Increased regulations such as the European Market Infrastructure Regulation (EMIR) and Dodd-Frank have increased the need for institutions to automate their confirmation matching process. Aqua Global’s highly scalable Treasury Message Matching (TMM) module is a fully automated matching and exception handling solution for Treasury Dealing.
Automating the matching of treasury confirmations provides an excellent way to improve compliance and risk by reducing manual effort, reducing risk, reducing processing costs, improving compliance, improving accuracy, providing faster resolutions, and improving audit.
Centralised Confirmation Management
The TMM module enables an institution to define matching relationships for inbound and outbound confirmations to automatically detect trade anomalies instantly. Matching rules can be defined for any service. It provides users with a multi-entity centralised view of a trade’s status with highly granular control. It performs automated matching of new, amendment, and cancellation counter-party and broker confirmations as soon as they are received or created. TMM automatically highlights exceptions, ensuring instant resolution of issues, with the ability to add notes to a transaction to aid future investigations if required. Key features include defining matching relationships, detecting trade anomalies, defining matching rules, multi-entity centralised view, highly granular control, automated matching, instant resolution, and adding notes.
Alternate Details
TMM learns alternate details that form acceptable matches, for example matching a bank name against a BIC or local clearing code. This process is made easier by expanding associated institution names for BIC and clearing codes from the SWIFTRef directories. The system intuitively suggests new relationships, which must be authorised before being automatically used. This dramatically increases automatic matching rates and reduces manual processing.
SWIFTRef Support
SWIFTRef directories offer banks a single source of reference data enabling flawless settlement processes and SWIFT message production. Loading this data into the system enables full validation of BICs, IBANs, national bank codes, and SEPA routing information.
Flexibility
TMM has an open framework allowing new message types to be included via system configuration. This enables any treasury data source in any format to be included in its matching process. Flexible rules allow matching relationships between fields in source and target messages to be defined.
Integration
Treasury trades can be sourced by receiving formatted messages (e.g., MT3xx confirmations, pacs.009 payments, camt.057 receipts) directly from a core system. Alternatively, APIs defining details of foreign exchange or money market trades can be called from a core system to create outward settlement messages augmented with Aquila’s standard settlement instructions if required.
Payments Control
TMM can be configured to automatically authorise and release settlement messages associated with a confirmation when matched. This enables treasury payments to be authorised as an exceptions process, improving efficiency and reducing risk. Payments associated with unconfirmed trades are proactively identified.
Core System Integration
When an automatic or manual match is performed, TMM can update the status of the treasury trade within the bank’s treasury management solutions, ensuring complete synchronisation of trade status.
Deployment Options
TMM can be deployed locally, supported remotely via a managed appliance onsite, or as a fully managed cloud proposition. Options are available for backup, recovery, routine maintenance, product upgrades, and managing new SWIFT standards. Aquila offers the ability to create additional value across your financial organisation, empowering you to achieve your ultimate banking solution.
