T-Zero has released its next generation Novations+ processing technology, whwich is fully integrated with the DTCC Trade Warehouse and directly addresses the new industry commitments announced by the Operations Management Group (OMG).
The launch of Novations+ also comes amid renewed calls from USTreasury Secretary Henry Paulson and from regulators, including theFederal Reserve Bank of New York, for additional scale, automation andstandardization in credit derivative processing.
Novations+ functionality enables buy-side and sell-side marketparticipants to achieve 2008 novation targets set by the OMG to submitnovation requests via an electronic platform rather than via email.Additionally, the new technology allows the credit derivative industryto scale novation processing by providing system-to-system connectivity,interoperability and automation for even the most complex novationoperations involving prime brokers and fund allocations. Such operationsare not currently automated by any other industry platform.
“Novations+ represents the next big technology shift in the automationof credit derivative processing. The new platform is uniquely positioned to address scaleability issues highlighted by the OMG and Secretary Paulson,” says Mark Beeston, president of T-Zero.
In a little more than two years since launch, T-Zero has been adopted byover 180 buy-side firms and most major dealers and prime brokers. Theplatform’s open architecture integration framework, known asAgnosticConnectivity, has allowed it to API-connect directly to thefront-office systems of dealers and prime brokers as well as buy-sidefirms.
The model allows T-Zero to provide counterparties with real-timenotification of trade details and T+0 resolution of trade-entry errorsvia industry standard electronic workflow.
“Our clients recognize the need for scaleability to accommodate growth. Novations+ was developed in collaboration with our dealer and buy-side clients to dramatically improve the industrys ability to handle exponentially increasing trade volumes,” says Clive de Ruig, head of T-Zero, North America.
“We are very pleased to have implemented Novations+. Weare using it to fully automate our novation processing and to improveour operational efficiency with the major dealers,” says TetsuyaAkutsu, senior vice president, Mizuho Alternative Investments, LLC
“We have been a T-Zero user for well over a year now and it has clearlyimproved operational efficiency and reduced risk. We haveevaluated many platforms and some are still developing what has been onT-Zero all along. Novations+ is a significant leap beyond anything elsethat is out there,” adds Paul Winter, head of Derivatives Operations, Fortis Investment Management.