MarkitSERV, the leading electronic trade processing platform for OTC derivative transactions, today announced that live OTC derivative trades delivered by MarkitSERV were centrally cleared by the Singapore Exchange (SGX) and through CME Clearing.
With the addition of SGX, MarkitSERV is the only service to offer direct connectivity to each of the six major central clearing counterparties (CCPs) currently accepting trades, more than any other platform executing or processing OTC derivative transactions.
The transactions delivered by MarkitSERV were cleared by SGX after the launch of its clearing service for interest rate swaps on November 15th. Development Bank of Singapore Ltd. and United Overseas Bank Ltd. are among the institutions using MarkitSERV in conjunction with clearing interest rate swaps through SGX. First in Asia, SGX's OTC clearing service for financial derivatives offers banks reliable risk mitigation capabilities and access to an expanding pool of counterparties.
The transactions delivered by MarkitSERV and cleared through CME Clearing were interest rate swaps involving BofA Merrill Lynch and Nomura Securities International, Inc., a unit of global investment bank Nomura, and their respective institutional clients. CME Clearing, one of the largest central counterparty clearing services in the world operated by CME Group Inc., began clearing interest rate swaps on October 18th.
For each cleared transaction, MarkitSERV was used to affirm the trade, deliver the trade for central clearing and notify the parties that the trade was accepted by clearing brokers and the CCP.
MarkitSERV has delivered inter-dealer interest rate swap trades to LCH.Clearnet for clearing since 2004 and, in December 2009, was the first to deliver a client interest rate swap trade for clearing by LCH.Clearnet.
MarkitSERV has been certified by, or established links to, LCH.Clearnet, CME, SGX and IDCG for direct submission of interest rate derivative transactions for clearing, and to CME, ICE Trust and Eurex for direct submission of credit derivative transactions for clearing. MarkitSERV is also engaged with over a dozen other clearing houses worldwide and will link to more as they launch.
Jeff Gooch, CEO of Ma of MarkitSERV, said: "With connectivity to all the major clearing houses, MarkitSERV is a vital tool for buy side firms and their counterparties clearing OTC derivative transactions. Beyond providing connectivity to the CCPs, MarkitSERV is a comprehensive and cost-effective platform that allows firms to manage their OTC derivative transactions in all asset classes. For cleared, non-cleared and even paper trades, our clients can control confirmation, allocation, novation consent and portfolio reconciliation on one integrated platform."