A State Street news release said the OTC Hub is a global, end-to-end servicing solution that automates a number of stages in derivatives processing, including customer reporting, electronic trade flow, and the reconciliation of positions and cash flows between the middle and back offices. The State Street platform will now reconcile data from the industry utilities and dealers to customer trade details, and automates acquisition of vendor prices.
“The use of over-the-counter derivatives is growing rapidly and this new scalable solution will enable us to handle both the increasing volume and complexity of these transactions,” said Joe Antonellis, vice chairman of State Street, in the announcement.
State Street’s enhanced platform fully supports Financial products Markup Language (FpML), a component to servicing derivatives, and provides rich validation rules to ISDA FpML standards. Its price validation functionality includes both internal and customer model calculations for comparison. Additionally, the OTC Hub also provides greater depth of trade details and economics, which allows enhanced research and issue resolution.