IHS Markit Enhances Derivatives Netting Synchronization Service with CME Clearing

IHS Markit Enhances Derivatives Netting Synchronization Service with CME Clearing
12.12.2016 05:45 pm

IHS Markit Enhances Derivatives Netting Synchronization Service with CME Clearing

Trading Systems , Derivatives and OTC Derivatives

IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, today announced it has added CME Clearing to its netting synchronization service from MarkitSERV, the trade processing platform for OTC derivatives.  The service provides a single source of electronic messages from multiple clearinghouses to help banks and asset managers update risk management systems when trades are netted or compressed at the clearinghouse.

Claire Lobo, managing director and head of business development for MarkitSERV at IHS Markit, said: “Netting introduces a new set of post trade events to the OTC derivatives market and the need for banks and asset managers to consume netting data from multiple clearinghouses illustrates the value of MarkitSERV’s central hub and global network.  The workflow and integrations we offer automatically synchronize bank risk systems when position data change due to netting, novation, termination or other event in the derivatives lifecycle.”

Clearinghouses net exposures to help firms reduce the capital and operational costs associated with OTC derivatives.  For CME, the service initially supports netting of cleared interest rate swaps, basis swaps, forward rate agreements, overnight index swaps and swaptions.

Sunil Cutinho, President of CME Clearing, said: “MarkitSERV synchronization is an important solution for our clients because it enables straight-through processing of post trade services like netting, coupon blending, and compression.  This also paves the way to deliver further efficiencies and innovations as we scale out swaption clearing and develop listed invoice spread trading.”  

In addition to automating trade booking, firms can also reconcile all OTC derivatives trades, cleared and uncleared, with their counterparties and clearinghouses with the data maintained centrally by MarkitSERV.  MarkitSERV can also send regulatory reports to update trade repositories on behalf of customers.

MarkitSERV introduced netting synchronization with LCH in November 2015.  More than 20 firms are actively using the functionality.   

Related News

Lendingblock partners with Vo1t to offer digital asset custody

Lendingblock, the securities lending exchange for digital assets, today announces that it has partnered with digital assets custodian Vo1t to provide a military-grade cold... Read more »

Fintech startup Sharegain rolls-out first Securities Lending Platform, following $12m investment

Fintech startup Sharegain, whose securities lending platform allows any investor to generate revenue through loaning out their financial assets, has raised a total of $12m (... Read more »

OpenFin wins ‘Best use of the Agile methodology by a technology vendor’ at the 2018 Buy-Side Technology Awards

OpenFin won the award for ‘Best use of the Agile methodology by a technology vendor’ at the... Read more »

CGTrader offers integration of its technology with e-commerce giant Shopify to create an innovative shopping experience

CGTrader, one of the world's leading 3D model marketplaces, offers integration of its technology with the Canadian e-commerce giant Shopify. As part of the integration,... Read more »

IronFX and IronX Welcome PumaPay Token to Their Trading Platforms

IronFX, the global leader in online trading, announces that it will add the PumaPay Token (PMA) as a funding method as well as a base currency on its trading platform, hence... Read more »

ISXPay®: deposit taking via own BIC: ISEMCY22XXX

  1. iSignthis Ltd subsidiary, iSignthis eMoney Ltd, trading as ISXPay® (“the Company”), is pleased to announce that testing of its deposit taking facilities and... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App