Post-trade solutions company OSTTRA is enhancing its network to give market participants a real-time view into the status of exchange-traded derivative trades being cleared through Eurex.
The connectivity will enable Eurex to send investment managers booking confirmations for their allocations via OSTTRA ClientLink for exchange-traded derivatives (ETD), delivering live status updates on which trades have been given up, claimed and cleared. This will provide trade certainty in fast-moving markets, OSTTRA says.
Eurex Clearing plans to become the second central clearing counterparty (CCP) after the CME to connect to OSTTRA ClientLink for ETD.
OSTTRA has also worked closely with Eurex on an additional project to enable clients to manage the Next Generation ETD Contracts, currently under development by Eurex and scheduled to go live in March 2023. OSTTRA ClientLink for ETD users are already able to test the new functionality.
Real-time information on trade status is increasingly important in futures markets as more frequent volume spikes create bottlenecks in processing flows, says OSTTRA.
Melanie Weber, senior vice president of derivatives clearing design at Eurex Clearing, says: “We are pleased to support vendors like OSTTRA to deliver much needed transparency to all parties on the trade. By receiving real-time updates, clients will be able to manage operational risk and capital more effectively throughout the trading day.”
Joanna Davies, head of foreign exchange and securities at OSTTRA, comments: “In the past, volumes would increase as a reaction to significant macroeconomic events. Now, every month, we are consistently seeing volume spikes, thus urgently increasing demand for a real-time solution that provides a window into every aspect of the give up and allocations workflow.”
She adds: “The ability to support the entire ETD community with this new flexibility and transparency presents a huge leap in the evolution of both the ETD trade allocation process and the transformation of the ETD workflow.”
