Software provider Interwoven has announced the launch of Interwoven DealConnect for DTCC, which it says is the capital market industry's first standalone solution to enable the buy-side and broker dealers to connect with the Depository Trust & Clearing Corporation Deriv/SERV Trade Information Warehouse.
The firm says the new product, which is expected to be generally available in the fourth quarter of this year, should help increase the efficiency of the OTC derivatives market, offering flexible connectivity to the Trade Information Warehouse no matter what systems are employed in-house by clients.
OTC derivatives markets have become increasingly popular, with growing trade volumes and an increasingly diverse participant pool, but the firm says that as more participants enter the market, products have become more customised, resulting in greater strain on back-office operations from more complex trade processes.
For many instruments, a lack of automation has led to the emergence of backlogs of unconfirmed trades, which pose a substantial operational risk to firms. In response to these market inefficiencies, DTCC established the TIW in 2006 as a secure trade database and central infrastructure for the processing of OTC derivatives.
However, many smaller buy-side and broker dealers either do not connect with the TIW, relying purely on manual methods for processing OTC derivatives, or use custom solutions to which are unable to cope with increasing trade volumes and product innovation.
Interwoven DealConnect seeks to provide firms with access to the TIW in a timely and cost-effective manner. Customers can connect to the Deriv/SERV's range of post-trade processing tools, including TIW integration, infrastructure to support processes such as payments, notional adjustments, trade matching and workflow updates for a variety of OTC instruments, with minimum implementation required.
The Interwoven DealConnect solution is built on a service-orientated architecture and integrates with any existing in-house system, offering the flexibility to construct and send trade messages from any format.
It also offers a client application that enables a dashboard view on the status of trades and allows users to track each trade confirmation and payment in the system throughout its lifecycle, improving management oversight and assisting firms in demonstrating regulatory compliance.
'Interwoven is committed to staying current with the latest message specifications created by the DTCC and supports industry efforts to improve post-trade processing for OTC derivatives with innovative solutions,' says Jos Stoop, vice-president and general manager for financial services solutions.
'Interwoven DealConnect is the first standalone solution that addresses the growing issue of connectivity. DealConnect provides total integration with Deriv/SERV and TIW, and it goes beyond merely generating trade messages, enabling full two-way communication with the DTCC, thereby relieving institutions of the burden of constant in-house development.'
The launch has been welcomed by Bill Hodgson, vice-president for business development at the DTCC. 'The Trade Information Warehouse is designed to provide a golden record of a trade throughout its lifecycle, and to streamline the many processes that involve significant manual intervention and bilateral processing,' he says. 'We welcome the initiative by Interwoven to widen access to the TIW and to further promote our goals of efficiency and risk reduction.'
Interwoven is a provider of content management solutions whose software and services aim to drive clients' business growth by improving the customer experience, increasing collaboration and streamlining business processes in dynamic environments. Its clients include DLA Piper, the US Federal Reserve Bank, HSBC, LexisNexis, Microsoft and White & Case.