Addressing risk, connectivity and regulatory complexity in Post Trade FX >>>
With real-time integration to ECN credit and post- trade APIs, Harmony will proactively notify the prime broker of limit breaches and allow the prime broker to modify credit lines or terminate trading activity with an integrated Kill-Switch capability. By providing centralised, automated and secure ECN limit management, credit risk for all counterparties will be significantly reduced.
Mandelzis says: “Te ability to monitor trading in real-time is absolutely essential for this segment of the market. Tis is not something that the regulators have asked for, or mandated, but the banks and ECNs, and we believe this solution is very important for the market to exist as it adds another layer of protection to risk management and real-time monitoring in the market.”
Many decisions have yet to be made, and the regulatory picture is not yet final. Tere is a call for a global trade repository, something the FX market does not have today and an infrastructure that Mandelzis believes will add to the market. Further clarity on the implementation of clearing for OTC instruments
and the operation of Swap Execution Facilities is still needed and Traiana is providing the option to automate these flows if and when it is needed.
Mandelzis says: “Banks need to be ready to connect to more counterparties, venues and services, be it CCPs, SEFs or Trade Repositories. Tis adds significant complexity and challenges in the terms of the variety of protocols and workflows that exist and that are going to continue to change, because we know that whatever exists today, the next few years will be characterised by a realisation of what does and does not work. Not only do banks need to accommodate this significant complexity and lack of standardisation, it is clear the need to change and re-engineer processes is going to be the state of affairs in the years to come. Tis makes a good case for using a specialised vendor and this is our value proposition.”
Compliance issues
Peter Kriskinans, Managing Director of DealHub, believes that compliance with the regulations presents a number of urgent critical issues and decisions that need to be tackled, which include the implementation of smart routing for FX options and NDFs to Swap Execution Facilities, whilst continuing to execute exempt products through existing venues and trading models; putting in place both the business model, connectivity and workflow changes required to support the clearing of regulated instruments with Central Counterparties (CCPs); and establishing connectivity to the new Swap Data Repositories (SDRs).
Gil Mandelzis “Banks need to be ready to connect to more counterparties,
venues and services, be it CCPs, SEFs or Trade Repositories. Tis adds significant complexity and challenges in the terms of the variety of protocols and workflows that exist and that are going to continue to change, ...”
“Each of these challenges fundamentally requires changes to a firm’s workflow, technology and connectivity, the services a firm delivers to its clients and potentially its client real estate,” he says.
While firms will seek to manage these changes quickly and in a cost effective way, it is also essential that they future-proof their infrastructures by implementing
october 2011 e-FOREX | 51
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196