AccessFinTech & Goldman Sachs launches derivatives cash payments affirmation service

By Pavithra R

New York-based AccessFinTech, an innovative risk management service provider for banks and buy-side firms has announced the launch of a new derivatives cash payments affirmation service, working with Goldman Sachs.

Derivative settlement processing is considered operationally inefficient for buy-side clients and their brokers, with disputes often captured without sufficient time to resolve. Both Goldman Sachs and AccessFinTech developed the cross-industry service working with a major Tier 1 buy-side client to embed a process that allows for the real-time supervision and scrutiny of expected cash payments associated with derivatives trading.

The ability to have a zero-touch settlement payment process with a digital workflow for collaborative dispute resolution is expected to provide significant benefits. Buy-side and brokers both benefit from zero-touch processes, however, where breaks are identified, real-time dispute workflow and collaboration tools streamline the resolution process. This transformation will enable joint focus on value-add activities; reducing repetitive manual processes and the need for outreach via email or phone to gather the latest status.

“The derivatives market has historic inefficiencies and we believe this cash affirmation service has the ability to be a game-changer and create a new standard for the industry. With the foresight, diligence and innovative approach of Goldman Sachs and their client, we are excited to have brought this service to market, for the benefit of the whole ecosystem,” said Roy Saadon, CEO of AccessFinTech.

The introduction of this service will initially focus on Interest Rate Coupons & Cross-Currency Swaps, Credit and Equity Total Return Swaps with future expansion to other over the counter (OTC) derivatives, including CFD and Exchange Traded Equity Derivatives. A multi-bank Cash Payments Working Group, with Goldman Sachs’ support, recently launched to define the standards to deploy this across the industry.

“It’s impactful to partner with our clients on joint transformations, addressing current process inefficiencies and creating material value. We look forward to future opportunities,” said Chris Daur, the Americas Client Coverage Group head for Goldman Sachs.

“We are excited about working with the Access FinTech team to launch this solution and create a common standard in this area. We think this will be of significant benefit to the industry,” said Brian Steele, Global Head of Market Solution at Goldman Sachs.

Recently, AccessFinTech raised $20mn in Series B funding from big banks.

Founded in 2016, AccessFinTech is transforming the financial industry operating model through data and workflow collaboration. The company aims to transform the model to drive control, transparency, efficiency and collaboration across the whole financial ecosystem. Since launch, the FinTech has already gone live with 5 financial products and is in proof-of-concept or live testing with another 11 products.