MarkitSERV To Become Primary Gateway for Central Clearing
MarkitSERV said it will be a primary gateway to central clearing and will offer expanded services for electronic allocation delivery of derivatives trade for clients of BlackRock Solutions’ Aladdin Enterprise Investment System.
MarkitSERV provides an electronic trade processing platform for OTC derivative transactions. Yesterday, MarketsSERV also said it enhanced its application programming interface (API) to provide buy-side firms, like those supported by BlackRock Solutions, with a consistent user interface for real-time management of post-trade activities, including clearing and allocation delivery, across all major asset classes in the derivative market.
To help buy side firms comply with pending mandates to centrally clear certain derivative transactions, MarkitSERV has obtained certification by or established links to, LCH.Clearnet, Chicago Mercantile Exchange and IDCG for direct submission of interest rate derivative transactions for clearing, and to Chicago Mercantile Exchange, ICE Trust and Eurex for direct submission of credit derivative transactions for clearing. MarkitSERV is engaged with over a dozen clearinghouses worldwide and will link to more as they launch.
Jeff Gooch, Chief Executive Officer of MarkitSERV, said: “With our new functionality and connectivity to Aladdin, investment managers can now automate the complete life cycle of an OTC derivative transaction, from affirmation and confirmation to allocation delivery and clearing through MarkitSERV’s single, real-time interface. In addition, with links to multiple clearinghouses and more on the way, we give the buy side flexibility in this new environment focused on clearing.”
Through MarkitSERV’s new functionality and enhanced API, Aladdin users will gain direct connectivity to central clearinghouses, the ability to deliver allocation details electronically, and access to a new single sign-on portal to manage exceptions, said the company’s release.
Throughout the post-trade process, MarkitSERV will update the user’s Aladdin dashboard dynamically with the status of the trade. Users will benefit from a two-way, real-time single interface to manage all post-trade requirements of cleared and non-cleared derivative trades, according to the release.
Aladdin maintains over $9 trillion in security and derivative positions across BlackRock Solutions clients. Aladdin has interfaced with MarkitSERV to confirm derivative transactions and process life-cycle events, such as novations, electronically since 2008.
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio
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