Northern Trust is to strengthen its over-the-counter derivatives processing platform for third party clients with the addition of a suite of post-trade confirmation matching and reconciliation services from financial information outfit Markit.
Under the agreement, 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 to its custody and investment operations outsourcing clients in the second and third quarter this year.
The new suite of services will be bolted on to Northern Trust's existing Summit core platform from Misys.
"We are committed to helping our clients reduce operational risk throughout the post-trade lifecycle," said Peter Cherecwich, chief operating officer for Corporate & Institutional Services at Northern Trust. "The addition of Markit's confirmation matching and reconciliation services will allow us to provide them with greater transparency and efficiency after the point of trade."
He says the new functions are part of a multi-year strategic investment Northern Trust is making in its derivative product servicing and reporting capability.