JP Morgan and Citi back start-up AI post-trade platform

JP Morgan and Citi have become the first users of truePTS, a derivatives processing platform which uses robotics and artificial intelligence (AI) to automate back-office functions.

The platform uses proprietary matching and validation engines, as well AI voice deal capture technology, to allow auto-matching and direct clearing, and the automation of manual processes of OTC derivatives.

“We look forward to working with truePTS and the other market participants to develop new processing solutions for our clients,” said Kieran Hanrahan, global head of markets middle-office, JP Morgan.

The announcement comes after trueEx, a US swap execution facility (SEF) and owner of truePTS, ended its almost year-long legal battle with MarkitSERV, in which it claimed IHS Markit had attempted to prohibit trueEX from accessing its trade processing service.

Following the onboard of Citi and JP Morgan, truePTS anticipates other industry participants to join in the coming months.

“We will be the catalyst that provides transparency, increases efficiency and lowers costs for our clients by leveraging the most progressive technology,” said Zohar Hod, CEO of truePTS.

“We’re able to leverage the industry leaders’ strategic input, particularly as we address the challenge of scale with other clients to become the new benchmark in the post-trade processing industry.”

With two of the biggest swaps dealers signed up, it could further boost trueEX’s position in the US interest rate swaps market. As the last start-up SEF remaining, it has captured a significant portion of market share from incumbent platforms such as Tradeweb and Bloomberg.