Traiana, the leading provider of post-trade solutions, and LCH.Clearnet Ltd (LCH.Clearnet), the global leader in clearing, are set to provide a STP solution for clearing equity trades related to OTC CFD equity swaps.
The integrated solution will provide Traiana Harmony-connected executing brokers and equity swap counterparties with real-time connectivity to LCH.Clearnet's equity clearing service, bringing greater automation and reduced risk to CFD market participants. By streamlining post-trade processes in the fast growing CFD marketplace, additional growth opportunities will be unlocked for all market participants.
Traiana Harmony is the largest CFD post-trade network in the world, and is used by over 60 executing brokers, twelve of the world's largest equity swap counterparties, and a growing group of buy-side firms. Harmony automates the entire CFD equity swap lifecycle including trade give-ups, client-to-broker allocations, client-to-bank swap confirmation processes, and now OTC equity clearing. With the integration of LCH.Clearnet, equity trades which were traditionally settled bilaterally between brokers and swaps counterparties can now be easily submitted to the clearing house to eliminate counterparty risk and provide greater efficiencies.
"LCH.Clearnet has more than a decade's experience in clearing equities and OTC transactions and was the first clearing house in Europe to offer a clearing service for CFDs", said Wayne Eagle, Executive Director of EquityClear at LCH.Clearnet. "We welcome this opportunity which underscores our dedication to add value and security to the market and are delighted to be working with Traiana to bring significant benefits to CFD market participants."
Roy Saadon, Co-Founder and General Manager of Harmony, Traiana, said: "Harmony Equities for CFD equity swaps is live with most of the sell-side and a fast growing number of buy-side firms, automating the entire STP cycle. Traiana is working in close partnership with market participants to introduce innovative solutions that will unlock further growth and new business models for the benefits of the community. We're excited to partner with LCH.Clearnet to act as the conduit for bringing their innovative clearing solutions to the market".