FX Client Clearing Capabilities To Be Enhanced By MarkitSERV and Misys Partnership

Electronic trade processing service MarkitSERV has formed a partnership with Misys in order to develop and provide an end-to-end solution

Electronic trade processing service MarkitSERV has formed a partnership with Misys in order to develop and provide an end-to-end solution for Misys Confirmation Matching Service (CMS) customers to deliver foreign exchange derivative trades to central clearing counterparties.

MarkitSERV is jointly owned by The Depository Trust & Clearing Corporation (DTCC) and Markit, and currently provides a single gateway for OTC derivatives trade processing. The company’s current business operations concentrate on electronic allocation, trade confirmation and portfolio reconciliation. In terms of the forex sector, the company provides connectivity to central clearing venues and various aspects relating to trade capture, post-trade messaging and workflow tools.

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In September 2011, MarkitSERV acquired Logicscope and its TradeSTP trade processing technology. TradeSTP’s post trade connectivity to over 70 liquidity providers consisting of banks, brokers, exchanges and electronic crossing networks and 400 financial institutions is now fully integrated within MarkitSERV.

Partnering with British multinational software company Misys will give MarketSERV customers greater access. Mysis is a veteran in the software industry, having been founded in London in 1979 to provide software to thee banking and insurance brokerage industry.

Following its inaugural years, the company began purchasing existing companies which had been established in specific markets while under the leadership of Kevin Lomax who held the position of Chairman from 1985 to 2006. Today the company concentrates its commercial efforts on banking, treasury, trading and risk solutions.

Misys is experienced in seeking out partners for integrated solution strategy development, having undergone a merger with Turaz in June 2012, and currently has 1,800 corporate customers in 120 countries.

In this new offering, the partnership between MarkitSERV and Misys will integrate the market-leading MarkitSERV FX clearing gateway, which is the single point of access to all FX central clearing counterparties (CCPs) used by executing brokers, clearing brokers, trading venues and buy side firms.

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MarkitSERV’s viewpoint is that with the Misys CMS, a premier post-trade treasury solution used by over 1,000 banks, brokers, fund managers and corporate treasurers this partnership will improve trading efficiency and reduce risk.

The connectivity between Misys and MarkitSERV offers Misys CMS customers the benefit of seamless access to all FX CCPs and other FX market participants.

The partnership will allow Misys CMS customers to use MarkitSERV’s SWIFT interface along with industry-standard SWIFT MT300 messages, MarkitSERV’s connectivity for FX clearing validation and clearing broker acceptance (as appropriate) and its network to transmit trade notifications to designated FX CCPs. As a result, CMS clients will be equipped to centrally clear OTC FX transactions, as required by Dodd-Frank and EMIR. Other jurisdictions are expected to also make it mandatory to clear FX.

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Keith Tippell, Director and Co-Head of FX at MarkitSERV, said: “In this fast-changing and uncertain environment, our collaboration with Misys leverages the synergies between our respective services to deliver superior, scalable and high performance access to end-to-end processing of new FX clearing flows to all CMS customers. Combined with our partnership with SWIFT to receive trade messages and deliver cleared status notifications via the SWIFT network, and our unrivalled FX CCP connectivity, this collaboration reinforces our position at the forefront of regulatory processing efficiency in the FX market.”

Director of Misys Global Managed Services Gilmore Bray said: “Our partnership with the leading clearing gateway, MarkitSERV, is a significant enhancement to the Misys Confirmation Matching Service as it enables our clients to view through a single window the end-to-end status of FX trades requiring central clearing. Misys CMS will utilise the SWIFT network to deliver trades to MarkitSERV on behalf of our clients, eliminating any infrastructure investment or ongoing development cost to comply with the regulatory requirements. Misys CMS is dedicated to stay one step ahead of market changes so that our customers are well positioned in advance of regulatory changes.”

MarkitSERV’s award-winning FX clearing solutions legally confirm and route OTC FX transactions to FX CCPs and provide full support for client clearing, allocation of block trades and regulatory reporting. MarkitSERV is the only middleware provider with live connectivity to LCH, SGX and CME for FX clearing and MarkitSERV will continue to connect to any other CCPs that offer FX clearing. To date, MarkitSERV has processed 99.9% of all FX trades which have been centrally cleared.

Misys and MarkitSERV have also partnered to deliver solutions for other asset classes. These include the integration of MarkitSERV and MarkitSERV Trade Manager with the Misys Sophis and Summit platforms to automate rates and credit clearing for buy-side clients.

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