Logica delivers Option Premiums service to settlement banks

16 September 2008

Logica, the leading IT and business services company, today announces the general availability of the Option Premiums module for Logica CLS Manager (LCM), its world class Continuous Linked Settlement (CLS) solution.

Following the successful completion of vendor testing, Logica has rolled out LCM support for settlement of Option Premiums (OPRs) through CLS to the first settlement members who will pioneer the new service this year. Settlement of OPRs through CLS will eliminate settlement risk and provide the benefit of netting, already offered for FX trades and Non-Deliverable Forwards (NDFs).

Option Premiums is the latest service to be offered to the settlement banks by CLS, following the successful go-live of NDFs in December 2007. Ahead of the CLS live date the LCM in-house module enabled Logica settlement members to realise the benefits of netting and settling NDFs internally.

Standard Bank of South Africa successfully deployed LCM in 2004 and as a result of the quality of the product and the professional service provided by Logica have recently also purchased the Logica All Payments Solution (LAPS).

Brian Shone, Director Services at Standard Bank of South Africa, an established LCM customer testing the new Option Premiums service, comments: “We have a reputation for deploying innovative technologies that help to achieve competitive advantage on the global stage. For a number of years we have an excellent relationship with Logica and are highly satisfied with the performance of their CLS system. We are now in the development stage with the Logica All Payments Solution (LAPS) which will support the migration of our existing SWIFT legacy payment systems. This will enable the Bank to deliver high quality processes and consistent SWIFT messages where implemented.”

Tim Brew, Director Global Products at Logica, comments: “We have always ensured that LCM has been at the forefront of CLS innovations so that our customers can maximise the business benefits from day one. The timely release of the LCM OPR module reinforces this principal”.

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