Finastra to allow banks and financial institutions to digitize OTC products
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Finastra, a company providing financial software applications, has partnered with Fragmos Chain. The partnership will allow Finastra to support the digitalization of over-the-counter (OTC) derivatives.
Finastra supports the digitalization of OTC derivatives
Fragmos Chain is a blockchain technology company. A partnership between the two companies will allow banks and financial institutions to digitize their OTC products. This will lower the level of risks and costs that are linked with manual processing. This move will be possible because of the automation of derivative confirmation and post-transaction processes.
Fragmos Chain is a cloud-based blockchain company that offers digitalized post-trade derivatives. Because of the integration with the solutions provided by Finastra, market participants will also leverage smart contract capabilities to boost the regulatory reporting for the firm.
By using distributed ledger technology, it will be easier for the platform to match trades better. It will also support cash flows and market events for timely and easy transaction settlement.
The Chief Product Officer for Treasury & Capital Markets at Finastra, Benoit Riquet, commented on the partnership, saying it would allow the company to “transform our customers’ business models by providing a digital market infrastructure underpinned by DLT. Integrating Fragmos Chain with Finastra’s Summit, via our open platform for innovation FusionFabric.cloud, will help to reduce the challenges associated with traditional post-trade processes, such as reconciliations and disputes, to support a bank’s continued growth.”
Riquet also said the company was pleased to secure a partnership with Fragmos Chain. He added that the move would benefit the entire ecosystem while supporting a rich trading solution.
The partnership would also allow Fragmos Chain to change how banks interact with each other and remove the need for paper by automating processes after the trade is complete.
OTC crypto market becomes popular
OTC instruments for cryptocurrency include post-trade services that are becoming increasingly popular. Various companies are already moving into the sector, including B2C2. The latter is a cryptocurrency market maker that is owned by SBI Holdings that is based in Japan.
The company recently expanded offerings to other areas, such as electronic options trading for OTC crypto assets. It also offers options for post-trade functions.
Hidden Road also unveiled the first OTC prime brokerage division for crypto assets. This platform has already signed most of the leading 25 global liquidity providers targeting counterparties in the US and internationally.