securities Services to monitor their extensive NCM broker and swap provider client portfolio to approve their daily trading activity for clearing using their General Clearing Membership status.

Find out more about the OSTTRA LimitHub for Equities service here.

Cash Flow Management

Our cash flow management solution automates the cash-flow-processing challenge with a standard workflow and matching engine, to reduce risks and deliver transparency.

Cashflow processing is too often a manual, fragmented process, prone to errors and delays. These challenges are increasingly subject to regulatory scrutiny under industry standards such as Basel III, CSDR and FX GCC, with settlement delays attracting significant financial penalties.

Our centralised service introduces standardised, automated workflows to match and affirm cashflows, with comprehensive multi-asset class coverage and for all lifecycle cashflows, supporting a smooth and timely settlement.

Find out more about OSTTRA for Cash Flow Management here.

Trade Processing for Repos

Built on our trusted OSTTRA MarkitWire platform, with its established network of 2,000+ firms, our solution centralises and streamlines Repo processing.

 

Introducing standard workflows to create a legally confirmed record which is updated through the trade lifecycle, OSTTRA Trade Processing for Repos gives complete transparency to all counterparties at every step of the workflow.
With electronic trade affirmation and pre-agreed legal terms, our solution cuts new trade and lifecycle event confirmation times from days to minutes, helping firms meet CSDR obligations.

Find out more about OSTTRA for OSTTRA Trade Processing for Repos here.

Our services help market participants stay ahead of the competition and minimise the risk of trade fails, penalties, and increased costs under the CSDR regime.”

Joanna Davies
Head of FX and Securities

Joanna Davies

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