Traiana, a provider of pre-trade risk and post-trade processing solutions, has entered into a strategic agreement with Trax, helping foster a jointly interoperable Repurchase Agreement (repo) matching service, according to a Traiana statement.
Trax is a comprehensive provider of capital market data, trade matching, and regulatory reporting services – the business alliance is important as it will help instill more streamlined and automated operational processes for market participants ahead of upcoming regulatory changes.
More specifically, the agreement also will enable buy and sell-side clients of both Trax and Traiana to confirm and match repo transactions amongst one another – this was aimed to create an integrated ecosystem of users and matching counterparties via consolidated access to automated electronic services that will be operated by Trax.
The announcement comes during a time in which many repo transactions are facing vulnerabilities to risk and costs. In particular, repo transactions are predominantly confirmed manually, and with exceptions can be typically caught in the settlement process. Consequently, Traiana and Trax have implemented a joint solution for clients with the aim of automating the post-trade confirmation and matching process.
In terms of the logistics, the new joint interoperable service will leverage Trax’s existing repo matching technology, aided by each of Trax and Traiana’s exceptional management cross asset portals to buy- and sell-side clients of both firms.
According to Camille McKelvey, Product Management, Trade Matching, Trax in a recent statement on the partnership: “In light of impending regulation impacting the European repo market, both Trax and Traiana recognise the need for the industry to improve its post-trade workflow by automating trade date risk management processes.”
“By doing so, firms will be better positioned to meet their obligation to report securities financing transactions to a trade repository as required in the Securities Financing Transaction Regulation (SFTR),” McKelvey added.
“We are delighted to be working with Trax to bring an interoperable repo matching solution to the market. We have listened and responded to industry demands, led by the ICMA European Repo and Collateral Council Operations Group. This latest solution underlines Traiana’s cross asset post trade strategy, enabling our clients to gain even greater operational efficiency across securities financing,” noted Laura Craft, Director, Securities Product Strategy, Traiana, in an accompanying statement.