Citi, J.P. Morgan cut settlement fails by 30% with real time network

An internal review assessing AccessFintech’s 12-month collaboration with Citi and J.P. Morgan showed a 30% reduction in trade fails over 12 months and 76% reduction in email traffic for operational processes for trades between the two dealers

A data and workflow collaboration on AccessFintech’s Synergy Network saw Citi and J.P. Morgan complete an analysis of performance improvements achieved over the past year.

Their initiatives focused on securities settlements between the two dealers, with emphasis on European markets as a prelude to the recently implemented Central Securities Depository Regulation (CSDR).

AccessFintech launched the Synergy Network three years ago and has worked with both  banks to establish an ecosystem of connected firms including buy side, sell side, custodians and vendors.

Citi and J.P. Morgan are addressing the challenge of reducing fails with rapid investigation times and are achieving results using predictive analysis during the pre-settlement transaction window, according to AccessFintech.

With the Synergy Network’s pairing logic, users can view cross-market mismatches side-by-side and act directly within a single user interface. This addresses transaction cost compression, elimination of capital requirements and lack of return on investment.

“The Synergy Network has surpassed critical mass in both the number of its participants and available transaction volume, ” says Roy Saadon, CEO of AccessFintech.

He adds, “Our partners recognise that having a data and workflow normalisation and collaboration strategy is critical, particularly as the industry adapts to CSDR regulation and the impending move to T+1 settlement.”

Tony Vazquez, global head of securities settlements for Citi, notes, “We are constantly looking for ways to improve our operations and technology through innovation, and using the Synergy Network has allowed us to integrate into one solutions-oriented resource, resulting in more efficiencies for our colleagues and clients.

AccessFintech’s Synergy Network provides streamlined, automated and flexible services that have helped us reduce the time spent on emails and operational processes and optimise the time working on securities settlements.”

Tom Damico, head of global equity operations at J.P. Morgan, adds, “This test period has demonstrated that enhanced data collaboration and shared workflows enable us to create a more efficient operating model with a significant reduction in the number of exceptions and follow-up emails.”

©Markets Media Europe 2022

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