Markit has launched a new trade confirmation service for foreign exchange trades.
The service matches FX option trade terms to generate legally binding trade confirmations which are recorded centrally. This allows counterparties to manage trade lifecycle events.
Citi and JP Morgan were the first to confirm FX options trades using the new service which is part of the MarkitSERV trade processing platform.
In a statement, the company said more than 50 asset managers are now signed up to use the service.
Mike Lawrence, managing director, chief administrative officer, Foreign Exchange and Local Markets at Citi, said 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”.
Conrad Kwok, managing director, FX Derivatives, DBS Bank added: “Centralising the management of FX options will help reduce operational risk and lower costs for banks.
“The market will benefit from the ability to move current manual processes to an electronic platform. This service integrates trade confirmation with exercise management and that is an innovation we welcome.”
The FX trade confirmation service can be accessed using industry standard interfaces as well as Markit’s Trade Manager portal for investment managers. Markit’s trade processing services for FX include confirmation and lifecycle management, STP services for more than 90 trading venues and tools for clearing and trade reporting.