AI post-trade derivatives platform launches after first buy-side transaction

Trades by JP Morgan and Citadel processed by ‘no-touch’ platform designed to remove post-trade manual processes.

A ‘no-touch’ trade processing system for derivatives has launched after it processed its first buy-side transaction involving JP Morgan and hedge fund giant Citadel.

truePTS, a post-trade platform which uses robotics and artificial intelligence (AI) to allow auto-matching and direct clearing, and the automation of manual processes of OTC derivatives.

The solution provides post-trade affirmation and matching, as well as facilitating confirmation and reporting workflows, integrated into trade repositories, central counterparties, and buy-side platforms.

The changing regulatory environment, as well as the shift to electronic trading, has placed new focus on automated front-to-back solutions for derivatives processing.

“In recent years, derivatives trading has migrated to electronic venues which has significantly improved execution workflow, but post-trade processing for many of these instruments still relies on legacy technology resulting in inefficiencies downstream,” said Dan Dufresne, global treasurer, Citadel.

In addition, regulation has shifted responsibilities and fees once paid by the banks to the buy-side, according to truePTS chief executive, Zohar Hod.

“We will be the catalyst that provides transparency, mitigation of needed resources, and lower costs for our clients by leveraging the most progressive technology to automate workflows and comply with regulatory change,” Hod said.

truePTS announced strategic relationships with JP Morgan and Citi in December last year.

“This is an exciting development in the post-trade industry,” added Kieran Hanrahan, global head of markets middle-office at JP Morgan. “Buy-side firms’ participation will be critical to the scalability of the truePTS platform.”