Message Automation Ltd. Makes Available STP Application For Over-The-Counter Derivatives

Message Automation Ltd. is making available its Derivatives STP application. The Message Automation Derivatives STP aims to enable the straight through processing (STP) of Over the Counter (OTC) derivatives using FpML based technology. It is designed to help financial firms

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Message Automation Ltd. is making available its Derivatives STP application. The Message Automation Derivatives STP aims to enable the straight-through processing (STP) of Over-the-Counter (OTC) derivatives using FpML-based technology.

It is designed to help financial firms overcome issues such as a lack of bilateral communications, low levels of data accuracy, high levels of manual processing, large processing costs and lengthy time to bring new instruments to market.

“Processing OTC derivatives is currently a multi-million dollar problem for financial institutions across the globe and while banks have automated almost every other area of post-trade processing, derivatives is one where they are still losing significant sums of money,” says Hugh Daly, the CEO of Message Automation. “The main complaint we hear from banks, hedge funds and asset managers is that up until now they have found it difficult to alleviate the high levels of manual processing involved, which leaves them with high error rates and huge costs. The work we have done with both Microsoft and SWIFT has enabled us to tackle some of these challenges and we can now present a complete solution to help solve these issues.”

“Microsoft is committed to working with its partners to help deliver the most cost effective and efficient solutions to industry issues such as automating derivatives processing,” adds Sheida Hadji-Ashrafi, the industry manager of financial messaging and payments at EMEA, Microsoft. “The work Message Automation has been doing in this space has seen them develop software that, when coupled with BizTalk Server, provides customers with the most effective way of connecting to SWIFT and achieving straight-through processing of derivatives confirmations. It really could be the breakthrough that financial institutions need for their OTC derivatives operations.”

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