Dealer-backed fixed income network TradeWeb has launched AccountNet, a real-time standing settlement instructions database and Web-based network that will enable institutional investors, securities dealers and custodian banks to warehouse and share settlement instructions for client accounts.
The launch of AccountNet follows a successful 6-month live test of the system by ten leading primary dealers, five major investment managers and the two top global custodian banks. Participating dealers include Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Citigroup, Bear Stearns and Greenwich Capital Markets.
Built as a stand-alone system available to all industry participants, AccountNet enables all parties to any securities transaction to access customer account data and settlement instructions from a central database. The system also allows investment managers and custodian banks to collaborate through AccountNet to increase the accuracy of the settlement instructions.
Steve Mahoney, director at Credit Suisse First Boston, says: "AccountNet will provide validated data that, in turn, will result in better settlement instructions and lead to lower fail rates and meaningful STP."
Michael Wyne, a managing director at FFT&W, adds: "AccountNet is addressing the only area left in the trade settlement process that can go wrong. It will play an important part in achieving straight-through processing in the bond markets."