Service providers can connect to central counterparties (CCPs) for the clearing of over-the-counter foreign exchange derivatives through
a new service launched by software provider Traiana. Citi was the first firm to adopt the new solution.
Harmony CCP Connect provides comprehensive connectivity to CCPs through the Harmony network, including trade routing, affirmation, matching, allocation, and reporting for centrally cleared OTC foreign exchange (FX) options and non-deliverable forwards (NDFs).
Citi was the first customer of the solution. Andy Coyne, global head of FX prime brokerage at Citi, said: “In the future, the client trading environment will include both cleared and non-cleared trades. In this new world it will be imperative to have a solution that handles both. Given that the majority of FX prime brokerage trades already go through Harmony, including NDFs and options, Traiana is the natural choice to provide connectivity to the CCPs as well.”
Gil Mandelzis, CEO, Traiana, said: “The addition of central clearing in these FX instruments means that the complexity of trading and processing for clients will increase significantly and as such the role of the prime broker becomes even more important."
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