Risk Reduction when Settling Cross Currency Swaps

Currency Swaps settlement can involve very large payments leading to settlement risk - an innovation from Markit and CLS aims to eliminate aspects of this.

OTC Derivatives Regulatory Reforms and the changing role of Middleware platforms

In response to the financial crisis that began in 2008, the leaders of the Group of Twenty (G20) nations agreed to a series of measures following concerns about systemic risks in over-the-counter (OTC) derivatives markets. The financial Stability Board (FSB) tasked with revamping the system initiated steps ranging from transparency of the over-the-counter (OTC) derivatives market, protecting against market abuse and mitigating systemic risk.

Push, Ping and Charm

Last week we announced our CHARM product with a press release titled, Swap Margin Check in 10 milliseconds.

In this article I will provide the detail behind our thinking, covering:

Jeff Gooch becomes CFO of Markit

Mentioned already in some places on-line (including my twitter feed) but here's the details:

Markit, a leading, global financial information services company, today announced the appointment of Jeff Gooch as chief financial officer.

Markit buys out DTCC from MarkitSERV

The JV between DTCC & Markit which combined the original confirmation / affirmation business of SwapsWire & DerivSERV has now become solely owned by Markit. See Press Release. I wonder if the SERV will be replaced with Place.

Markit and Traiana? Is there room for both?

As SEF rules will come into force later this year, CreditLink by Traiana and Credit Centre by MarkitSERV, both prepare themselves for launch even though both concede there may only be room for one, and dealers have been pressing for a single hub.  One more link in the central clearing chain is the need to ensure that an executed trade won't be rejected by a CCP due to a breach of either the client's credit limi

In the papers: Markit set for £4 billion market list

Markit set for £4 billion market list after 13 years of rapid growth: Financial data provider Markit was testing the waters and talking to advisers about a float that would value the firm at above £4 billion, according to reports. via In the papers: Markit set for £4 billion market list.

Poll results from Markit London Conference: 70%+ clueless and hazy

Look for the chart that says 70%+ of firms are 'hazy' or 'clueless' about the effect of the new regulations on their margining processes. An opportunity there I think. The PDF download is near the top of the page above the agenda.

Outlook for OTC Markets - London.

MarkitSERV now feeding confirmed trades to the DTCC Trade Repository

Interesting new data connection in the OTC market. Provided you opt-in, MarkitSERV can now send your confirmed OTC trades to the DTCC Glorious Trade Repository (GTR) in the UK. The US Trade Repository is waiting for CFTC approval to begin operations. Due to issues covered elsewhere, the US repository will be for US data only, and the UK repository will a be for global data including the US.

I have also confirmed the following regarding cleared trades: