SSISearch Ltd, a provider of reference data to the foreign exchange markets, has created a global directory of authenticated reference data for fund managers, corporate treasury departments and other trading entities.
SSISearch claims that its Global Directory removes one of the last remaining hurdles to greater STP for banks trading in FX. It follows the launch in September by SSISearch of the Settlements Directory for CLS members, developed in consultation with CLS Bank and its Members. SSISearch says it provides the FX trading community with 100 per cent authenticated reference data for the first time.
The SSISearch Global Directory aims to offer users real time, accurate and authenticated standard settlement instructions (SSIs). The reference data is entered, authenticated and managed by the subscribing institutions, in the expectation that this will raise standards of accuracy, and allow market participants to improve STP rates, reduce their exposure to operational risk, and cut costs in both the front and back office.
“Keeping reference data accurate is a vital task in any significant trading operation,” says Clyde Muir, Product Manager: Global Payments and Cash Management, at HSBC. “Unfortunately, problems do arise, with risk or delays introduced to the settlement process when reference data is either unavailable or is not authenticated. SSISearch directories contain nothing but authenticated data which can be used to support our existing databases. Most importantly, the data in SSISearch does not require further checking by front or back office – this concept is extremely helpful to us in improving general efficiency and promoting STP.”
SSI Serach says the benefits include reduced cost as firms can retrieve reference data from the Global Directory without re-keying; saved time, as counterparties can find reference data and settlement information within one database; higher rates of STP, because authenticated reference data can be downloaded to feed front or back office systems; reduced risk, because only authenticated SSIs are held in the directory, and banks are required to update the information regularly as part of the membership conditions; and lower risk of misdirection, because SSISearch notifies users of changes to counterparties’ SSI data automatically. SSISearch also promises customers a full audit trail of all data content, and full customer support.
Organisations already using the Settlements Directory for CLS include HSBC, Credit Suisse, Barclays, Royal Bank of Scotland, JP Morgan Chase, Morgan Stanley, Australia and New Zealand Banking Corporation, Overseas Chinese Banking Corporation, Royal Bank of Canada, Credit Agricole, Dresdner Bank, Bank of America, ABN Amro, Bayerische Landesbank, Mellon Bank NA, BNP Paribas SA, Deutsche Bank AG, Credit Lyonnais, Zurcher Kantonalbank, Westpac Banking Corporation, Danske Bank, Skandinaviska Enskilda Banken AB, Bank of America NA, Northern Trust, Den Norske, Standard Chartered and UBS.