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:

• MarkitWire implementation and connection to the trading system.
• Installation of relevant APIs and tools to import messages.
• Setup of flexible reconciliation between the trading system and the MarkitWire message input.
• Creation of online blotters to display import and reconciliation results.
• Importation of Clearing House reports.
• Development and implementation of a trade detail and cash flow reconciliation between the trading system and the Clearing House.

Outcome

• Automation
• Rationalisation
• Risk Reduction
• Cost Savings

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.