03 July 2017
London
Reporter: Stephanie Palmer
New settlement netting service launches for OTC FX
NEX Optimisation has launched its automated settlement netting service, which it calls the first of its kind in the industry.

The service has been initially launched for over-the-counter (OTC) foreign exchange (FX) trade, and is expected to be rolled out to other asset classes in the future.

It is intended to remove the manual process of netting between clients by applying an application programming interface to communicate between clients’, banks’ and custodians’ systems.

An automated workflow will also allow for visibility and control around payment preparation for net and gross trades.

According to NEX, around $150 billion is settled every day between clients and dealers, but settlement failure rates are 3 percent.

The netting service should minimise intra-day settlement exposure, reduce settlement fails and provide greater certainty of funding needs.

Joanna Davies, managing director at Traiana, said: “The settlement netting service will allow traders to execute with any bank on any trading venue and enjoy optimised, efficient, automated and consistent post-trade processing from execution through settlement.”

“Settlement netting processes have traditionally been fragmented across organisations and asset classes, requiring extensive manual processing, which does not reflect the way in which the market is moving. By automating the entire netting process via a central hub, we’ve brought an essential tool to the market that will significantly reduce breaks and have a direct impact on costs for our clients.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Stock loan falls short for buy side as liquidity source
25 July 2017 | London | Reporter: Jenna Lomax
Securities lending was voted the least popular source of liquidity in a survey of European buy-side heads of operations
Hedge fund H1 gains best since 2009
25 July 2017 | London | Reporter: Drew Nicol
The hedge fund industry has recorded one of its strongest H1 performance periods since the financial crisis, according to data and intelligence provider Preqin
Calypso gains stake in Sernova Financial
25 July 2017 | London | Reporter: Drew Nicol
Sernova Financial, which already leverages the Calypso Cloud platform, recreates the shared infrastructure and service items of clearing brokers
RMA keynote The Mooch heads to the West Wing
24 July 2017 | Naples | Reporter: Drew Nicol
Anthony Scaramucci, who appeared as keynote speaker at last year’s RMA securities lending conference in Florida, has been appointed as the White House communications director
Northern Trust’s Q2 lending revenue stutters
24 July 2017 | New York | Reporter: Drew Nicol
Northern Trust saw its securities lending earnings fall to $24.6 million in Q2
New recruits for BNY Mellon's alternative investment team
21 July 2017 | New York | Reporter: Drew Nicol
BNY Mellon has made two senior appointments to its alternative investment services team
Euroclear achieves record-breaking H1 collateral volume
21 July 2017 | Frankfurt | Reporter: Jenna Lomax
Post-trade service provider Euroclear saw achieved "record levels" of collateral outstanding through its Collateral Highway in the first half of 2017