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MarkitServ Launches FX Gateway Connecting to CCPs

The middleware provider announced a single point of access for FX participants to route OTC derivatives trades to CCPs worldwide including CME, SGX and LCH.Clearnet.

MarkitServ unveiled a gateway for foreign exchange (FX) participants to route OTC derivatives trades to central clearing counterparties (CCPs) worldwide.

The gateway will offer a single point of access from which executing brokers, clearing brokers and buy-side firms can match, legally confirm and route OTC FX transactions to their CCPs of choice.

According to the company’s release, MarkitServ’s FX clearing gateway service was developed in close consultation with major market participants, and MarkitServ has completed industry end-to-end testing cycles and has been certified by, or has established links to, CME, LCH.Clearnet and Singapore Exchange (SGX). MarkitServ will continue to build connectivity to other CCPs worldwide as they begin to clear FX, the company stated.

In prepared comments, Roger Rutherford, CME Group’s Managing Director of FX Products, said: "We continue to work closely with all market participants on providing clearing services for a variety of foreign exchange instruments. Connecting to MarkitServ helps us extend our clearing services to the global FX market."

In the same release, Gavin Wells, CEO of LCH.Clearnet's ForexClear service, said: " MarkitServ's agility will enable LCH.Clearnet to bring our wealth of OTC experience to a broad range of products and participants across the FX market."

MarkitServ is a key middleware provider for OTC derivatives participants, is already a primary conduit to CCPs. It has already been certified by or established connectivity to LCH.Clearnet, CME, SGX and IDCG for direct submission of interest rate derivative transactions for clearing and to CME, ICE Clear Credit, ICE Clear Europe and Eurex for credit derivatives. MarkitServ is announcing the FX gateway as OTC derivatives reforms extend to other asset classes. “FX non-deliverable forwards and options are expected to be mandated for central clearing as part of the new regulatory landscape,” noted Keith Tippell, Co-Head of FX Product Management at MarkitServ, in the release. “As with other asset classes, MarkitServ’s middleware platform is central to the clearing process and we are pleased to offer the connectivity and tools the industry needs to efficiently transmit trades to all FX clearing venues. Muthukrishnan Ramaswami, President of Singapore Exchange (SGX), said: "SGX launched a service to clear FX forwards (non-deliverable) in October 2011. Our members chose MarkitServ to match and route transactions to SGX and we will be working with MarkitServ as we expand our FX clearing service throughout 2012.”

MarkitServ’s trade processing services for FX include connectivity to central clearing venues, as well as an array of trade capture, post-trade messaging and workflow tools. In September 2011, MarkitServ acquired Logicscope and its TradeSTP trade processing technology. TradeSTP’s extensive post trade connectivity to more than 70 liquidity providers (banks, brokers, exchanges and electronic crossing networks) and 400 financial institutions (banks, hedge funds, asset managers and corporates) is now fully integrated within the MarkitServ platform.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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