MarkitServ, IHS Markit’s post-trade OTC derivatives processor, has introduced a new technology for its cloud-based platform, dubbed ‘TradeServ,’ which will eventually house its other platforms for post-trade processing of OTC derivatives trades.
The development comes as data and analytics giant is no longer seeking a buyer for its derivatives processing business, after failing to reach an agreement on the value of the business.
TradeServ aims to consolidate MarkitSERV’s post-trade services, including MarkitWire, Markit Trade Manager (MTM) and DSMatch, onto one cloud-enabled platform in order to improve service delivery and the customer experience. The platform uses Amazon Web Services (AWS) to host its cloud functionality.
The first rollout of TradeServ began in September, which signed 32 banks and asset managers, with an initial focus on FX NDFs. As a conduit to LCH, MarkitSERV said it has processed over 1 million cleared NDF trades in the last ten months, averaging 120,000 per month. FX options and credit derivatives to follow suit in 2019.
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IHS Markit Scraps MarkitSERV Sale
IHS Markit first announced plans to sell MarkitSERV in May, alongside confirmation of its acquisition of rival data company Ipreo for $1.9 billion. The company said at the time that following a detailed review of the financial services business, as part of its capital allocation strategy, it had begun the process of selling off the business.
MarkitSERV is one of the most widely-used electronic processing services for OTC transactions and FX STP integration. The platform provides end-to-end processing and workflow services across over the counter derivatives asset classes, including credit, equity, foreign exchange, and interest rates.
Commenting on the news, MarkitSERV CEO Brad Levy, said: “Our success shows how markets embrace new technology when it is deployed through a trusted network. Beginning in FX, TradeServ will enable us to be even more responsive to customer needs and make it easier for users to interact with their data and customize workflows.”
“The broad connectivity and standardized workflow from MarkitSERV are integral to efficient derivatives operations and compliance. With the introduction of TradeServ, the clearing of NDFs to multiple CCPs has moved to a modern PaaS which is an important step forward for the industry,” addedBill Stenning, managing director for clearing, regulatory and strategic affairs at Société Générale.