Tech infrastructure developer TriOptima, a company that helps reduce costs while also lowering risk in over-the-counter (OTC) derivatives markets, is expanding its triResolve margin collateral management service. The extension will reportedly support automated SWIFT payments.
The new automated settlement service will provide instant connectivity to the SWIFT network for conducting cash transfers and transactions involving securities settlement. Customers will also be able to use the new service to get direct access to a wide range of custodians and third-party agents.
Raf Pritchard, executive director and head of triResolve, stated:
“Collateral settlement is often a manual and onerous task for firms, often requiring them to log into a custodian’s portal or even use a fax. Combining triResolve Margin with a centrally hosted SWIFT infrastructure removes the headache of connecting to multiple custodians, helping clients to lower transaction costs and significantly reduce settlement risk.”
Integrating SWIFT connectivity means TriOptima’s customers that use the phase five and six of the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) Uncleared Margin Rules will have the option to perform SWIFT payments directly through the company’s platform. Customers will also have the option to fully automate the collateral management process across initial and variation margin.
TriOptima is a part of the Chicago-based CME Group, which is a global markets company that offers many different futures contracts and options on futures using its CME Globex trading platforms, fixed income and foreign exchange trading.
The CME Group manages one of the world’s largest central counterparty clearing providers, CME Clearing.