MarkitSERV, the electronic trade processing service for OTC derivative transactions, has signed an agreement with SWIFT to deliver foreign exchange and non-deliverable forward (NDF) transactions to multiple FX central counterparty clearing houses (CCPs) via its MarkitSERV FX clearing gateway.
NDF trade messages sent over SWIFT will now be automatically routed onward to the designated FX CCP for clearing. When parties elect to clear an FX trade, MarkitSERV will automatically receive transaction data from SWIFT, match the trade, send it to the clearing broker for acceptance and then deliver accepted trades to the designated CCP. Once the trade is cleared, a notification will be sent from MarkitSERV to the originating party via the SWIFT network.
This single piece of connectivity from MarkitSERV will bring all SWIFT users into new FX clearing flows, says Keith Tippell, co-head of FX at MarkitSERV. With all G14 banks signed to MarkitSERVs FX clearing solution and connectivity to CCPs in place, our focus now is to ensure that regional banks and the buy-side benefit from the most efficient access to the evolving FX clearing environment.
MarkitSERVs FX clearing gateway provides a single point of access for executing brokers, clearing brokers, trading venues and buy-side firms to match, legally confirm and route OTC FX transactions to nominated CCPs. The service so far is live with LCH.Clearnet and Singapore Exchange (SGX) and certified by CME.
We are delighted to be collaborating with MarkitSERV to enhance functionality and provide additional value to SWIFT users, says Joe Halberstadt, head of FX and Derivatives at SWIFT. Straight-through processing of NDF messages from the SWIFT network via the MarkitSERV FX clearing gateway will eliminate a great deal of the time and effort that might otherwise be required by participants to build connections to CCPs and clearing brokers.
(CG)