The remarkable growth in OTC derivatives volumes combined with inflexible and manual processing has led to confirmation backlogs, regulatory attention and constraints on the front office’s ability to allocate assets or capital to these instruments. Firms have taken partial steps to automate their operations, but seek the tools to control operational risk and cost across the complete derivatives lifecycle.
TLM Trade Process Management for OTC Derivatives addresses the post-trade allocation, affirmation/confirmation, settlement and lifecycle asset servicing needs of participants in the global securities markets.
TLM Trade Process Management for OTC Derivatives creates a scalable, exceptions-based operation that manages events over the end to end derivatives transaction lifecycle. A packaged solution, TLM incorporates predefined best practice business flows for quick time to implementation. TLM’s flexibility keeps firms responsive to dynamic market demands across the range of derivatives instrument types, including credit, equities, FX and interest rates.
Operational control is strengthened and risk reduced as financial institutions consolidate fragmented infrastructures into a unified operations platform.
Active monitoring and control over the derivatives lifecycle
TLM Trade Process Management for OTC Derivatives provides integration and control over the end to end derivatives transaction process.
- Affirmation/confirmation routing to DTCC Deriv/Serv, Markit Wire or locally, peer to peer
- Settlement event management, including counterparty pre-settlement reconciliation to eliminate post-settlement cash breaks; payments netting by counterparty by currency; and SWIFT payment message generation
- Daily valuation reconciliations, with exceptions raised if valuations are not received, are incorrect, or are outside of soft-configured tolerances
- Management and view of all lifecycle events, including novations, assignments, increases/decreases, and partial or full terminations
- Fully audited view of all activity against the trade
- Back office synchronisation; population of trade details to risk, accounting and other downstream systems
TLM provides a single window onto all activity in the derivatives lifecycle. Real-time, customised dashboards monitor all transaction activity, providing full visibility into processes, pre-emptively alerting, notifying exceptions and advising repairs.
