October 21, 2013

Despite media reports that trading on swap execution facilities (SEFs) got off to a slow start, MarkitSERV reported that its trade processing platform has handled more than $1 trillion of swaps traded on SEFs in the first ten business days since the Oct. 2nd launch.

Obviously, $1 trillion is not a shabby number! The highest volume of SEF trading has been in interest-rate derivatives. Buy side firms use these swaps to hedge or manage their exposure to interest rates.

Eight of the 18 SEFs approved by the CFTC as of Oct. 2nd are using MarkitSERV for some or all of trade routing to clearinghouses, SEF confirmation and regulatory reporting, the firm said today. Market participants trading on SEFs receive real-time electronic trade messaging via MarkitSERV using existing interface and can monitor the clearing, reporting and confirmation status of their transactions.

“MarkitSERV has worked with industry participants and SEFs to deliver an integrated and flexible workflow which meets everyone’s needs as new regulatory requirements come into force,” commented Henry Hunter, global head of derivatives processing at Markit in today’s release. Hunter said the focus has been on enhancing its existing connectivity and data formats so that customers can minimize their compliance cots and focus on their core business.

The end-to-end trade processing service is available for a wide range of other swap products including rates, credit, foreign exchange and equity derivatives.

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 ...