18 December 2017
visit www.avoka.com

NEX Optimisation provides central clearing connectivity for FX risk mitigation service

06 November 2017  |  1441 views  |  0 Source: NEX Group

NEX Optimisation, which helps clients reduce complexity and optimise resources across the transaction lifecycle, announces today that it has provided central clearing connectivity for its FX risk mitigation service in non-deliverable forwards.

The clearing connectivity capability enables dealers to flag trades that are part of a risk mitigation cycle for automatic submission to a central counterparty clearing house (CCP).

Clients of the Reset FX risk mitigation service can now benefit from direct connectivity to CCPs allowing trades matched between two counterparties to be submitted directly for clearing rather than having to be re-submitted for secondary matching prior to communication to a CCP.

Currently, the majority of centrally cleared FX transactions are executed on electronic venues or represent the component trades of a risk reduction cycle. These trades are executed/processed across multiple venues and are then submitted for clearing on a voluntary basis as part of a two-step process.

NEX Optimisation has provided clearing connectivity for the risk mitigation service, following consultation with FX market participants, including dealers, clients, execution venues and clearing members, who were keen to establish a more efficient clearing process that mirrored the operational practices established for swaps under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Ken Pigaga, CEO of NEX Optimisation, said: “By offering central clearing connectivity to Reset clients, we can streamline their FX cleared trade workflow and make trade processing far more efficient. This is another example of how NEX Optimisation’s unique portfolio of services, when leveraged, can become even more powerful and transform existing OTC post-trade processes.”

Steve French, Head of Connectivity and Messaging, NEX Optimisation, said: “The automation of existing manual FX clearing workflows is gaining focus due to the increase in clearing by both dealers and clients and the introduction of regulatory requirements for instruments cleared on a voluntary basis under MiFID II/MiFIR. Market participants are looking for consistency across their cleared, bilateral and tri-party trade workflows on a global basis. This service will help ensure regulatory compliance while simplifying post-trade processes.”

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.response.ncr.comvisit www.ebaday.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11287 views comments | 3 tweets | 3 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
10262 views comments | 21 tweets | 24 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7791 views comments | 19 tweets | 22 linkedin
Digital banking startup Loot secures £2.2 million seed roundDigital banking startup Loot secures £...
7505 views comments | 5 tweets | 11 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7433 views comments | 6 tweets | 26 linkedin

Featured job

Find your next job