Formicary has been engaged with LCH.Clearnet for over five years, initially providing technical assistance with SwapClear's successful handling of the Lehman Brothers default. The technology consultancy has since played an integral role in several initiatives at LCH.Clearnet, including the development of the ClearLink trade interface and various member-facing applications, such as tools for margin simulation and collateral management.

Formicary's Clearing Group has helped a number of organisations to attain SwapClear membership and has enabled others to integrate their derivatives trading systems with SwapClear processes. Formicary's knowledge of SwapClear business practices and technology enables it to provide both existing and prospective members with efficient working solutions which comply with CCP membership requirements. Services include onboarding new members, design and implementation of default management procedures, margin replication, reporting and reconciliation automation, and trading and risk systems integration. These services and Formicary's DMP solutions provide Formicary's clients with a solid foundation and the ability to grow in line with new service offerings from LCH.Clearnet and changing industry regulation.

"Getting the technology implementation right is vital in this ever-changing OTC trading environment", says Dee Dervish, director at Formicary. "Attaining formal CCP2 membership demonstrates both our experience and our commitment to offering SwapClear members first-class technology integration solutions, enabling them to concentrate on their business while minimising the technology burden of increasing regulation.

"As a CCP2 partner, we are well positioned to put our specific technical integration skills, clearing knowledge and experience at the service of LCH.Clearnet SwapClear members and end users, helping them to minimise the costs of LCH.Clearnet membership."