Clearstream and Commerzbank have partnered to launch TradeCycle, offering clients seamless processing on cleared and uncleared OTC derivative transactions.
The joint offering will provide clients access to an integrated management solution for the OTC derivative trade lifecycle, ranging from trading to clearing, settlement to custody.
TradeCycle will also enable clients to minimise operational inefficiencies, funding costs, enhance yield and improve their risk management as well as being prepared for future regulatory requirements.
Nikolaus Giesbert, divisional board member for fixed income and currencies at Commerzbank Corporates & Markets said: “Regulatory requirements increase the complexity in the day to day business of financial institutions and corporates and there is growing demand for streamlined services.”
“Clients with too many vendors engaged in OTC derivative transactions risk significantly higher funding expenses. Our holistic TradeCycle solution and effective collateral management strategies reduce operational inefficiencies and costs.”
Stefan Lepp, member of the executive board and head of global securities financing at Clearstream, added: “For the first time, a bank and an independent infrastructure provider are partnering to offer an end-to-end derivatives solution for the industry.”
“The offering is tailor-made, aimed at tackling market inefficiencies, saving funding costs and reducing overhead costs. Such partnership models allow us to meet the needs of the market participants in a very short time-to-market. TradeCycle will provide significant relief to our mutual clients in light of the upcoming regulatory challenge.”
Tradecycle will be launched in Q4 this year.
