MarkitSERV, Markit’s electronic trade processing service for OTC derivatives, has partnered with OCC to provide trade affirmation, connectivity and trade status messaging services to support OCC’s clearing of OTC equity derivatives.
OCC became the first U.S. clearinghouse to offer clearing services for OTC equity index options when it launched these services for OTC S&P 500 equity index options on April 25. On that day, J.P. Morgan Clearing and Morgan Stanley bilaterally negotiated a trade, which was then affirmed on MarkitSERV’s platform and routed to OCC for clearing.
“The new service from OCC is an important milestone because now all OTC derivative asset classes are being cleared. This highlights how far the industry has moved to satisfy goals set by regulators over the last few years,” says Henry Hunter, managing director and global head of derivatives processing at Markit.
“We are very pleased to have worked with MarkitSERV to launch a clearing solution that will mitigate counterparty and systemic risk in the OTC equity derivatives market. Working with MarkitSERV for the pre clearing trade confirmation and affirmation process is a critical component of this industry solution,” says Michael Cahill, president and CEO of OCC.
Markit Partners With OCC to Clear OTC Equity Index Options
MarkitSERV, Markit's electronic trade processing service for OTC derivatives, has partnered with OCC to provide trade affirmation, connectivity and trade status messaging services to support OCC's clearing of OTC equity derivatives.