London, 27 May 2004 - From the ACI Worldwide event today in London, a group of like minded market professionals representing the bank, broker and technology communities announces the creation of The Trader Notification Service (TNS) Consortium. The Consortium has developed a real time post execution messaging service, delivering an extended level of Straight Through Processing (STP) that is open for the trading of all products between voice brokers and banks, worldwide.
Members of the Consortium have been drawn together by a mutual desire to automate as much of the trade processing activity as possible. Utilising a product developed by City Networks, CityNet Trader Notifications, across a secure communication mechanism, both parties will enjoy increased trading efficiency, reduce the possibility of errors inherent in the manual processing of trades, and improve the timeliness of their position keeping with near to real time updates. As the trade details are agreed the service automatically sends the appropriately formatted messages to update the participants' dealing systems.
In practical terms, the banks using the TNS Consortium's message service will be able to:
- Receive, view, accept or deny the deal details provided by voice brokers
- Release deals into internal systems that update data and initiate back office processing
- Automate deal entry process
- Observe a single view of trades across all brokers and all trade types
Products supported by the service include FX, Money Market, Interest Rate Options, FRA, Traded Paper, Repos, Bonds and Options.
Early members of the Consortium include Prebon, Carl Kliem, Eurobrokers and Tradition, on the voice broker side and banks such as HVB, ING Brussels and NordLB. City Networks and NTT/VERIO are the first technology vendors to provide their backing.
Eric Pfennig, Head Trader at HVB, comments, "The Trader Notification Service will allow us to enjoy the same benefits we receive from an ELX (electronic execution) system, but at the same time maintain all the advantages of operating with a voice broker, such as using the voice broker's liquidity without losing any booking time. The service only requires one click on the confirmation screen and then we can continue with quoting and ensure that we don't miss the next move in the market."
Tim Dennis, Global Head of Business Development and Data at Prebon, adds, "When Prebon first examined the STP requirements from our client base a number of themes emerged time after time. Firstly, banks did not want to write multiple interfaces to multiple brokers. Secondly, banks thought that a 'single pipe' connecting all the brokers for an STP solution would be preferable. Thirdly, banks did not want to have another 'standard broker message format' that they had to adhere to, they wanted to use their existing message infrastructure. Bearing this in mind, City Networks offers the logical solution of a single pipe interfacing into the bank, which then provides full STP in the format chosen by the bank, and not imposed by the broker."
Costa Christodoulou, CEO at City Networks, comments, "Our company has been at the forefront of delivering STP solutions to clients over many years. More than 400 banks and 40 brokers across the globe already have our technology installed. Implementation of the product that drives the Trader Notification Service, CityNet Trader Notifications, will be compatible and easy to implement within the brokers' and banks' trading environments. An exciting element of the TNS is that this traditionally high risk, high reward environment is now better served by a technology solution that reduces risk of error, improves efficiency of trades and helps participants to conform to industry best practice. Adding the Trader Notification Service effectively enhances the existing back office by adding full STP to the front office. Hence banks can complete their STP circle by having a single trader notification and back office confirmation service that represents all voice brokers. For banks and!
brokers who are not existing customers of City Networks, the good news is that the element of the TNS we offer the Consortium will work across a range of communication mechanisms, be it internet or private network, and is designed to be compatible with almost every middleware product available on the market today."
A demonstration of the service can be accessed via their website.