New functionality in the cross-asset front-to-back treasury and capital markets system supports central clearing, margin management and OIS discounting
Misys, the global leader in treasury and capital markets solutions, announced today the release of Summit FT Version 5.6, which enables capital markets firms to quickly adapt their operations to accommodate the growing volumes of OTC trades being centrally cleared, and to meet the latest requirements of both Dodd-Frank and EMIR. Ongoing and frequent announcements to these regulations, such as the recent swap definitions and the change to the methodology of pricing interest rate derivatives (OIS), requires adaptable technology.
Summit FT Version 5.6 supports these new requirements, improves automation and regulatory reporting and has been built with the flexibility to handle new regulations as they are defined.
"The problem organisations are facing is the challenge to implement a multitude of changes quickly to meet the vast array of regulatory requirements. The new version of Summit FT provides a comprehensive central clearing framework that simplifies this process," said, Samer Ballouk, Solution Director for Summit FT at Misys. "With SEFs to be appointed and legal entity identifiers to be decided by the end of 2012, European and Asia regulations following Dodd-Frank, the flexible framework of Summit FT's trade repository and interfaces to central clearers ensures that customers are ready to meet existing and future requirements as they evolve."
Virginie O'Shea, analyst at AITE Group, adds, "We are seeing a huge amount of focus and investment into the area of regulatory compliance, with Dodd-Frank deadlines being a high priority. Each month more elements are being agreed, but with very tight deadlines for systems to comply and many knock-on effects of the subsequently released regulations, financial organizations are operating in a tough environment where some short term fixes may need to be considered. Being able to partner with vendors that can offer the flexibility to meet future regulatory requirements in such a fast-changing environment is key as new market infrastructures are created and regulations continue to evolve."
New features of Summit FT support the new swap definitions, OIS pricing, increased collateralisation of trades and connectivity to central clearers and reporting:
Improves clearing member and clearing house reporting - Summit FT supports the requirements for central clearing reporting through new fields that will capture the Legal Entity Identifier (LEI) Unique Product IDs (UPI) Unique Swap Identifier (USI) etc.). Real-time views and out of the box reports.
- Improves STP for centrally cleared trades with full clearing workflow support that supports both clearing and non-clearing members and seamless integration to Summit FT's Collateral Management module.
- Meets market practice change in Interest Rate Derivatives pricing - new functionality supports OIS pricing including curve generation, valuation and risk.
- Enables smooth connectivity to central clearers - full matching and clearing of trades through out-of-the box interface with MarkitSERV and the Markit Trade Manager service.
- Provides a single solution for margin and collateral processing and monitoring. New margining capabilities for both listed and cleared derivatives for handling the full margin workflow. The module is a repository for the margin agreements, providing margin processing, reporting and reconciliation with brokers.