/Home /



T-Zero plans for expanded capabilities with GEM's FpML Mediator



New York, 11 December 2006


New York-based Global Electronic Markets LLC (GEM) today announce a license sale and successful integration of the trade comparison component from its innovative FpML Mediator software platform to T-Zero, one of the leading service providers in credit derivatives processing. This integration enables T-Zero's buy-side clients to perform trading activities such as assignments and early terminations on Credit Default Swap (CDS) trades with the assurance that they are in synchronization with the trade state maintained by the Depository Trust Clearing Corporation (DTCC)'s Deriv/SERV derivative trade confirmation service.


T-Zero has integrated the FpML Mediator trade comparison component with its existing service that is in place with numerous buy-side and dealer clients. When a T-Zero client wishes to perform a transaction on an existing CDS, T-Zero retrieves the deal's details from DTCC and uses GEM's component to compare the client's version of the trade with that retrieved from DTCC. This enhancement saves clients the effort of searching for the applicable trade and minimizes the operating risk of selecting the wrong trade.

The full version of FpML Mediator provides automated trade matching and rule-based trade validation of OTC derivatives and other financial instruments, enabling market participants to minimize mismatches and reduce the time frame for processing. The software supports any OTC instrument that has an FpML protocol or extension, such as IRS, Credit Default Swaps (CDS) and Equity Swaps. It also supports cash equity or fixed income instruments that can be identified with a CUSIP, ISIN or other standard identifier.

Other features of FpML Mediator include its ability to perform high-speed matching without requiring any shared fields, cross-version reconciliation, and support for break workflows.

"We recognize the challenges faced by our clients in maintaining position records for the ever-expanding volume of CDS and are always exploring ways to add efficiencies for our clients in the trade and post-trade processes such as Novations and Terminations," said Mark Beeston, CEO of T-Zero. We are first using the matching component of FpML Mediator to add efficiencies for our clients' CDS post-trading processes, and then over time we plan to extend the use of the product to other instruments and purposes."

"Trade confirmation and position reconciliation for OTC Derivatives remain complex problems that many firms could manage manually when volumes were smaller. In today's environment, financial institutions are finding that tools such as FpML Mediator and the T Zero service are essential to keep pace with the volume and reduce operational risk," noted Brian Lynn, CTO of GEM.

About T Zero
T-Zero is the credit derivative market leader in trade affirmation and agnostic connectivity. The T-Zero platform ensures 100% accuracy of trade capture on trade date, greatly reducing operational and settlement risks and paving the way for sustained future growth in the industry.


T-Zero's "agnostic connectivity" enables electronic delivery of trade data to virtually any downstream system and market service provider including DTCC Deriv/SERV, GlobeOp, Calypso and Thunderhead, either through a stand alone system or through your Bloomberg PROFESSIONAL terminal. T-Zero also provides straight-through-processing services for the market leading e-trading platforms of Creditex and BGC partners.


A truly open communications platform, T-Zero connects market participants including major credit derivatives dealers, hedge funds, asset managers, prime brokers, fund administrators and documentation execution providers.

Visit www.tzero.com for more information or contact:

London: Mark Beeston, T-Zero President on +44 (0)20 7429 4540

New York: Annette Bronkesh, Bronkesh Associates, +1 973 778 8648, annettec@att.net

 About Global Electronic Markets

Global Electronic Markets (www.global-emarkets.com) provides services and products for firms using FpML and related standards. GEM's services include standards development and advice, technology management consulting and portfolio reconciliation services using GEM's FpML toolset. GEM Development supports a set of products focused on enabling the creation, reconciliation, transformation and storage of FpML and related standards. Brian Lynn, GEM's CTO, is an editor of the FpML standard, a member of the FpML Standards Committee, and chair of the FpML Pricing and Risk working group. GEM is based in Ulster County, NY.

Visit www.global-emarkets.com for more information or contact:

Ted Sanborn 1-914-830-3599, ted.sanborn@global-emarkets.com





Contact Us