Wilco Adds CCP Netting Functionality to GLOSS

Wilco International, the ADP subsidiary, has added a range of netting features to its GLOSS trade processing and settlement system for central counterparty (CCP) processing within Europe. GLOSS now supports central counterparty netting through the CRESTCo, London Stock Exchange and

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Wilco International, the ADP subsidiary, has added a range of netting features to its GLOSS trade processing and settlement system for central counterparty (CCP) processing within Europe.

GLOSS now supports central counterparty netting through the CRESTCo, London Stock Exchange and London Clearing House service, Euronext Paris, Euronext Amsterdam and Borsa Italiana. Wilco is also analysing requirements for other planned CCP services in Europe.

For the CRESTCo, LSE, LCH service, GLOSS supports direct clearing via Wilco’ s CREST adapter. Bought trades are netted against sold trades at instrument level within Gloss, and an overall net settlement instruction is sent to CREST at close of business on trade date. For Euronext and Borsa Italiana, Gloss follows the convention of aggregating all bought trades together and all sold trades together prior to transmitting net instructions via SWIFT to clearing custodians.

GLOSS identifies the appropriate netting method immediately upon capture of the trade, based on customer defined rules for the market and trade type. Trade netting can be scheduled within Gloss to comply with market specific deadlines for net trade matching. Gloss creates links at netting time between constituent and net trades to enable reconciliation.

“Wilco recognises the importance of central counterparty processing, and we have made good progress in enabling our clients to realise the cost and risk benefits resulting from the related increase in operational efficiency,” said Robin Kneale, Product Manager, Wilco International.

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