- Teams up with Bryn Mawr Trust as its first client for the new FX trading module.
- Bryn Mawr Trust now uses its cloud-based OTC trading platform, DerivativeEDGETM, to manage trade execution, sales, operations and Dodd-Frank compliance for both interest rate and FX derivatives activity.
Derivative Path, Inc. (DPI) has launched Foreign Exchange (FX) trading for financial institution clients on its cloud-based capital markets trading platform, DerivativeEDGETM. The addition of FX trading complements the existing interest rate derivatives trading capabilities available on DerivativeEDGETM. As part of the FX launch, DPI announced Bryn Mawr Trust (BMT), a subsidiary of Bryn Mawr Bank Corporation (NASDAQ: BMTC), has become the first client to use the FX module to manage its client-facing FX hedging business. The $4.4 billion+ financial services company, based in the Philadelphia metropolitan area, is now utilizing both the interest rate and FX trading capabilities of DerivativeEDGETM.
Frank Purnell, Head of Product Management for DPI stated, “The FX module is designed for financial institutions to manage their client-facing FX business. The module is designed to help clients capture and service trades for FX Spot, Forwards, Windows, and FX Swap transactions. The module provides real-time market quotes for over 100 currency pairs. Clients can define customer pricing parameters to make it highly efficient to execute with speed and accuracy. In addition to trade capture and execution, real-time position reports, daily mark-to-market valuations, regulatory exposure reports, and daily journal entries are available on demand. Trades can be readily submitted electronically to a Swap Data Repository (SDR) to allow clients to comply with regulatory requirements under Dodd-Frank. The system will also be used to manage nostro and even customer FCA balances.”
Neil Orechiwsky, Managing Director of Capital Markets for BMT stated, “Our Capital Market’s Team knew that we needed to obtain the best system possible to serve as our system of record for pricing, valuations, and the administrative servicing of our derivatives program. After an in-depth analysis of the technology options available, we found Derivative Path’s platform to be the most suitable for how we wanted to deliver our services to market. The DerivativeEDGETM system is a highly scalable software-as-a-service platform which allows our team to have full control over every aspect of pre- and post-trade functional requirements, including Dodd-Frank compliance tasks. Even more, a number of front- and back-office tasks are completely automated through their system. It has provided significant efficiencies and enabled us to deploy with a lighter staffing footprint as we initiated operations. The Derivative Path team worked with us diligently to customize the platform to our branding and functional needs which has validated it as the ideal solution for our bank. Their turn-around time for implementation has been excellent. I look forward to seeing our partnership with Derivative Path grow just as we grow our program in the years to come”.
Reflecting on the new launch, Derivative Path’s Co-Founder and Co-CEO, Pradeep Bhatia, commented, “We are very excited to bring this new functionality to our financial institution clients. Over the last 5 years, DPI has established itself as the go-to firm for interest rate derivatives trading technology and advisory. We expect to delight our clients similarly for the FX asset class. Our multi-asset rates and FX trading platform is perfect for regional and community banks looking to enhance their capital markets capabilities.”
The state-of-the-art DerivativeEDGETM platform has been designed to be a complete end-to-end solution for derivative trading, servicing, and hedge accounting. With DerivativeEDGETM, users have front-, mid-, and back-office functionality in one platform, eliminating the inefficiencies of working with disparate systems to manage various aspects of the business. The system also includes a fully automated hedge accounting platform which is fully compliant with the new hedge accounting rules of ASU 2017-12. The platform comes complete with real-time market data and automated swap data reporting, and cleared trade affirmation. The system is designed within a framework that also aids users in meeting their Dodd-Frank requirements related to the execution of transactions with commercial clients and dealer counterparties, as well as ongoing data and document retention requirements. Administrators are able to manage user profiles with roles-based permissions and workflows to ensure controls and appropriate separation of duties.
