Trayport Limited, the leading provider of multi-asset broker trading solutions, today announced its GlobalVision Broker Trading system will clear over the counter (OTC) products including oil, carbon emissions, freight transactions, power and natural gas through CME ClearPort.
CME ClearPort is a post-trade clearing service that helps mitigate counterparty risk by clearing OTC transactions across multiple asset classes worldwide.
Trayport is helping its broker clients access clearing systems that are seeing a growing use created by new OTC energy market opportunities. The connectivity from Trayport's GlobalVision Broker Trading system to CME Group's CME ClearPort service is the third link to a clearing house announced by Trayport. Access provided to other clearing houses includes NOS and LCH Clearnet.
By providing straight-through processing from Trayport's GlobalVision Broker Trading System, brokers will be able to access CME ClearPort directly. This automated connectivity reduces operational risks associated with entering transaction data manually. Market participants can customise their front-end software to meet their particular trading requirements while efficiently accessing post trade clearing services on-line with CME ClearPort.
"We are very pleased to be able to offer our brokers access to CME ClearPort. This is another important step in providing our clients with straight-through OTC clearing capabilities. As our clients' markets continue to move towards central counterparty clearing, it is important that our GlobalVision Broker Trading System remains at the forefront of these developments. This new functionality provides automated two way communication with CME Clearport, giving our broker clients a clearing status and ID for trades submitted for clearing. The implementation also offers the flexibility of adding further clearing plug-ins for the future," said Dan Smith, Head of Broker Trading Systems, Trayport.
Brokers wanting to trade these contracts must first establish an account with a NYMEX clearing member firm. Margin requirements are netted against other cleared positions to reduce costs and improve cash flow.