The prime brokerage solution for the CDS market

Harmony Credit Derivative (HCD) Service is Traiana’s CDS Prime Brokerage solution for Prime Brokers, Executing banks and Investment Managers.

Industry Challenge

The expansion of the OTC Prime Brokerage market into credit derivatives has created many challenges for prime brokers, executing banks and investment managers. The complexity of the instrument has created STP challenges for prime brokers, the diversity of trading restrictions imposed by prime brokers has left executing brokers unsure of their counterparty risk, and the need for tickets to be reported across several managed accounts have left investment managers struggling to ensure timely, accurate reporting to their investors.

Functionality

HCD includes several Harmony services which can be used separately or bundled to create a comprehensive industry solution:

Harmony Message Center for connectivity from and acceptance reporting to the executing broker
Harmony Tri-Party Limits for pre and post-deal monitoring of trading restrictions in the tri-party relationship
Harmony Reconciliation Service enabling investment managers to reconcile their internal systems with those of their prime broker and clearing broker

Benefits

Single Point of integration
Increased Visibility into acceptance process
Real-time monitoring of tri-party credit lines and their utilizations
Reduced risk and potential for disputes
Reduced Operational Costs
Reduced Settlement Risk