Markit Initiates Consolidated FX Trade Confirmation Service

Markit (Nasdaq: MRKT), a global provider of a variety of information services for the financial industry, has launched a new foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) trade confirmation service, according to a Markit statement.

Markit’s new service aims to match a wide array of FX option trade terms, whereby generating trade confirmations in a centrally recorded channel. The primary goal of the initiative will be to allow counterparties to manage their respective trade lifecycle events in a streamlined format.

Moreover, both Citi and JPMorgan have already conducted the inaugural confirmations of FX options trades using Markit’s service – already part of the group’s MarkitSERV trade processing platform. In addition to Citi and JPMorgan, a total of over fifty asset managers have also recently signed to utilize the service.

In particular, Markit’s FX trade confirmation service can be accessed and utilized via industry standard interfaces along with Markit’s Trade Manager portal. The company’s trade processing services for FX entail confirmation and lifecycle management and STP services for up to ninety sovereign trading venues.

According to Mike Lawrence, Managing Director, Chief Administrative Officer, Foreign Exchange and Local Markets at Citi, in a recent statement on the launch, “The bilateral confirmation process plays a central role in mitigating operational risk.”

“While the cash FX market has well established automated confirmation practices, it is encouraging to see innovation in more complex products and new tools that help the industry become more efficient in managing the post trade requirements of FX derivatives,” he added.

“Centralising the management of FX options will help reduce operational risk and lower costs for banks. The market will benefit from the ability to move current manual processes to an electronic platform. This service integrates trade confirmation with exercise management and that is an innovation we welcome,” noted Conrad Kwok, Managing Director, FX Derivatives at DBS Bank, in an accompanying statement.

Indeed, "The pace of innovation in trade Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term must be matched by advances in post trade processes and we are pleased to have worked with the industry to develop this new service for the FX markets. We are committed to helping our customers find efficient solutions to operational challenges and will soon expand this confirmation service to additional FX products,” reiterated Matthew Hill, Director and Head of Markit’s FX trade confirmation service.

Back in June, Markit made headlines after it initiated a secondary public offering of its common shares to investors. The new public offering saw 24,586,022 common shares for sale, granting underwriters the right to purchase up to 1,700,000 additional common shares from the selling shareholders.