Markit says it is launching a new service that enables banks to affirm FX (foreign exchange) trades. It says that seven inter-dealer brokers and eight banks have signed to use MarkitSERV FX Broker Affirmation, which provides a platform for banks to consolidate trade notifications from multiple inter-dealer brokers and validate transaction data before they are processed into trading and risk systems.
Broker Affirmation covers FX spots, forwards, swaps, non-deliverable forwards, non-deliverable swaps, vanilla options, non-deliverable options, barrier options and digital/binary options. The service can also be used when multiple products are combined in strategy trades.
David Perkins, managing director of Electronic Broking EMEA at Tullett Prebon, said: “Our adoption of this service underscores our commitment to meeting the needs of our clients in what is a rapidly evolving market environment. This new service will further enhance our strong franchise within the foreign exchange market.”
Robin Wemyss, global head of FX Options at JP Morgan, said: “Centralising trade affirmation for OTC FX is an important step in improving post-trade operations. Trade execution in FX is fragmented across multiple brokers and other venues and we welcome innovation such as this that helps us consolidate systems and streamline operations.”
Chris Leaver, managing director and head of business development for MarkitSERV FX, said: “Managing industry processes such as trade affirmation using a central network helps the FX market reduce complexity, cost and risk. By connecting participants and standardising trade management workflow, MarkitSERV helps firms scale their businesses, become more efficient and remain operationally resilient as the FX market grows.”