DTCC and Markit to Form Strategic OTC Derivatives Partnership
Markit and The Depository Trust & Clearing Corporation (DTCC) have announced the formation of a new company that will combine Markit’s front- and middle-office trade processing services with DTCC Deriv/SERV’s back-office role in post-trade confirmation and matching services. The new company is being formed to provide a single gateway for confirming over-the-counter (OTC) derivative transactions globally. This aims to allow buy-side and sell-side OTC derivative market participants to confirm trades and to gain access to additional services provided by Markit and DTCC through a common portal. The new company will comprise Markit’s recently acquired Markit Wire platform (formerly SwapsWire) as well as its other trade processing services such as Markit Trade Manager, Markit Tie Out and Markit PortRec. DTCC will contribute its Deriv/SERV matching and confirmation engine, and its AffirmXpress, MCA Xpress and Novation Consent services. Additional services that will not become part of the new company include Markit’s data and valuation services and DTCC’s downstream Trade Information Warehouse, centralised settlement and payment netting services. The new company will also offer automated trade affirmation, trade allocation and novation consent solutions to the market on a cross-product basis. It will initially support both DTCC’s and Markit’s confirmation platforms.