JP Morgan's Tokyo branch has gone live on Wilco International's Gloss system for automating settlement processing, accounting and Japanese regulatory reporting.
The system consolidates the processing of international and Japanese domestic fixed income trades onto a single platform, handling cash trading, underwriting trading and multi-collateral, multi-currency repo trading in Japanese government bonds (JGBs), Japanese corporate bonds (JCBs) and international bonds.
The Wilco Japanese Regulatory Reporting module automatically generates approximately 30 of the regulatory reports required by the Ministry of Finance, the Bank of Japan and the Japan Securities Dealers Association. Additional local market functionality includes automatic postings of Japanese specific repo daily accruals in the Gloss accounts functionality and the production of a number of reports required for legal and audit purposes.
Additional improvements have been made to the Gloss system to generate instructions for Bank of Japan stock and cash settlements of JGBs trades via the MKI network; and to calculate the Message Authentication Code for JCBs before the settlement instructions are forwarded to the JBNet Network for settlement.
A number of real-time, two-way Adapter interfaces have also been implemented by the bank. These include Oasys Adapter providing electronic trade confirmation through connectivity with the Thomson Oasys global network; Print Adapter to automate the generation of faxed and printed confirmations in both Japanese and English; and the Euroclear Adapter which automates the settlement of international bonds through Euroclear.