TLM Trade Process Management is a packaged solution that provides a highly scalable approach to address post trade allocation, confirmation, clearing and settlement challenges faced by many of the world's largest institutions. The first implementation of TLM Trade Process Management is already underway at a global top 20 financial institution.
Steve Miller, SmartStream's Senior Product Manager, explained the client demand for the new solution, "As many firms are struggling to handle an increased volume of trades and specifically the explosive growth in OTC derivatives, there's a compelling need to address the areas of operational risk and cost that threaten to lower profitability and customer service. TLM Trade Process Management offers firms a unique route to tackle these challenges head on, using proven technology that incorporates industry best practice in pre-packaged flexible business processes."
TLM Trade Process Management automates transaction lifecycles across the entire Middle and Back Office from the point of execution through to settlement confirmation. The starting point for TLM Trade Process Management is the collection and validation of trades from a multitude of order management and deal capture systems. Where necessary the solution enriches the data and allows users to route trades through the appropriate allocation and confirmation processes. Rich exception management functionality ensures users are armed to proactively identify and resolve failing transactions. The settlement process is automated with messages automatically constructed from matched allocations and instructed via SWIFT or through proprietary networks. In the final stages of the transaction's lifecycle TLM Trade Process Management tracks the settlement status updates to ensure the transaction is on track and eventually reconciles settlement notifications to provide an accurate view of the firm's overall positions.
Miller explains, "TLM Trade Process Management is a massive step forward for firms struggling to improve operational efficiency and consolidate their fragmented infrastructures across asset class and lines of business. By leveraging their existing infrastructures TLM Trade Process Management hands transactions off to existing systems or people whilst retaining ownership of that transaction. Retained ownership means TLM Trade Process Management becomes the trusted source of transaction status information - if you want to know the exact status of your transaction, in real time, TLM Trade Process Management has the answer."
Commenting on the product launch, David Easthope, Analyst, Celent, said, "This announcement makes a great deal of sense. Our own recent research demonstrated that both Banks and Asset Management firms still have much work to do with respect to the automation of both equities and derivatives transactions. In the equity markets rising volumes and increasing complexity of cross-border trades are leading to allocation and matching problems. Whilst for derivatives, and most significantly equity OTC derivatives, confirmation and matching remain the biggest issues."