Digitizing interactions between OTC derivatives market participants
Fragmos Chain is a multi-party platform that streamlines interactions between financial institutions to reinvent the post-trade processing of capital markets transactions. Powered by Corda, the solution is opening up a faster, more efficient and lower-risk future for post-trade operations in over-the-counter (OTC) derivatives and is currently being trialed by several major banks.
Manual Reconciliation Required Across Multiple Participants
Reconciliation across different participants who use different data models is required at every event – periodic cash flows, increases, option exercises, and so on.
Processing Data Points
OTC derivatives trades commonly contain about 150 datapoints, which needs to be reconciled between counterparties.
Lack of Standardization
Post-trade processing of OTC derivatives lacks standardization, resulting in inefficiencies and errors.
Streamlines Post-Trade Processes
Trade data flows through the platform, where the data is standardized, and discrepancies between counterparties are flagged.
Discrepancies can be investigated and amended between counterparties in near-real time via APIs.
Leverages Corda Permissioning
Corda’s peer-to-peer transaction model allows for transactions to be broadcasted only between counterparties.
Eases administrative burden
Automates identification and resolution of discrepancies so traders focus on their core duties.
Improves Risk and Cost Management
Frees up 30% to 60% of capital related to counterparty risk.