TECHNOLOGY

IHS Markit to automate settlement and margin payments for FX derivatives

IHS Markit has partnered with LCH SwapAgent and CLS to automate settlement and margin payments. 

By Joe Parsons joe.parsons@strategic-i.com November 07, 2017 1:29 PM GMT

IHS Markit has launched a new technology solution enabling FX traders to fully automate settlement and margin payments in the cross-currency swaps market.

Through a partnership with CLS and LCH SwapAgent, its post-trade service for non-cleared derivatives, will automate swaps payments, including initial and final notional exchange solutions though CLS, and variation margin payments with SwapAgent.

With IHS Markit’s flagship MarkitSERV, it aims to help firms reduce the financial and operational risk throughout the trade lifecycle.

“These advances demonstrate how the network, workflow and integrations provided by MarkitSERV remove the need for human intervention in post-trade processes, helping firms improve efficiency and reduce risks,” said Claire Lobo, head of business development at MarkitSERV, IHS Markit.

MarkitSERV will also establish a new connectivity to LCH SwapAgent to deliver interest rate swaps trade data, which will be used as the central calculation agent for variation margin and to settle cash and collateral exchanges.

“Connecting to MarkitSERV will offer our members a way of accessing our cross-currency swaps service, when it goes live later this year,” said Nathan Ondyak, global head of LCH SwapAgent. 

“LCH SwapAgent has been launched with significant support from the market, and in that spirit it was important that we engage with MarkitSERV as the trade processing platform of choice for many firms.”