Connectivity is becoming an industry buzzword lately, with several large-scale infrastructure connections having occurred in just the last month, signalling a very noticeable series of technology upgrades currently taking place on the institutional side of the industry as a whole.
Today, Traiana demonstrates further moves in this direction as the company prepares to launch direct connectivity between its Harmony CCP Connect and ForexClear, LCH.Clearnet’s FX clearing service for the purposes of NDF clearing.
Traiana Furthers its Reach
The development and furthering of the company’s Harmony network which connects ECNs to provide post-trade analysis has proven to be something of a focus for Traiana recently, just last month Forex Magnates reported on the firm’s development of its post-trade reporting products as well as its connectivity to central clearing houses and trade repositories.
Traiana’s Harmony CCP Connect provides a comprehensive workflow solution via the Harmony network for both interdealer and client clearing, including CCP connectivity, trade routing, affirmation, matching, allocation, and reporting for OTC foreign exchange options and NDFs, in keeping with what could be perceived as the firm’s expansion of its service to accommodate other classes of business.
Market participants looking to clear foreign exchange trades under the new Dodd-Frank and EMIR regulations can leverage their existing foreign exchange prime broker connectivity together with Harmony CCP Connect’s matching and affirmation capabilities to get direct access to CCPs. With a single connection, Traiana’s Harmony CCP Connect now provides direct access to all CCPs.
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This is aimed at reducing lead times and complexity for market participants. Harmony CCP Connect also provides a gateway to other leading foreign exchange infrastructure operators, ensuring participants can use their preferred trading, allocation and confirmation venues with complete interoperability.
The solution supports all proposed US and European clearing rules and workflows, simplifying compliance for foreign exchange clearing firms and their clients.
Rules vs Competition & Development
Keeping up with the regulators is one driving factor, however with various venues connecting to large scale infrastructure and connectivity providers en masse this week, as detailed in the case of CFN Services and software giant SS$C, plus the buyout of both Apama and Streambase last week, and not to mention the establishment of a new Volta database in London later this year, there is certainly an underlying technological need to advance on an industry-wide scale as well as a regulatory one.
As far as compatibility with existing products at Traiana is concerned, Harmony CCP Connect works in conjunction with Harmony CreditLink, Traiana’s central risk management infrastructure for swaps clearing.
Andrew Coyne, CEO, Traiana stated on behalf of the company: “LCH.Clearnet is a key partner for Traiana and our customers. This complete end-to-end-connectivity solution will reduce the implementation times for participants to connect to ForexClear.”
Gavin Wells, CEO of LCH.Clearnet’s ForexClear made the following corporate statement: “One of our main objectives is to enable our members and their clients to achieve regulatory compliance. By working with Traiana, as the leading foreign exchange clearing service, we are facilitating access to our world class risk management expertise while reducing some of the complexities associated with trade processing.”