Traiana, a provider of pre-trade risk and post-trade processing solutions, has gone live with Barclays and UBS on its Harmony CCP Connect for Equities platform according to a statement issued today. The addition of the new banks serves to create further cumulative benefits for the market resulting from increased volumes through the platform.
Harmony CCP Connect plays an important role in reducing counterparty risk and increasing transparency.
Savings
Traiana has indicated that overall savings in the equities market could reach $30 million per year. This is the result of a combination of effects including reduced volume of trades requiring bilateral settlement, reduced fail trades and reduced borrowing, funding and margin costs as a result of decreased settlement volumes.
Harmony CCP Connect plays an important role in reducing counterparty risk and increasing transparency with some of the largest equity broker dealers, including Credit Suisse, Deutsche Bank and J.P. Morgan already using it to automate the matching and central Clearing of their OTC equity contract for difference (CFD) trades at their chosen clearing houses.
Laura Craft, Director of Product Strategy for Equity & Fixed Income at Traiana, commented: “The addition of Barclays and UBS to the platform will bring a tremendous boost to the volume of trades we are able to net and a corresponding saving for all active market participants, not just the two new brokers. By netting trading activity, executing brokers and prime brokers benefit from reduced ticket volumes and a corresponding reduction in settlement costs and risks.”
Many equity broker dealers use Harmony CCP Connect for Equities for matching and clearing equity CFD related hedging trades in a market that has traditionally experienced high error rates resulting from bespoke and labour intensive processing. Over 90% of all OTC equity trades are eligible for clearing and Traiana has a success rate of over 95% for netting and clearing these trades when both brokers are connected.
