Markit has won Risk Magazine’s ‘Industry Platform of the Year’ award in recognition of Markit’s portfolio reconciliation service and the contribution it has made to reducing risk in the OTC derivatives markets.
Markit’s Portfolio Reconciliation service, which is part of the Markit Trade Processing (MTP) platform, enables portfolio managers to reconcile positions with their counterparties electronically, across all OTC derivative asset classes.
The service extracts information automatically from counterparty collateral statements which typically come in a wide variety of formats. It then checks the extracted information against the user’s portfolio details and flags discrepancies.
Markit launched the Portfolio Reconciliation service in September 2006 in response to the increasing use of collateral in the OTC derivative markets, leading to an onerous portfolio reconciliation process.
“We are extremely pleased that Risk has recognised our contribution in the OTC derivative trade processing arena. Our Portfolio Reconciliation service provides portfolio managers with the ability to reconcile their positions quickly and accurately, which reduces operational risk and provides clients with a clear understanding of their true exposure,” says Jeff Gooch, executive vice president and head of Trade Processing and Valuations, Markit.
MTP Portfolio Reconciliation is integrated with Markit’s affirmation, confirmation and portfolio valuation services. Portfolio managers interviewed by Risk Magazine stressed the importance of an integrated trade processing solution for reducing operational risk.