31st May 2006 - Misys Banking Systems, a global leader in banking software and solutions, announces today the launch of a real-time interface to The Depository Trust & Clearing Corporation (DTCC) Deriv/SERV automated matching and confirmation service for over-the-counter derivatives. The interface will enable Misys Summit FT customers to automate confirmation matching with counterparties and thereby helps to reduce operational risk, improve straight-through processing and streamline the whole derivatives trading process.
The growing use of derivatives as financial instruments has brought industry-wide challenges. In Europe, the volume increase has been exacerbated by UCITS III creating a huge influx of market participants on the buyside. The lack of automated processes for derivatives in this sector has significantly impacted STP and operational risk. As the market gears itself up to handle the increasing volumes and complexity of these trades, the challenge is to ensure both the buy and sell side are moving their technology requirements at the same pace and maintaining expected standards of STP.
The interface to DTCC Deriv/SERV will help Misys Summit customers to address these issues. It automatically sends and receives confirmations from DTCC Deriv/SERV in both real-time (via IBM MQ Series & FpML) and flat file modes, integrates these within the Misys Summit cross-asset STP environment, booking trades, producing confirmations and tracking in real-time the status of acknowledgements - handling all related settlements, exceptions, collateral and accounting for each trade.
Speaking on behalf of Misys Banking Systems, Dan Cohen, product manager for Misys Summit FT, commented, "Misys Summit FT has an impressive pedigree in derivatives technology that has evolved over the last 16 years. In the next couple of releases we are enhancing our credit derivatives functionality to elevate the solution to a new level of sophistication, offering our customers the technology to handle the complex derivatives of today and those of tomorrow. DTCC Deriv/SERV is recognised as the largest electronic matching and confirmation service for credit derivatives, and we are therefore very pleased to be working in partnership with DTCC to help the market handle increased volumes of complex trades. These conditions demand software that can offer a sound STP offering as well as minimising confirmation and matching times.
"At a time of derivatives market growth for vanilla and OTC complex trades, our solution will give Misys Summit FT customers a distinct market advantage," he concluded.
"DTCC is committed to bringing greater efficiency to the market by providing market participants with the option of one-stop, electronic processing throughout the lifecycle of an OTC derivatives product," said Bill Hodgson, vice president, DTCC Business Development. "By collaborating with complementary service producers like Misys we are helping bring to the marketplace better access to the benefits of automation."
Misys Banking Systems is hosting an event to encourage debate on improving STP in the derivatives market. Entitled "Best practices for STP within OTC derivatives processing", it is being held in London in the afternoon of 5th June 2006 at Tower 42. A panel of high quality speakers, representing ISDA, Gartmore, Datamonitor, Morgan Stanley, Credit Suisse and Citigroup, will be giving their insights into the key issues surrounding the derivatives industry. For more details and to register, please go to http://stp.misys.com/
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For further information contact:-
Edward Taylor
Global Head of PR
Misys Banking Systems
Tel: + 44 208 486 1661
Edward.taylor@misys.com
Caroline Parker / Dan Davies
Financial Dynamics
Tel : + 44 207 269 7295
caroline.parker@fd.com / dan.davies@fd.com
About Misys Banking Systems
Misys Banking Systems supplies over 1,200 customers in over 120 countries, among them 49 of the world's top 50 banks, with software and solutions for retail banking, wholesale banking, treasury and capital markets and risk management. It has 2,600 people around the world, over 70% of whom are outside of the United Kingdom, and sales, implementation and customer support teams in over 28 countries. Misys Banking Systems is part of Misys plc.
About Misys plc
Misys plc (FTSE: MSY), the global software company, is one of the world's largest and longest-established providers of industry-specific software. Founded in 1979, Misys serves the international banking and healthcare industries, combining technological expertise with in-depth understanding of customers' markets and operational needs. In banking Misys is a market leader with over 1,200 customers, including 49 of the world's top 50 banks. In healthcare Misys is also a market leader, serving more than 110,000 physicians in 18,000 practice locations, 1,200 hospitals and 600 home care providers. Through Sesame, a wholly-owned subsidiary, the company is also a leading provider of support services to about 7,800 financial advisers in the UK. Misys employs around 6,000 people who serve customers in more than 120 countries. For more information, visit www.misys.com
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