Markit and The Depository Trust & Clearing Corporation (DTCC) have announced the 01 September launch of MarkitSERV, a new company that will combine the two organisations electronic trade confirmation and workflow platforms to provide a single gateway for over-the-counter (OTC) derivative trade processing.
The partnership was first announced in July last year, subject to completion of due diligence, regulatory filings and approval by relevant global regulators. Due diligence is now complete and MarkitSERV has received regulatory approval from the U.K. Financial Services Authority and the U.S. Department of Justice.
Jointly owned by DTCC and Markit, MarkitSERV will combine the DTCC Deriv/SERV and Markit Wire trade confirmation platforms to cover all major asset classes including credit, interest rate, equity and commodity derivatives. It will connect multiple market participants and execution venues to downstream processing platforms such as DTCCs Trade Information Warehouse for credit default swaps (CDS). It will also connect to various central counterparty platforms for interest rate swaps and CDS, in collaboration with the DTCC Trade Information Warehouse.
MarkitSERV will comprise the Markit and DTCC flagship trade processing services for affirmation, confirmation, novation, allocation and reconciliation. These include Markit Wire, Markit Trade Manager, Markit Tie-Outs and Markit PortRec in addition to the DTCC Deriv/SERV matching and confirmation engine, MCA Xpress and novation consent service.
MarkitSERV will rationalise costs by removing the need for users to connect to numerous, asset-class specific trade processing systems. Instead, clients will be able to use their existing connectivity to access a wider variety of combined services. The new company will have offices in London, New York and Tokyo.
Markits data and valuation services, and DTCCs Trade Information Warehouse, life-cycle event processing and centralised settlement and payment netting services will remain part of the respective parent companies.