The trend towards clearing has created a greater need than ever for seamless straight through processing (“STP”) of cleared trades. To meet this need, Trayport® offers a hosted architecture for its clearing links. The hosted clearing link delivers greater speed and reliability and reduces cost and risk.
Benefits of Hosting
Reduces Operational Costs
Since there is no need for the broker to host any software, hosted clearing links reduce the operational costs currently associated with STP clearing links. Trayport takes care of all mapping and configuration of the clearing link, freeing your support team from the need to spend time maintaining the links.
Speeds Deployment Time for New Links
To deploy a hosted clearing link, the broker simply supplies Trayport with a login to their Broker Trading System (“BTS”) system. This means that as new clearing houses come on board, Trayport can deploy links to these clearing houses to a broker within a matter of days, rather than weeks.
Increases Accuracy and Reliability
Accuracy and reliability of STP clearing is of paramount importance. With the existing technology, brokers must maintain the mapping database themselves. Errors in this process are a common cause of failures. Since Trayport manages the mappings for the hosted links, and since this process is integrated with Trayport’s Gold Mapping ServiceSM , hosted clearing links greatly reduce the likelihood of failures due to mapping errors. Should a failure occur, a web-based monitoring tool instantly alerts both the broker and Trayport, to enable a quick resolution of the problem.
How Clearing Links Work
With the hosted infrastructure, Trayport hosts a router that connects to your Trayport BTS system and forwards trades to each clearing house with which your clients clear. All you need to do is to supply Trayport with a login to your BTS system; Trayport takes care of the rest, including all configuration and mapping. A web-based trade monitor provides you with detailed status information for each cleared trade.