OTC Derivatives Cashflows Automated By Scrittura

A cashflow matching solution that offers straight-through processing of OTC derivatives cashflows – both cross-product and across whole life-time of the trade – has been unveiled by Scrittura. The system has been developed in response to recommendations made by the Cashflow Matching Working Group of the International Swaps and Derivatives Association (ISDA), the global representative body for the over-the-counter (OTC) derivatives market. An ISDA strategic plan gives banks a deadline of 2006 to have systems in place that undertake cross-product matching and netting of cashflows across all OTC transactions for any settlement date. Scrittura Cashflow Matching generates a SWIFT cashflow payment message, matches via a central utility and then delivers a confirmation to the counterparties. Cashflows are netted into one message, which significantly reduces the cost of SWIFT processing.


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