Finastra Partners for Blockchain OTC Derivatives Solution
Posted by Colin Lambert. Last updated: November 23, 2022
Finastra has unveiled a collaboration with Fragmos Chain, a blockchain platform, to provide its customers with an out-of-the-box integration to Finastra Summit, its OTC derivatives processing solution.
The firms say the API-first integration will enable banks to digitalise their OTC derivatives processes to reduce the risks associated with manual processing. They add banks will benefit from trade synchronisation through smart contracts and large data sets to drive efficiencies and improve regulatory reporting.
Through cloud deployment and distributed ledger technology (DLT), banks can match their trades, events and cash flows for seamless and timely settlement in a collaborative way, they continue, observing banks can also store their data securely and exchange it with counterparties in real-time.
“Our partnership with Finastra is transforming the way banks interoperate,” claims Daniel Ivanier, CEO at Fragmos Chain. “By digitalising the confirmation process of all derivatives, automating all post-trade processes and arduous documentation, such as for the International Swaps and Derivatives Association (ISDA), and eliminating paper, we are helping banks to streamline their operations, trade efficiently and securely, and reduce their risks, capital and costs.”
Benoit Riquet, chief product officer, treasury and capital markets at Finastra, adds, “Our partnership enables us to transform our customers’ business models by providing a digital market infrastructure underpinned by DLT. Integrating Fragmos Chain with Finastra’s Summit, via our open platform for innovation FusionFabric.cloud, will help to reduce the challenges associated with traditional post-trade processes, such as reconciliations and disputes, to support a bank’s continued growth.”