Interwoven, Inc. (NASDAQ: IWOV), a global leader in content management solutions, today announced the launch of Interwoven DealConnect™ for DTCC, the capital market industry’s first standalone solution to enable buy-side and broker dealers to connect with the Depository Trust & Clearing Corporation (DTCC) Deriv/SERV Trade Information Warehouse (TIW). Interwoven DealConnect for DTCC offers flexible connectivity to the TIW no matter what systems are employed in-house, and significantly advances the industry’s efforts to increase post-trade efficiency in the OTC derivatives market.
OTC derivatives markets have become increasingly popular with rapidly growing trade volumes and an increasingly diverse participant pool. However as more participants have entered the market, products have become ever more customized, resulting in greater strain on back-office operations from more complex trade processes. For many instruments, a lack of automation has led to the emergence of backlogs of unconfirmed trades, which pose a substantial operational risk to firms.
In response to these market inefficiencies, DTCC established the TIW in 2006 as a secure trade database and central infrastructure for the processing of OTC derivatives. However, many smaller buy-side and broker dealers either do not connect with the TIW, relying purely on manual methods for processing OTC derivatives, or they use custom solutions to do so which are unable to cope with increasing trade volumes and product innovation.
Interwoven DealConnect for DTCC addresses these problems by providing firms with access to the TIW in a timely and cost-effective manner. Customers can connect to the Deriv/SERV’s full range of post-trade processing tools, including TIW integration, infrastructure to support processes such as payments, notional adjustments, trade matching and workflow updates for a variety of OTC instruments, with minimum implementation required. The Interwoven DealConnect solution for DTCC is built on a service-oriented-architecture and integrates with any existing in-house system and offers the flexibility to construct and send trade messages from any format.
Interwoven DealConnect for DTCC also offers a user client application that enables a dashboard view on the status of trades and allows users to track each trade confirmation and payment in the system throughout its lifecycle, improving management oversight and assisting firms striving to demonstrate regulatory compliance.
“Interwoven is committed to staying current with the latest message specifications created by the DTCC and supports industry efforts to improve post-trade processing for OTC derivatives with innovative solutions,” said Jos Stoop, v.p. and general manager of financial services solutions at Interwoven. “Interwoven DealConnect is the first standalone solution that addresses the growing issue of connectivity. DealConnect provides total integration with Deriv/SERV and TIW, and it goes beyond merely generating trade messages — it enables full two-way communication with DTCC thereby relieving institutions of the burden of constant in-house development.”
Bill Hodgson, v.p., DTCC business development further welcomed the launch of Interwoven DealConnect for DTCC, “The Trade Information Warehouse is designed to provide a golden record of a trade throughout its lifecycle, and to streamline the many processes which involve significant manual intervention and bilateral processing. We welcome the initiative taken by Interwoven to widen access to the TIW and to further promote our goals of efficiency and risk reduction.”
Interwoven DealConnect is expected to be generally available in Q4 2007.