Markit Launches FX Trade Confirmation Service

The service matches legally binding trade confirmations with FX options trade terms which are centrally recorded, designed to improve efficiency for post-trade management. The service also includes electronic, auditable tools for managing options exercise, removing the need for manual processes such as phone or emails.

"The pace of innovation in trade execution must be matched by advances in post trade processes and we are pleased to have worked with the industry to develop this new service for the FX markets," says Matthew Hill, director and head of Markit's FX trade confirmation service.

Hill also confirmed Markit would expand the service to additional FX products.

Over 50 asset managers have signed on for the service, according to Markit, with Citi and JP Morgan the first to register confirm FX options trades.

"The bilateral confirmation process plays a central role in mitigating operational risk," says Mike Lawrence, managing director and chief administrative officer for FX and Local Markets at Citi. "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."