A joint initiative between EFET and LEBA to create a fully automated, real-time, and error-free credit processing system was created in 2022.
The project was set up to reduce credit processing time and error rates through automation.
Using the XML schema format allows technical validation that any data file generated follows the rules to be a valid credit file, ensuring compatibility and standardisation across all involved parties.
LEBA worked with Trayport to fast-track development work on tools to enable all LEBA OMP brokers to input electronically (.xml) formatted credit into the Trayport trading system.
The success of the project marks a step change in the way bilateral credit is processed moving away from largely manual processes. The design of the schema also creates certainty around dates and eliminates the scope for ambiguity that exists in manual processes.
This automated approach is available for any trading company that may wish to adopt it and is neither a selective nor a paid “enhancement.”
The following LEBA press release from July 2022 introduces the concept:
This EFET presentation provides a technical overview of the EFET XML credit standard: