Markit Initiates Consolidated FX Trade Confirmation Service

The goal of the initiative will be to allow counterparties to manage their respective FX trade lifecycle events in a

Markit (Nasdaq: MRKT), a global provider of a variety of information services for the financial industry, has launched a new foreign exchange (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.

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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.

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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 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.

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