SunGard has enhanced IntelliMatch Operational Control to help brokers address today’s market requirements in centrally cleared over-the-counter (OTC) derivatives. The solution’s customers include five of the top 10* Futures Commissions Merchants for reconciliation of exchange traded derivatives (ETD). By extending support to include OTC derivatives, SunGard’s solution now offers a single platform for comprehensive reconciliation automation of both ETD and OTC derivatives, helping increase transparency, reduce operational risk and lower costs.
Today, brokerage firms face unprecedented market change. Regulations such as Dodd Frank are expected to direct approximately 60%** of OTC derivatives by volume through centrally cleared counter parties (CCP’s). This will stretch operational and IT resources of sell-side firms, driving brokers to seek to reduce manual processes and enhance efficiency. In response, SunGard’s IntelliMatch Operational Control will help manage new and evolving CCP’s and automate reconciliation processes to support increases in transaction volumes and complexity. The solution will provide a central, consolidated view across trades, cash and positions, generating a single view of the derivatives reconciliations process.
Gert Raeves, CEBTowerGroup research director, commented: “Sell side firms are witnessing significant change that demands a re-evaluation of existing OTC processes. Today, many of these firms are reconciling manually in an environment heavy with internal and external compliance pressures and spiraling volumes. This is driving increased adoption of reconciliation solutions to enhance automation and help brokers respond to change and capitalize on new opportunities.”
Jennifer Hanes, executive vice president, Operations for SunGard’s banking business said: “With these enhancements, SunGard is building on its expertise in ETD reconciliation solutions to help brokers address central clearing requirements for OTC derivatives. We are seeing an appetite among our client base for OTC instrument coverage and our experience in the exchange traded market makes us well positioned to support firms in this area. IntelliMatch Operational Control helps brokers effectively manage market change through increased connectivity and efficiency, helping lower operational costs and reduce risk to manage regulation and market volatility.”
* U.S. Commodity Futures Trading Commission: Financial Data for FCMs
** Ready or Not? Here it Comes: OTC Derivatives Execution, Processing, Clearing & Reporting in the Post-Dodd Frank Landscape Executive Summary, Citi, April 2011