TriOptima Connects to Major Tri-Party Agents via Swift

CME Group’s TriOptima has announced that it now offers integration via Swift to the four main tri-party agents; BNY Mellon, Clearstream, Euroclear and JP Morgan, meaning the firm’s clients will have direct connectivity to tri-parties via Swift for sending instructions as well as receiving status messages and end of day reports.

With phase five of the uncleared margin rules (UMR) coming into effect in September, TriOptima says firms in scope will need to ensure they have the right infrastructure in place to exchange initial margin (IM) efficiently. This involves carrying out IM calculations, proactively monitoring their exposure and integrating with tri-party agents.

“Extending the margin call process to incorporate instructions to the custodian reduces the manual steps in the process which ultimately reduces the risk of delayed or failed settlements,” says Joakim Strömberg, head of TriResolve solutions at TriOptima. “By using our Swift automation, clients do not have to build and maintain their own integration to the tri-party agents.”

Ted Leveroni, head of margin services, BNY Mellon, adds, “BNY Mellon has developed a range of collateral segregation options in order to maximise our flexibility in serving clients ahead of UMR phases five and six, including third party segregation and our fully automated tri-party segregation AccessEdge offering. With just a few weeks to go until the September go-live, and the bigger challenges to come in phase six, TriOptima’s integration with Swift will greatly expedite the onboarding process for mutual clients turning to our firm to connect them to the services they need to meet their UMR obligations.”

Richard Glen, head of collateral management at Clearstream stresses the benefits of automating the trade all the way through to the settlement, while Olivier Grimonpont, head of global collateral management at Euroclear notes that the broader adoption of tri-party services that interlink margin and settlement processes will reduce risk, meet regulatory requirements and improve market efficiency.

Finally, Ed Corral, global head of collateral management strategy at JP Morgan, observes, “The integration between tri-party agents and TriOptima via Swift is an important step forward for the market in an effort to simplify onboarding and ease the burden of testing for mutual clients.”