“Bilateral trading novated via a CCP, reducing capital requirements and providing the highest level of post-trade efficiency and scalability”
Pirum/Eurex Clearing Functionality:
Matching of new trades (with counterparty) followed by novation with Eurex Clearing
Matched cancellation of new trades at Eurex Clearing
Matched rate changes fed through to Eurex Clearing
New / Cancel returns (as Lender and Borrower, as per existing bilateral functionality)
Automated mark processing (using prices supplied by Eurex Clearing)
Automated billing comparison (between client and Eurex Clearing statements)
New / Cancel Recalls / Buy Ins
Automated Corporate Action processing
Investment banks / Asset Managers / Pension Funds / Insurance Companies / Agent Lenders
A central counterparty (CCP) provides market participants the ability to trade with reduced capital requirements, enhanced risk management and operational efficiency in a regulatory environment that is changing the landscape of securities lending.
Pirum’s CCP Gateway enables bilaterally traded business to be sent to a CCP for novation by leveraging post-trade automation connectivity to access central clearing platforms. The solution offers seamless integration to the CCP using the same bilateral trading processes that exist today so allowing relationships to remain intact and preserving the existing business models. The solution provides simple access to the proven benefits of a central clearing model including improved capital and operational efficiencies, wider distribution channels, and single counterparty exposure.
Real-time trade feeds are sent to Pirum throughout the day. Matched transactions are sent via Pirum’s CCP Gateway for novation and settlement. From this point Pirum provides automated solutions for the full life cycle of the trade including mark, returns, rate changes, cancellations, billing and corporate actions.
New trades are sent to Pirum every few minutes, matched and then sent to the CCP for novation. Open transactions are continuously compared throughout the full life cycle from the pre-settlement trade and novation up until the point the trade finally closes. Corrections and updates, for example re-rates, are made in participants’ underlying systems are communicated to the CCP. Automation of post trade events delivers operational efficiency and scalability.
Trades are automatically sent to Pirum for immediate matching and novation.
The Gateway supports existing trading processes and provides access to the CCP benefits of capital efficiency.
Access to CCP via the Gateway enables wider points of trade origination without direct exposure to the trading partner.
Real-time solutions for the full post trade lifecycle including marks, returns, rate changes, cancellations, billing and corporate actions.
Gateway re-uses existing Pirum post-trade connectivity with no direct CCP interfaces required.