Market’s use of TRAX2, ICMA’s trade matching system, accelerates as international banks connect.

LONDON, UK- 13 March 2007

The International Capital Market Association (ICMA) Ltd has announced that its new TRAX2 trade matching and regulatory reporting system is now being adopted by an increasing number of international banks to match and report trades in the capital market. Intesa Sanpaolo S.p.A and Banca Caboto S.p.A. are the latest banks, and the first in Italy, to join the roster of institutions who have successfully adopted the platform to match their trades in the international cash bond and repo markets.

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 ‘over the counter’ 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.

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