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.”
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