Swift teams up with MarkitServ to offer 'swifter' FX Clearing

FX clearing gets a new lifeline as post trade giant MarkitServ ties up with Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term specialist Swift to provide a sophisticated and complete package to clearing of the world's most traded asset class.

The collaboration will see Swift provide advanced messaging over a network where MarkitServ conducts post trade clearing.

MarkitServ owned by US DTCC and UK's Markit is keen to enhance its position as the 'go to' for FX clearing. It aims to offer trade capture, processing and Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term connectivity for dealers and buyside firms, for all non-deliverable forward FX trades sent over the Swift network.

FX clearing has come into question after the new Dodd Frank reforms to increase transparency in OTC products.

Recently new players like LCH Clearnet and exchanges including ICE & CME have been pitching for a share of the clearing pie.