The firms say their single, automated workflow system will dramatically improve the processing of over-the-counter (OTC) derivative transactions for mutual clients, whatever the asset class or complexity of the instrument.
Users will be able to pass data from Calypso’s trade capture system to Markit’s trade processing platform, automating post-trade services including trade day affirmation, DTCC trade confirmation, non-STP confirmation workflow and portfolio reconciliation. Markit Trade Processing also facilitates novation, termination and dispute resolution via Markit Connex, a secure instant messaging service.
The US Federal Reserve met dealers and their regulators in September to discuss settlement backlogs and operational risks in the banks’ OTC derivative businesses. Progress in tackling trade processing problems in the credit derivatives market was reviewed, while the need to improve operations in the equity derivatives market was highlighted.
Leo Schlinkert, executive vice president and head of trade processing and distribution at Markit, says that the company is focused on helping the industry achieve greater operational efficiency at a time of dramatic market growth in the OTC derivative markets and increased regulatory concern over the infrastructure supporting these markets.
