SmartStream, the financial Transaction Lifecycle Management specialist, today announced it has extended its TLM Reconciliations-Premium solution for Exchange Traded Derivatives (ETDs) to meet the processing requirements of sell-side organisations.

ETDs represent a significant processing issue for the sell-side due to the number and type of data sources, including Brokers, Clearing Houses and Exchanges that must be managed. This has been compounded by rising volumes that are likely to increase as more transactions are executed through exchanges as a result of regulatory reform to the OTC markets.

To address the challenge of seamlessly integrating and managing these dynamic sources, the SmartStream solution delivers full maintenance of the external feed handling process for more than 30 global Exchanges, Brokers and Clearing Houses. Leading professional services firm Syntel has been selected as the preferred implementation partner, working alongside SmartStream to deliver and support the solution to meet the specific requirements of each individual sell-side client.

Rated by Celent as the most functionally rich solution of the market, TLM Reconciliations-Premium is designed specifically to manage the high volumes that sell-side participants are experiencing through its workflow-driven approach to transaction processing. Available as a standalone solution, or within a broader TLM Reconciliations-Premium deployment, it delivers automation across the ETD lifecycle, ensuring every element of the transaction can be represented, tracked, managed and reported. The solution provides sell-side firms with a single view into transaction positions, trades and cash, whilst allowing users to drill down into the individual item detail for each of the parts.

As a result of the automation delivered by the solution, firms can reduce costs due to fewer exception items and the removal of manual intervention through repeatable, scalable and fully auditable processes. A London-based Investment bank has signed as the solution’s first client, to ensure more efficient tracking and reporting on every underlying element of its derivative transactions, from initial trade, position and margining to close out.

Rudolf Schnepf, Senior Product Manager at SmartStream, said: “ETD transactions represent a significant processing issue for many institutions today due to the use of proprietary standards and multiple data feeds that sell-side firms must manage. An increasing emphasis on risk management, coupled with higher levels of volatility and the steady evolution to exchange-execution for many derivative types makes enhanced automation a must. This new TLM Reconciliations-Premium solution is designed specifically to meet the needs of sell-side firms. It uses TLM’s proven event workflow and exception management to ensure trading data is accurate, charges are being levied in accordance with agreed commission schedules, and collateral requirements are being correctly applied.”