Societe Generale has launched a new integrated service, Orchestra, to support the clearing and processing of OTC derivatives trades under Dodd-Frank and Emir.

The solution is collaborative effort that brings together various components from across the bank including prime clearing services division Newedge, post-trade processing and reporting services of its securities services division (SGSS) and swap services of its corporate and investment bank.

The product is aimed at the asset owners and corporate clients that make significant use of OTC derivatives in their investment and trading strategies, along with financial institutions that support the use of privately-traded derivatives.

“Orchestra gives clients choice and flexibility,” said Clément Phelipeau, product manager, derivatives and collateral management services at SGSS. “Connectivity between Newedge and SGSS is well established, which minimises the need for clients to adapt their interfaces to clearing brokers, affirmation platforms and other third-party service providers.”

“For clients that elect to outsource this activity to Societe Generale, Orchestra will remove the need to manage technology and systems upgrades and, subsequently, to maintain parallel silos for their cleared and uncleared OTC derivatives activity.”

The solution offers clearing through to the full post-trade lifecycle, regardless of whether the trade is cleared or non-cleared and also covers position keeping, full management of lifecycle events, collateral management and valuation services for OTC derivatives and structured products.

The firm envisages clients using the valuation service to accelerate dispute resolution between counterparties.

It says that clients will also benefit from pre-trade initial margin requirement (IMR) simulation tool, which enables customers to evaluate their IMR across various central counterparties (CCP) before executing a trade.

Using this analysis, clients can select their preferred CCP to clear a new transaction and monitor their aggregate cost of trading and ongoing initial margin commitments on a near real-time basis.

“Now that the world has changed, we’ve responded with a new approach. Successfully mutualising our capabilities means that we are more than the sum of our parts. We are better placed to invest, to improve our service, and to deliver relevant solutions for clients,” said Francois Bouclier, institutional sales manager at Newedge.