MarkitSERV, the electronic trade processing service for over-the-counter (OTC) derivative transactions, will be the first middleware provider to deliver foreign exchange (FX) trades for clearing to Nasdaq OMX.
Providing clearing connectivity to Nasdaq OMX expands MarkitSERV’s ability to serve the global FX industry’s growing need to connect to multiple clearinghouses (CCPs) and trade reporting facilities. MarkitSERV connected to Nasdaq OMX for clearing interest rate swaps in 2012.
To date, MarkitSERV has processed approximately 100,000 FX non-deliverable forward (NDF) submissions and its gateway has been used for the vast majority of the USD1trn-plus in notional value of cleared NDF trades.
Magnus Billing, senior vice president, Nordic fixed income, Nasdaq OMX, says: “As a consequence of recent regulation, the FX landscape is changing. We are approaching FX with a broad offering of clearable products in order to satisfy all of the drivers our members have to clear FX. MarkitSERV will be a vital element in helping Nasdaq OMX’s members to satisfy their regulatory requirements in clearing FX and to provide the tools to navigate the new regulatory environment.”
Keith Tippell, director and co-head of FX at MarkitSERV, says: “We are delighted to extend our relationship with Nasdaq OMX to FX clearing. We share a mutual commitment to delivering efficient solutions for managing risk and meeting regulatory requirements. We look forward to working with Nasdaq OMX and to applying our deep experience in managing clearing workflows to support FX clearing in the Nordic region.”
MarkitSERV’s FX clearing gateway provides executing brokers, clearing brokers, trading venues and buyside firms with a single point of access to all FX CCPs. By connecting to MarkitSERV, participants benefit from FX clearing solutions to confirm and route OTC FX transactions to CCPs with full support for client clearing, allocation of block trades and regulatory reporting.
MarkitSERV is in the process of expanding its FX support to include deliverable and non-deliverable FX options.In addition to FX, MarkitSERV provides post-trade services for interest rate, credit, and equity derivatives as well as venue-neutral connections that link more than 2,500 market participants to 14 CCPs, trade repositories and electronic execution venues worldwide.