Subscribe to AfterDawn's weekly newsletter.
Northern Trust Adds New Messaging Format Enabling Straight Through Processing for New OTC Derivative Trades
LONDON, October 24 /PRNewswire/ --
Northern Trust has become one of the first asset servicers to adopt the
Financial Product Mark-up Language ("FpML") messaging format in processing
over the counter ("OTC") derivative trades. As part of Northern Trust's move
towards increasing automation and straight through processing ("STP") in OTC
derivative trade processing, this format can be used for Northern Trust's
clients across the globe.
FpML is a messaging format which automates the flow of information
between an asset servicer like Northern Trust and its clients and operates
independently of any underlying software or hardware infrastructure
pertaining to derivative trades.
"The format enables us to accept and deliver new trade messages
electronically and in a standard, replicated way," explains Stephen Andress,
global head of derivatives processing at Northern Trust. "This increases
automation and means that we can process trades faster and with increased
accuracy."
Northern Trust is able to use the FpML standard for all its clients --
asset managers and asset owners -- requiring OTC trade capture, and has
already implemented the system for a high-profile investment manager client.
Says Mr. Andress: "We are investing for the long-term in both people and
technology in this area of our business, and are actively pursuing ways to
reduce manual processing and facilitate STP. This new messaging format is
just one of the initiatives we have implemented in our move towards
delivering a fully automated solution to our clients."
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of
investment management, asset and fund administration, fiduciary and banking
solutions for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has a growing
network of 85 offices in 18 U.S. states and has international offices in 15
locations in North America, Europe, the Middle East and the Asia-Pacific
region. As of September 30, 2008, Northern Trust had assets under custody of
US$3.5 trillion, and assets under investment management of US$652.4 billion.
Northern Trust, founded in 1889, has earned distinction as an industry leader
in combining exceptional service and expertise with innovative products and
technology. For more information, visit http://www.northerntrust.com.
Where Northern Trust's UK entities undertake regulated business, they are
authorised and regulated in the United Kingdom by the Financial Services
Authority.
Web site: http://www.northerntrust.com
