When our client implemented Central Counterparty Clearning, they used MarkitWire as the matching platform and selected Phi as the project partner.
Client Requirements
To satisfy internal requirements, online risk and limit checks – as well as information for pricing the trade – should be entered into the trading system directly, while making the trade. The trade details entered on the trade-matching platform are subsequently reconciled against the internal trade status before external confirmation happens on the trade-matching platform.
Solution
Across a two-year period the Phi team developed and implemented a CCP clearing approach that provides clear operating advantages. The key is significantly improved functionality that includes:
Outcome
Online reconciliation of MarkitWire messages ensures correct trade capture and confirmation and it’s done in a second. The new solution replaces visual reconciliation between two GUIs, which also includes the risk to oversee differences. The automated Clearing update in the trading system, which again takes just a few seconds, avoids manual control of the Clearing House reports or Web services. All-in-all, the client now enjoys the benefits of a true two-click solution: Reconcile & Confirm.
“For us now, Central Counterparty Clearing via MarkitWire facilitates trading at lower prices and reduced risk with a wider client base. Phi Partners helped us significantly to make this important transition.”
Michael Gruner, Client Project Manager for CCP.