Software vendor Interwoven has introduced a connectivity service that enables smaller buy-side firms and broker-dealers to connect with the Depository Trust and Clearing Corporation (DTCC) Deriv/SERV Trade Information Warehouse (TIW).
The Interwoven `DealConnect' service is useable with any in-house systems. The company says it will help increase post-trade efficiency in the Over-The-Counter (OTC) derivatives markets.
As more participants have entered the OTC derivatives markets, products have become ever more customized, resulting in greater strain on back-office operations from more complex trade processes. For many instruments, a lack of automation has led to the emergence of backlogs of unconfirmed trades, which pose a substantial operational risk to firms.
In response to these market inefficiencies, DTCC established the TIW in 2006 as a secure trade database and central infrastructure for the processing of OTC derivatives. However, Interwoven says that many smaller buy-side firms and broker dealers either do not connect with the TIW, relying purely on manual methods for processing OTC derivatives, or customised solutions which are unable to cope with increasing trade volumes and product innovation.
Interwoven DealConnect allows these smaller participants to connect to Deriv/SERV's post-trade processing tools, including TIW integration, infrastructure to support processes such as payments, notional adjustments, trade matching and workflow updates for a variety of OTC instruments, with minimum implementation required. Interwoven DealConnect can be integrated with any existing in-house system and any messaging format.
"Interwoven is committed to staying current with the latest message specifications created by the DTCC and supports industry efforts to improve post-trade processing for OTC derivatives with innovative solutions," says Jos Stoop, vice president and general manager of financial services solutions at Interwoven. "Interwoven DealConnect is the first standalone solution that addresses the growing issue of connectivity. DealConnect provides total integration with Deriv/SERV and TIW, and it goes beyond merely generating trade messages."
The DTCC has welcomed the introduction of the service.