AccessFintech’s Synergy data network announced the launch of Settlement Netting for operational efficiency in the fixed income markets. Synergy by AccessFintech captures data from a wide range of asset classes, including securities, derivatives, alternatives, and payments. The cloud-native solution promotes real-time transparency and cross-market collaboration across the entire post-trade lifecycle, using advanced data pairing to improve pre-matching accuracy and reduce fail rates.
J.P. Morgan and Citi were part of establishing the service, with J.P. Morgan contributing to the use case and both Citi and J.P. Morgan providing valuable input and refinement for the solution. An industry working group with key repo market participants has helped to deliver the design of the common data model, market structure considerations, and operational workflow.
Initially piloting its netting program in the €15 trillion EMEA repo market, Synergy’s AI-driven insights and data model centrally matches transaction details across trading counterparties, removes the operationally burdensome spreadsheets currently used to calculate netting obligations, and promotes secure counterparty communication through structured queries via API or UI.
This significantly improves fail rates, reduces asset movements, and reduces transaction costs associated with fixed repo settlements. Synergy has also deployed innovative artificial intelligence (AI)-based intelligence – with the ability to generate settlement netting candidates real time – and utilizes historical data to inform counterparty behavior on data elements such as performance against settlement obligations and amendment rates.
“We have partnered very closely with AccessFintech on this collaboration solution as we believe it will transform the smooth operation of the repo market,” said Anthony Fraser, global head of Prime Financial Services Operations at J.P. Morgan, in a statement. “Integrating J.P. Morgan’s best-in-class operating model and workflow tools with AccessFintech’s state-of-the-art technology enables us to establish a model of standardization, transparency and seamless communication. We’re committed to delivering solutions which drive enhanced settlement efficiency and result in better outcomes for our clients.”
“We are pleased to bring this important collaboration solution to the repo market with AccessFintech. We remain intensely focused on creating solutions that enhance our clients’ investment performance and success,” said Jaime Healy-Waters, global head of Cash Equity Middle Office and EMEA Cash Securities Settlements at Citi, in a statement.
Settlement netting also allows Synergy clients to leverage its global data platform to net obligations across repos, TBAs, cash transactions, and other asset classes to increase operational efficiency and maximize liquidity. Synergy is also uniquely positioned to streamline interactions between clients and custodians and eliminate manual intervention by sending instructions via API to custodians.
Tom Granelli, head of Netting Product for Synergy at AccessFintech, said in a statement: “We are continuously driving industry transformation to prepare and strengthen market operations for the future. We remain intensely focused on creating solutions that enhance our clients’ investment performance and success. Settlement Netting is another example of our deployment of the transformative Synergy network, enabling the ecosystem to magnify their operational effectiveness and reduce unnecessary manual processes.”