A global electronic give-up agreement system – enabling brokers, clearing brokers and their customers to execute such agreements online – has been launched in a collaborative venture between Washington-based Futures Industry Association (FIA) and London-based price information service Markit.
The electronic system is expected to be available to futures market participants in February 2007 and is designed to reduce execution costs by removing the need for paper-based documentation.
Risk News has learnt that the roll-out of the platform will have a second phase which will link the service with major exchanges, including the New York Stock Exchange, Euronext, Chicago Mercantile Exchange and Chicago Board of Trade.
“The service will significantly reduce the cost and the time it takes to establish give-up agreements for both customers and brokers,” said Richard Berliand, chairman of the FIA, who is a managing director, futures and options at JP Morgan. “The feedback from both the industry and the customers has been extremely positive.”
Banc of America Securities, Barclays Capital, Bear Stearns, Calyon Financial, Citigroup, Credit Suisse, Deutsche Bank, Fimat Group, Goldman Sachs, JP Morgan, Lehman Brothers, Man Financial, Merrill Lynch, Morgan Stanley and UBS have all pledged to support funding of the system.
Data will be delivered electronically to exchanges, clearing houses and customer systems, streamlining execution brokerage practices. The platform will be open to all executing and clearing brokers, including non-FIA members.
More on Infrastructure
US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say
High-frequency traders have been viewed with suspicion for some time. Now critics claim exchanges are conspiring with the traders to develop tools that benefit them and disadvantage ordinary investo...
The benefits of local trade repositories outweigh the possible disadvantages of multiple reporting requirements, says executive director of HKMA’s financial infrastructure unit
Sign up for Risk.net email alerts
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.