Northern Trust has reached an agreement with Markit, a financial information services company, in an attempt to enhance post-trade processing including reconciliation and confirmation services for OTC derivatives.
Markit will provide trade confirmation and position reconciliation services through its Trade Manager, PortRec, and Valuations Manager platforms in addition to independent portfolio valuations. Northern Trust expects to roll out these services in the second and third quarter this year.
This service offering is part of a multi-year strategic investment Northern Trust is making in its derivative product servicing and reporting capability.
The OTC post-trade processing has become increasingly important in recent months after the Obama administration put forward a plan that would cause a paradigm shift in the world of over-the-counter (OTC) derivatives.