About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Traiana Embeds Duco Reference Data Reconciliation Technology in CreditLink to Support SEF Trading

Subscribe to our newsletter

Traiana has embedded Duco data matching and reconciliation technology in its CreditLink service to help customers reconcile client reference data when the Commodity Futures Trading Commission’s mandate for electronic trading of swaps on swap execution facilities (SEFs) comes into force in mid-February.

The Duco technology uses sophisticated algorithms and fuzzy logic to reconcile reference data in any format from disparate sources including central counterparties, SEFs, futures commission merchants (FCMs), buy-side firms and swap data repositories. Its implementation by Traiana will allow CreditLink users to reconcile large volumes of data and ensure their clients are not prevented from trading by clerical errors or mismatches in static data covering accounts, limits or SEF trading identifiers.

The enhanced service has been piloted with a large SEF and is now being rolled out to CreditLink customers. To date, Traiana is working with more than 400 customer organisations with more than 10,000 clearing accounts across three major central counterparty clearing houses. It is also working to reconcile data from 17 FCMs.

Nick Solinger, head of product strategy and chief marketing officer at Traiana, says: “There will be a huge surge of clients moving into electronic trading, many for the first time, and the volume of data that the industry will deal with during the shift to a new market structure is unprecedented. Duco offers a powerful solution to reconcile the data and we are investing resources to ensure all clients are ready to trade when mandatory SEF trading goes live.”

Traiana had started to hire people to solve the problem of mapping SEF and FCM data before a fortuitous meeting between its CEO and the CEO of Duco offered an off-the-shelf, yet flexible and quick to deploy, solution for automated reference data reconciliation. The company’s pilot project with a large SEF took about a day to deploy the Duco technology in the Traiana production environment and reconciled account information from the SEF with information from the 17 FCMs using the service. This allowed a list of accounts to be agreed with any mismatches of data being highlighted for manual checking and correction.

Solinger suggests SEFs that had large numbers of clients at set up will face the biggest data reconciliation challenge as many of the clients will have proprietary account codes that must be reconciled. In contrast, newer SEFs, such as truEX and Capital Markets’ Javelin SEF, are using legal entity identifiers to code accounts, which should make the reconciliation process less complex.

Traiana expects many of its FCM customers to use the enhanced CreditLink service for reference data reconciliation. It has also embedded the Duco technology in its CCP Connect service to cover rates and credit default swaps and is likely to evaluate the technology for inclusion in some of its other solutions. Solinger concludes: “Duco provides a very flexible reconciliation tool. Traiana is one of the first companies to use it for reference data, but it can be used for all sorts of data. The data reconciliation challenge is acute for SEFs, but there are similar problems in trade reporting and meeting reconciliation rules under EMIR, so we will look further at whether to include the Duco technology in some of our other post-trade services.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to maximise the use of data standards and identifiers beyond compliance and in the interests of the business

Data standards and identifiers have become common currency in regulatory compliance, bringing with them improved transparency, efficiency and data quality in reporting. They also contribute to automation. But their value does not end here, with data standards and identifiers being used increasingly for the benefit of the business. This webinar will survey the landscape of...

BLOG

Delta Capita Expands CLM Managed Services Following Acquisition of LSEG Onboarding Solution

Delta Capita, a capital markets consulting, managed services and technology provider, is planning to extend its offer of managed services in client lifecycle management (CLM) following the acquisition of LSEG’s client onboarding solution. The LSEG solution is based on Thomson Reuters’ 2013 acquisition of GoldTier Technologies, a provider of client onboarding software. Thomson Reuters Financial...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Applications of Reference Data to the Middle Office

Increasing volumes and the complexity of reference data in the post-crisis environment have left the middle office struggling to meet the requirements of the current market order. Middle office functions must therefore be robust enough to be able to deal with the spectre of globalisation, an increase in the use of esoteric security types and...