With stringent criteria to be met before instructing a settlement through CLS, manual identification of eligible FX transactions remains a time and cost-intensive process for investment managers. TradeFlow can now automatically determine the appropriate settlement channel for each transaction based on predetermined criteria such as counterparty preferences and CLS cutoff times. If a transaction is CLS-eligible, TradeFlow identifies netting opportunities, thereby reducing the number of payment instructions and corresponding costs.
âThe pre- and post-settlement processes are the last areas of the FX post-trade chain to be automated and still expose participants to inefficiencies and high costs,â said Cheryl Nash, senior vice president of strategic marketing and business development for Investment Services, Fiserv. âOn top of TradeFlowâs existing automated settlement capabilities, Fiserv is removing the time and cost of deciding the best settlement mechanism for each transaction, enabling investment managers to extend operational efficiency further down the transaction chain and get much closer to their straight-through-processing goals.â
Once settlement instructions are set, transactions are automatically matched with the broker and a CLS settlement is generated. If a CLS settlement needs to be changed, at the request of the counterparty, users are able to directly amend instructions through exception management workflows. This eliminates the need to include custodians in the amendment process, again reducing costs for investment managers.
These new enhancements expand upon the trade confirmation and settlement capabilities already available on TradeFlow for FX and other asset classes. With TradeFlow, investment managers can oversee post-trade processing across multiple asset classes and market infrastructures through a single platform, increasing operational efficiency and reducing costs.