State Street Corp. announced today it has launched a new over-the-counter derivatives servicing platform, said Neil Wright, senior vice president.
The global platform, OTC Hub, automates different stages in derivatives processing including customer reporting, electronic trade flow and positions and cash reconciliations between the middle and back offices.
The system is already up and running at PIMCO, the bond trading giant with which State Street collaborated for the beta-testing of OTC Hub.
OTC Hub uses Financial products Markup Language, which is becoming the global standard for servicing derivatives.
It (Hub OTC) is the new tool we have developed, so that we can keep pace with the growth and complexity of what is going on in the industry, Mr. Wright said, adding that the volume of derivatives contracts is estimated at $600 trillion, 83% of which trades over the counter.