BBH LAUNCHES AUTOMATED PROCESSING SOLUTION FOR OTC SWAPS

Posted April 7, 2009

BOSTON – Brown Brothers Harriman (BBH) has launched a solution for automating the receipt and processing of over-the-counter (OTC) swap transactions using Financial products Markup Language (FpML), allowing for straight-through processing (STP) of credit-default swaps (CDS) and interest-rate swaps.

The solution automatically captures trades and validates them against FpML schemas and SWIFT rules as applicable, and creates automated accounting entries. Its scope includes contract creation, amendment, novation, and cancellation messages.

“This breakthrough exemplifies BBH’s commitment to the future of the asset servicing industry,” says Tim Connelly, Partner and Global Head of BBH’s Innovation and Product Support division. “Our investment in OTC swap processing using FpML will yield efficiency gains for clients and ensure a more secure operational environment for OTC instruments.”

The solution is part of a BBH initiative to help clients streamline and manage the rapidly growing volumes of derivative transactions in order to decrease operational risk and accommodate growth and possible volume spikes. Clients can transmit FpML messages to BBH via SWIFTNet or secure FTP connection.