- Post-trade solution increases efficiency of straight-through processing and trade matching workflows through SWIFT Global Electronic Trade Confirmation
- TradeFlow enables block- and allocation-level SWIFT messaging for trade confirmation and affirmation, exceptions management and status reporting
- Enhancements support T+2 settlement cycle, cost reduction and risk mitigation
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions announced that TradeFlow™, its post-trade processing solution, has been enhanced with block-level support for SWIFT’s Global Electronic Trade Confirmation (GETC) solution. TradeFlow enables SWIFT messaging with block- and allocation-level workflows for confirmation and affirmation, exceptions management and status reporting. The solution also provides integrated connectivity to other automated trade matching platforms, including Omgeo Central Trade Manager® (CTM), Omgeo OASYS Direct® and MarkitSERV®.
Through SWIFT GETC, TradeFlow supports SWIFT ISO 15022 message types MT509 (status), MT513 (advice of execution), MT514 (allocation instruction), MT515 (confirmation of purchase or sale) and MT517 (confirmation affirmation). The solution supports workflows developed in accordance with SWIFT GETC implementation guidelines.
“As investment managers continue to strive for higher levels of post-trade operational efficiency, the SWIFT GETC messaging solution is enabling increasing numbers of buy-side firms to reduce operational costs and risks,“ said Arun Aggarwal, managing director, U.K., Ireland & Nordics, SWIFT. “We are pleased that TradeFlow now includes integrated support for GETC, and are certain these enhancements will also help firms meet the new European settlement requirements which are effective as of next year.”
The enhanced functionality of TradeFlow enables investment managers to comply with accelerated settlement cycles for securities, while achieving greater efficiency in straight-through processing (STP).
These improvements are business imperatives for firms trading in the European Union (EU), as the T+2 settlement cycle (T+2) becomes mandatory in January 2015. T+2 requires securities transactions to be settled within two business days of trade executions. At the present time, only three EU nations – Germany, Bulgaria and Slovenia – require T+2; however, 10 additional EU nations – including France and the United Kingdom – are expected to implement T+2 in October 2014.
The United States will remain on the T+3 settlement cycle, which requires post-execution settlements within three business days, but industry leaders are strongly encouraging the U.S. to implement T+2 by 2016.
“TradeFlow’s integrated support for the SWIFT GETC solution offers our clients additional opportunities for automating, standardizing and accelerating post-trade workflows,” said Simon Garwood, senior product manager, Investment Services, Fiserv. “These enhancements ultimately enable firms to enrich straight-through processing, while yielding broader improvements in operational efficiency, and reducing the overall cost and risk associated with settling trades.”
TradeFlow from Fiserv is built on a highly secure and scalable enterprise application architecture that enables straight-through processing and supports a unified front-, middle-, and back-office infrastructure. Through streamlined best practice workflows, TradeFlow automates post-trade lifecycle events, including electronic trade confirmation and settlement. TradeFlow also drives larger-scale improvements in operational efficiency, allowing firms to mitigate risk and deliver a better service model to clients and counterparties.