Sapient Global Markets has completed a new industry standard connectivity format for cleared OTC derivatives reporting for asset managers, futures commission merchants (FCMs) and custodians.
The Clearing Connectivity Standard (CCS) can be used by the FCM community to transmit OTC clearing related information on behalf of their asset manager clients to custodians.
Sapient says the new standard is intended to streamline the transmission of data between entities, which can speed up the onboarding process and reduce operational risk and the cost of interfacing with each custodian.
The firm collaborated with numerous FCMs and custodians to develop the standard, which has been adopted more than 12 firms and hundreds of buy-side end users, Sapient says.
The CCS simplifies integration with data systems and automates reconciliation, which makes clearing and communications more concise and efficient, Sapient says. Currently it is available for central counterparty-eligible interest rate and credit default swaps in the U.S. through LCH.Clearnet SwapClear and the CME Group, although the firm is working to expand it to include additional products, participants and geographies.
Sapient says the standard has been discussed and well received by ISDA and SIFMA, along with working group members.
The buy-side community will benefit greatly from this initiative, and with Sapient Global Markets at the heart of industry innovation, we recognize the CCS as something that will help many participants for years to come, says Jim Bennett, managing director at Sapient Global Markets. With a unique understanding of specific needs of asset managers and FCMs, reporting and operational processes, Sapient Global Markets is uniquely qualified to facilitate this effort.
Conversion of the standard to real-time FpML along with a broadened range of participants to include additional FCMs, custodians, asset managers and CCPs are in the works, Sapient says.
(CG)