MarkitSERV and CME Group have connected to support clearing of OTC foreign exchange transactions, currently limited to non-deliverable forwards (NDFs).
MarkitSERVs CME FX clearing interface has been updated to accommodate new regulatory reporting obligations, with member and client clearing workflows in the final stages of testing with a number of MarkitSERV clients.
In May MarkitSERV will add clearing support for cash-settled forwards for NDFs for G10 currencies, the firm says.
MarkitSERV and CME Group have a common commitment to delivering clearing processing excellence across all asset classes, says Derek Sammann, senior managing director for Interest Rates and FX at CME Group. In addition to new FX clearing support, MarkitSERV clients already benefit from our established and proven clearing connectivity for interest rate transactions. As the OTC markets evolve in a new regulatory environment, we are ready to support the needs of our global client base through choice whether exchange-traded or OTC clearing services.
MarkitSERV FX processes more than 10,000 NDF FX clearing submissions to FX central counterparties (CCPs) every month, representing 99.9% of all cleared FX transactions globally. CME and MarkitSERV first connected for FX client clearing last August.
Keith Tippell, director and co-head of FX at MarkitSERV, says: We have a long-standing relationship with CME Group supporting clients rates and credit clearing workflows. The addition of new FX clearing connectivity to support evolving regulatory obligations further enhances our clearing proposition and service offering and reinforces our commitment to delivering the most flexible, efficient and future-proof clearing connectivity and support to all FX market participants.
(CG)