OSTTRA, the global post-trade solutions company, today announced the launch of a paper digitisation solution that enables market participants to reduce the amount of time it takes to process paper confirmations for complex over-the-counter (OTC) derivative transactions from hours to minutes.
The new solution is a significant enhancement to the existing paper trade workflows for Investment Managers on OSTTRA Trade Manager, automating trade review and matching processes to achieve faster confirmations. With tens of thousands of OTC trades still captured on long form paper, reviewing trade details, terms and conditions is an arduous task for all firms, resulting in significant operational cost and risk.
The enhanced solution uses Artificial Intelligence (AI) to extract and digitise critical details from pdf transaction records, such as the notional value of a swap or strike price of an options contract. Creating this digitised representation of the trade is critical to automating onward processing and reducing the risk of human error in reviewing or transcribing these complex transactions.
Umniya Ahmed, Executive Director, Investment Management strategy, at OSTTRA, said: “Historically, the time it takes to process and confirm a paper OTC trade can take days and in some cases weeks. No two documents have the same legal structure – which presents a major headache to a typical investment manager dealing with multiple counterparties and numerous instrument types. Our solution uses AI to adapt to any type of paper transaction, irrespective of length or format.
By adding a paper digitisation element to Trade Manager, Investment Managers will be able to process the more intricate derivatives transactions alongside their existing electronic trade flow – allowing them to monitor all their OTC trades in one place.”
The launch of this new solution reflects OSTTRA’s ongoing commitment to expanding its services for the Investment Management community, leveraging its global network to streamline and standardise post-trade workflows.
The paper digitisation solution is available for FX options and equity swaps from this month, and then fixed income options, commodity swaps and non-deliverable forwards (NDFs) from September.
OSTTRA was formed in 2021 through the combination of MarkitServ, Traiana, TriOptima and Reset, four businesses that have been at the heart of post-trade evolution and innovation for more than 20 years.
To find out more, click here.
