Derivatives post trade processing services provider truePTS announced it is accelerating adoption of AI voice and distributed architecture technologies after signing a strategic relationship with J.P. Morgan and Citi.
The partnership allows the New York-based processing ecosystem for the global $700 trillion derivatives market to bring choice, innovation and automation to market participants who process derivatives.
J.P. Morgan and Citi are the first two companies to join truePTS. Other industry participants are expected to join in the coming months as truePTS addresses the regulatory and high cost pressures impacting industry participants by providing innovative technology solutions, such as a proprietary matching and validation engines as well as AI enhanced voice deal capture.
“We look forward to working with truePTS and the other market participants to develop new processing solutions for our clients”, said Kieran Hanrahan, Global Head of Markets Middle Office at J.P. Morgan.
Proprietary matching, AI, and validation engines allow auto-matching and direct clearing, automating the manual processing of derivatives, one of the largest source of errors, revisions, and operational risks (45% of trades were executed OFF-SEF in Q3 of 2017).
truePTS’s ‘no-touch’ processing ecosystem delivers features at greater speed and cost effectiveness than traditional legacy systems, which according to the International Swaps and Derivatives Association “create a continuous and duplicative activity that absorbs a significant amount of operational capacity within firms.…as a result, downstream processes such as collateral management, reporting, and settlement continue to experience processing breaks and mismatches of trade information.”
Zohar Hod, Chief Executive Officer of truePTS, said: “We will be the catalyst that provides transparency, increases efficiency and lowers costs for our clients by leveraging the most progressive technology. We’re able to leverage the industry leaders’ strategic input, particularly as we address the challenge of scale with other clients to become the new benchmark in the post-trade processing industry.”
truePTS’s provides comprehensive, efficient, and high-volume processing for all market participants. Aiming to decrease costs and increase the simplicity and automation that follows a trade between two counterparties, truePTS provides life cycle event management services, regulatory reporting, and third-party integration.