New levels of automation and straight-through processing
“The adoption and effective utilization of an automated marks / exposure
management platform is the recommended option”
Identifies the underlying causes of differences (e.g. market price, FX rate, margin, settlement date etc.)
Users can correct prices, FX rates, margins etc. and recalculate marks & exposure.
Information is accurate and up-to-date so that marks, returns and payments are successfully updated.
Multiple batches of marks, returns and payments are processed throughout the day.
Real-time Contract Compare
User changes flow through in minutes confirming the accuracy of fixes. New breaks can be cleared intraday.
Investment banks / Asset Managers / Pension Funds / Insurance Companies / Agent Lenders
Pirum’s Live and Live+ Services deliver new levels of automation and straight-through processing, streamlining manually intensive and time-critical post-trade processes throughout the day.
Exposure & Triparty – Calculates and reconciles all open positions between borrower and lender using current market prices and FX rates providing visibility to both sides of any discrepancies in exposure calculations. For accounts collateralised at Triparty agents both the calculation and submission of the latest RQV (Required Value) is entirely automated.
Marks – Automates agreement of mark-to-markets between borrower and lender ensuring trades are correctly collateralised and that fee and rebate accruals are calculated using up-to-date market values.
Payments – Reconciles non-DVP cash movements on new loans (e.g. prepays) and returns, highlighting any differences and posting agreed movements back into both parties systems.
Returns – Automates the calling in of returns from borrower to lender including the booking of the return into the lenders system subject to meeting defined criteria.
Recalls – Facilitates the communication and tracking of recall notices from lender to borrower.
CCP Gateway – Use of Pirum’s Real-time services allow clients to seamlessly integrate to the CCP Gateway, providing a path to send trades through to the CCP and automating the management of the entire post-trade lifecycle.
Market Data Gateway – Clients can subscribe to have Pirum send their Real-time data to market data providers. Provides Real-time benchmarking services with no additional IT work or maintenance of multiple file streams.
Real-time pending – Comparing settlements for loans and collateral to help mitigate the cost of fails.
Loan Release – Automatically releases loans for lenders after ensuring that they are fully collateralised, through links with our Bilateral and RQV screens.
All parties provide data extracts and updates throughout the day with comparisons initiated automatically and breaks highlighted on an exception basis, with the real-time updates ensuring both parties are always looking at the most up-to-date positions.
Matched transactions trigger automated generation of marks, returns, cash settlements and loan release messages back into participants’ systems as well as RQV postings to Triparty agents.
Pirum’s Live Services provide a series of automated processes covering stock loan and repo trades together with any associated collateral (cash, non-cash and cash-pool).
Continuous comparison throughout the day ensures that accurate information is used for automation and that corrections and updates made in the underlying systems flow through into the system within minutes.
|Higher STP and reduced volume sensitivity|
Exception based processing enables businesses to operate more efficiently and provides scalability by reducing the need for manual intervention.
|Expanded window for issue resolution|
Early discovery of potential issues results in more accurate and controlled responses, providing a larger window for addressing the underlying causes.
|Flexible and customisable rules|
Rules can be customised and tailored to suit your specific needs and business model. Holiday, deadline and cut-off processing is handled automatically.
|Accommodation of booking differences|
Different booking practices are accommodated – for examples it is possible to mark a rebate trade on one side booked as a cash pool or even a repo by the counterparty
|Online corrections and approval|
Users are able to enter corrections to prices, FX rates etc. to recalculate exposure and marks. Key controls enable users to authorise and approve as appropriate.
|Bilaterally agreed prices|
Cash and non-cash trades are individually marked every day to bilaterally agreed prices ensuring the accuracy of both daily P&L and monthly billing with counterparties
|Identification of root causes|
When breaks are found, the underlying cause is clearly identified, for example FX rates, price date, settlement status differences etc. enabling users to rapidly resolve issues