On Wednesday, MarkitSERV, the electronic trade processing service for over-the-counter (OTC) derivative transactions announced it will connect with CME Group to clear regulated OTC FX (foreign exchange) transactions; this has currently been limited to non-deliverable forwards (NDFs).
MarkitSERV’s CME FX clearing interface underwent an upgrade and it can now accommodate new regulatory reporting obligations, member and client clearing workflows. Numerous MarkitSERV clients are now undergoing final testing.
In May, the interface will be further enhanced with clearing support for cash settled forwards (NDFs for G10 currencies). ?Back in August 2012, CME and MarkitSERV initially connected for FX client clearing.
Derek Sammann, Senior Managing Director, Interest Rates and FX at CME Group, said in a press release, “MarkitSERV and CME Group have a common commitment to delivering clearing processing excellence across all asset classes.??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.”
Keith Tippell, Director and Co-Head of FX at MarkitSERV, added, “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.”