Access Fintech connects with MarketAxess Post-Trade
30 June 2020 London
Image: YurchankaSiarhei/Shutterstock.com
Access Fintech has connected with MarketAxess Post-Trade for T+0 affirmation, confirmation and matching of repo trades.
The partnership between MarketAxess' Repo Confirmation solution (formerly Trax) and the Access Fintech's data collaboration aim to reduce onboarding barriers and enhance the confirmation solution with an exception workflow that is supported industry-wide.
This comes as part of the Access Fintech VendorLake programme, which allows it to integrate to the MarketAxess repo platform to send transaction data for matching and confirmation with counterparties.
Status updates are sent back to Access Fintech and firms can invoke the exception workflow to increase straight-through processing (STP) rates.
According to Access Fintech, firms will be able to improve efficiency in operating models and reduce risk and exposure.
Additionally, the Access Fintech says its network enables multiple participants from both the sell and buy side to reduce the effort, cost and time of onboarding vendors by sharing costs, removing the need for legal onboarding and reducing point-to-point connectivity.
Roy Saadon, CEO and co-founder at Access Fintech, explains that in recent years, to a growing number of market participants, the repo market has begun to be viewed as an independent asset and the bar for STP has been raised to meet the standards of higher volume standardised transactions.
According to Saadon, despite best attempts, the sensitivities inherent in repo data have meant that not only have automation levels not aligned with other instrument classes, but specific regulations (such as Securities Financing Transactions Regulation) have been set aside.
Saadon comments: 鈥淭he push for enhanced STP across all asset classes is now in full flight and repos, which have historically typically been high touch, are under particular review. The recent COVID-19 related market volatility and increased volumes have re-focused energy on creating efficiencies wherever possible.
"For a number of years, various initiatives have been proposed aimed to improve the efficiency of post-trade repo processing. These have included proposals for harmonised matching fields, standardised messaging, reviews of conventions and legal requirements for repo confirmations.鈥�
鈥淔urthermore, market solutions have been made available to support distinct processing steps (allocations, confirmations and regulatory reporting), bringing the process more in line with standardised assets such as equities and fixed income. However, as active buy side and sell side firms select distinct vendor solutions for confirmations of repos, it has become clear that the scale of vendor onboarding has become an inhibitor for STP,鈥� Saadon adds.
The partnership between MarketAxess' Repo Confirmation solution (formerly Trax) and the Access Fintech's data collaboration aim to reduce onboarding barriers and enhance the confirmation solution with an exception workflow that is supported industry-wide.
This comes as part of the Access Fintech VendorLake programme, which allows it to integrate to the MarketAxess repo platform to send transaction data for matching and confirmation with counterparties.
Status updates are sent back to Access Fintech and firms can invoke the exception workflow to increase straight-through processing (STP) rates.
According to Access Fintech, firms will be able to improve efficiency in operating models and reduce risk and exposure.
Additionally, the Access Fintech says its network enables multiple participants from both the sell and buy side to reduce the effort, cost and time of onboarding vendors by sharing costs, removing the need for legal onboarding and reducing point-to-point connectivity.
Roy Saadon, CEO and co-founder at Access Fintech, explains that in recent years, to a growing number of market participants, the repo market has begun to be viewed as an independent asset and the bar for STP has been raised to meet the standards of higher volume standardised transactions.
According to Saadon, despite best attempts, the sensitivities inherent in repo data have meant that not only have automation levels not aligned with other instrument classes, but specific regulations (such as Securities Financing Transactions Regulation) have been set aside.
Saadon comments: 鈥淭he push for enhanced STP across all asset classes is now in full flight and repos, which have historically typically been high touch, are under particular review. The recent COVID-19 related market volatility and increased volumes have re-focused energy on creating efficiencies wherever possible.
"For a number of years, various initiatives have been proposed aimed to improve the efficiency of post-trade repo processing. These have included proposals for harmonised matching fields, standardised messaging, reviews of conventions and legal requirements for repo confirmations.鈥�
鈥淔urthermore, market solutions have been made available to support distinct processing steps (allocations, confirmations and regulatory reporting), bringing the process more in line with standardised assets such as equities and fixed income. However, as active buy side and sell side firms select distinct vendor solutions for confirmations of repos, it has become clear that the scale of vendor onboarding has become an inhibitor for STP,鈥� Saadon adds.
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