Markit has launched its new centralised foreign exchange trade confirmation service, part of its MarkitSERV trade processing platform.
The service matches trade terms to generate confirmations, which are recorded on a central system. It includes confirmation and lifecycle management and straight-through-processing services for 90 venues, as well as clearing and trade reporting tools.
It provides tools for managing options exercise and for updating records, and is intended to reduce manual processes and therefore reduce risk.
Citi and JP Morgan were the first to confirm foreign exchange trades using the service, and more than 50 asset management firms have also signed up.
It can be accessed using various industry-standard interfaces, or using Markit’s Trade Manager Portal for investment managers.
Matthew Hill, director and head of Markit’s FX trade confirmation service, said: "The pace of innovation in trade execution must be matched by advances in post trade processes and we are pleased to have worked with the industry to develop this new service for the FX markets.”
“We are committed to helping our customers find efficient solutions to operational challenges and will soon expand this confirmation service to additional FX products.”
Mike Lawrence, managing director and chief administrative officer for foreign exchange and local markets at Citi, said: “The bilateral confirmation process plays a central role in mitigating operational risk.”
“While the cash FX market has well established automated confirmation practices, it is encouraging to see innovation in more complex products and new tools that help the industry become more efficient in managing the post trade requirements of FX derivatives.”
