Electronic trading and OTC derivatives trade processing gateway MarkitSERV has formed a partnership with the Chicago Mercantile Exchange (CME) in order to support clearing for regulated OTC FX (foreign exchange) transactions, currently limited to non-deliverable forwards (NDFs).
Following a major upgrade to MarkitSERV’s CME FX clearing interface to accommodate new regulatory reporting obligations, member and client clearing workflows are in the final stages of testing with a number of MarkitSERV clients. The interface will be further enhanced in May 2013 with clearing support for cash settled forwards (NDFs for G10 currencies). CME and MarkitSERV first connected for FX client clearing in August 2012.
MarkitSERV FX processes over 10,000 NDF FX clearing submissions to FX central counterparties (CCPs) every month, representing 99.9% of all cleared FX transactions globally. In addition to FX clearing, MarkitSERV and CME Group’s long-standing clearing connectivity also supports central counterparty clearing for OTC interest rate and credit transactions.
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Derek Sammann, Senior Managing Director, Interest Rates and FX at CME Group, added: “MarkitSERV and CME Group have a common commitment to delivering clearing processing excellence across all asset classes. In addition to new FX clearing support, MarkitSERV clients already benefit from our established and proven clearing connectivity for interest rate transactions. As the OTC markets evolve in a new regulatory environment, we are ready to support the needs of our global client base through choice – whether exchange traded or OTC clearing services.”
Keith Tippell, Director and Co-Head of FX at MarkitSERV, said: “We have a long-standing relationship with CME Group supporting clients’ rates and credit clearing workflows. The addition of new FX clearing connectivity to support evolving regulatory obligations further enhances our clearing proposition and service offering and reinforces our commitment to delivering the most flexible, efficient and future-proof clearing connectivity and support to all FX market participants.”
CME Clearing, one of the world’s leading central counterparty clearing providers, offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions and substantially mitigates counterparty credit risk for market participants. MarkitSERV’s market-leading clearing gateway provides executing brokers, clearing brokers, execution (trading) venues and buy side firms with a single point of access to all FX CCPs, enabling them to benefit from award-winning FX clearing solutions to legally confirm and route OTC FX transactions to CCPs with full support for client clearing, allocation of block trades and regulatory reporting.
MarkitSERV’s market-leading clearing gateway provides executing brokers, clearing brokers, execution (trading) venues and buy-side firms with a single point of access to all FX CCPs, enabling them to benefit from award-winning FX clearing solutions to legally confirm and route OTC FX transactions to CCPs with full support for client clearing, allocation of block trades and regulatory reporting.