TRAX2 is a post trade, pre settlement, trade matching and regulatory confirmation system for the capital market. It allows firms to manage their operational risk effectively by matching trades that have been done âover the counterâ i.e. not on an automated trading system, in real time with their counterparties, so virtually eliminating failed trades at settlement. An additional benefit of TRAX2 is that users can fulfil their transaction reporting requirements in a range of financial instruments to a number of specified regulatory authorities throughout the EU.
TRAX2 builds on the success of the original ICMA trade confirmation and risk management system (TRAX) that has been operating within the capital market since 1989. TRAX is a tried and tested system which has over 200 subscribers and is now processing 4.5 million transactions every month. TRAX2 has extended the use of this proven technology to reduce operational risk for firms trading in the rapidly expanding repo sector. TRAX2 is available to any financial institution active in the international capital market, to ICMA members and non members alike and is being rolled out over the next 12 months, assisting financial institutions with their matching, reporting and regulatory requirements.