Traiana Signs Up Six Banks To Clearing Network
March 18 2012 - 8:30PM
Dow Jones News
Six major banks have signed up to ICAP PLC-owned (IAP.LN)
Traiana's clearing network, helping it to steal a march on its
rivals as the foreign-exchange industry prepares for a long-awaited
overhaul of regulations governing derivatives trading.
Citigroup Inc. (C), Bank of America Merrill Lynch (BAC),
Deutsche Bank AG (DB), JP Morgan Chase & Co. (JPM), Morgan
Stanley (MS) and UBS AG (UBS) have signed up to the service, known
as Harmony CCP Connect, Traiana said Monday.
Traiana, which provides port-trade services like credit checks
and financial messaging, and helps to connect banks with trading
exchanges, said Harmony CCP Connect made the clearing process
simpler by providing a direct line to the clearer.
"Traiana has the connections in place to the clearing houses,
clients and counterparties... [and] ties into our existing FX
systems and processes," Andrew Coyne, head of FX prime and
e-commerce product at Citigroup, said in a release.
Clearing houses LCH.Clearnet Group Ltd.,
IntercontinentalExchange Inc. (ICE), CME group Inc. (CME) and
Singapore Exchange Ltd. (S68.SG) are among those to have said they
will use Harmony CCP Connect.
Announced last year, Harmony CCP Connect offers trade routing,
affirmation, matching, allocation and reporting for centrally
cleared foreign-exchange options and non-deliverable forwards,
between institutions and clearing houses, as required by the U.S.
Dodd Frank Act and the European Union's European Markets
Infrastructure Regulation.
Central counterparties have been written into the regulation to
reduce the counterparty, systemic and credit risks associated with
over-the-counter derivatives trading, in line with long-standing
pledges by the Group of 20 industrialized and developing economies
to bring greater stability to financial markets by the end of
2012.
Traiana's service isn't unique to the market--other providers
such as Tullett Prebon PLC (TLPR.LN) and GFI Group Inc. (GFIG) are
expected to launch similar services in the coming months.
-By Alexandra Fletcher, Dow Jones Newswires; 44 20 7842 9462;
alexandra.fletcher@dowjones.com @djfxtrader
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