ICAP-owned Traiana, the post trade technology group and major clearing house LCH.Clearnet are set to provide a straight-through-processing (STP) offering for clearing equity trades related to OTC CFD equity swaps.
The integrated infrastructure will provide Traiana Harmony, which connects executing brokers and equity swap counterparties with real-time connectivity to LCH.Clearnets equity clearing service, bringing greater automation and reduced risk to CFD market participants.
By streamlining post-trade processes in the fast growing CFD marketplace, additional growth opportunities will be unlocked for all market participants.
Traiana Harmony is the largest CFD post-trade network in the world, and is used by over 60 executing brokers, twelve of the worlds largest equity swap counterparties, and a growing group of buy-side firms.
Harmony automates the entire CFD equity swap lifecycle including trade give-ups, client-to-broker allocations, client-to-bank swap confirmation processes, and now OTC equity clearing. With the integration of LCH.Clearnet, equity trades which were traditionally settled bilaterally between brokers and swaps counterparties can now be easily submitted to the clearing house to eliminate counterparty risk and provide greater efficiencies.
LCH.Clearnet has more than a decades experience in clearing equities and OTC transactions and was the first clearing house in Europe to offer a clearing service for CFDs, says Wayne Eagle, Executive Director of EquityClear at LCH.Clearnet. We welcome this opportunity which underscores our dedication to add value and security to the market and are delighted to be working with Traiana to bring significant benefits to CFD market participants.
(LB)