About a-team Marketing Services
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

Subscribe to our newsletter

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.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: FRTB: What still needs to be done before the global deadline of January 2023?

While implementation of Fundamental Review of the Trading Book (FRTB) regulation has been delayed twice for reasons first of complexity and second of the coronavirus pandemic, the final deadline of January 1, 2023 is less than a year away. For banks in scope of the regulation, the time to put necessary risk infrastructure and data...

BLOG

Tractiv Raises $2.25 Million to Build Out Data Tracking Solution

Chicago-based data usage monitoring and tracking specialist Tractiv, formerly known as TradeX, has raised $2.25 million in seed funding to expand its engineering and sales teams. At the same time, the company has added Mark Almeida to its board of directors. Almeida is Limited Partner Advisor at Nyca Partners – which led the funding round...

EVENT

Data Management Summit New York City (Redirected)

Now in its 8th year, the Data Management Summit (DMS) in NYC explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

The Global LEI System – A Solution for Entity Data?

The Global LEI System – or GLEIS – has been in development since the middle of last year. Development has been patchy at times, but much has been done, leaving fewer outstanding issues, but also raising new questions. What’s emerging is a structure for the GLEIS going forward, complete with a mechanism for registering and...