Equity swaps are notoriously difficult to manage, with complex trade terms, life cycle events, and value calculations. Net settlement amounts are reconciled manually between counterparties, and identifying the root cause of trade breaks by sorting through multiple levels of data inputs and calculation outputs is cumbersome and costly.
Axoni’s distributed ledger technology streamlines equity derivatives post-trade processing and life cycle management by enabling perpetual reconciliation, improved efficiency, and a unified data protocol over a peer-to-peer network (press release). Having both sides of a swap transaction on the same distributed ledger will allow counterparties to simultaneously view and share synchronized data during the entire lifecycle of the swap, and will drive a significant reduction in operational costs and errors.