|
|
|
| Major brokerages, global
custodians and settlement banks trust Trafic to manage their
high CREST transaction volumes, very reliably, every day.
As CREST is to be replaced by the Euroclear Single Platform
(see box), Trace Financial is working with these clients to
develop a completely new Trafic solution for the Euroclear
Single Platform.
Retaining all the best concepts of the existing product,
the architecture of Trafic-ESP will be greatly enhanced. Its
server infrastructure will incorporate our best-of-breed middleware
product range as components - such as Transformer for message
translation - and will support either Oracle or SQL Server
databases, for persistence and flexible reporting.
But the real strength of Trafic has always been the fact
that it understands and stores the business transactions that
incoming messages refer to, and that it can mediate between
in-house and external views of those transactions. This allows
for a raft of extra functions to be provided. The following
existing features of Trafic will be retained in the new Trafic-ESP:
|
|
About the Euroclear
Single platform
|
Over the next few years, Euroclear SA/NV will migrate both their
own operations and those of the 4 Central Securities Depositories
in the Euroclear group - including CREST in the UK - onto a
single central system, the Euroclear Single Platform (ESP).
This will bring plenty of challenges for the securities back
office.
Firstly, instead of the proprietary message formats long
used by most CREST members, ESP will require its participants
to communicate using a mixture of enhanced ISO 15022 and completely
new ISO 20022 (XML) messages.
But there is change at a higher level than just message formatting.
For example: the business model for corporate actions processing
in CREST today is very different from the ISO15022 approach.
And unlike the 'big bang' migration from Talisman to CREST,
the transition from CREST to ESP will take at least a year
to complete. During the transition period, every back-office
which currently interfaces with CREST will have to communicate
with both CREST and ESP for different sets of transactions.
So the next few years are going to see significant IT costs
and operational risks in the back office.
|
Sample functions and features
 |
full support for input and settlement of every
transaction type |
|
mediation between back-office and external view
of transactions (e.g. an agency bargain maps to an ESP delivery
linked to an ESP own account transfer) |
|
rules-driven processing for events including transaction
status change, allowing coarse or fine-grained monitoring |
|
amendment handling: where back-office amendment
forces delete and rebook of ESP side transactions |
|
full support for counterparty-initiated events
(allegement, splitting, etc) |
|
full support for centrally-generated transactions |
|
Central CounterParty (CCP) module |
|
reconciliations of transactions, securities acccounts
and cash accounts |
|
settlement bank module |
Managing the migration
Trafic-ESP will be able to help back offices make
the transition from CREST with minimal risk, by insulating the legacy
interface from change. Here's how:
The back office systems continues to place its output
message files in the usual path. But instead of the legacy CREST
interface picking them up, Trafic-ESP does. Trafic-ESP then inspects
the files and decides which messages need CREST treatment and which
are for ESP. The CREST messages are repacked and routed to the legacy
CREST interface which processes them as usual. The same happens
in reverse with the responses coming back from CREST. Eventually
the legacy CREST interface can simply be turned off.
The scenario above is just one example of many possible configurations
- after all, every client and every back office is different. But
whatever the situation, Trace Financial has the unique combination
of business knowledge and technical products that can help you make
a safe transition to the Euroclear Single Platform.
For example, if you are planning to build your own ESP interfacing
solution in-house, you may find that the powerful connectivity and
message transformation tools in our Euroclear
Single Platform Connection Toolkit can help.
To find out more contact us>>
 Download
this page in pdf format>>
|
|
|
Products
