OTC Settlements Solution

OTC (Over The Counter) trades, such as Credit Swaps, are not exchange based trades, so require formal settling between two counter-parties. As with any trading activity, it revolves around the need to settle and correctly account for settled cash flows. Unwinding and Settlements for Over The Counter (OTC) Derivatives involve issues causing operational inefficiencies such as the inability to track open or unsettled trades, managing reconciliation breaks, running reports, maintaining spreadsheets, and dealing broker emails/ phone calls. To further complicate things the entire process may span several days.

The Solution

NorthPoint has created a framework that automates and manages many of the manual steps and workflows around the settlement process. It integrates with the Portfolio Accounting system for trade details as well as for automated updates for the Settlements process. The application can also integrate with the Order Management System for tax optimized tax lot selections. At the end of the settlement process it generates Wire Transfer instructions and/or Letter of Authorization.

Features

• Centralizes trades for settlement into a single database system.
• Provides a tool for managing the workflow, data capture and reconciliation of trade and settled cash flow information.
• Generates settlement documents.
• Generates accounting adjustments.
• Eases the reconciliation process and adjustment process.