The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Markit Integrates MarkitSERV and Valuations Service to Increase Efficiency and Decrease Cost

Markit has connected its MarkitSERV trade processing service for OTC derivatives to its portfolio valuations service, allowing trades processed by MarkitSERV to be captured as they are confirmed, portfolios to be updated and valuations made without the need for a separate trade feed. As well as increasing operational efficiency, the connectivity is expected to reduce costs and discrepancies in trade details.

The first phase of the integrated service covers interest rate swaps, swaptions and overnight index swaps and is available immediately. Following phases are planned to cover additional asset classes, including more complex instrument types, and map these to the hosted portfolio valuations service.

Padmesh Thuraisingham, managing director of portfolio valuations at Markit, explains: “We have combined two different platforms designed for two different purposes for the benefit of our clients. Existing clients who are using MarkitSERV as a trade confirmation platform and then sending portfolios to us for valuation can now use MarkitSERV to feed trade economics into the valuations platform, making the valuations process far more efficient. Clients that are using MarkitSERV to confirm OTC derivatives, but do not use Markit’s valuation service, can now use the valuation service without having to build a trade feed into the platform.”

As well as providing greater efficiency, reduced costs and more consistent trade data, the connectivity will help to solve problems such as the valuation of trades that are confirmed between the time a firm sends a portfolio for valuation and the time Markit delivers a valuation report. By permissioning portfolios to be automatically updated using the feed from MarkitSERV, all trades captured before valuations are calculated are included in the portfolio.

The connectivity could also support the confirmation, capture and valuation of, perhaps, one trade at a time, or a few trades, at a time after a complete portfolio has been valued, although Thuraisingham notes that this is not yet standard market practice.

The integration of real-time trade data from MarkitSERV into the derivatives portfolio valuations platform follows the recent integration of the valuations platform with the company’s risk platform, moves designed to integrate Markit’s data analytics, processing and valuations capabilities, and deliver an efficient and full range of calculation and reporting services.

Thuraisingham concludes: “Whatever clients have in their portfolios we can value and we can make it easy for them to communicate with the platform and access additional services. By integrating platforms we can move towards being a one-stop-shop. This is important for clients that want to reduce costs and complexity, and are looking to vendors to consolidate their platforms. We are in a good position here.”

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

SimCorp Extends Partnership with SIX as it Builds Out Open Platform for the Buy-Side

SimCorp has extended its partnership with SIX to provide clients with global reference, pricing and regulatory data directly into SimCorp Dimension. The move responds to buy-side demand for greater flexibility and choice in investment operations, and continues SimCorp’s drive to create Open Platform, an open and value driven ecosystem to support the buy-side with greater...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

Practicalities of Working with the Global LEI

This special report accompanies a webinar we held on the popular topic of The Practicalities of Working with the Global LEI, discussing the current thinking around best practices for entity identification and data management. You can register here to get immediate access to the Special Report.