Markit a leading technology provider to banks and financial institutions has launched a new middleware feature that will enhance clearing of FX. The new product is working with LCH, CME & SGX.

Clearing of OTC FX has been limited to CLS bank who have the crunch of the share. LCH is set to unveil a new system to compete alongside CLS. Markit acquired Logiscope and thus have strengthened their position in middleware technology.

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The middleware tool has been designed to meet the functional requirements of all market participants, including executing brokers, clearing brokers, and buy-side firms. Although it provides connectivity only for NDFs initially, Tippell says it will support other FX products once CCPs are in a position to clear them.

The CME exchange along with major banks had introduced FX Market Space to overcome clearing and settlement issues in 2007, the project failed and was later scrapped.