The company, in which Euroclear acquired a majority stake in April 2015, revealed the online product at Sibos, the annual banking technology conference being held in Geneva this week. The tool is being offered to 1,500 bank offices on the buyside and sellside free of charge.
The system works like a chat room and allows back office workers who find failed trades to communicate in real time with Euroclear to identify what the problem is. The back office team then works with the counterparty to fix the trade, with the ability to pass over the work to a colleague in a different timezone or with better knowledge of the asset class.
John O’Hara, the chief executive of Taskize, said: “If you look at the breaks, or the failed trades, it is almost always a data problem. An institution can fix around a third of them itself, but for the rest it will have to consult the counterparty – and this can be a long and laborious process against the clock.”
He added that at the largest institutions “the back office can be fixing between 1,000 and 10,000 failed trades a day – and it is not a nine-to-five job”.
O’Hara, who has previously launched other digital tools through an open framework – making the technology freely available to users, said giving Taskize to back offices for no charge would encourage its use.
“The problem with technology like this is that no one – no institution – wants to be the first to try it, and it needs a network to be available to function. By enabling 1,500 to try out the system, they will be able to see from the start how it works—and what benefit it will be to their trading rooms.”
Institutions who are given the free trial will only pay for additional licenses they acquire to give to other counterparties who are not covered by the initial launch.
Euroclear has declined to disclose how much it has invested in Taskize, but a spokesman said the system would radically improve its efficiency in fixing and clearing failed trades. The system is already being trialed by three major trading institutions, the names of which were not disclosed.