-- X-Settle is the first hosted service to handle transactions sent into the new settlement infrastructure introduced by Monte Titoli, Italy’s central securities depository and part of the Borsa Italiana --
LONDON/ATLANTA (September 21, 2004) — CheckFree Software, a division of CheckFree (Nasdaq: CKFR), today announced that X-Settle, a new service developed by CheckFree and its Italian partner, Kedrios, has gone live. X-Settle is the first settlement service designed to support the recently reorganised transaction processing infrastructure at Italy’s central securities depository, Monte Titoli (part of the Borsa Italiana group), handling volumes of up to 10,000 transactions per hour. Seven of Italy’s largest financial institutions including Deutsche Bank, RAS Bank and Euromobiliare, have already signed up for the service based on CheckFree’s TradeFlow TPM, the de-facto standard trade confirmation and settlement workflow solution.
Says Paulo Taddini, chief executive officer of Kedrios: "X-Settle gives our clients a complete single-window solution that provides full connectivity, automation and visibility into the newly improved Monte Titoli RRG Matching and Express II settlement processes from automated operation transmission through to matching and settlement reconciliation." Tolerances can be defined via user-based rules and all transaction and accounting activity is visible from a central, real-time screen. The system, which is run from the Kedrios bureau, is currently handling over 50,000 messages and two 1.5 hour peaks a day from a single server.
In addition to greatly enhanced operational efficiency, X-Settle delivers a new level of risk management by providing a seamless, intelligent transaction process across all market participants, which can be viewed and monitored centrally from single, central point of control. Reconciling all instructions from Monte Titoli and counterparties, X-Settle matches them against internal trade records to produce either aggregated ‘net’ or ‘gross’ views of all transactions – those settled, pending or requiring action. These parameters can be defined or changed easily via user-based rules, and all transaction and accounting activity is visible from a central real-time screen. The system, run from the Kedrios bureau, is extremely robust, handling over 50,000 messages a day from a single server, with the scalability to meet future demands.
When Monte Titoli restructured its operations, it meant that trade processing systems in the Italian market had to be changed correspondingly - both in terms of formatting and message cycles. The fact that X-Settle was developed in under six months highlights the underlying flexibility of its design.
Rajive Samarasinhe, business development manager Italy, CheckFree Software, explains, "CheckFree’s rules-based configurability enabled us get to market early to support Monte Titoli’s new settlement infrastructure. Many of Kedrios’ existing customers have already signed up for X-Settle and they anticipate strong interest since X-Settle not only streamlines the settlement process, but provides a level of de-risking previously unavailable."
"Kedrios’ knowledge of the Italian financial market combined with CheckFree’s expertise in developing STP and financial messaging solutions, has enabled us to bring a unique service to market," Amery Thomas, senior vice president of International Operations for CheckFree Software. "In a few short months it has already attracted an extraordinary level of interest and looks set to become the de facto standard for trade settlement and reconciliation services."