Confirmation and Settlement

ASX Austraclear provides completely electronic Confirmation and Settlement services to  reduce operational risk, increase Straight Through Processing (STP), and reduce resource and technology costs. In addition, our service has the added benefit of being provided by an independent third party.

Our products are:

  • Delivered via a secure and reliable communication network which has consistently offered 100% availability over many years
  • Designed to minimise operational and settlement risk through the significant reduction or elimination of manual processing, and require
  • Minimal capital investment and implementation cost

Benefits

  • The opportunity to achieve full STP processes
  • Independent service provision and governance
  • Competitive pricing
  • Extensive on-line audit and enquiry reporting functionality
  • Integration with your existing external and internal operational systems
  • Real time enablement of transaction status, hence irrevocability of transactions
  • Electronics

FXConfirm

The ASX Austraclear FXConfirm service allows banks and their customers to electronically receive and despatch Foreign Exchange 'spot' and 'forward' confirmations

Benefits of FXConfirm

  • Reduced operational risk
  • Decreased processing costs
  • Improved ease, speed and reliability of the entire FX confirmation process.

Two different services are available:

In Example 1 the Bank's SWIFT confirmation is delivered online to the Corporate counterpart who agrees or rejects the confirm via the Austraclear System. An appropriate SWIFT message is delivered back via the Austraclear System to the Bank for processing via  internal matching systems.  This service is available free for Corporates and at low cost to Banks.

Functionality overview

FXConfirm functionality overview example 1

In Example 2 both the Bank and Corporate deliver confirmations to the ASX Austraclear System (via SWIFT / Electronic file upload / manual input). The Austraclear System matches the confirmation pair and generates the resulting message to both parties. This service is competitively priced.

Functionality overview 

FXConfirm functionality example 2

Benefits:

  • Real-time
  • Secure, reliable delivery network
  • Provides an electronic audit trail
  • Competitively priced
  • Low establishment costs

In addition, the ability exists to settle the $A leg of the FX transaction.

Forward Rate Agreements (FRAs)

Our FRA Service offers the only Australian market service to electronically record, match, confirm and settle FRAs and by-passes costly and time-intensive manual processes.
No other providers in the Australian market offer the ability to confirm and settle FRA transactions in one environment, minimise operational risk and make Straight Through Processing (STP) a reality.

Functionality overview

The operation of the FRA functionality is split into two components: 

FRA's functionality overview table

1.  Trade Confirmation Date

Both parties enter the transaction details into the Austraclear System, which electronically matches on the following fields:

  • Counterparty
  • Settlement Date
  • Maturity Date
  • Principal Amount and
  • Specified Interest Rate.

If all fields match, the details are recorded and stored in the System until Settlement date.

2.  Trade Settlement Date

On settlement date, ASX Austraclear enters the BBSW rates (alternatively parties can enter their agreed rate). The net difference between the specified rate and the settlement rate value will be automatically calculated and transferred to the participant's ASX Austraclear bank account.

Benefits

  • Once only input
  • Real time - irrevocability
  • Minimisation of operational risk
  • Online audit and enquiry reporting functionality
  • Competitive pricing
  • Secure and reliable communication network
  • Independent service provision and governance

Interest Rate Swaps (IRS)

The Austraclear IRS Service permits $A fixed to fixed, floating to fixed, and fixed to floating transactions to be automatically matched and settled during the life of the transaction to help minimise operational and settlement risk increases the opportunity for STP improvements and reduces resource and technology costs. Transactions can be accepted from Bank to Bank, Bank to Corporate or Corporate to Corporate participants.

Functionality overview

IRS Functionality overview table

Benefits

  • Fully automated settlement and management
  • Real time payment irrevocability
  • Minimisation and operational risk
  • Competitively priced
  • Online audit and enquiry reporting
  • Secure and reliable communication network
  • Independent service provision and governance
  • Commonality with existing ASX Austraclear Electronic Trade Confirmations
  • Electronic Trade Confirmations
  • Linear interpolation
  • Up-front and early termination facility