GlobeOp is adding T-Zero's Credit Default Swap (CDS) Trade Affirmation Service to GoMarkets, its new electronic trading connectivity platform.
The integration allows GlobeOp (Global Financial Services) clients to affirm trades with dealers before passing the trade data through GlobeOp's middle- and back-office systems. The arrangement will facilitate more efficient handling of trade exceptions, reduce operational risk and increase the efficiency of document execution, whether paper or electronic. This service is available immediately to GlobeOp and T-Zero clients.
"The integration of the T-Zero processing platform within our world-class suite of client offerings allows us to continue to deliver the most advanced middle- and back-office solutions for hedge funds. By embedding T-Zero within our existing processes, our clients will see reductions in operational risk, and GlobeOp will be able to offer even higher levels of client service," said Hans Hufschmid, GlobeOp's chairman and chief executive officer. "This new service further enhances GlobeOp's efforts to provide straight-through processing of credit derivatives swaps from trade entry through affirmation or confirmation."
"This partnership with GlobeOp marks a major milestone for T-Zero," said Mark Beeston, T-Zero president. 'Having GlobeOp's customer base on the T-Zero system means that a substantial number of buyside counterparties will have automated the post-trading processing of their credit derivatives trading. This partnership is an important step in bringing more automation to the markets and in helping the industry meet its objective of reducing operational issues."
Credaris, a credit specialist asset manager, will be the first to use the new service. "We are pleased to be the first users of this new integrated service from these two market leaders," said Jeremy Lee of Credaris. "We have worked closely with both T-Zero and GlobeOp to develop a product that delivers industry-leading levels of efficiency. In turn this benefits our investors by reducing the volatility of fund performance due to risk from spurious sources, such as operational risk."
Customers of T-Zero have access to single-entry affirmation of trades from dealers. All DTCC-eligible trades, including single name credit default swaps and credit default indices, are legally confirmed by DTCC using T-Zero's real-time link to DTCC's Deriv/SERV matching, confirmation and payment services.
Background Notes: Credaris is a credit-specialist asset manager formed in November 2003 by HSH Nordbank. Credaris has approximately 1.3 billion euros under management in structured and corporate credit portfolios. The company provides investors access to the dynamic and rapidly evolving credit market through strategy-specific investment vehicles. Products may include funds, CDO structures and managed accounts, depending on the needs of customers. Furthermore, it seeks to improve the risk-return profile of existing portfolios by way of active restructuring, hedging and diversification strategies.
T-Zero offers a post-trade messaging and workflow system for the global credit derivatives market. The T-Zero platform enables communication and electronic affirmation of credit derivative trades on trade date, aiming to greatly reduce operational and settlement risks. Designed as an open communications platform, T-Zero connects market participants including major credit derivatives dealers, hedge funds, asset managers, prime brokers, fund administrators and documentation execution providers,
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