"The explosion of the OTC derivatives market has overwhelmed the ability of traditional operations to handle increased trading volumes. Over the last year in particular that growth has put unusual stress on the middle and back office. Solutions like CheckFree TradeFlow that meet these needs alleviate the pressures of OTC derivatives processing and streamline the end-to-end trade processing of the OTC derivatives market," said Brad Bailey, Senior Analyst, Aite Group.
Following industry demand and increased use of OTC derivatives for performance enhancements, leverage and hedging, CheckFree TradeFlow 2.2 can provide operational process improvements, including pre-packaged industry standard workflows for confirmation and settlement of OTC derivatives. The expanded solution is designed to make a single, post-trade process possible and to allow all asset classes and exceptions to be managed in a single solution.
"By managing the post-trade process across all asset classes, CheckFree TradeFlow enables clients to control spiralling operational costs," said Geoff Harries, director of securities product management, CheckFree. "Incorporating OTC derivatives processing into the CheckFree TradeFlow environment will generate numerous business benefits for our clients, including developing the operational capability to support business growth and increase in volumes. To address current and projected OTC volumes, a global asset management firm has already purchased the new CheckFree TradeFlow OTC module to reduce the manual processing it has endured in the confirmations process."
CheckFree TradeFlow 2.2 addresses the issue of operational capacity in processing growing volumes and coping with the precise and complex nature of OTC derivatives. The solution focuses on an operations ability to confirm trades to ensure contractual protection, agree on cash flows to guarantee on-time and accurate payments and automate processes to remove operational bottlenecks. By combining OTC automation and control with proven scalability, CheckFree TradeFlow can help mitigate clients' expense of finding and retaining skilled operations staff to manually handle increasing volumes.
CheckFree has participated in the SWIFTNet FpML initiative which is focussing on the notification workflow between investment managers and custodians to advise of contracts