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FutureLANDSCAPE - derivatives post trade processing

A world of new acronyms: CCPs, SDRs, SEFs and more...

The OTC Derivatives market continues to evolve rapidly. However the nature of this change is somewhat different from the growth in volumes and broadening of product types that typified the years leading up to the crisis of 2008. Since then we have seen a marked shift towards addressing post trade processing inefficiencies and operational risk.

The regulators are fiercely and determinedly pushing the industry to lower counterparty risk and increase transparency. This is changing the landscape radically for OTC derivatives, with new central counterparties, clearing services, trading venues and reporting repositories. The Dodd-Frank Act and the EU directive on Markets Infrastructure mean no participant in this industry will be immune from these changes. The impact of Basel III and other regional initiatives introducing more onerous capital requirements will soon be felt.

It is therefore vital that any offering in this space is clearly and demonstrably able to respond to change. Whether you prefer “agile”, “flexible”, or “future-proof” the sentiment remains the same – but it better not be just lip service because timescales to deliver new capability are shortening, and deadlines becoming more binary.

We still do not know the final picture. The current uncertainty makes it imperative that any technology solution is rules based. Already our customers have implemented futureLANDSCAPE and dramatically improved time to market, across asset classes and business functions. Some current examples of challenges we help address would be:

Message Automation’s futureLANDSCAPE: the platform for the challenges ahead

At Message Automation we have used our expertise in messaging and validation of OTC derivatives to create futureLANDSCAPE. Fully rules based, this innovative solution allows a business to retain control of its trade flows, both internal and external. Routing decisions can be made according to detailed aspects of a trade's structure and changed without the need for code.

futureLANDSCAPE is not constrained by a specific business model. It is ideal where an organisation has a mixed model - sell side + buy side; agency and principal; cleared and bi-lateral, diverse clearing relationships by asset class, etc. etc.. Rules based routing provides the correct underlying technology platform for the margin arbitrage and regulatory arbitrage we believe will become prevalent in the new landscape.

Orchestration of the industry's main service providers' message flows is also pre-configured within futureLANDSCAPE. Time-to-market is shortened as we supply out-of-the-box business validation rule sets for industry standards such ISDA's FpML, the basis for the majority of messaging between current and new market participants. (We can deploy these with your own bespoke rules to further improve data quality and reduce costly breaks.)

Message Automation futureLANDSCAPE: de-risk projects needing to meet tough deadlines

Feature Highlights

What does it do?

External Connectivity

Much of futureLANDSCAPE’s immediate benefit comes from its pre-built connectivity functionality. director provides the option to easily connect to one of more of the following:

Connections to new external third parties (custodians, brokers, counterparties, administrators) can be added with changes to rules only. futureLANDSCAPE is built using the standard messaging protocols for the OTC Derivatives industry, FpML and FIXML. This allows the introduction of new asset classes, product types, and third party connections without code.

Internal Message Routing

The futureLANDSCAPE platform works across all asset classes to provide consistent rules based routing of trade information. Our sophisticated translation capability can be deployed to construct and de-construct FpML based messaging directly from databases or other proprietary data formats. The common standard can be used to connect multiple sources and destinations, such as:

We make use of our patented director functionality to determine which trades are compliant with a variety of central services and external parties. futureLANDSCAPE allows definition of routing rules by asset class, product or sub-product type according to the economic details of the trade. It also provides for overrides by trading venue, channel, counterparty, choice of clearing member or method, CCP, etc. etc.

All the routing of trade information both at inception and the subsequent handling of lifecycle events is rules based. Hence it can be rapidly adapted to changing market conventions and new business areas.

Why futureLANDSCAPE?

Why Message Automation?

Brochure

Please download the info sheet for an overview and a list of features and system requirements:

futureLANDSCAPE


Products


futureLANDSCAPE

totalORDER

InsideTRACK

Toolset:

director

translator

validator


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Product Overview

Any Questions?