TriOptima Connects to Tri-Party Agents Through SWIFT08.18.2021
TriOptima, a leading infrastructure service that helps to lower costs and to mitigate risk in OTC derivatives markets, has announced that it now offers integration via SWIFT to the four main tri-party agents; BNY Mellon, Clearstream, Euroclear and J.P. Morgan.
TriOptima’s clients will have direct connectivity to tri-parties via SWIFT for sending instructions as well as receiving status messages and end of day reports.
With phase five of the uncleared margin rules (UMR) coming into effect in September, firms in scope will need to ensure they have the right infrastructure in place to exchange initial margin (IM) efficiently. This involves carrying out IM calculations, proactively monitoring their exposure and integrating with tri-party agents.
“Extending the margin call process to incorporate instructions to the custodian reduces the manual steps in the process which ultimately reduces the risk of delayed or failed settlements,” said Joakim Strömberg, Head of triResolve Solutions, TriOptima. “By using our SWIFT automation, clients do not have to build and maintain their own integration to the tri-party agents.”
“BNY Mellon has developed a range of collateral segregation options in order to maximize our flexibility in serving clients ahead of UMR phases five and six, including third party segregation and our fully automated tri-party segregation AccessEdge offering,” says Ted Leveroni, Head of Margin Services, BNY Mellon. “With just a few weeks to go until the September go-live, and the bigger challenges to come in phase six, TriOptima’s integration with SWIFT will greatly expedite the onboarding process for mutual clients turning to our firm to connect them to the services they need to meet their UMR obligations.”
“Automating the trade all the way through to the settlement goes a long way to helping firms drive operational efficiencies and deliver greater transparency,” said Richard Glen, Head of Collateral Management, Clearstream.
“By integrating into the four main tri-party agents; TriOptima offers buyside firms’ easier access to tri-party services, further facilitating preparations for UMR phase five. Ultimately, the broader adoption of tri-party services that interlink margin and settlement processes will reduce risk, meet regulatory requirements and improve market efficiency,” said Olivier Grimonpont, Head of Global Collateral Management at Euroclear.
“The integration between tri-party agents and TriOptima via SWIFT is an important step forward for the market in an effort to simplify onboarding and ease the burden of testing for mutual clients,” said Ed Corral, Global Head of Collateral Management Strategy at J.P Morgan.
Same-day execution reduces clients’ risk and resources as optimization can take up to 5 days.
Initial margin for centrally cleared markets increased by $300bn over March 2020.
More buy-side firms will be caught by the new rules.
Exposures and margin calls can be monitored in real-time.
Reducing costs associated with funding and liquidity is becoming increasingly important.