Electronic Auto-Novation Consent
Automated Novation Processing for Credit Derivatives
Increases efficiency through autogeneration of trade confirmation and reduces operational risk with a robust real-time electronic platform
The Operation Management Group (OMG) - comprised of major US dealiers and buy-side firms - committed to greater industry automation in letters to the US Federal Reserve in order to lead fundamental change in front-to-back processes across OTC derivatives products.
Major dealers will only accept novation consent by electronic auto-novation, emails will not be accepted.
GlobeOp's Solution
- GoOTC™, GlobeOp's industry-leading OTC derivative processing tool, provide central navigation and execution for all client CDS novation consent requests
- Client novation requests are automatically routed to both DTCC Deriv/Serv and GlobeOp's trade processing system
Products Covered
Full and partial novation of all DTCC-supported credit products:
- ABX, CMBX
- CDS on Loans
- CMBS and RMBS
- Credit Default Swaps
- Indices
- iTraxx
- Single Name
- Tranches, LCDX Tranche
GlobeOp's Electronic Auto-Novation Consent Solution:
Client Benefits
- Time saving: Novations automatically flow into Kondor; no need to book an assignment
- Compliance support: In full compliance with both the Fed Target and the Novation Protocol.
- Single system: No need to access DTCC's website. Entire process completed within the GoOTC Portal, including message generation, request tracking
- Reduce error risk: Elimminates novation email volume
- Increase efficiency: Auto-generaltion of trade confirmation in DTCC means novation is matched on trade date
- Cut-off warning: GoOTC Portal automatically notifies clients as 6pm deadline approaches
- No additional cost, included in GlobeOp full administration and standalone GoOTC packages.
Updated June 2009