White Plains, NY - June 6, 2005 - Communicator Inc, which offers communications, compliance, and operations information management services to the financial industry announced today that Chatham Asset Management, Smith Breeden Associates, Inc., and West End Capital Management have selected the Compliance Hub Confirmation Service as their solution to solve the growing challenge of documenting OTC derivatives trades.
Pacific Investment Management Company LLC, one of the world's leading fixed income managers, helped design the system from the buy side perspective. "Communicator identified which features were most important to the institutional money managers and worked closely with us to understand our internal process and operational requirements. The result is a service designed for the buy side and allows us to more efficiently manage our confirmations in real-time with our counterparties," says David Lown, Executive Vice President of PIMCO.
Jon Anderson, Head of Risk and Operations of Blue Mountain Capital Management, remarked on the value of the service. "The Compliance Hub Confirmation Service allows us to electronically process all of our OTC derivatives - completely eliminating paper from our confirmation process. We've found Compliance Hub to be a good compliment to DTCC and other automated systems. Compliance Hub offers a single source to manage all OTC derivatives with visibility across both services for more comprehensive reporting. By automating our confirmation process, we have reduced the number of outstanding confirms in half - within a few months."
"Unconfirmed confirmations have the potential to create open position risk. Efficient electronic process is recognized by regulators as an effective way to lower a firm's risk exposure," says Leo Schlinkert, CEO of Communicator Inc. "With our comprehensive electronic process for confirming OTC derivatives, clients are able to shorten their confirmation turnaround time by 400%."
The Compliance Hub Confirmation Service lowers, aggregates, manages, and reduces the number of outstanding confirmations for OTC derivatives. Compliance Hub's flexible platform offers a full workflow and an adaptable assignments process to suit a client's internal business processes. Using electronic signatures, the paper process is eliminated completely for all OTC derivatives products and transaction types. Clients access comprehensive reporting - allowing them to identify key risk areas or bottlenecks in the process with reports focused on age, counterparties, and products. The service also integrates with existing e-matching services to provide a single source for confirmations management.