MarkitServ, which provides a leading electronic trade processing platform for OTC derivative transactions, today announced that it will be a primary gateway to central clearing and will offer expanded services for electronic allocation delivery of derivatives trades for clients of BlackRock Solutions' Aladdin Enterprise Investment System.
MarkitSERV has also enhanced its application programming interface (API) to provide buy side firms, like those supported by BlackRock Solutions, with a consistent user interface for real-time management of post-trade activities, including clearing and allocation delivery, across all major asset classes in the derivative markets.
To help buy side firms comply with pending mandates to centrally clear certain derivative transactions, MarkitSERV has been certified by, or established links to, LCH.Clearnet, Chicago Mercantile Exchange and IDCG for direct submission of interest rate derivative transactions for clearing, and to Chicago Mercantile Exchange, ICE Trust and Eurex for direct submission of credit derivative transactions for clearing. MarkitSERV is engaged with over a dozen clearinghouses worldwide and will link to more as they launch.
The expanded allocation delivery system provided by MarkitSERV will allow seamless transmission of interest rate and credit derivative trade allocations to broker-dealers' front-office systems. Allocation delivery is the process by which a fund manager specifies how a position resulting from a single transaction should be allocated among the accounts or funds it manages.
Jeff Gooch, Chief Executive Officer of MarkitSERV, said: "We are proud to work with BlackRock Solutions Aladdin clients. With our new functionality and connectivity to Aladdin, investment managers can now automate the complete life cycle of an OTC derivative transaction, from affirmation and confirmation to allocation delivery and clearing through MarkitSERV's single, real-time interface. In addition, with links to multiple clearinghouses and more on the way, we give the buy side flexibility in this new environment focused on clearing."
Through MarkitSERV's new functionality and enhanced API, Aladdin users will gain direct connectivity to central clearinghouses, the ability to deliver allocation details electronically, and access ss to a new single sign-on portal to manage exceptions.
Throughout the post-trade process, MarkitSERV will update the user's Aladdin dashboard dynamically with the status of the trade. Users will benefit from a two-way, real-time single interface to manage all post-trade requirements of cleared and non-cleared derivative trades.
Aladdin maintains over $9 trillion in security and derivative positions across BlackRock Solutions clients. Aladdin has interfaced with MarkitSERV to confirm derivative transactions and process life-cycle events, such as novations, electronically since 2008.
Robert Goldstein, Head of BlackRock Solutions, said: "Meeting the pending obligation to clear derivative trades is a major focus for the industry, and MarkitSERV offers a robust and flexible solution. In addition, the ability to dynamically manage post-trade activities in real time creates significant efficiencies for our clients. We are pleased that MarkitSERV has enhanced its functionality in such meaningful ways and with the degree of connectivity we've achieved."