Equinix, Inc. (EQIX), the global interconnection and data center company, today announced that MarkitSERV, the most widely used electronic trade processing service for over-the counter (OTC) derivative transactions, deployed its Credit Centre in Equinix International Business Exchange™ (IBX®) data centers in New York and Chicago.
Home to more than 100 exchanges and trading platforms, Equinix enables direct access between MarkitSERV and the broad ecosystem of major players and newcomers to the OTC market already inside Equinix, including a wide range of suppliers, customers and partners.
Highlights / Key Facts
Since the Dodd-Frank Act was enacted in 2010, OTC derivatives transactions have been moving to electronic and hybrid execution platforms. MarkitSERV chose to deploy infrastructure inside Equinix to better serve market participants by providing a simplified, efficient access structure to deliver their best of breed services.
Optimal local area and wide area connectivity inside Equinix allow a low barrier to entry for pre- and post-trade service providers such as MarkitSERV. Financial services companies can simply "plug in" to the wide range of ecosystem participants and get their business up and running immediately.
MarkitSERV Credit Centre is a centralized, ultra-low-latency, pre-trade credit checking system that links traders to trading venues, clearinghouses and futures commission merchants in the OTC derivative markets. By enabling execution venues to check credit lines before prices are displayed and orders executed, Credit Centre eliminates the risk that trades may fail at the clearinghouse due to insufficient credit.
MarkitSERV provides a single gateway for OTC derivative transaction processing globally. The solution helps reduce operational risk, streamline processing, and improve the safety and certainty of the OTC derivatives markets by simplifying and automating trade processing across all major asset classes, including credit, interest rate, equity and FX.
More than 100 dealers, 70 inter-dealer brokers and 2,500 buy-side institutions are connected to MarkitSERV services, which handled in excess of 20 million confirmations in the last year.
Stewart Orrell, managing director, Global Financial Services, Equinix:
"We are delighted to havlighted to have MarktSERV join the growing ecosystem inside Equinix. By deploying their critical infrastructure among the existing trading ecosystems in New York and Chicago, MarkitSERV is now strategically positioned to directly connect to a wide range of endpoints in the emerging OTC ecosystem and more efficiently serve client requirements."