MarkitSERV Launches OTC Pre-Trade Credit Checking Facility

The new service provides market participants that access clearing through Futures Commission Merchants (FCMs) a consolidated view of credit lines available to them, which updates through the day. The utility will mitigate the risk of trade failure by interrogating the credit information at the point of execution or price posting, and can be used for trades conducted away from swap execution facilities (SEFs) or bilterally through voice. Technology vendor Cinnober provided the low-latency technology required for the service through its TRADExpress product.

"As a trusted provider of financial market infrastructure, MarkitSERV is highly-qualified to offer clearing certainty through our Credit Centre," says Jeffrey Maron, managing director at MarkitSERV. "Dodd-Frank requirements give rise to a series of challenges for the industry around electronic trading and central clearing. The need for trade certainty is top of the list. Our ultra-low-latency service will allow participants to transact with confidence."