13 Aug 2009, Alice Fletcher, Risk magazine
Having received regulatory approval last week from the UK Financial Services Authority and the US Department of Justice, MarkitServ will be formally launched in September.
The partnership was first announced in July 2008, with the company launch expected to follow within a couple of months. A MarkitServ spokesperson declined to comment on the reasons for the delay.
The joint venture combines Markit's Markit Wire platform and its other trade-processing services, including Markit Trade Manager, Markit Tie Out and Markit PortRec, with DTCC's Deriv/Serv platform, AffirmXpress, MCA Xpress and Novation Consent services.
"Recent market events have accelerated the need to reduce operational risk, streamline processing, and improve the safety and soundness of the OTC derivatives markets," said Jeff Gooch, MarkitServ's chief executive officer. "Our combined solution will help to achieve this and will provide a single gateway for processing OTC derivatives transactions globally."
The new company aims to automate a substantial amount of the remaining paper volume as well as improve the speed and efficiency of existing electronic confirmations.