As technological alignments with the Dodd-Frank Act continue to proliferate North America’s institutional FX sector, British post trade risk mitigation company ICAP has today announced that it is to offer a new data service for OTC derivatives in conjunction with US-based Clarus Financial Technology.
According to ICAP, the service is intended to distribute benchmark derivative pricing provided by ICAP within Clarus Financial Technology’s SDR View – Professional product which comprises a series of views, as well as sourcing rates and credit trades from the The Depository Trust & Clearing Corporation.
Interest rate swaps, FRAs, OIS swaps and basis swaps quoted in AUD, CAD, EUR, GBP and USD will be covered by the service.
CAP Information Services (IIS) has provided the data in order to articulate an aggregate view of best bid/ask levels across ICAP’s on/off SEF marketplaces for each currency and product once each hour.
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Clarus Financial Technology’s position is to overlay this pre-trade transparency on its intraday analysis of aggregated Swap Data Repository (SDR) post-trade reporting.
Mark Beeston, CEO of Portfolio Risk Services for ICAP, made a corporate statement today to the effect that: “In the new Dodd–Frank environment, mandated post-trade transparency is a requirement, and the ICAP information on Clarus’ SDRView accurately meets those needs by reflecting price levels at which the market is formulating its “next” trade. We look forward to working with Clarus and offering this exciting new product to our customers.”
Amir Khwaja, CEO of Clarus Financial Technology, further added that: “By creating a single screen that brings together in real-time the last trades executed under US regulations to the DTCC Swap Data Repository, alongside the consensus pre-trade prices from ICAP, we believe we are creating a unique and must-have destination. And by delivering all this in a Web Browser, we are creating a new level of transparency and open access for such data. One that is independent of existing proprietary networks and one that we believe will appeal to both the Buy-Side and the Sell-Side.”