MarkitSERV, the electronic trade (e-trade) processing service for over-the-counter (OTC) derivative transactions and CME Group, the derivatives marketplace, have connected to support clearing for regulated OTC foreign exchange (FX) transactions, currently limited to non-deliverable forwards (NDFs).
Following a major upgrade to MarkitSERV’s CME FX clearing interface to accommodate new regulatory reporting obligations, member and client clearing workflows are in the final stages of testing with a number of MarkitSERV clients. The interface will be further enhanced in May 2013 with clearing support for cash-settled forwards (NDFs for G10 currencies). CME and MarkitSERV first connected for FX client clearing in August 2012.
“MarkitSERV and CME Group have a common commitment to delivering clearing processing excellence across all asset classes,” said Derek Sammann, senior managing director, interest rates and FX at CME Group. “As the OTC markets evolve in a new regulatory environment, we are ready to support the needs of our global client base through choice – whether exchange traded or OTC clearing services.”
Keith Tippell, director and co-head of FX at MarkitSERV, added: “We have a long-standing relationship with CME Group supporting clients’ rates and credit clearing workflows. The addition of new FX clearing connectivity to support evolving regulatory obligations further enhances our clearing proposition and service offering and reinforces our commitment to delivering the most flexible, efficient and future-proof clearing connectivity and support to all FX market participants.”
Sentiment in the financial services sector deteriorated in the three months to September, as firms digested the challenges of lower interest rates and the uncertainty caused by the vote to leave the European Union (EU), according to the latest CBI/PwC Financial Services Survey.
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
The proposals of both US presidential candidates could shake up operating conditions in several sectors, reports the credit ratings agency.
The Danish shipping and oil conglomerate confirmed that it will separate its businesses into stand-alone transport and energy divisions.