They have launched a data-driven documentation platform to help with the transition to clearing.
Grygo is the chief content officer for FTF & FTF News.
It’s fascinating when solutions based on artificial intelligence (A.I.) can transform a manual process into something that is not only automated but completely redesigned.
As many of you know, the Securities and Exchange Commission (SEC) is requiring the centralized clearing of U.S. Treasury securities repurchase transactions, with the first compliance deadline being Dec. 31, 2026, for eligible cash market transactions, and June 30, 2027, for eligible repo market transactions.
To help firms ease into this major transition, the trade group Sifma and a documentation solution provider, Arteria AI, announced a month ago that they have been collaborating on “a data-driven documentation platform” intended to streamline the onboarding, legal compliance, and operational systems integration that will challenge all U.S. Treasury clearing participants.
The result is the Arteria/Sifma USTC solution, and it’s “currently available and has been enthusiastically received by the market,” spokespersons for Sifma and Arteria AI tell FTF News. “There is a fee to use the Arteria/SIFMA USTC solution for all users. Anyone can purchase the Arteria/Sifma USTC solution in order to benefit from the unique combination of Arteria’s marketing-leading A.I. technology and Sifma’s deep expertise in financial documentation.”
The documentation solutions from Arteria AI are intended to eliminate “the need for legacy manual processes by structuring data at the onset of the documentation lifecycle. The platform then surfaces data and insights through intelligent workflow tools to speed up decision-making processes for all stakeholders with a highly intuitive front-end,” officials say.
Earlier this year, Arteria AI created Arteria Café, a research arm “focused on advancing generative and agentic artificial intelligence technologies in financial services documentation use cases,” according to the Toronto-based company.
Kenneth E. Bentsen, Jr
“Since the finalization of the rule in December 2023, SIFMA has been working with our members, both buy side and sell side, and key infrastructure providers to develop voluntary standardized documentation, a considerations report, accounting clarity, and legal enforceability opinions to facilitate the transition to mandated central clearing,” says Kenneth E. Bentsen, Jr., president and CEO of Sifma, in a prepared statement. “Our partnership with Arteria AI and this new platform represents an important efficiency and provides a crucial resource as the industry works toward compliance,” Bentsen says.
As officials explain, the Arteria/Sifma USTC solution translates the voluntary standard documentation into a data-driven exercise that’s intended to:
- Help market participants leverage the documentation’s built-in optionality to address and accommodate individualized negotiations and terms;
- Streamline and scale negotiations and enable the tracking of terms across stakeholders;
- Operationalize the content to drive client onboarding, record critical client details, and provide a platinum data source for margin management and other systems; and
- Optimize legal, accounting, and compliance “both with respect to key business terms and enforceability consistent with legal opinions and other guidance being sourced by SIFMA.”
Abrar Huq
“At this time of rapid technological change, it is more important than ever for financial institutions to have a comprehensive understanding of their documentation. We look forward to enabling the whole market to do this via our joint offering with Sifma,” says Abrar Huq, Arteria AI co-founder and chief risk officer (CRO), in a statement.
SIFMA is a major securities industry trade association for broker-dealers, investment banks, and asset managers operating in the U.S. and global capital markets.
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