The COVID-19 health crisis of 2020 has dramatically affected just about every aspect of the economy as well as trading and the post-trade world. We saw the return of volatility in March and April across all asset classes and market segments. G7 governments implemented large-scale fiscal policy initiatives, and central banks made more cash and assets available globally to meet the demand for margin and collateral requirements.
In response to these unforeseen market conditions, Traiana aided in the mitigation of the significant effects felt by market participants driven by the global macro situation. With a leading global network comprising of 38 clearing brokers, 62 trading venues, 309 executing brokers, and 56 prime brokers, Traiana processed nearly one million more trades per day in March 2020 ‒ seamlessly supporting over 2,100 market participants through these unprecedented times.
At the height of the COVID-19-induced market stress and record volumes, our proven technology maintained business as usual with levels of availability at 99.9%.
The large increases in execution and notional volumes across Traiana asset classes led to an increased need for post-trade block and allocation processing. In response, our workflow services ‒ Message Centre and ClientLink ‒ provided firms with the certainty of their trading positions in the face of increasing market strain and volumes.
In addition to helping firms better manage operational risk, there has been a growing need to provide financial intermediaries with tools to better manage counterparty risk introduced by their clients. As a prime example, a significant increase in our LimitHub volumes, which had increased 18% YTD, came from asset managers and hedge funds who were actively managing IR policy change (IRS) and the shutdown of global economies.
Traiana’s workflow services withstood the market volatility and a corresponding increase in volumes. Clients experienced great value from the stability and reliability, as well as our broad network coverage. This has meant that we helped our clients to reduce operational risk through timely trade notifications and allocation processing, as well as accurate matching and reporting of trades.
In July we launched Equity Swaps Lifecycle Management in response to the markets’ ongoing challenges around managing equity swaps post-trade workflow. The process is currently labor-intensive and manual, specifically around monthly reset periods. Our customers have faced uncertainty around settlements with delays in identifying and fixing breaks. Traiana Equity Swaps Lifecycle Management provides a single UI to interact efficiently with counterparties, to track and resolve breaks, and to achieve equity swaps affirmation.
In September, Traiana launched Periodic Payments Messaging and Matching to help the buy-side, executing brokers, PBs, and custodians to rationalize their connections and messaging formats to facilitate a time and accurate confirmation and to manage a wide range of periodic payments.
We automated bilateral FX post-trade processing in spot, forwards, swaps, NDFs, and options. In November, we started to migrate our customers currently using FXClientLink, FX Message Centre, FX CreditLink, and FX NetLink to a new micro services-based AWS-hosted architecture. This is the first step in Traiana’s consolidation of post-trade events into a contiguous end-to-end workflow.
CME Group’s Traiana operates the leading market infrastructure for post-trade processing and risk management across asset classes and provides client service and risk management technology across the financial sector. Global banks, broker/dealers, buy-side firms and trading platforms use our cross-asset class services to automate risk management and pre-trade/post-trade processing of listed and over the counter transactions. Traiana’s network is comprised of the global financial community’s leading voices – providing insight, thought leadership and connectivity.
Traiana offers a lifecycle management service for equity swap post-trade, focused on improving the daily front-to-back processes via a single user interface. It allows users to increase efficiencies in the swap market, particularly for the monthly reset periods and reduce risks to unlock cost savings. The service is offered to hedge funds, asset managers, swap providers, and fund administrators.
Traiana’s Periodic Payment Messaging and Matching service allows market participants to match and confirm cashflows, real-time, across a host of asset classes. Remove the complexity of fragmented manual processes and benefit from a centralized, single connection to reach a wide range of market participants.
Traiana’s suite of interoperable post-trade processing services allow firms to realize operational efficiencies and reduce trade costs by consolidating processing touch points when executing on a tri-party or bi-lateral basis for both OTC and listed instruments (Equities, Fixed Income, FX, Interest Rates).