Fiserv, the financial services tech house, has enhanced the FX capabilities of TradeFlow, its multi-asset, post-trade processing solution, to reduce the cost and effort of pre- and post-settlement activity for investment managers.
The enhancement of TradeFlow, which is currently used by RBS and BNP Paribas, can automatically indentify trades eligible for CLS settlement and eliminate the need to work with custodians for exception management.
TradeFlow can also automatically determine the appropriate settlement channel for each transaction based on predetermined criteria such as counterparty preferences and CLS cut off times. If a transaction is CLS eligible, TradeFlow identifies netting opportunities, so reducing the number of payment instructions and corresponding costs.
Cheryl Nash, senior vice-president of strategic marketing and business development for investment services at Fiserv, says: “The pre- and post-settlement processes are the last areas of the FX post-trade chain to be automated and still expose participants to inefficiencies and high costs.
“On top of TradeFlow’s existing automated settlement capabilities, Fiserv is removing the time and cost of deciding the best settlement mechanism for each transaction, enabling investment managers to extend operational efficiency further down the transaction chain and get much closer to their straight-through-processing goals.”