Delta Capita has launched Elaris OTC in a bid to streamline post-trade processes for OTC derivatives.
Delta Capita, a provider of consulting, managed services, and technology solutions for capital markets, has launched Elaris OTC, a solution intended to streamline and modernize post-trade processes for over-the-counter (OTC) derivatives, officials say.
The Elaris OTC technology platform uses the Fragmos Chain blockchain for derivatives and facilitates the “automated matching of OTC derivatives trades and lifecycle events between market participants and achieves interoperability by translating native client messaging formats into the Common Domain Model (CDM) standard,” officials say. This approach, which supports asset classes and lifecycle events, is intended to “reduce operational costs and risk significantly.”
In addition, Elaris OTC “can be combined with Delta Capita’s global OTC confirmation and settlement services to extend automation beyond platform participants,” officials say. “This combination enables users to capture and manage interactions with all counterparties — whether or not they use the platform, and leverages Delta Capita’s established service model to deliver straight through processing and control across the full spectrum of post-trade activity.”
The Elaris OTC announcement follows Delta Capita’s multi-year agreement to deliver post-trade OTC derivative services globally for HSBC, officials note.
By using CDM, Fragmos Chain can offer “a unified framework for data and processes,” including “the automation of matching, reconciliation, and confirmation of trades, events, and cash flows,” according to Fragmos Chain. The company also uses the Corda Distributed Ledger Technology to accommodate “all kinds of uncleared OTC derivatives.”
“The OTC derivatives market, valued at approximately $700 trillion according to the Bank for International Settlements (BIS), remains fragmented, with an estimated 20 percent of trades still confirmed and settled manually,” according to Delta Capita.
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