Traiana, a Nex Group business which monitors pre-trade risk and automates post-trade processing of financial transactions, has launched a suite of services to enable swaps providers to electronically manage payments and confirmations in equity swaps.

Traiana's Swaps Centre offers swap providers and their clients a 'cost effective and lower risk solution' for managing events during the course of equity swap transactions by sending confirmations and uploading payment instructions in normalized formats to their entire client base for Total Return Swaps (TRS).

The service is only available for short form TRS with a wide range of underlying assets including equities, fixed income, global depository receipts (GDRS)/American depository receipts (ADRs), sectors, indices, custom baskets. Nex Group said it plans to extend the service to other asset classes in the future.

The Swap Centre aimed at helping firms to improve operational efficiency and reduce the frequency of P&L breaks as a result of inaccuracies and discrepancies, according to Laura Craft, director of securities strategy at Traiana. "As the process is electronic, and enables normalized data sets, this can also be done much more quickly - daily rather than monthly - which has additional financial and operational efficiency advantages and ensures a greater degree of certainty in the T+1 and beyond reconciliation process via a dynamic and flexible online tool," said Craft, in a statement.

Available via Traiana's Harmony Network, clients can access a user interface (UI) for both confirmations and payment notifications. The UI will allow them to view confirmations across their swap providers, accept them electronically and, if necessary, view original documentation online. When managing payments, clients will also be able to electronically view and accept payment terms. The service has also been designed for banks to meet regulatory requirements around multi-client confirmations.

Traiana's Swaps Centre will also help reduce issues relating to the use of slow manual processes that are inefficient and costly and lead to inaccuracies, human error, increased risk and a higher frequency of profit and loss (P&L) breaks. The new service works alongside Traiana's Equity Swaps solution to reduce the cost and complexity of post-trade processing for the contract for difference (CFD)/ equity swaps market by providing 'a central, automated and secure electronic messaging and matching services to buy and sell side firms on trade date'.

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