CLSA has become the first Asian broker to go live on SWIFT’s Global Electronic Trade Confirmation (GETC) post-trade solution for the automation of allocation and confirmation processes on the global financial markets.
The lack of an industry standard solution for electronic trade confirmation (ETC) has led to high processing costs, something Aite Group recently highlighted in an earlier report examining the suitability or otherwise of SWIFT’s GETC offering to fill this gap. SmartSteam is one of a number of vendors, alongside users such as Legal and General, which are now supporting the SWIFT offering in an attempt to gain economies-of-scale utility savings.
SWIFT's GETC messages - the MT509, MT513, MT514, MT515 and MT517 series - provide operational control through trade confirmation message generation. This should allow clients to efficiently manage and control their post-trade, pre-settlement workflow. The GETC solution is backed by the widely accepted ISO 15022 standard, which follows a collaborative effort between SWIFT and a group of investment managers and broker/dealers to create and agree an enhanced ISO best practice implementation governing the use of the securities GETC messages over SWIFT.
CLSA is one of Asia's leading independent brokerage and investment groups, and a good launch partner for the service in Asia. By using SWIFT’s GETC solution, CLSA hopes to achieve higher levels of operational efficiency in post-trade processes across asset classes, while preserving their existing investment in straight through processing (STP) and matching solutions.
“CLSA's ability to offer SWIFT's GETC solution allows us to support our diverse and wide-ranging client base as they continue to strive for improved workflow capabilities and cost efficiencies,” said Tom Garside, CLSA's head of operations in Asia. Not only does GETC enable CLSA to meet our clients' needs, it also allows us to implement greater STP whilst driving down our cost base.”
According to Claus Kwon, head of securities, Asia-Pacific, SWIFT, CLSA is focusing on growing their securities business, without incurring the additional operational costs typically associated with increases in trade volumes. “That’s why they came to SWIFT to streamline their post-trade processes,” he explains, “because our resilient network reduces operational risk, while enhancing overall STP rates.”