Finastra partners with Fragmos Chain to digitalise banks’ OTC derivatives

By Gloria Methri

Financial services provider Finastra has collaborated with Fragmos Chain, a blockchain platform that digitalizes interactions between financial institutions. The partnership aims to provide Finastra customers with integration to Finastra Summit – it’s over-the-counter (OTC) derivatives market solution.

The API-first integration, via FusionFabric.cloud, allows banks globally to digitalize their OTC derivatives products and reduce the costs and risks associated with manual processes.

Daniel Ivanier, CEO at Fragmos Chain said, “Our partnership with Finastra is transforming the way banks interoperate. By digitalizing the confirmation process of all derivatives, automating all post-trade processes and arduous documentation, such as for the International Swaps and Derivatives Association (ISDA), and eliminating paper, we are helping banks to streamline their operations, trade efficiently and securely, and reduce their risks, capital, and costs.”

Fragmos Chain is a blockchain platform, hosted in the cloud, which provides next-generation post-trade derivatives. Integrated with Finastra’s capital markets solution, banks will benefit from trade synchronization through smart contracts and large datasets.

Through cloud deployment and distributed ledger technology (DLT), banks can match their trades, events, and cash flows for timely settlement in a collaborative way. They also can store their data securely and exchange it with counterparties in real-time.

Benoit Riquet, Chief Product Officer, Treasury & Capital Markets at Finastra said, “Our partnership enables us to transform our customers’ business models by providing a digital market infrastructure underpinned by DLT. Integrating Fragmos Chain with Finastra’s Summit, via our open platform for innovation FusionFabric.cloud, will help to reduce the challenges associated with traditional post-trade processes, such as reconciliations and disputes, to support a bank’s continued growth. We are delighted to partner with Fragmos Chain, bringing the benefits of our open ecosystem to our customers on top of our functionally rich trading solution.”